Buying from Private Seller v. Dealer

[meegwell]

Hi All,

I had some questions concerning buying from a private seller (vs. dealer). Used boat of course. For the financing part, has anyone used a marine-focused lender that does the "blank check" type of deal where they qualify you up to a certain amount and you basically have a check cut when you make the deal? I am familiar with this with autos but after some reading on marine lending it appears it may be different. If I am financing a portion of the boat I am buying from the private party, is it always the case that I need to provide all the vessel info on a specific boat? The dealer financed (via their 3rd party) is clear. The private sale financing is not so much to me.

For my situation, I plan ongoing about 50/50 loan/cash, so I would want that data point for the LTV ratio and don't see how that may be done if a specific vessel is not used on the paper work.

Also, what value is typically used in the LTV ratio when dealing with a used boat private sale? Some sort of published estimate or the sale price?

TIA

 

[Lee Wilke]

Just did this myself, went through Nationwide Recreational Vehicle Financing - Best Rates | Southeast Financial, they were OK to deal with. Turns out they appear to be basically a broker of sorts. The financing is actually with Medallion Bank. Southeast deals in only rec vehicles and again the process was fairly painless other than delays due to weather. They do have financing out to 15 years I believe, rates aren't to bad of course your CS will determine that. You may want to look at a local credit union as they have good rates also, from what I hear. They just don't seem to go out farther in years for financing from what I understand, mostly 8 or so years.

Hope this helps a bit.

 

[HangOutdoors]

@meegwell Do you use a credit union or have one close to you. They will usually work a deal like that. I did that for a couple of vehicles I have purchased previously. Navy Federal Credit Union was one of them if you can be a member.

Basically I said I want to know maximum financing on vehicle, Was approved. they gave me an amount to not exceed and I went and shopped. Found vehicle, they cut certified funds and then had me send them title. Additionally the one vehicle was $40k, I was approved for $35k. So it really didn't matter to the bank as long as the maximum check they will cut did not exceed $35k.

Also, just another side note, if I was going 50/50 cash/loan on something, I personally would go max financing as high as possible at best/same rate, then once the loan is written I would pay off 50% of the loan. Looks a lot better on the credit bureau and scores in the short term if you care about such things. Some don't. Remember Credit Bureaus do not know about LTV it only knows Starting Loan Amount and current balance.

Credit Unions can be very flexible.

 

[Sean R]

Not sure what State you are in but in Georgia you don't pay sales tax on a private boat sale. If you purchase a used boat from a broker/marine you do pay sales tax. It saved me $3000 going private sale. In Michigan where I am originally from you pay sales tax no matter what. Private sale was more of a pain but I was selling my Ar190 and at the same time purchasing a 212S, all private sale. Also my credit union wanted 10% to 20% down but that doesn't sound like it an issue with you but it can be for some.

 

[Canuckjetboater]

@meegwell Do you use a credit union or have one close to you. They will usually work a deal like that. I did that for a couple of vehicles I have purchased previously. Navy Federal Credit Union was one of them if you can be a member.

Basically I said I want to know maximum financing on vehicle, Was approved. they gave me an amount to not exceed and I went and shopped. Found vehicle, they cut certified funds and then had me send them title. Additionally the one vehicle was $40k, I was approved for $35k. So it really didn't matter to the bank as long as the maximum check they will cut did not exceed $35k.

Also, just another side note, if I was going 50/50 cash/loan on something, I personally would go max financing as high as possible at best/same rate, then once the loan is written I would pay off 50% of the loan. Looks a lot better on the credit bureau and scores in the short term if you care about such things. Some don't. Remember Credit Bureaus do not know about LTV it only knows Starting Loan Amount and current balance.

Credit Unions can be very flexible.

@HangOutdoors .....IMO 100% great advice! Particularly taking the loan at needed value then paying it back with the cash on hand. there are many ways to finance that can save a lot of money.