20 year old Boat Loan Information

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wreckdiver60

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It occurred to me in the middle of the night, and I was wondering if there's any truth to my thoughts. It seems that banks are willing to offer loans on boats that are less than 20 years old. But what if someone is interested in a boat that's just one year shy of turning 20, and the plan is to keep it for 3-4 years? If the boat reaches 24+ years old by the time the person wants to sell it, can a new buyer still get a loan for a boat that old, or does it have to be an all-cash purchase?
 
I believe, and don’t quote me on this without confirming first, that as long as it’s less than 20 years old when you first purchase the boat or are approved for the loan is all that really matters. Otherwise, if you had an 7-10 year loan, you’d have to buy a boat that’s less than 10-13 years of age. Again, I’m not positive on this one and all credit unions are slightly different, though I’m quite literally in the same boat in that my boat is a 2004, of which I purchased her in 2021 and is now 21 years old. I have, I believe it’s a 7 year loan on her, through Nordstrom credit union as I used to work there.
 
Whether a lender will issue a loan to a buyer on a boat doesn't have anything to do with a current load owed by the seller. The buyers credit history and finances will be a much bigger factor than the boat's age.
 
It really comes down the bank, Wreck, whether or not they will finance a boat based on the model year. Not all banks use the same rules. Plus. there are other options for financing besides marine lenders.
 
seasick said:
Whether a lender will issue a loan to a buyer on a boat doesn't have anything to do with a current load owed by the seller. The buyers credit history and finances will be a much bigger factor than the boat's age.
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I think you misunderstood the post. It wasn't whether there was a loan previous or not, it was whether a person can get a loan on a boat that's over 20 years old.
 
I think a little bit of clarity is needed here… do you currently have a boat that you’re worried about or are you considering purchasing a boat that could be over 20 years old? If so, where are you located and which credit unions are you looking into potentially using? Boat US will go up to as old as the year 1998. BECU, which is a local credit union to me, says they’ll do a loan up to a 25 year old boat. As mentioned before, it depends on the credit union as they’re all slightly different, as well as what your intentions are for going forward. I believe, also stated above, that the 20 years or however long it is… is from the time of purchase or application of the loan.

 
So, you are worried about getting a "boat loan" for an old boat because when you sell it, no one will be able to get a "boat loan" for it.
Thats a good probability.
And you worry that it will effect the salability or sale price in the future?
Thats a good probability.

There are Home Equity loans. Doesn't matter how old the boat is.
If someone is shopping 20yo boats, they are not shopping "boat loans"
 
Please don’t borrow money to buy a 20-year-old boat.
 
mr_mbuna said:
Please don’t borrow money to buy a 20-year-old boat.
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or don't borrow $400K to buy a brand new boat when you can get the same size boat 20 yrs old with brand new motors and electronics for less than $80k..

we need people buying new boats and people buying old boats.
Neither one makes any kind of financial sense.
 
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wreckdiver60 said:
I think you misunderstood the post. It wasn't whether there was a loan previous or not, it was whether a person can get a loan on a boat that's over 20 years old.
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The answer is the same: It all depends on the bank or whatever loan agent is used.
Why do you care whether the buyer can get a loan? If he or she can't, find another buyer.
 
I would disagree on not financing a 20 year old boat, or almost 20 year old boat, especially if you can get a great interest rate, or if you want to keep your money in the bank, etc. Back in October of 2021 when I bought my boat, I financed it and it was almost 20 years old at the time. I've got a low interest rate through my credit union, the monthly payment of just over $300 a month is very doable and I have no regrets in doing so. At the time, I had the money in the bank to buy it, but I also wanted to save that money for a rainy day if I ever needed it, and I'm glad I left it in there. Do whatever makes financial sense for you in your particular situation, not what makes sense for others. Though I will definitely agree that buying something brand new rarely ever seems to make sense as a few years later it will almost always be worth considerably less, or sometimes even half of what it was when you bought it. That, and shop around, especially on the east coast when shopping for boats, cars, trucks, RV's, motorcycles and so on. Lots of vehicles on the east coast can be found for half the price, or sometimes even less, of what they sell for out here on the west coast/PNW area. Which is exactly why I've purchased all 3 of my boats back on the east coast, because of the price. I bought my latest boat for $26.5k and three different boats that were almost identical to mine have sold out here in the Seattle area since then for $55k-$65k.
 
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Mustang65fbk said:
I would disagree on not financing a 20 year old boat, or almost 20 year old boat, especially if you can get a great interest rate, or if you want to keep your money in the bank, etc. Back in October of 2021 when I bought my boat, I financed it and it was almost 20 years old at the time. I've got a low interest rate through my credit union, the monthly payment of just over $300 a month is very doable and I have no regrets in doing so. At the time, I had the money in the bank to buy it, but I also wanted to save that money for a rainy day if I ever needed it, and I'm glad I left it in there. Do whatever makes financial sense for you in your particular situation, not what makes sense for others. Though I will definitely agree that buying something brand new rarely ever seems to make sense as a few years later it will almost always be worth considerably less, or sometimes even half of what it was when you bought it. That, and shop around, especially on the east coast when shopping for boats, cars, trucks, RV's, motorcycles and so on. Lots of vehicles on the east coast can be found for half the price, or sometimes even less, of what they sell for out here on the west coast/PNW area. Which is exactly why I've purchased all 3 of my boats back on the east coast, because of the price. I bought my latest boat for $26.5k and three different boats that were almost identical to mine have sound out here in the Seattle area since then for $55k-$65k.
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Thanks so much for the constructive feedback and advise!
Precisely my thoughts.
 
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