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  1. #1
    Member
    Join Date
    Feb 2017
    Location
    Houston, TX.
    Posts
    517

    Trade in/Neg equity and boat financing

    I have an opportunity to trade my boat in on a new, larger 2017 model, and get a fantastic deal on it. My current boat is only about 7 months old. Looking at the preliminary numbers, I will be upside down about $2k trading my boat in. Will a marine finance company allow for negative equity like automotive finance does?
    '17 Nitro Z21, 250ProXS serial # 2B399616, 24p Fury4, 12" Atlas, Apex 16 @ console, Apex 16 & Apex 13 @ bow, Mega 360, Ultrex, 8ft blades

  2. BBC SPONSOR
    Join Date
    Dec 2009
    Location
    Michigan
    Posts
    1,876
    #2
    Quote Originally Posted by TXZ18 View Post
    I have an opportunity to trade my boat in on a new, larger 2017 model, and get a fantastic deal on it. My current boat is only about 7 months old. Looking at the preliminary numbers, I will be upside down about $2k trading my boat in. Will a marine finance company allow for negative equity like automotive finance does?
    Thanks for the question. Lenders do not like to see negative equity. In reality it makes the loan on what you are buying (in their eyes) higher than it should be. No lender likes to give more than the value. The best thing in the long run would be to bring some cash to the table. Even enough to cover the negative would be a big help. If you try to finance the whole thing AND the negative you would be making monthly payments on the negative, the sales tax and any state title or lien work. Making payments on those things does not help gain equity on what you are buying. That will hurt when the next shinny thing comes along and you are upside down even more.
    Sorry for putting it that way but getting further and further behind can get ugly.
    Let us know how we can help.
    Thank you,
    Ken