I found exactly what i want a new 1648 grizzly decked out the works for 7500 msrp i have two questions? the guy at bass pro shops said the best interest rate they good do was 8.99 percent, my credit score is like 775 and i have a very low debt to icome rate i own everything but my truck. Is this too high and would i get a better deal at a credit union ? My question question is if i think the price is high should i try and haggle them down ?

Always try to haggle and yes go to your credit union and see what you can get

You have very good credit. That should increase your buying power. Yes, that percentage is too high for the level of credit that you have. Based on your credit score you should be in the 6 to 8 percent range. Shop around for the best deal if you have the time. don't give up dollars that you can put back into the boat. 8.75 is for an average credit rating at my credit union. You have almost perfect credit.

With the national and regional lenders we work with, part of the rate is due to the amount financed. We work with only banks and they charge a premium for loan amounts under $10K. You may find a CU with something lower but watch the terms. 775 is a good score but remember there are 3 bureaus and we see up to 100 points dif between them. Lenders always are set on the one they pull and will not even look at the other two. They don't average or shop for the best, they get locked on the one they use. One negative with CU's is that most do not report to the bureau. That means you can make a couple years worth of payments on time and it does not report to help your score. Just look at the whole package. Let us know if we can help. Ken, Todd & Chris

Credit union...

This may sound weird, but check into State Farm rates. Yes, they sell more than insurance. I bought my boat from Fun n Sun back in 2006 at 8%, and I have great credit. I refinanced the boat 2 months later through State Farm and got 3.6%. Not sure how many years you are looking at, that could be the difference. Most credit unions will only finance for certain amounts of years, I think 6 years was the most I could do. I chose 5 years. If I cant pay a boat off in 5 years or less, I will not buy it anyway.

rivermudcat--- Do you have a 401k ?.. If so, you should check into borrowing against it. You will pay yourself back with interest. It's a win/win situation.

ALWAYS HAGGLE; they give you their offer; make them one of yours; its a buyers market; shop interest and insurance; they'l not go down unless thats what it takes to make a sale-p-

We have never seen a lender drop a rate because someone asks. There is a ton of business out there and banks are not in the barganing business, they don't need to be.

As for the 401 idea, be carefull of any penalties and tax questions. Also, looking down the road, the payments back to any 401 will not report on your credit bureau. you could make years of paments and got get the benefit of doing it.

are you seriously saying you have only one lending rate? give us a break-p-

Ditto on the credit union!

Is that what I said?????? What I said was that I have never seen a lender change a rate because someone asks. We write loans from under 7% to as high as 18.95%. You guys must remember that all buyers are not equal in the eye of the lender. We don't set rates, lenders do. Any rehash we do is to get a loan bought not make a rate adjustment. The 8.9% rate is a rate that several borrower's will never see because the credit is not good enough to get it. On the other hand most lenders will not get 18.95 because they are more solid than that.

let me tell you my scenario, my credit score is alot lower than yours, i had at the time of my boat purchase horrible debt to income ratio, and my boat was a 1996 that i financed for $5000. I got 7% on it, so i would say yes you could definately do better.

oh ya, i went through USAA, the best bank out there. Not sure if you have to be military or not to use it, but give them a call and ask

Yes, wait till you can pay cash.

I have never found Basspro to hagle on their prices - even though I tried. Call Beth @ West Boats in Mesquite. They sell Xpress boats and Yamaha motors. She's a straight shooter, tell her what your looking at and how much and the interest rate. She will quote you on what they have or tell you its a good deal and to go get it - either way you feel better about your deal.

972-289-7867.

Yes that is way too high. I financed my boat at 3.75% and my wifes car at 2.9% at our credit union. I wouldnt finance anything at 7% ever!

I have got to get into a credit union that will finance a boat..

Credit Union I bought my Skeeter from in 09 I paid 6.25 percent intrest.

a+ federal credit union out of austin. i bought an 08 boat in november and got 6.25%. not bad on a used 3 year old boat.

It's to high. I just got 4.99% on a used boat purchase with 10% equity requirement.

Chad shoot me a pm with what credit union your using please sir..I am having trouble finding one in the area that does notes in the 10yr range.

Does anyone know of a lender that will do 10 yr. or 12 yr. financing on a used boat? I'm looking to finance between 30K and 40K and I need longer terms to make the note affordable. Any help would be appreciated.

I currently borrowed against my 401k. NO penalties and NO tax problems. I paid a $50.00 paperwork fee and all interest comes back to me.(Win/Win) Yes, You should always, check into every detail before borrowing money, from anyone. Who cares about the credit part. The benefit to borrowing against your 401K. Is you pay yourself back instead of someone else rapeing you on the interest rate.

If you have a relatively new vehicle that is paid off, go to your local credit union and apply for a secured loan using that vehicle as collateral. You'll get a much better rate, with a shorter loan time. Especially with a good credit score.

When we need a new car or remodeling or a new motorycle we always get a home equity loan. The loan is secured and the rates are good and you can deduct the interest on your taxes.
We always get the best rates from RBFCU or Broadway Bank both serve the Military.
PS Evidently this was viewed as spam, I am here as a fisherman and not to make money. I am a libertarian and do not spend money unneccessary. My comment was not commercial but personal. I do not work for a bank or a lending institution I work for Johnson Controls.

Win/Win/Win

Good Fishing

Kevin

We do have a couple lenders that will go out to 180 on that amount of money. If you take it that long, make extra payments. Even if you win some money, pay your boat too.
Let us know if we can help,
Ken, Todd & Chris

mine did and several times once i threatened to refinance at another bank

Mine was a $75 fee. I could borrow up to half of my 401k and the interest rate was 6%. All interest goes back into my account. My employer deducts the payment from my check, so I don't have to worry about making a payment. I felt it was a win/win situation.

Your not going to find it. The best that I could find at the time with a decent interest rate was 5yrs. and that was 4.5%. Used boats seem to be a liability to lenders.

No matter the tern you start with, making extra payments is the key. Every extra dollar comes off the principle and blows up the interest schedual. We have yet to see anybody make 180 minimum payments. We also see guys "pay the boat", meaning if you win a bit of cash, put 1/3 toward the boat balance. We are in the loan business and people trading boats is a major source of business for us. Why in the world would we want to bury a person and keep them out of the market for several years? Part of our goal is to give good advice. Remember this, the best interest rate is 0% but not everybody can stroke a check.
Ken, Todd & Chris

That may very well be the best the guy at BPS is willing to do but don't for one second think that is the best you can do! Don't let someone tell you that you aren't holding all the cards when it comes to financing, if you have a good credit history and are fiscally responsible in your debt to income ratio then you are in a great position to get the rates that you want. Do your research and find a bank that does want your business because they are out there, you can often find a local CU or bank that will work with you. My best advice is find a local CU or bank and do business with them for the long term and they will treat you the way you want to be treated more times then not. Don't forget when you let someone else handle your financing then they have to make a profit too in order to stay in business, not saying that is a bad thing at all and alot of people out there would rather make one phone call and let someone else handle the research My other piece of advice would be to finance the boat on the shortest terms possible, unlike others views on things I would much rather not be upside down for the first several years of ownership. It's too easy to not pay that "extra" every month, if you have to lengthen a loan in order to afford the payments then you should look into a different price range in my opinion. Always shop with a total price (what its going to cost you in the end after financing) in mind and not what your monthly payments are going to be.

Do you really want a boat????

Think. Then think some more.

Think weeds growing up around an idle boat and trailer

Think of the "new" worn off and the boat payment bills that keep rolling into your mailbox.

Think of buyer's remorse setting in after your brief "day in the sun"

Think of the additional drain in income for repairs and upkeep on the boat motor.

Think of the old sayings you hear on fishing forums about "break out another thousand". These people are not just yammering to hear their head rattle. It's true......boats require a lot of upkeep.

After you consider all of these things and STILL want that boat......BUY IT AND HAVE FUN!!

I have had some nice Boats but work was making it difficult to justify it sitting around. When you have Payments and Insurance you feel compaled to use it no matter the Weather.
Then I bought a Nice 14ft. Aluminum Flat Bottom Tracker with a 15 hp Merc. I thought well it won't rot and it will fit in the Back yard. If I can use it I'll have it and if not it can sit. I kept that for about 7-years but I got Older and Comfort was necessary . I got a 20 Triton 04 used in great shape and have used it now 3-times this year with the Wind and work..
Don't forget the two most exciting things about a Boat is when you Buy it and when you sell it...

Thinking about buying my next rig this way. I need to build a new shop before I can get a boat so I have a place to store it. I take care of my equipment and I will not store my boat outside. I am going to be looking at rigs under $10k probably 10 years old or older that have been well kept. A 300 or 400 series Ranger, Bass Cat Sabre, 181 Champion, 190zx Skeeter or something along those lines.....I'd like to get back into tournament fishing, I just don't want to spend an arm and a leg doing it...

The only thing to remember about borrowing from yourself is that you need to treat it like a real loan. We have seen some people do this then "blow off" a payment here and there. As soon as they know it, they have not made a payment back for a while. They get used to having the extra spending money each month. It can work but how good it works is up to each person.
Ken, Todd & Chris

All my 401k is already payroll deducted so that won't be a problem. It will get payed with out me even realizing it. I may build a shop with a 401k loan instead and then borrow the money to get a boat. As I have said before in other post, I am very peculiar with my boats so the shop will have to come before I make the leap....

In the event (God forbid) you lose your job , you'll still be required to pay off the 401k loan or face substantial IRS penalties for early withdrawal. As far as home equity loans: nah. My home is paid off and I'm not about to put that at risk.
You've got good credit. Shop around for a credit union / bank/ whatever with the best rate. If bad comes to worse, you'll take a ding on your rating but everything else will be secure.

home equity would be your best bet for short term actually. You'll get the best rate, the interest is tax deductable and once you pay it back you can use it again if need be.

Otherwise, cash is king!

Wish I could get that interest rate on investments

Short answer to the OP - absolutely you can get a better interest rate. Example, I belong to American Airlines credit union & the loan rate on a used boat for someone with excellent credit is 4.99%-6.99%

Likewise, shop around for the best deal available on the boat. Maybe the Bass Pro location nearest you isn't in a hurry to sell, but another one further away might be hungry for a sale.

Always tough to quote rates. What makes it hard is that not everybody can qualify for some Credit Unions. The other thing is that rates like that do not go to people with spotty credit. Banks are looking more closley at things like debt to income, loan to value, credit history and amount of credit card debt as it relates to income. For some people, 8.9% is awsome. For some, they will not qualify and have to pay more. Some will be able to get better. The only thing we know for sure is that there is no black and white or cut and dry lending rules. Loans are still approved by people and that is yet another wild card.
Let us know if we can help, Ken, Todd & Chris

The rate is also based on the length of time the loan is for, you should get quotes from several sources for different amounts of time, 24, 36 or 48 month. I think the rate should be 3.75-4.65 % if you do your research. Good luck.

my personal line of credit (signature loan, no collateral) has abetter rate.

shop it

I don't think you understand the concept of borrowing against a 401K. Thus far you've talked about penalties, tax issues and skipping payments. None of those are factors when you borrow against your 401K.

To the original poster, with your credit and DI ratio, 8.9% is a joke. And they WILL lower the rate if you have something better that you can get. Check out FSCU.com for good rates and longer terms.

+1

+1, that's insane, putting your house at risk for a boat. If you can't afford a boat without putting your house at risk, go to Academy and buy a good kayak. 401k loan is risky too if you lose your job because of the penalties for early withdrawal since they won't be taking it out of your paycheck. Credit unions and normal financing are much safer and don't cost much more, and could cost much less long term if something went wrong with a 401k or home equity loan. Fishing is a hobby, I'm not putting my home at risk or risk huge fees from a 401k loan for a boat. But, to each their own.

401K is one of the best ways to go.
If you don,t borrow from your 401k find you credit union.

What happens when you borrow against your 401k and lose your job?

What happens is that you have a time limit - I believe 90 days - to repay the 401k loan in full. If you do not repay it, then the IRS treats the unpaid loan balance as an early distribution from your 401k and can be subject to penalties and additional taxes depending on your financial situation.

401K might not seem like a good idea because the interest rate is normally low (around 5%) and you pay it back to yourself. Most plans only give you 4 years to pay and you are losing any investment money that you may have earned. The last few years were actually good years to have a 401K loan becuase most people were probably not earning much anyway. 8.99% stinks. I can get an unsecured loan for less than that. RC is correct in you lose the credit history but with a 775 score does it really matter. One other advantage of the 401K loan is it will not show up as a loan if you apply for another. Just make dang sure your job is secure if you take one out.

Send me a PM if you haven't already found alternative financing. I am the manager of a small community bank in Dallas and would like to help. Our current boat loan rate is 6.25%.

You certainly want to check your crdit union though. If they offer boat financing it may be the lowest rate you will find anywhere.

Do keep in mind that you may not find 100% financing on a boat at a bank or credit union though. They will also require proof of insurance prior to funding.

Good luck! That is a great rig!!!!

now this, this is good advice! +1

I got 6% at my credit union. 8.99 seems high.

6% is a good rate. Interest rates are based 100% on the strength of the buyer. For some people and deals, 8.99% is a great deal but 6% could be unavailable. They all stand alone and no two buyers and deals are alike. Nice looking boat if what you bought is the one pictured. Enjoy that thimg and we hope your livewells are always full. Ken

REC does make a good point too about CUs not counting towards your credit typically. Credit affects too many things in this society to not make it count when you're making all the payments on time. That should be a big factor for anyone looking at loans.

Borrowing against your 401k is ridiculously stupid. You will never ever again gain the time back that you had already invested in that.


Someone needs to look up compound interest and understand it.

That really depends on what the current & future return is and how long you take to pay it back. If your money is just sitting in some mutual fund making the fund manager a bunch of money that they would definitely agree. Now if you are earning a higher return that the interst rate I agree but not to the poin of being ridiculous.

This is an old post but here my .02 cents. Leave the loans, 401k's, banks, trusts, etc alone. Maybe that's why all we have is a couple kayaks and a jonboat?...if ya can't pay cash, can you really afford it? It's really a nice place to have no debt...give ya more money for fun. Just a thought.

Imagine what the world would be like if noone bought a house, car, boat or anything else until they had the cash saved. I think we all need to go back to just living off the land and washing our clothes in the river.

It may sound like robbing Peter to pay Paul but a CD or cash secured loan is another good way to finance something without risking your home, 401K, etc. When the loan is paid off you get your cash back. Since it is secured the interest rates are minimal since you offset the loan rate wit what the CD or savings account earns (not much these days unfortunately), especially compared to dealership rates. And you get the benefit of adding possitive credit history to your bureau at a rate around 2.75% in many cases.

Not for everyone but if you are on the fence about buying and have cash it makes sense to keep it in a lot of cases. For most people it takes a lot longer to save $20,000 than it does for us to pay it back to someone else so why not put it to work for you?