Boat Loan Rates

[Geaux-Fish]

My credit union has a 3.49% boat loan rate and wondering if a lower rate is available out there? Credit is excellent and the loan would be for slightly used 2017 Ranger at $58k. Probably go for longer term so won't be locked into higher monthly payment and can pay extra when truck is paid off soon.

[reclending.com]

My credit union has a 3.49% boat loan rate and wondering if a lower rate is available out there? Credit is excellent and the loan would be for slightly used 2017 Ranger at $58k. Probably go for longer term so won't be locked into higher monthly payment and can pay extra when truck is paid off soon.

Thank you for the note. Your CU rate is a real good one. Most things we are seeing now are closer to the 5% area. As long as the term is workable, that should be good.
Let us know if we can help with anything.
Thank you,
Ken

[Boostr]

That's pretty good. Mines at %5.4 because I tacked on another year, but if I didn't it would off been at %4.7. The rates that regular banks charge is ridiculous, and what dealers charge is even worse. The CU is the way to go if your fortunate enough to be a member.

[Geaux-Fish]

Was approved, but she mentioned something about possibly not being able to do the loan if boat is out of state. Strange.

[J D]

Just curious how long the term you were offered? My CU here only offers 60 months

[Geaux-Fish]

Good to go, they will do power of attorney for being out of state sale.
5.49% for 120 months.
USAA has 5.25% for 180 months.

[Bamaman]

As long as a lien is noted on a title, or as long as a UCC-1 Financing Statement is filed (if in a non-title state), the credit union's security interest will protect them legally. Doing business across state lines is normal in this mobile society.

My credit union is more like 4-4.5% APR, and they are somewhat conservative--not wanting to go ultra long terms on boats. Bass boats are everywhere at our local factories and places of employment parking lots with 3 major lakes within 16 miles.

[J D]

Good to go, they will do power of attorney for being out of state sale.
5.49% for 120 months.
USAA has 5.25% for 180 months.

Thanks...

[OH_Ranger]

At 3.5%. I'd probably buy a newer boat.

[Geaux-Fish]

Went with USAA at 5.49% for 120 months, but plan on paying off in 5-6 yrs. Local credit union didn't know our own state laws much less Alabama's where I bought the boat from. They said they couldn't do the loan without a title and the fella kept telling them that Alabama does not title boats. Thru our Louisiana Wildlife and Fisheries website, there is a form to fill out that states what is needed to obtain a new title with the CU as the lien holder. All was needed from Alabama is the boat/motor registration along with bill of sale and submit it. Guess they don't do any boat loans or interstate purchases much. Also, Louisiana has separate title on the trailer which goes to the office of motor vehicles and receives a license plate. We pay taxes on the value of trailer, not boat/motor if buying from individual. Alabama does not require a license on the trailer...it's lumped in with the boat/motor registration thru their state conservation & resources dept. The pain will be when I have to fill out two separate forms, one to obtain the boat registration verifying that the boat is used and bought from individual so I don't have to pay taxes on it. The other form is to obtain a new title for the boat/motor/trailer. A pain indeed. I think I like Alabama's process better.

[SouthernZ]

As of mid-2016, in the state of La we DO have to pay taxes on used boats and outboards. I know this because our lovely state decided to hold my state tax return until I payed the taxes on the 2004 model boat I bought last year. So said you can get a waiver at your local tax commissioner office, but I tried that ad it did not go through with the state.

[castforcash]

Good to go, they will do power of attorney for being out of state sale.
5.49% for 120 months.
USAA has 5.25% for 180 months.

I'm confused, why would you go with a rate 2 points higher? Thats a lot of money over the term of the loan. You stated 3.49 in your original post....

[Marshfly]

As of mid-2016, in the state of La we DO have to pay taxes on used boats and outboards. I know this because our lovely state decided to hold my state tax return until I payed the taxes on the 2004 model boat I bought last year. So said you can get a waiver at your local tax commissioner office, but I tried that ad it did not go through with the state.

This only applies for a dealer transfer and not a private party sale as it always has. That tax on private party transfers was only in place for about a month and was then repealed and you could apply to get a refund if you paid it. I bought a used 2016 boat last August and paid no taxes on the purchase except for the trailer. If you are being told different, contact your state representative. Also, you have to get the waiver from the state office PRIOR to getting the waiver from your local office. Then submit it all to LADWF. If you didn't get the waivers prior to submitting your registration application, you might be out of luck.

To recap, if you buy from a dealer or broker, you owe tax. If you buy from an individual, you don't.

[reclending.com]

[QUOTE=Marshfly;8391604]This only applies for a dealer transfer and not a private party sale as it always has.

Just as a side note - It's that way in KY as well. Talk about giving the dealers a disadvantage. Seems an odd way to help the business in the state stay strong and employing people.
We have two people in our company that work with sales tax and title work full time. It seems nobody buys from the dealer down the street any more. The state line and different rules are always a moving target. I think I even saw where that LA sales tax rule had a stop date on it. And considering that some of the Perish combined sales tax can get over 10%, it makes a real difference. The rules are always a bit fluid. ALWAYS a good idea to check and be sure.
Let us know if we can help.
Ken

[Geaux-Fish]

Marshfly is correct...
The state changed the rules in the last legislative session from what I understand. The new tax rates for used boats below.
From To Tax Rate
7/1/03 3/31/16 0%
4/1/16 6/30/16 4%
7/1/16 6/30/18 0%

Fella from Houma bought my 07 Ranger last year between 4/16 and 7/16 and had to pay 4% taxes on almost $30k boat. And at the time boats purchased between 7/16 to 7/18 had to pay 2% tax.
The change Marshfly is referencing is they changed the 2% tax of boats purchased after 7/16 to 0%, so I did not have to pay taxes on my 2017 Ranger Z520c bought from individual and out of state. Did have to pay tax on the trailer though. Before you purchase, contact the dept. of revenue to verify. Buying used from a dealer you will still pay the full tax rate depending on where you live, not where you bought the boat. If you live out in the country, your tax rate will be lower plus the 4% state rate. Living in the city will kill you in taxes as most are around 10%.

As for the loan rate...the bank said they could not give me that rate for longer than 3 years...false advertisement...;). Next lowest rate was the 5.49%.