As a Used Boat Dealer I was Told today that what ever Marine lenders are left were Writing Loans for 1999 and newer Boats after next month are only going to 2002 and newer models... Example Bank of America and M&T Bank.
Maybe some Credit Unions locally will offer other options..


SO HOW DO YOU BUY OR SELL A BOAT BEFORE 2002 ? I have people spend $5k on Credit cards for used PWC's so I know its not all cash buyers...

If you know of a lender writing older Marine loans please Post it...

Might be a very slow Spring for sales..

Looks like I keep the boat another year unless I can use it as trade in...

 

Obama will "CHANGE" that.. :devious: :devious:

:laugher: :laugher:

 

:laugher:

 

As a Used Boat Dealer I was Told today that what ever Marine lenders are left were Writing Loans for 1999 and newer Boats after next month are only going to 2002 and newer models... Example Bank of America and M&T Bank.
Maybe some Credit Unions locally will offer other options..


SO HOW DO YOU BUY OR SELL A BOAT BEFORE 2002 ? I have people spend $5k on Credit cards for used PWC's so I know its not all cash buyers...

If you know of a lender writing older Marine loans please Post it...

Might be a very slow Spring for sales..

What you are hearing is true, both in the Boat and RV business. M&T is the worst place to go with old inventory. They have only been doing relatively new stuff forever!

1)
First place to check with is the bank doing your floor plan, sometimes they will do a strong credit deal on an older boat with a significant down payment.

2)
If you send your buyer to find his own money you loose control of the deal! Credit unions will look up the NADA wholesale without options added in and finance that amount. If your buyer goes there he will be told he is paying too much for the boat and not only will you not have a sale, your buyer will tell all his friends that you're a crook!

3)
Send the deal to whatever financing source you have for less than clean credit, the kneecap place! Sometimes they will take a high risk loan with great credit. The reason banks are cutting the age short is older collateral is much greater risk for them should they get it back! You think selling old used boats is tough for you as a dealer, try doing it as a bank as a repo!

4)
If your customer is a complete idiot and has enough open credit on his pocket full of credit cards, and you don't mind paying the fee, you can put the whole deal on plastic!

5)
You can always do a recourse loan on your older inventory! At least you'll have a chance to sell it again when the repo man drops what is left of the collateral on your lot!

Good Luck!

 

M&T has always done 10yr boats for me. Not sure if that has changed, we dont usually do older boats.

 

M&T has always done 10yr boats for me. Not sure if that has changed, we dont usually do older boats.

There have been significant changes in the age and advance factors from all my banks, including M&T, seems to be a monthly thing lately!

I'm taking this off of the M&T marine dealer rate and guidelines document dated 1/19/2009.

The published rates are for boats 2005 and newer.

Boats older than 10 years are done on an accommodation basis only.

M&T does not finance boats that are not rigged or powered by industry norms.

M&T does not finance Personal Watercraft, houseboats or vessels with three or more engines.

M&T does not finance high performance boats.

Effective 6/1/08: 2007 boat and older are considered used and valued at NADA wholesale.

***************************************

When M&T does do a boat older than 2005, the rate can be as much as a full point higher, the term is capped at 66 months and drops to 36 months for a 2001 boat.

The line above saying they will do 10 years and older on an accommodation basis only, a dealer needs to be sending them a few million dollars or more in loans a year to get that perk!

 

DaveP on OSO wrote in a thread to me one day.. I would talk to him... he seems to know a lot about this business


this is what he wrote:

"I can finance anything as old as a 1919

www.essexcredit.com"

 

Getting tight and harder to sell

Key Bank does not do Marine Lending Right now...

Bank Of America is going from 10 years of Age to only 7 years of age...

Most Credit Unions will only give 75% nada value on the loan and require 10% down at purchase..

 

Signing recourse is a quick way for a business to go under. Depending on the length of the loan and $$ amount, I've seen banks ask for up to 3 years recourse.

 

Since we're in the gloom and doom mode here, let me add another little glitch.

From US Bank's rate sheet dated 1/15/09;

USED PRODUCTS: Tier 2 customers do not qualify for loans with collateral over 3 years old.

Tier 2 is an applicant with a credit score under 700.

Bottom line is, to get older stuff done, you need to walk on water with your credit profile and deal structure.

 

Re: Getting tight and harder to sell

Most Credit Unions will only give 75% nada value on the loan and require 10% down at purchase..

Depending on the persons history with them.

 

Since we're in the gloom and doom mode here, let me add another little glitch.

From US Bank's rate sheet dated 1/15/09;

USED PRODUCTS: Tier 2 customers do not qualify for loans with collateral over 3 years old.

Tier 2 is an applicant with a credit score under 700.

Bottom line is, to get older stuff done, you need to walk on water with your credit profile and deal structure.

As with anything else Gil there are exceptions to the rule. Banks sitting on repos will bend. Granted they will look at the persons profile very carefully before a decission is made, but given the chance to unload one more than likely they'll take it.

 

As with anything else Gil there are exceptions to the rule. Banks sitting on repos will bend. Granted they will look at the persons profile very carefully before a decission is made, but given the chance to unload one more than likely they'll take it.

Jake, when it comes to a bank sitting on a repo. I think they will take any offer that comes along!

 

I will say this. Over the past 6 weeks I have been getting faxes weekly, sometimes daily, from the banks I deal with offering "Unpublished" rate discounts.

There will come a point where the banks will again be fighting for deals, like it used to be!

 

so let me pose another question......

Since its harder now to get financing for boats do you think banks would be more willing to finance a repo which they own.

Say a bank has several boats which are just setting out back rotting. Do you think they would be more inclined to finance outside the norm to get it off their hands???

anyways just curious what you all think...

 

Depends what you mean "outside the norm".

 

so let me pose another question......

Since its harder now to get financing for boats do you think banks would be more willing to finance a repo which they own.

Say a bank has several boats which are just setting out back rotting. Do you think they would be more inclined to finance outside the norm to get it off their hands???

anyways just curious what you all think...

Understand that these "REPO" boats are not sitting at the bank! They are in the hands of a liquidator.

As for the bank bending the rules on a repo vs. any other boat, I doubt it.

Jake is right that a bank with a repo may "bend" but it would have to be a credit risk that is near their guidelines. They are not going to enter into a loan with someone who has a history of problems in their report.

A credit worthy buyer can get financing today on just about anything they want to buy. It is the buyer with a lower score, high revolving debt levels, and a stretched debt to income ratio who is having the problem getting a loan.

It makes not difference to the bank if the asset being bought is one of their repos or a new deal. The bank does not want the asset coming back to them, regardless if it is one they have or a new asset.

 

so let me pose another question......

Since its harder now to get financing for boats do you think banks would be more willing to finance a repo which they own.

Say a bank has several boats which are just setting out back rotting. Do you think they would be more inclined to finance outside the norm to get it off their hands???

anyways just curious what you all think...

Bank of America will offer a 4.99% rate if you have Great Credit on one of the Repo's they have being sold at on of the Brokerage locations...

 

That's a deal that would be tough to beat for a serious boat buyer!

 

That's a deal that would be tough to beat for a serious boat buyer!

Ya to bad thats not on all used boats.. Thats probably a way they make some of the loss back selling a new loan and with a decent deal it gets a buyer rather then a Auction sale...

 

I have gotten faxes from BOA for dealer auctions for both boats and RVs. The auction is open only to current BOA dealers, not the general public, none have been anywhere close to where I am so we just toss them when they come in.

They did offer a really low rate for retail buyers of the asset the dealer buys at the auction.

Is the deal you posted that deal or is it something the general public can go to and buy?

 

I have gotten faxes from BOA for dealer auctions for both boats and RVs. The auction is open only to current BOA dealers, not the general public, none have been anywhere close to where I am so we just toss them when they come in.

They did offer a really low rate for retail buyers of the asset the dealer buys at the auction.

Is the deal you posted that deal or is it something the general public can go to and buy?

Limited Time - Special Rate Financing
Bank of America is currently offering below market financing to qualified buyers. RATES AS LOW AS 4.99% FIXED FOR UP TO 20 YEARS TO QUALIFIED BUYERS. Financing is exclusive to Bank of America repossessed inventory with sale prices in excess of $50,000 & will require a 10% down payment. This offer may only be available for a limited time so you will need to act fast to save thousands in interest payments.

 

Just used MT for a 2000 in July.Had no problems and I got a decent rate for 7yrs.I must have gotten in under the wire.Now I have to sell my 1998 boat.Yuk!!!!!

 

Just used MT for a 2000 in July.Had no problems and I got a decent rate for 7yrs.I must have gotten in under the wire.Now I have to sell my 1998 boat.Yuk!!!!!

Alot has changed since July.. Until Oct lending was pretty simple..

 

So if you need to sell a used boat that is older the buyer needs cash or home equity???