I am pleased to comment on the availability, and current trends, within the market for yacht finance.
Understandably, relative uncertainty and lowered consumer confidence distracts many qualified buyers from moving forward. Yet “good deals” abound, and of course occur daily, at prices unthinkable only a year ago.
On the money side, my recent conversations often lead to the question, “Is anyone offering financing on boats these days?” A salesman’s reply would be “Heck yes, we have millions to lend.” It happens to be true, and here, concisely, is why:
Yacht-sized Marine Finance has always followed sound lending practices. Reasonable down payments and verification of income have always been part of the process. The struggle within auto and real estate lending has made all the news, as those markets adjust their practices to our long-held standards.
Seacoast Marine Finance represents the programs of eight national and European based lending sources, including those of our parent bank, Seacoast National Bank. Importantly, we have not seen marine lenders tightening their underwriting ratios.
We have seen some lenders leave the market, as they pay the price for underwriting smaller, less well-documented loans. My estimate is that the lenders who have left comprised about 25% of yacht lending volume. The remaining market participants are competing, as always. If a lender were to trim their capability, it stands to reason we would not need to direct business their way. Sources continue to be there for success.
Sophisticated yacht buyers view financing as part of a prudent business decision that permits them to minimize cash outlay. In most cases, 75%-80% of the purchase price may be financed for up to 20 years. The vessel itself is the only collateral required; marine financing does not encumber any other personal or business assets.
For the well-advised and prepared yacht buyer, today’s opportunities are vast. And, no matter what the market conditions, the fundamentals of a yacht purchase remain the same: finding the right boat, negotiating an acceptable price, and structuring the purchase to one’s advantage as much as possible.
Mark Lyon
Marine Lending Officer,
Seacoast Marine Finance, Fort Lauderdale
877-916-2326
http://www.seacoastmarinefinance.net/?source=CatamaranCompany
Additional Resources: http://www.catamarans.com/services/financing/index.asp
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