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New and used boat loans
New boat loans are much easier to secure than a used boat loan. The banks are more inclined to invest in a new boat due to the depreciation factor. Finance companies have done their homework on this matter and they have added up the beans too. The bean counters have concluded that banks make more money in the long run if they provide financing on brand new marine products. They lower their interest rates for new boat loans and in the same breath encourage borrowers to buy brand new. I don't think it takes alot of convincing to move someone towards a new boat instead.
What I have done in my research of new boat loans is three fold. I've used the internet to search for information. I've used the phone to contact different banks and enquire about their practices. I also take every opportunity to pick the brains of bank staff regarding their policies and procedures. Sounds a little "out there" ...I know. It's not fanatical or anything. I just keep my eyes and ears open. When developing an article regarding new boat loans I wanted to make sure I was educated somewhat before I start spilling out my words on the internet.
New boat loans vary as far as interest rates are concerned but there is a rule of thumb you can follow. New boat loan interest rate are approximately 1 point higher than new car financing. That is about as simple as I can put it. At the time of this writing boat loan rates were averaged at 4.5%. Now there are many factors that come in to play here. The amount your down payment is, the length of your financing term, your credit rating and of course your collateral. Many advertisements online and off will claim low interest rates even with bad credit but it all varies depending on the above factors.
Used boat loans when you have a cherry in your grasp
Used boat loans will cost more in interest rates but they are sometimes a winner in the long run. If you search long and hard you may find an exceptional deal on a used boat. If you know you can turn around and resell the boat for a large profit it doesn't matter really what the interest rate is on the loan. You could pay off the used boat loan right away and pocket the profit. Just make sure the financing is setup for a no penalty option. Many companies make their main income in this way. The banks don't gain as much but they still make some money in the process.
Used boat loans are common place all over the continental United States. If you have a real cherry in your grasp that is just begging to be yours then it is time to consider the option. If your bank has any flexibility at all they will consider the condition of the boat. Some financing companies don't. They simply use the "blue book" numbers and exclude thousands of high potential clients a year. A big loss for the bank but not for the boat owner. He just goes to boat financing company number 2 and gives his business to them.
Used boat loan providers have become increasingly competitive over the years and they realize they have to keep in touch with the times. I would suggest asking your bank for their used boat loan rates first. If they have a long and solid relationship with you they may beat anyone finance company. Barring that - as more and more online finance outfits trim their rates we the consumer win and save. One of my favorite internet pages for online used boat loans is www.auto-loan-4u.com/boat-loans.htm You can see their current rates for yourself. Thank you for taking the time to read this brief article on new and used boat loans.
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