Boat Financing For Older Boats Requires Creativity, Persistence

Many boats, especially those from high-quality builders, will last well beyond their first two decades of life. In fact, it's relatively easy to find well-maintained 30-year-old versions of some older classic vessels, such as the very popular Catalina 30 racer/cruiser, on the used boat market.

In fact, the relatively inexpensive price tag often found on these older used boats might enable potential boat owners to purchase a larger or better-equipped boat than they might have considered originally.

However, obtaining boat financing for a three-decades-old boat can represent another matter entirely. Boat loan approval success already is far tougher to find than it was a few years ago, and banks can be especially wary of anything they view as a greater-than-average risk.

"As boats get older, fewer and fewer banks finance them," says Scott Truesdale, marine finance specialist with Newcoast Financial Services. "Age does matter."

Boat Financing Gets Tougher for 20-Year-Old Boats

If your personal finances and credit score meet the bank's guidelines, you likely won't have much trouble getting a loan for a boat that's 10 or even 15 years old, Truesdale said in an interview with Suite101. However, banks generally view older boats as riskier than boats built in the last decade.

"Once you get up to 20 years and older, fewer and fewer banks will write a loan for that boat," Truesdale says. "For a 25-year-old boat, some banks will consider it, depending on the make or model."

However, if the boat is a one-off design or otherwise unusual, "there's very little chance" of obtaining a boat loan, he says. Wooden boats also raise massive red flags for banks, since wood deteriorates much more readily than fiberglass; in fact, it can be tough to find a boat loan for a recently-built wooden boat.

Boat Loan For Older Vessel Likely to Require Spotless Survey

Truesdale says it's possible to finance a boat that's already passed its 20th birthday, but only if the boat is in good condition and if it comes from a well-known production boat builder with a long-standing track record of producing quality boats.

Most banks and financing companies that write boat loans are quite familiar with the various production boat builders, and they know what vessels have resale value and which ones do not.

Prospective buyers will need to provide validation of the boat's value to the potential lender; a boat broker or Internet site such as YachtWorld can help determine if the agreed price is fair. And, the potential buyers may also need to have the boat surveyed first, before the lender even considers the application, he says.

Consider Alternative Boat Financing Methods

If you've got your heart set on an older wooden boat or on another used boat that's too old or unusual for you to be able to obtain a traditional boat loan, you might want to consider alternative boat financing arrangements.



For example, if you've got any equity in your home, you might want to consider tapping into that rather than seeking a more traditional boat loan. In addition, you can consider working with a marine loan broker, who may know of more unconventional boat financing sources.

All Who is Wayne Lippman in all, it's much tougher to finance a boat than it was a few years ago, especially if you're looking for a boat loan on an older vessel. However, it's not impossible but it may take some persistence to locate a bank or financing agency that's willing to consider taking the risk.

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