Performace boat loans!!!!!!!!!!!!!

[JupiterSunsation]

Folks it's real easy to bash the banks but as long as they are experiencing heavy losses there is no incentive to loan money.

For years, if you loaned someone money (say for a boat) that had a 690, 675 or 650 credit score the chance of that loan going bad was pretty high based on historical data.

For people who had 750-800 credit scores....almost never did those loans go bad unless the person died.

Today, loans are going bad for people who had 750-800 credit scores when they originally obtained their boat loans. These people had great income, great job stability but today have either lost their jobs (owned a Saturn or Chrysler/Dodge dealer perhaps, worked for Lehman Brothers, etc..) and have defaulted on their loans.

So, in this environment you have to be part credit officer, part fortune teller and part genie to lend someone money today. So.......now today banks want to see abviously great score but they also want to see lower debt to income (used to me 50-52% max now it is 40-42%), they want to see LIQUID assets that can be used to pay the bills for a significant period of time if you loose your employment and they want to see low credit card debt.

The days of people buying boats with $10k in the bank, 50% DTI and $30k in credit card debt are long gone. Truth be told, many of those people had no business owning a boat or other toys that they have (RV, Bourgette motorcycle, sports car, etc...)

Being in banking and boat lending I do believe that the banks to need to loosen up a little but as long has steep losses are rolling in every month no one has a leg to stand on in that argument.

It is understood, simple math really. But anyone fiscally responsible (smart CPA wiz) wouldn't buy a boat to begin with! :sifone: It is an oxymoron.....
That is why accountants like to drive Honda Accords/Toyota Camrys not foreign exotics. Remember if it flys, floats or fvcks, RENT IT (must have been coined by an accountant!).

The boat builders will be troubled for years to come if no one will finance their products and the used market will stagnate with no one buying used inventories (so the owners can buy new ones). Part of the reason so many boats sold in past years was because lenders were abundant. But now with rising fuel, insane insurance costs thrown in the mix on top of the lack of financing the future looks real dim. Storage costs in some areas (FL) can cost more than the payment which adds another angle to the problem as well.

 

[Sunsation96]

Citizens bank in Michigan is loaning with 10-20% down depending on what you are buying

I just got pre approved from them and did not need anything down, I think it had to do with my credit score and debt to income ratio, got approved in 24 hours to shop for a boat. I have not found a boat that I want so I continue to shop:willy_nilly: I also pay my bills every Friday auto transfer the funds the lenders like to see that you pay on time and pay more than just the date that was set in the contract. I have to say that alot of people live way beyond than the way they should. It seems like now there is no reason to save to buy something I see it with my friends why save when I can just get the credit card or the in store loan:ack2:

 

[Pro1]

GMAC needs 5.6 Billion more dollars today in bailout money.

GE capital did some bad boat loans. CIT lenders needs bailout money. Its not over Johnny.