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.