Conference unifix::sailing

Since PDP-11's are sometimes cryptic, my node name and user name didn't get
into my previous note.

I am:

VAX4::ARSON::Steinberger


Ed Steinberger

I don't know who would have the best rates/terms right now.  I shopped 
around a lot last year when I bought my boat.  I'd suggest that you do the 
same.  (Unless someone has recently financed a boat and would have done the 
shopping already.)

	Wayne Grant

Depending on how much you are financing, the boat itself, and  the  company,
financing  currently  (December) runs anywhere from 11 1/2% to 13 1/2%. Some
of  the  lower interest rates include points, which might or might not be to
your  benefit,  depending on how much you want to pay per month and what the
tax ramifications might be.

Finance  companies  have  3 or 4 different kinds of plans and both fixed and
variable  rates to choose from. Some of the plans call for 5 year fixed with
a variable remainder. Others call for 5 year fixed and a rate of "prime plus
1" or "prime plus 2" for the remainder. It depends how long you wish to keep
the  boat.  Statistics seem to bear out that most people keep their boats 48
months. These plans give lower rates for at least that period. The terms can
be as long as 12 to 15 years.

For used boats there is a general rule that they will only finance up to 75%
of  the purchase price. Meaning you come up with at least a 25% downpayment.
For  larger  loans  or  better  quality  boats,  they  can  stretch this. In
addition,  used boats require documentation during financing, which can cost
about $200 to $400, depending on whether the name of the boat is changing or
who does it. Most banks refer people to N.E. Marine Documentation.

I checked into the below companies in December. Each one said the rates were
changing,  but  it  might  give  you an idea of who to try first. Actually I
checked  into  a  whole  lot  more, but I could'nt figure out who was "First
Commerical" and who was "First Financial" after a while...

                 Fixed   Var
Company		 Rate	 Plans   Approval	 Comments
--------------   -----   -----  -----------   -----------------
Yegan Marine	 13% 	  Yes   1 or 2 days   Do loads of marine business
First Commerical 13 1/4%  Yes   weeks         Typical bank (slow)
Essex Marine     11 1/2%  Yes   1 or 2 days   Low rate, (2 points)
Shawmut          13 1/4%  Yes   1 week        Recommended by a lot of dealers

We eventually went with Essex, who turned out to be very professional, very
helpful and easy to deal with.  The points paid for themselves over the
first few years, and the tax benefits were ok.

Rick

PS.  One thing I found annoying with many of the companies was the fact
     that the approval letters sent out contained different details than
     what I requested.  This required some ironing out, but make sure you
     look beyond the "We are happy to inform you" line...

You may want to check the DEC credit union. I just financed an auto, and I 
believe they were also offering boat loans. Their auto terms varied from
12.5 (or was it 12.75%) with 20% down to 15% with nothing down for new cars.

I would expect boat loans to be similar.

Bill French

Another choice is the full payout lease plan offered by Key Capital.
This is a "zero down" scheme that has origination fees and a payout
premium at the end of 5 or 10%.  

I considered this plan but eventually went with a simple interest,
normal downpayment loan.  The lease plan can cause you to owe more
within the first 1/3 or so of the period than you borrowed, because
of the end premium.  The benefit of course is no up frontapital
and the option to invest these $ if you think you can get a better
return.

One financial expert told me the lease plan was basically a way to
circumvent the "Rule of 78's" interest rebate system, which is now
illegal in Massachusetts.  

If you decide to go with the lease or out of state "78's" get a
payoff schedule by month for the life of the contract.  (Probably
a good idea for any loan.)  If you've got an old 78's loan to 
pay off, you can get a payoff schedule custom computed by Financial
Publishing Co.  82 Brookline Ave. Boston  262-4040.  I think it cost
me $25.  Apparently there are some financial hand calculators that
can do this task, but otherwise finding the algorithm turned out
to be a frustrating search.

I wrote a BASIC program that calculates the payment schedule and 
interest for a Rule of 78s loan. My numbers don't quite agree with the 
banks's numbers, but they are close. If you'd like the program, ask.

Alan

re DCU:  I don't believe the DCU will give a loan on a recreational
         vehicle.  At least when I checked they said they "didn't do
         that"?  In any case, the DCU rates are usually slow to drop
         when the rest of the world does, and you can probably do 
         better in the open market.
Rick

No boat loan shopping should be without a stop in any of the
Bristol, RI banks. Because of the location, they tend to be
experienced marine loan people. In particular, try the Fleet National
Bank (formerly Industrial National) branch in Bristol, they carry many
marine loans.

Paul