AluminumAlloyBoats.com

Hello everyone longtime lurker/dreamer here.

I stopped by our local wells Fargo here to inquire about a boat loan...long story short I was quoted 18% for a personal loan not a boat loan because I wanted to put down $25,000 at the time the boat was around 40,000. It was obvious to me the gal I was talking to had no clue regarding boat loans . I have never taken out a loan other than my student loans so when it comes to them I'm ignorant but for 18% I may as well put it on my credit card. Anyway thats not my question just a little background. That was a year ago...now the family is bigger and I'm glad I waited we would have wanted a bigger boat.

I'm seeking some advice on lenders that you have had a good experience with.

I'm in SE Alaska with a family of 4 looking at getting into a 24' Hewes or Wooldridge cuddies for fishing/hunting/camping. I'm looking mainly at used but have also considered new just
not sure I want the extra debt.

Thanks in advance

I am no master of money, but I will say don't take a loan out for a toy.

I live on an island. So is it a toy? Yes, but it also serves as transportation to get fire wood and food just like a truck might...not a Ferrari.
But I get your point, bad debt is not good.

I happen to be totally debt free but considering the interest rates available these days I'd borrow money to buy a house, car or boat. I was just at the Seattle in water boat show and the lenders were quoting sub 5% on used boats but probably strict qualifications . . . didn't ask

So is it pretty standard for people to drop 50-100k cash on a boat? I guess I figured most were financed.

AKBudde wrote:So is it pretty standard for people to drop 50-100k cash on a boat? I guess I figured most were financed.

Most substantial boats are financed, its up to you to figure your tolerance for payment pain

Seacoast Marine Finance
Keybank marine finance
People's marine finance

All have offices in Seattle. Interest rates vary depending in credit, amount borrowed and term. The more you borrow, the lower the rate tends to be.

We are paying 3.99%. It was a no brainier to finance. And we deduct the interest of our taxes. Downpayments are at least 20% or more.

Chtucker wrote:Seacoast Marine Finance
Keybank marine finance
People's marine finance

All have offices in Seattle. Interest rates vary depending in credit, amount borrowed and term. The more you borrow, the lower the rate tends to be.

We are paying 3.99%. It was a no brainier to finance. And we deduct the interest of our taxes. Downpayments are at least 20% or more.

Thank you, that is the type of info I was looking for. I can make an informed decision once I contact some lenders. I just didn't want to randomly select lenders.
For the tax break it falls into the 2nd home correct as long as it meets certain criteria: bathroom, kitchen, etc.

I am not sure if Credit Union One is down in SE AK, but they have great rates. They will finance up to $250K and are advertising rates at 3%. If you bank with them you earn "points" and can buy down the rate. We have ours financed through them and are at 2%. There really is no incentive for me to pay it off early. If you are interested in a 26 Pacific Cruiser I have a friend that is selling one with a set of low hour F150s here in Anchorage. Nice setup for a family of 4.

AKBudde wrote:I live on an island. So is it a toy? Yes, but it also serves as transportation to get fire wood and food just like a truck might...not a Ferrari.
But I get your point, bad debt is not good.

If you incorporated/or not, could you buy it as a piece of equipment or say a tool?

Yes in the tax deduction.. Cooking, sleeping and bathroom facilities.

We also were able to deduct the sales tax which is HUGE here in washington at 9.5%. The sales tax deduction saved me from cut the pain on that by about 25%

I worked over 700 hours of OT last year, I was facing a large tax income tax bill and penalties from not having enough withheld.
We have more than our fair share of income taxes as I don't have a lot,of creative tax deductions. When I owned our own business our effective tax rate was 4%. Last year it was over 22%

Chtucker wrote:Yes in the tax deduction.. Cooking, sleeping and bathroom facilities.

We also were able to deduct the sales tax which is HUGE here in washington at 9.5%. The sales tax deduction saved me from cut the pain on that by about 25%

I worked over 700 hours of OT last year, I was facing a large tax income tax bill and penalties from not having enough withheld.
We have more than our fair share of income taxes as I don't have a lot,of creative tax deductions. When I owned our own business our effective tax rate was 4%. Last year it was over 22%

Good that you're working though even if it's a lot of hours. Sounds like you need a "creative" CPA. I thought CA. for was high at 7.75-8%.

For the OP, Essex has rates at 4.65 on a new boat. Didn't look at used rates

jj225 wrote:

Chtucker wrote:Yes in the tax deduction.. Cooking, sleeping and bathroom facilities.

We also were able to deduct the sales tax which is HUGE here in washington at 9.5%. The sales tax deduction saved me from cut the pain on that by about 25%

I worked over 700 hours of OT last year, I was facing a large tax income tax bill and penalties from not having enough withheld.
We have more than our fair share of income taxes as I don't have a lot,of creative tax deductions. When I owned our own business our effective tax rate was 4%. Last year it was over 22%

Good that you're working though even if it's a lot of hours. Sounds like you need a "creative" CPA. I thought CA. for was high at 7.75-8%.

For the OP, Essex has rates at 4.65 on a new boat. Didn't look at used rates

No income tax in Washington though.. The money was good, but I missed a summer with my family that I will never get back and I needed surgery on my thumb to repair tendon damage. 3 of use worked on a project, one had surgery on his thumb and has been out of work due to the damage to his foot from the work. The other fell asleep on the way to work and totaled his motorcycle (no injuriy). He also tore is rotator cuff during the project.

We were being pushed to get a project done. We should have hired three or four temps to help us. It would have saved money and injuries.

Getting $12k pay checks every two weeks was intoxicating, but in the end we all paid the price.

spoiled one wrote:I am not sure if Credit Union One is down in SE AK, but they have great rates. They will finance up to $250K and are advertising rates at 3%. If you bank with them you earn "points" and can buy down the rate. We have ours financed through them and are at 2%. There really is no incentive for me to pay it off early. If you are interested in a 26 Pacific Cruiser I have a friend that is selling one with a set of low hour F150s here in Anchorage. Nice setup for a family of 4.

Thanks for the responses everyone..
We do have Credit Union One I'll be speaking with them this week.
I have seen his 26' PC on craigslist we'll have to see where the payments would come out on that one.
I sure enjoyed the series of youtube vids with Patience and Event Horizon.
Thanks again