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I recently interviewed Todd Ritter, our financing manager at Hall Marine, who shared
Why would someone work with Hall Marine's financing group instead of someone else?
5 Important Things Boat Buyers Need to Know About Marine Financing
By doing so, a client can come to us and we can access their buying scenario, credit history and financial profile and gauge which lender will be the best fit them. We act as a liaison between the client and the bank. We deal with divisions of the banks we represent that specialize in yacht financing as well. They offer special terms and rates that a person walking into a branch office doesn't have access to.
In general, what types of things should boat buyers look for when searching for a boat loan?
A buyer should look for a loan that is Simple Interest (you only pay interest for the days that you have the money extended) and that has no prepayment penalty. They should also look for competitive Rates and Terms with down payments around 10 to 20%.
What YOU Need to Know About Boat Financing...
Some people think boat loans and car loans are similar. Can you tell my members some of the major differences between the two and why that matters to them?
A Boat or Yacht is a luxury item, so the qualification can be stricter. The bank will look at an individual's net worth and liquid assets, as well as credit history and ability to make the payment. Each lender has a different appetite, and that is where Trident Funding can save a lot of time for a client, versus the client searching each bank themselves.
On larger Boats and Yachts, the way a client takes ownership can be different as well. With a car, it is titled through the individual state that it will be used in. When it comes to larger boats and yachts, the titling is filed on a Federal level with a Mortgage. We will facilitate this function as well.
Now, many of my clients are self-employed or have a large portion of their income from commissions or bonuses. What should they expect during the process when setting up their financing?
Typically the financial institution will use a two year average of the individual's income. With regard to being self-employed, different banks underwrite different ways. This is another way that Hall Marine can be helpful. We will know which bank best fits a client based on the client's tax return and how they report their income etc.
In addition to helping finance boat purchases, do you offer programs to refinance or restructure current boat loans?
SURE! In today's market, rates are really getting low. It is the perfect time to refinance, if you are planning to hold on to your existing boat and want to save some interest.
You mentioned in a previous conversation that sometimes you can help finance when a regular bank or credit union has declined them. How are you able to do that?
A lot of banks don't have an appetite for boat loans. They don't understand the product. Sometimes they offer such short terms and high rates, that the debt ratio skyrockets. Our lending institutions offer terms of 15 and 20 years and the rates are more competitive than almost any branch of a bank. And, as I mentioned previously, different banks cash flow clients differently. What doesn't make sense to one lender may be no problem to another lender. That's where using an experienced and knowledgeable lender can save you hassle and money when financing a boat.
To get pre-approved for a boat loan, click here or call Todd directly at (803) 831-2101 x640.