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Boat buying (financing) woes…what am I missing here?
Posted: 07 June 2012 06:46 AM   [ Ignore ]
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Sorry to start another boat buying thread, but I’m at my wits end in trying to buy a used boat and am wondering if anyone might have some words of wisdom…

I’m wanting to get a used bass boat, aluminum, and the total package length has to be 19’ or less for my garage…so already that imposes some big limitations.

I’ve been pre-approved for more than I want or need, but whatever, I have great credit, got a low rate and they’ll finance 80% of the value.  The problem is, the NADA values seem to be pretty out of whack with the market value…so the perfect 2006 Tracker Pro Team 170tx in excellent shape (with 40 hours on it) that I found, for sale for $7995, books at $5320, which means they’ll finance $4200…now I’m sure that the dealer has a bit of wiggle room, but I doubt they’ll come down $3800…

Too, the NADA value has a default of a 25hp motor and the Tracker I found has a 50hp…if you look up just the motors there’s an $1100 difference, which again, isn’t reflected in NADA (and on their site, there’s no way to account for this kind of difference or the fact that the trailer has a swing-tounge…which, again, adds $200 when you look at just trailers).  And there’s no way to account for condition even though they have a note which says that boats in excellent condition could be worth significantly more.

Every boat I’ve looked up has the same scenario…NADA is muuuuuuuch less than asking price.  I’m getting pretty frustrated…

Words of wisdom?

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Posted: 07 June 2012 10:25 AM   [ Ignore ]   [ # 1 ]
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take a personal loan or put the cost of the boat minus $4200 on a credit card. i have excellent credit rating also and there is always a way.

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Posted: 07 June 2012 11:11 AM   [ Ignore ]   [ # 2 ]
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The NADA costs are not made up.  They are a TRUE representation of the value and RISK to the lender.  Although you feel the boat is worth more, the financial community takes a HARD look at real value (versus our perceived value).  They want to be absolutely certain their investment can be recovered if you default.
My advice (and it’s from an old codger so take that into account) is NEVER borrow anything more than a lender will lend for the boat. c   Remember that this is a DEPRECIATING asset. There is a reason they’ll only lend you so much.  Pay as much CASH for the boat as you can. I have owned 4 boats and never owed anyone a nickel on any of them.  I know that’s not realistic for most folks…..but the advice is still the same…..do NOT borrow more, or use a credit card (unless you can pay that whole balance at the end of the month).  Either come down in the price you can afford to pay, or wait till you have more money saved. 

This is an important decision…..don’t let emotions get in the way.  I’ll guarantee you that your lender won’t !

Good hunting !!!

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Posted: 07 June 2012 11:13 AM   [ Ignore ]   [ # 3 ]
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When I refinanced my boat, they took everything into consideration when determining the value. Meaning, they valued the boat, the trailer, and the motor seperately but then combined all three to reach the total value of the package.

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Posted: 07 June 2012 02:29 PM   [ Ignore ]   [ # 4 ]
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i only suggested a personal loan or use the credit card cause it sounds like he can afford it but might not have that cash on hand at the moment. personally, i would save a little longer or start out with a less expensive boat. then you can upgrade later on. he was looking for a way and i gave him ways. he knows his own finances better than any of us here. if what i gave him is not viable then he has to get the cash to put down on it. sometimes you can’t always get what you want and if you want a boat that bad then you will have to buy less expensive model. if you aren’t cool with that then start saving.

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Posted: 07 June 2012 02:32 PM   [ Ignore ]   [ # 5 ]
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somata - 07 June 2012 06:46 AM

Sorry to start another boat buying thread, but I’m at my wits end in trying to buy a used boat and am wondering if anyone might have some words of wisdom…

I’m wanting to get a used bass boat, aluminum, and the total package length has to be 19’ or less for my garage…so already that imposes some big limitations.

I’ve been pre-approved for more than I want or need, but whatever, I have great credit, got a low rate and they’ll finance 80% of the value.  The problem is, the NADA values seem to be pretty out of whack with the market value…so the perfect 2006 Tracker Pro Team 170tx in excellent shape (with 40 hours on it) that I found, for sale for $7995, books at $5320, which means they’ll finance $4200…now I’m sure that the dealer has a bit of wiggle room, but I doubt they’ll come down $3800…

Too, the NADA value has a default of a 25hp motor and the Tracker I found has a 50hp…if you look up just the motors there’s an $1100 difference, which again, isn’t reflected in NADA (and on their site, there’s no way to account for this kind of difference or the fact that the trailer has a swing-tounge…which, again, adds $200 when you look at just trailers).  And there’s no way to account for condition even though they have a note which says that boats in excellent condition could be worth significantly more.

Every boat I’ve looked up has the same scenario…NADA is muuuuuuuch less than asking price.  I’m getting pretty frustrated…

Words of wisdom?

if you can, take the loan officer out to look at the boat, explain things as you have done here, and then maybe he can bump the NADA value up for you.

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Posted: 07 June 2012 03:15 PM   [ Ignore ]   [ # 6 ]
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somata - 07 June 2012 06:46 AM

I’m wanting to get a used bass boat, aluminum, and the total package length has to be 19’ or less for my garage…so already that imposes some big limitations.

 

...why not just get a bigger boat and throw a cover on it? If your gonna be fishin on any larger lake or any wind, your gonna want a bigger boat. Nothing is nicer in bad wind on a big lake (and the wind doesnt just blow here in NM, it HOWLS, so trust me I know) than riding in a heavy 21’. As for financing, I would just save and save and save. set it up on your account to suck so much out of your checking every week into a savings/boat fund. Until then, join a bass club and fish as a non boater. thats what I have done and I love it. You get to learn alot with the boaters you get paired with. while your fishin, ask them about their boat so that you can get a good idea about what you want.

my 2 cents.

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Posted: 07 June 2012 03:57 PM   [ Ignore ]   [ # 7 ]
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Well, honestly I think you should look at a different brand. Trackers do not have a very good resale value as they are not that expensive to start, and there are a million of them out there.

Look into G3, Alumacraft, and Crestliner. They all make fantastic alum boats, and all have great resale (and appraised) value.

When we did my boat, it was all cash so cant help you on the loan part. But if it was up to me, I would save up for the rest of this year then try to get a good deal this winter for next year. Nothing worse than trying to buy a boat in the peak of the fishing/boating season, they prices are sky high.

There is a 2007 20X2 triton at the local shop here, used. No electronics, no electric motor. Asking $43,900. Boat values at 33,000

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Posted: 07 June 2012 07:18 PM   [ Ignore ]   [ # 8 ]
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BBK - 07 June 2012 03:57 PM

But if it was up to me, I would save up for the rest of this year then try to get a good deal this winter for next year. Nothing worse than trying to buy a boat in the peak of the fishing/boating season, they prices are sky high.

amen on that one.

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Posted: 08 June 2012 08:43 AM   [ Ignore ]   [ # 9 ]
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Thanks for the feedback guys, having a variety of opinions helps in navigating this process.  It’s just a new thing for me, so getting oriented to the ins and outs has had a bit of a steep learning curve…if it were a truck or high end guitar I’d be fine, those I’ve bought so I know how it works and what to expect…lol!!!!

The size limitation on the boat is not just because of my garage but also the alley into our garage and parking pad behind our house…there’s no room to swing a trailer with my truck, so I need something small and manuverable enough that I can drop the trailer and push it around by hand…otherwise I’d have gotten a sweet brown metalflake Skeeter back in March.  Too, as my first real boat, I want to start out modestly. As much as I’d love a tricked out glass rig, it seems like I should learn a bit more about boating before going that route.  I mostly fish smaller waters here in Northern Indiana and am used to getting blown around on my 10’ plastic pontoon, so a 16’ Tracker or the like will be a huge improvement.

I did find another lender who will finance 100% and actually did a good job of being careful in factoring in the options and they ended up slightly higher than the asking price of the boat…I’m starting to think that my credit union just doesn’t do enough boat loans to be very nuanced about it…

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Posted: 08 June 2012 09:30 AM   [ Ignore ]   [ # 10 ]
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well sweet deal. let us know what rig you end up getting.

How does the interest work on a loan like that? asking because I have no idea.

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Posted: 13 June 2012 11:20 AM   [ Ignore ]   [ # 11 ]
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My bank was going to do 3.99% (APR) for 72 months, which is a great deal, but they’ll only finance 80% of the NADA value (which is where I’ve been running into problems).  The other bank that I’ve found has a higher interest rate (5% for 60 months) but the 1% difference and shorter term is a small price to pay so that I don’t have a stroke trying to figure this out….lol!!!!

Hoping to maybe be able to tie this up this week…

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Posted: 13 June 2012 01:32 PM   [ Ignore ]   [ # 12 ]
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i’d go for an Alumacraft if it was me and i wanted and aluminum boat.

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Posted: 13 June 2012 09:52 PM   [ Ignore ]   [ # 13 ]
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You need to find a better dealer…They are the ones that set you up with the bank.    That’s the one thing I learned when shopping for boats
that’s just my 2 cents

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Posted: 15 June 2012 02:50 PM   [ Ignore ]   [ # 14 ]
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Again, thanks for all the input…

I ended up with a 2006 Tracker Pro Team 170TX.  It has 40 hours on it, with a 50hp Merc EFI. The tags on the trailer are from 2007.  So basically someone bought it, used it for one season and then let it sit.  The place I got it from had winterized it and knew its service history and assured me it was like new.

As for financing, I went with another credit union that has made a lot more boat loans, so they were able to give it a much more reasonable valuation (actually more than I bought it for).

Once I get it home, I’ll post some pics in a new boat thread…

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Posted: 15 June 2012 04:06 PM   [ Ignore ]   [ # 15 ]
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somata - 15 June 2012 02:50 PM

Again, thanks for all the input…

I ended up with a 2006 Tracker Pro Team 170TX.  It has 40 hours on it, with a 50hp Merc EFI. The tags on the trailer are from 2007.  So basically someone bought it, used it for one season and then let it sit.  The place I got it from had winterized it and knew its service history and assured me it was like new.

As for financing, I went with another credit union that has made a lot more boat loans, so they were able to give it a much more reasonable valuation (actually more than I bought it for).

Once I get it home, I’ll post some pics in a new boat thread…

Congrats on the boat!

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