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Applied for a boat loan todayand was surprised by the interest rate.I have a credit score around 800 so i was approved for the loan within an hour,to my surprise they want 8.99 percent on a simple interest loan. I asked if they saw something on my credit that bothered them,they said your credit is top tier but the reality of today is for a recreational loan this is what it is.He also said anything less than excellant credit and they wouldn't even consider the loan at all.I knew things were getting tough but i'm still surprised,my question is has anyone recieved a better rate recently?This is a small loan of less than 30,000 dollars.I do have a boat which i was going to sell in the spring and i found a bargain so i thought i could live with two boats for a few months rather than risk losing this bargain,now i may let it go just for principle. The boat i have now is paid for and i would have used the proceeds of it's sale toward this boat.
 

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unless you spend $100,000 on a boat. you don't get the years or the low interested rate.if you spend $100,000 you get 20years at 5 or 6% you spend less then $100,000 you may get 10 or 11 year. at 9.00% it works out sometime costing the same per month.
 

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8.9 doesn't sound horrible, I'm at 5.9 and I bought my boat during a promotion a couple years ago when credit was too easy.

-JB
 

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I dont have a boat loan but we are considering home improvement up grades and using our HEL instead of our savings because it is like 3% right now. If you plan on paying off within a year or so and you are not financing a lot of money, you may want to go that route. The interest would be tax deductable providing you dont get hit with AMT.
 

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7.2 to 7.8 depending on length of term at my credit union, for used. New rates are 6.4 to 7 depending on term.
Pat in Joppa
 

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USAA FSB

New and Used Boat Loans

73 to 84 Months 7.39% $10,000 - $34,999
85 to 120 Months 6.39% $10,000 - $34,999
 

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Agree with B-Faithful... I just took out a home equity ARM at 3.99 - tax deductible. Far less costly if you have equity. I bought two boats using the same method. Everyone needs tax deductions.
 

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:thumbup:2 words=HOME EQUITY=tax deductible!
 

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:thumbup:2 words=HOME EQUITY=tax deductible!
HELL YES! Take money out of the worlds worst investment and put it into something that will never last the 30 years it takes to pay it off.

Someone once told me ignorance is bliss..... God how I wish I was ignorant.... But it just isn't working for me.... :helpsmilie:
 

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Cash is not the always the best solution. Think of the following:

1. You have the money in savings for a 30k boat
2. You own more than 50% of your home and have an open HEL
3. HEL's are 3.5%
4. Your savings is yeilding 3.75 (ING Direct current rates)

Why would you take out the 30k when you are earning more money than you are paying on the money? Plus you can deduct the interest of HEL.

Say you did pay cash and now what happens if you run into an emergency and need as much reserves as you can get and you hate to take money out of other investments that are currently down (it is only a loss if you take the money out). You have 30k tied up in a boat that you cannot get the money out of until you sell the boat. I would rather be taking the deduction on the interest paid, earning more money in a safe investment, and having the money at my access instantly should I ever need it. If it comes to a point where you can no longer make payments due to cut in pay, then you pay off the boat and sell it at your leasure. You still havent lost. It is making your money work for you.

Using a HEL can be good or the decision can be bad. However, to say cash only isnt the best answer always either.
 

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You are correct but it is the first deduction thrown out I believe if and when you hit AMT. Besides you are just deducting the interest from your income so it is better to pay less interest. No, I am not an accountant. I just make things up as I go along :D
 
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