My local bank that did not tell me about the engine deal is actually giving me a great rate. 5.5% for 15 years. I would just assume use their money, and go have fun as I am not getting any younger.
Hunting around for other loans, most banks have a max age on the boat set at 20 years old, and one place had it set to 30 years old. Again my local bank beat that also. One thing that a lender did tell me was to think about an exit strategy. If I buy a 30 year old boat and keep it for 5 years, when I go to sell it, it will be 35 years old and the next buyer will not be able to get a loan on it.
I am going to say all of this with good intentions...
You need to do your homework.
It is pretty much common knowledge that lenders start getting uncomfortable when a boat is 20+ years old. Sure there are some lenders that will be fine or can be convinced with a higher down payment, etc. Any pre-approval I have gotten when there is going to be collateral involved has been pre-approved for that specific collateral. I.e. The lender knows the make/model/year/etc of the boat before issuing the pre-approval.
Have you made sure you can get insurance on the boat? I always get an insurance quote BEFORE even going to any lender. It costs you nothing, doesnt hurt your credit, gives you an idea on cost, and most importantly if most insurance companies will be fine with the boat. Many insurance companies will require periodic surveys on older boats and some will cancel policies on boats as they don't get a clean bill of health in a future survey or simply because they age.
Have you factored in cost of ownership? Old boats can cost big money to maintain. You haven't shared the boat with us but one could end up spending what they paid for a boat (or more) in maintenance and fixing things. A 45 year old boat pretty much should've had all systems replaced/overhauled not only once before but twice at this point, at least.
There are many lenders out there that know how to work around issues. I have found credit unions to be the most flexible, best rates, and offer things you cannot find anywhere else when you go through a mortgage broker. I think the going rate on $100k+ borrowed is 4.75% or so right now but age may play a factor in the rate. 5.5% is not too far off. Down payment is another consideration. I've seen as low as 10% but have a feeling someone is going to want to see 20-25%+ on a 45 year old boat. I would start with Jen @ Yacht Closer and then Boatbanker/Unibank.
Also, you have to expect to spend some $$$ searching for a new boat, whether its flights, hotel, meals, surveys, mechanical inspections, etc. It is a sunk cost. The boat could very well fail the survey. Unless there was a material misrepresentation, you are not going to be able to get anyone to pay your bills. I like to do a TON of due diligence up front. Basically I learn the boat inside out before I even am booking flights, scheduling surveys, etc. Tons of high resolution pictures, getting a statement in writing that there are no known issues/damage/everything is in working order, etc. In addition to a surveyor, you also need to hire a mechanic that specializes in the make/model engines and genset. This can easily cost another $1-2k ON TOP of the Surveyor. I would be reviewing detailed service records, specs on the rebuilds, etc, before even going to contract, putting a deposit down, booking surveyors, flights, etc.
I would recommend negotiating a deal, contracts, deposits, etc, before booking flights. Your offer is based on how things were represented to you at the time so you can renegotiate or walkaway. I would make sure the contract spells out specifics of how the deposit is refundable, if there is an escrow agent, etc. I would highly recommend as a part of the due diligence, you run title abstracts, UCC lien searches, etc, to confirm the title(s) are free and clear. Again, there is a TON to do before booking surveyors, flights, etc.
I wish you luck in finding a good boat just make sure you know what you are getting into.
