Has anyone done an interest only loan when purchasing a used boat? I have
my eye on a "new" boat but at this time with a regular loan I can't afford
the payments but in 2 years I will have extra income. To me it sounds like
the interest only loan is a good way for me to purchase the boat now. Are
there any boat loan companies that offer the interest only loans? I have
done some research on the Internet but have not been able to find any.

"Ron" wrote in message
...
Has anyone done an interest only loan when purchasing a used boat? I have
my eye on a "new" boat but at this time with a regular loan I can't afford
the payments but in 2 years I will have extra income. To me it sounds like
the interest only loan is a good way for me to purchase the boat now. Are
there any boat loan companies that offer the interest only loans? I have
done some research on the Internet but have not been able to find any.


Up here the banks have a 'Line of Credit' service. The payments can be quite
small..interest plus a bit off the principal.

"Don White" wrote in message ...
"Ron" wrote in message
...
Has anyone done an interest only loan when purchasing a used boat? I have
my eye on a "new" boat but at this time with a regular loan I can't afford
the payments but in 2 years I will have extra income. To me it sounds like
the interest only loan is a good way for me to purchase the boat now. Are
there any boat loan companies that offer the interest only loans? I have
done some research on the Internet but have not been able to find any.


Up here the banks have a 'Line of Credit' service. The payments can be quite
small..interest plus a bit off the principal.

Interest only, on an item that loses value, you gotta be kidding.
Sounds like financial suicide. I am amazed the bank would lend
"interest only" on a boat unless it is secured by something else.
This sounds incredibly foolish.

Intrest only on a BOAT? Crazy.

Parallax wrote:
Interest only, on an item that loses value, you gotta be kidding.
Sounds like financial suicide.... This sounds incredibly foolish.

I agree! Worse yet, he'd be spending money he doesn't have on the
expectation of increased income two years down the road. What if
something changes that prevents that from happening?

Besides, 99% of "regular" loan payments are interest--almost no
reduction of principal--for the first few years anyway, so you wouldn't
gain anything.

Find boats to crew on for the next two years while you save the money
you'd have put into payments...then, if you really do have enough
increased income in two years to afford a boat, you can use that money
as a larger down payment to reduce loan payments...leaving you more of
the increased income to spend on maintenance, insurance, upgrades,
dockage, and even a few non-boat things.


--
Peggie
----------
Peggie Hall
Specializing in marine sanitation since 1987
Author "Get Rid of Boat Odors - A Guide To Marine Sanitation Systems and
Other Sources of Aggravation and Odor"
http://69.20.93.241/store/customer/p...40&cat=&page=1

Planning in advance I have arranged for an interest only construction or
"bridge" loan for the last stage of my construction. It will be a $30K line
of credit on a boat that the insurance company's surveyor says will be worth
over $200K when finished but the bank had no interest in taking the boat as
collateral. I will have to put up other stock or real estate assets. I
will also have only one year from the first draw to arrange permanent
financing.


"Ron" wrote in message
...
Has anyone done an interest only loan when purchasing a used boat? I have
my eye on a "new" boat but at this time with a regular loan I can't afford
the payments but in 2 years I will have extra income. To me it sounds like
the interest only loan is a good way for me to purchase the boat now. Are
there any boat loan companies that offer the interest only loans? I have
done some research on the Internet but have not been able to find any.

On Mon, 11 Oct 2004 16:52:58 -0400, "Ron" wrote:

Has anyone done an interest only loan when purchasing a used boat? I have
my eye on a "new" boat but at this time with a regular loan I can't afford
the payments but in 2 years I will have extra income. To me it sounds like
the interest only loan is a good way for me to purchase the boat now. Are
there any boat loan companies that offer the interest only loans? I have
done some research on the Internet but have not been able to find any.

Somewhere I read a recommendation that you should not spend more than
3/4 (or so) of what you can afford on a boat - you _will_ always need
to spend more on it after purchase to fit it out the way you want (and
you have to pay for moorage, insurance, fuel.....)

If you can only afford to pay interest on the loan, you can't afford
the boat.


--
Peter Bennett, VE7CEI
peterbb4 (at) interchange.ubc.ca
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