How does marine financing work for a boat loan?

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Hey what’s up guys it’s me brandon johnson from you smash tv every one question that i get asked a lot is hey brandon how does marine financing work so that’s what we’re gonna look at today how marine financing work and the benefits when purchasing a boat the first i’d like to introduce our channel i’ve been actually selling boats for over 19 years the purpose those

Channels to help you and your family enjoy boats and boating just as much as my family and i enjoy it so thanks to the help of my staff here at heart and marine and my sons we’ve been able to successfully upload hundreds of boat reviews and structure and operation help and how-to videos i don’t know ask for anything in return except for the opportunity to possibly

Help you find a boat let’s get started when i first started selling bugs fresh off the farm and just how in the world so many people could afford such crazy expensive boats well that was before i learned the four most common ways watercraft or finance very important them boat financing period falls into the recreational lending category recreational money is for

Those things that are in fact recreationally lending guidelines are far more open on things they feel you need they meeting banks and things you need such as loans place to lives like a mortgage speaking of the mortgage the process for buying a boat is much different with that it’s much more like buying a car it’s pretty simple you find the boat of your dreams

First and a lot of credit application and you’ll find out what is available for you so really step one so to speak is to go get it find a boat of your dreams to live survival quick suggestion when you find the boat i strongly urge you to discuss with whomever is selling it to you how you can place a hold on it until the details are all hashed out otherwise you

Can put forth a lot of time and effort for nothing after some yeah who walks in and plops down cash for it back to the point again as mentioned there are four most common ways boats or findings the most popular is indeed marine lending which we will start with or and this guess wine is the most effective option for most everyone then we’ll discuss the good bad

And ugly in regards to the other three options which are still options starting at number one marine living there are three key reasons by roughly 95 percent of my customers grow this round number one competitive rates age of the boat purchase price and credit score won’t affect the actual rate but a general rule of thumb to give you an idea is 1.5 percent over

Prime at the time of making this video prime is it 5 percent so rates right now around six and a half percent if you’re curious what prime is at this moment just google what is prime rate it’ll tell you now these rates combined with number two which is longer-term options will make for a fairly reasonable payment common terms are typically a hundred and twenty

One forty four one eighty and sometimes even up to two hundred and four eight months sure that is a long time to look at this way very rarely is there any type of pay off penalty if you do so early and you can always make more than your minimum payment this flexibility allows you an affordable monthly arrangement if an unforeseen expenses in your life one of the

Old-timers are learned very little bit from did say something that really does make sense a long time ago he said in regards to boat financing make a down payment when you buy it mix small monthly payments while you on it stay up on service and don’t destroy it and just hope to break even when it’s over and it makes a lot of sense number three having a single

Point of contact one person and that one person is dedicated to assist you with your financing objective and that should hold considerable body we have an actual face most dealerships in the country will and if not definitively should have a finance person in-house their sole job is to help you with option as little favor you gotta help me cut the budget a little

Be able to communicate directly with them via email first yeah all this confirmation and mine to kind of clear due to a free online boat payment calculator in the description below the screen in the video part just below the video gear before plugging away in numbers though let’s quickly touch on few more details to be aware of such as credit score this is one of

Those uncomfortable subjects some viewers will take and i can’t share false expectations meaning give false hope so please don’t take it personally that being said bereaved leaders have programs for average and about credit score ranges assuming that your debt-to-income ratio on paper is below 45% roughly all so you absolutely cannot have had a bankruptcy in the

Last 10 years our marine lender will return your application to us with an automatic rejection and there’s nothing absolutely nothing i can’t stress enough nothing i can do about it and it’s not my fault now if your credit score is 728 over the best of whatever finding its package available at the time will be offered to you during fall and winter there are also

Special programs available to defer payments for at least 90 days or more sometimes which puts your payment’s out past christmas appear to by jay hint hint call me now to buy one last thing before pounding on the payment calculator and shopping away marine lenders will typically require a down payment of at least 10 to 15% at the time of purchase they simply don’t

Do not want you to be in a negative equity position when it’s time to sell our trade some people get really put off and upset by that but remember it’s way better to take care of that upfront then at the end a quick bit above care of you i’ll make an entire video specifically about insurance but since we’ve been discussing lending and expenses you should know the

Average standard cost for bonus is 1.5 percent of the boat’s value annually thus is very reasonable 1.5 percent of the votes value annually what the insurance video will explain is the number one mistake i see many clients make with their coverage selections i have real examples of how that mistake can cost you a ridiculous amount of money so be sure to subscribe

If you haven’t already and click the bell icon to be noted and that video goes live i promised we’d go over the other three common ways boats are financed although in my experience all three options fit within the 5% of what i sell scenario versus 95% of people that go with the marine financing number two is a people okay no although it sounds like a sweet recipe

Loop is not what do you like the first is simply an acronym for home equity line of credit why this is scary to me at least is because until your home is paid off like if you were to trade your boat in theory you’re still making two boat payments one on the one you’re buying the one on the one that you got rid of number three a conventional loan through a hometown

Bank typically the most clients don’t know this wait is shorter term options that small town banks normally offer and underwriters that work there that simply don’t deal with enough watercraft to effectively determine an intelligent value onset boat number four last one is obtaining a loan through a current ian like a local credit union this is probably the second

Most common actually after marine lending i believe this is because you don’t have to put so much money down at a credit union most of the time not all not all credit unions work this way they’re just not regulated so if you dope you don’t have any money at all to put down a credit union can be really your only option some advice relative to this point though again

Please don’t hate me for helping you when you buy a boat an ugly thing to say pull ugly does this mean we’re not friends anymore but you’re going to incur additional expenses these can include gear stores lists registrations taxes insurance i could go on a half hour gas upgrades it’s a long one so if you’re not in a comfortable financial position when you go to

Buy i strongly urge you to wait until you get enough savings tucked away to cover all you feel you’ll need to be a happy boater well this concludes today’s video once again my name is brandon thank you for watching please subscribe if you haven’t and i’ll see you on the water

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How does marine financing work for a boat loan? By UsedBoatsTV – Used boats for sale reviews