For most people, the boat of their dreams will be their second most expensive purchase, after their home. In today’s world of high boat prices, most boat buyers need to find a lender to make it all possible. There are many choices, but they all get their money from a few basic sources
- Credit Unions
- Financial Institutions
To one extent or another, all three are regulated by federal and state laws.
Boat Loan Brokers
In addition to the primary sources, there are also brokers who specialize in boat loans. They generally like to work with boat dealers or brokers because they have the customers who need the loans. Because most boat loans are sold at retail by 3rd parties, the interest rates charged tend to be pretty much the same for a given individual and boat.
Generally, the interest rate charged by the source financial institution will be the same as the boat dealer or the boat loan broker, even though the dealer or loan broker is being paid a commission. This is to make sure that they are not “under-selling” their retail outlets, just as is done in other wholesale/retail industries.
Distinctions Among Loan Sources
If the rates are the same for any given individual and boat, what differentiates one loan source from another? Probably the most important is the appetite of the financial sources for boat loans in the first place, and then the relative risk factors with each individual loan.
For example, banks like to have a balance of different types of loans in their portfolio: low-risk, low interest, loans such as home mortgages which are guaranteed by Fannie Mae, and moderate-risk, moderately higher rate loans such as boat loans, household appliances, second mortgages and the like. Some banks even have an appetite for higher-risk, much-higher interest rate loans of all types, including boat loans on older boats and individuals with weaker financial profiles.
When a bank has reached its limit for loans in a certain category, with certain risk parameters, it is simply out of the market temporarily. As a result, banks, credit unions and financial institutions are constantly in and out of the market when it comes to boat loans, or boat loans with certain risk parameters.
What is Elite Direct Finance?
Elite Direct Finance is a broker that specializes in boat loans. Four years ago Elite’s team of loan experts thought they could bring a breath of fresh air into the boating industry, which in the case of financing hasn’t changed much in decades.
With over 100 years of combined boat loan experience the team at Elite Direct Finance has brought to the boating industry an energetic team of experts to help consumers navigate the world of finance. By looking at the needs of boaters with fresh eyes they were able to spot several important areas to improve the experience. Those major areas are –
1. Speed in “Pre-Qual” response (usually just a few hours).
2. Having a portfolio of many diversified financial sources, each with an appetite for different types of boat loans.
3. Efficiency in handling the loan application (approval usually within 48 hours)
4. Consultations with applicants to improve loan opportunities
5. Creating a high-quality loan experience from start to finish (see testimonials)
BoatTEST’s Exclusive Boat Loan Partner
BoatTEST has formed a partnership with Elite Direct Finance to bring their services and expertise to our 203,000 current members. We like Elite’s dedication to customer service, and its modern, efficient way of doing business. We invite our members to make use of this terrific opportunity to have trained professionals working for your interests.
Elite has a “can-do” attitude toward solving problems and has earned BoatTEST’s confidence in providing boat loans to its members with an exceptional overall experience. Below is a link to a monthly payment calculator, as well as one to the “Pre-Qual” form that can be completed in less than 2 minutes.