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SO YOURE THINKING ABOUT FINANCING A BOAT...
by Tom
Schumacher
Once youve made your decision to buy a boat the first
thing that usually crosses your mind is, "How am I going
to pay for it." The majority of purchases involve some
level of boat financing, whether its a credit line
through the home, an unsecured loan, or a conventional
boat loan. Choosing the right financing source can be as
important as choosing the right boat.
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There are several factors to take into consideration
when choosing a boat finance source. The first might be
to determine how long you intend on keeping the boat. If
you are purchasing an entry level first boat, it will
make sense to find a boat loan that will be flexible in
the event of early payoff through a private party sale
or trade-in. Conversely if you are purchasing the boat
of you dreams and expect to have it for a long time it
will be important to lock in at a fixed rate loan with
terms that will allow the comfort of a low monthly
payment. This will allow you to make sure the boat will
always be affordable in future months.
Another factor to consider is the down payment. Most
lenders would like to see ten percent down for a boat
loan. However, zero down scenarios do exist for people
with optimum credit profiles. Generally, the down
payment does not significantly effect the monthly boat
loan payment. You may be more comfortable keeping the
extra money in your account in exchange for a payment
that is not significantly higher. However, there is one
caveat to this approach. If you buy a boat with zero
down, make minimum monthly payments and then decide to
sell the boat soon thereafter, you may actually owe more
than it is worth.
The recent combination of high property values and low
interest rates has made home equity loans and credit
lines a viable option for boat financing. This option
can be particularly good for individuals with a
challenged credit profile. These loans are based on the
equity available in the home and can allow a person with
poor credit to get affordable terms that otherwise would
not be available. The drawback to these loans is that
the home equity is now tied up in a boat purchase.
Conventional boat loan rates are very low. A person who
can qualify at agreeable terms is usually better off
with a conventional boat loan. This will allow a person
to keep the equity in the home for an emergency along
with the ability to sell without encumbrances.
Choosing the right boat loan is an important step in the
buying process. A good place to start is with a boat
finance brokerage, for example www.seadreaminc.com, that
can show you how each of the options will fit into your
profile. This will give you the ability to find the loan
that fits you best. Then you can concentrate on the
important stuff - like your first trip to the water.
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About the Author: Tom Schumacher is the president of
SeaDream Inc. Boat Loans and Boat Insurance -
www.seadreaminc.com, the West Coast leader in new and
used boat loans, boat refinancing, and boat insurance.
He as over 15 years of experience in the boat finance
industry and is widely regarded as one of the industry
experts on boat financing.
Tom Schumacher is the president of SeaDream Inc. Boat
Loans and Boat Insurance- www.seadreaminc.com, the West
Coast leader in new and used boat loans, boat
refinancing, and boat insurance. He as over 15 years of
experience in the boat finance industry and is widely
regarded as one of the industry experts on boat
financing. |
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What
you need to know to buy a good used boat
by
Adam Lenk
More than 60 percent of first-time boat buyers purchase
used boats rather than new ones off of the show room
floor. For many, this is a practical solution to save
money, especially when you're not sure how well you are
going to take to boating or how often you will feel like
devoting time to your new leisure pursuit.
While buying a used boat has many advantages, it is also
important to make sure that you are getting a good buy
for your money and not unloading a faulty vehicle off of
someone else's hands. For first-time buyers this is
often the most difficult task because they lack the
knowledge that only years of boating experience can
bring.
One of the most important things to consider when buying
a boat for the first time is exactly how you are going
to use the boat and how many people you will be
transporting on it. Different boats have different uses
and different weight specifications, be sure that the
boat you purchase is compatible with your needs.
Once you find a boat that meets your particular needs,
you need to inspect the mechanics of it to make sure
that it is operational and in good condition. It is
better to take someone with you who has knowledge of
boats, but if no one is available, you should be able to
do a fairly decent job of sizing the boat up on your own
if you follow a few pointers.
You can easily tell if a boat has been properly
maintained by taking a quick look at the appearance of
the boat. If the boat looks shabby, chances are that the
owner did not take much time or effort to maintain the
mechanical aspects of the boat as well. Lift up any
objects on the boat to check for discoloration or moss.
Also look at the metal and wooden surfaces to see if
they show any signs of corrosion or improper
maintenance. Check the riggings to see if they appear
strong and in good condition. And look to see if the
bulk heads are secured with a laminate. If the bulk
heads are loose, do not purchase the boat.
Once you inspect the initial appearance of the boat, it
is time to get into the engine compartment. Check to
make sure the engine is clean and rust free. Check the
oil, the batteries and make sure the bilge pump is in
working order.
After you have looked the used boat over thoroughly,
have the owner take you out on the water for a test
spin. Do not worry about inconveniencing the owner. If
they truly want to sell the boat, they will not mind to
take a little time to show off its performance. After
all, they would likely not buy a used boat without
seeing it in action either.
Buying a used boat can be a great experience if you take
the time to select the boat that is perfect for you. Be
sure to take that time and to consider all of your
prospects. After all, buying a boat is not something
that you do everyday so invest wisely.
By Adam Lenk with Boating Pro Shop Get tons of free
boating articles at
www.BoatingProShop.com |
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Buying
the Perfect Boat
by
Valerie Giles
Why is it, that when you are looking to buy a boat, you
can never find one that suits your needs? This is what
happens to many people every year and in particular to
ourselves. It’s just like buying a house. When you are
selling, it is a buyer’s market and when you are buying
it is a seller’s market! This year my husband and I
decided that it was time to buy our first boat.
Now we have been boating with our friends on their
Bayliner for many years. They pay for the boat expenses
and we bring the food and drink in exchange. Not a bad
deal we figured, until we got the boat bug ourselves.
Now we want to own our own boat. After six years of
boating and as many seasons of boat shows, we decided to
take a boating course. So a couple of winters ago, we
signed up for a rather lengthy boating course of 16
weeks. We decided that firstly we wanted to be safe
boaters and secondly we wanted to protect our very
expensive boat investment when the time came.
Week after week of classes, lesson after lesson of
plotting and tying knots came and went and finally it
was time to graduate and try our luck at boating with
all this new found knowledge. We decided first to try
out our expertise on our friends’ boat, but discovered
that was like having two cooks in the same kitchen.
Things don’t really run as smoothly as one would like.
Tie a knot. Have someone retie it for you! Hang the
fenders over the side. Have someone reposition them! So
after several weekends of unsuccessful attempts, the
decision was made to buy our own boat sooner rather than
later where we could tie our own brand of knot and
observe the channel markers the way we had been taught!
So we started to look. What happened to all the “For
Sale” signs that we had seen only weeks before in every
marina that we cruised past? Where were all those
perfect boats that we had seen in every cove and tied up
to every dock? They were no where to be found. Finally
after perusing the yachting magazines and journals,
talking to several boat brokers and searching many
internet boats for sale sites, we found what we thought
to be the perfect yacht for us - right in our own
backyard. Only five minutes from our home there is
located a marina with lots of power boats. Last year
there were many for sale. But as luck would have it, we
were not looking then. This year, there were fewer boats
for sale. But on this one particular morning as we drove
through the marina parking lot, we spied the perfect
boat. We hopped out of the car and walked over to take a
closer look. The boat had been pulled out of the water,
so we were able to look it over from all sides including
the bottom.
The information that was posted beside the boat looked
very promising. Just the right length. Just the right
age. We had already agreed that this boat make was good
quality. An inflatable dinghy with motor and seawise
electric lifting system was also included. The boat also
had a GPS and all the trimmings. But the price, could it
be correct? It seemed a bit low for this particular
yacht. You guessed it! The twin engine system was gas,
not diesel. This was the reason for the excellent price.
We thought that we had found the perfect boat! In fact
we had except for one very expensive item. For those of
you who own your own boat, you can related to the
expense of a gas engine yacht. Gas engines are fast and
great for skiing and lake touring in small boats, but on
the ocean and in a large yacht, the cost can be
prohibitive. (Note: Recently diesel prices and gas
prices have moved closer together.)
So once again, our search begins in earnest. And once
again, there are no boats for sale. Or is that just our
take on the situation? Surely the boat for us is just
out there waiting to be discovered!
Valerie Giles owns and operates Boats, Anchors and
More
www.boats-anchors-and-more.com a boating resource
site featuring boat accessories, fishing lure
manufacturers and inflatable boats. Everything you need
for the boating season. |
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