Financing a second hand boat can be difficult, firstly, go to your bank and tell them that you’re looking to buy a boat that you’ll need a loan for.
Tell them you want to know a couple of things. How much they’re willing to lend you (how much are you able to afford) and how much of a boat’s value they’re prepared to lend.
In most instances they won’t lend the full amount. Also, remember that the market value of the vessel and asking price might be two different things.
New boats, like cars lose a substantial amount of value as soon as you leave the showroom so why not think about the great used boat market. A lot of people buy boats and yachts after which they barely use them, or cannot afford them.
Once you find the right boat or a couple of options, find and write down every identifying number you can find. If it’s an outboard, do the same for the engine. If the boat comes with a trailer, get all the data from the trailer also. Make a note of how long the trailer is (normally the identical size because of the boat), whether it is galvanized or painted (huge value difference particularly in saltwater), and if it has a spare tyre/carrier, fenders, steps, winch, and so on.
When you or the lender tries to find out the value of a given boat, equipment are an important aspect, not just factory equipment either. Add-ons like downriggers, tow bars and many others, add significantly to the base value. Make a note of each accessory on the boat, even the seemingly trivial ones. If you don’t record all of the equipment, the lender will in all probability provide you with a value that’s significantly lower than the true valuation, or the asking price.
Go on the web and lookup your boat by year and model number. If a given year doesn’t exist for your model number, try the following model year. A boat manufactured in 2007 may very well be a 2008 model. Typically, if a boat was manufactured after June of a given year it’s in all probability the following year’s model.
It’s a good idea, as you would with a car or a house to shop around and do your research, are you getting a great deal? If your boat has an outboard you have to count the value of the motor individually.
You will even have to count the trailer value individually, if it has one. Again, test all of the equipment which might be included and not only for display.
Asses the true value of the vessel and this gives you an idea of how much the bank or loan provider will lend you.
If the seller is close to the value with the asking price, do not waste his or her time giving a low offer, the chances are the owner went through the process of getting a valuation of the boat before setting the price.
If it’s a newer boat, maybe the seller owes more than the value known as negative equity, in which case they in all probability will have no room for discount. Try to find a different boat if you can’t afford (or do not want to) make up the difference. Keep in mind that you do not wish to be in the same shoes as that seller by proudly owning a boat that’s value a lot lower than you owe. Boats don’t depreciate as quickly as cars however they do depreciate quickly within the first few years.
In most markets, a boat that’s priced anywhere close to its value doesn’t stay in the marketplace very long. If you discover your dream boat and arrive at an equitable deal, leap on it before someone else buys it.