Financing a boat as an Expat/non resident in the US?

[OceanoMare]

Originally Posted by Cadence

Only you know about your employment situation. One month sounds kind of meager on a relo rent package.

lol! I'll let the HR department know! Anything else?

[Cadence]

Originally Posted by OceanoMare

lol! I'll let the HR department know! Anything else?

As I said, only you know. I have moved myself and have moved with a guarantee on my house sale with six months of rent. Let HR know. Buying a boat does not seem like a prudent move at this point. JMHO

[OceanoMare]

Only I know, and there's more than that in the relo package.

Buying a boat doesn't seem a prudent move for you, I got it, you made that clear. I still don't get the reason though. Because I don't have a credit history in the US?

[HawkOperator]

Not to high jack the post, but as an American how do i finance a cruiser out side of the US? I have 20% of the cost 250k? and good credit.

[UNCIVILIZED]

Definitely avoid mentioning living onboard. And on slips, there's a lot of info on that on this website. Along with that for the Seattle/Puget Sound area, in the Jan. issue of Northwest Yachting, Welcome Aboard! - Northwest Yachting each year they publish a listing of where the slips are in the region. Including who has space, in what sizes, liveaboards or no, POC's, rates, etc.
Also, when looking for slips, sometimes they'll say no to liveaboards in print, & on the phone, but if you show up looking tidy, & sell yourself, you can find one.

There's also 48 North magazine, & a few others that are free in the Puget Sound area. Both in print, & online that might be of assistance. Even Latitude 38 from the SF Bay Area is worth a look. Besides, it's a good magazine.

Another good resource for all kinds of things boating, slips, particularly, is www.ActiveCaptain.com Which perhaps is a bit more current than the periodicals are. Take a look.

On finance, one stumbling block for you is that I gather that finding loans for boats in the price range you're looking at can be more difficult than are larger ones. This being due to the fact that such boats are usually older, which the banks aren't wild about. And that the loans for them are a lot smaller, so again, less $ gets made by the banks. As well as that if they have to chase down someone who's borrowed $10k for a boat, sometimes it's cheaper for them to write it off than it is to track down & impound the boat. And then to try to sell it in order to recoup their money. Since older boats, often not receiving of the best care, are harder to sell. And don't have good resale value for them.

Edit: I just saw this article on financing boats Ask the Experts: Finance - Northwest Yachting

Originally Posted by HawkOperator

Not to high jack the post, but as an American how do i finance a cruiser out side of the US? I have 20% of the cost 250k? and good credit.

This is one I've wondered about myself. With the question as to how it would work if one moved to Australia, New Zealand, the UK, or elsewhere in Europe.

[Sea Dreaming]

Originally Posted by OceanoMare

Well, that's easier...

I'm moving for work, and the company I work for has agreements with a couple of banks so I can get a bank account and credit card as soon as I walk in a branch, and they will consider me as somebody with a high credit score. I can get a mortgage for a ridiculous amount (waaay more than I need) with lower interests, and a car loan pre-approved the day I set foot in the US.

But liveaboard sailboats? Nope

What about a personal loan? That might mean scaling back your stated buying budget and coming up with collateral to secure the loan, but you won't be bound by the same rules as using your boat as collateral for a mortgage.

[Cadence]

Originally Posted by OceanoMare

Only I know, and there's more than that in the relo package.

Buying a boat doesn't seem a prudent move for you, I got it, you made that clear. I still don't get the reason though. Because I don't have a credit history in the US?

Buy some real property. A boat is a high risk for lenders. I can fully understand that. They don't want to risk the % depreciation. Establish some credit and have some assets they can get their hands on.

Just being realistic unless you have a significant bank account..

[gmnord]

To Hawk Operator,
We financed a yacht located in the FWI using Lightream.com. Great experience. They prefer not to hold a lien on the yacht, don't require insurance or a survey (but I recommend you do both), and doh't care where the yacht is located. I put down about 20% but I don't recall that being necessary, just my preference. Interest rate is 3.7% on 6 year term (we won't hold the loan that long). Had it closed and funds on deposit in 24 hours. They will require good credit and terms likely vary with credit scores. But the purchaser of my former yacht also used them. only requirement is you use the proceeds for only the stated purpose of making the yacht purchase. Good luck!

Incidentally, if you are purchasing in international currency or sending international, I can HIGHLY recommend HIFX.com. About 1% exchange rate (including commission) from $US to EUROs, very professional, fabulous customer care (truly care, every step), and funds transferred to recipient in 4 business days once my funds deposited at HIFX (1-2 days, depending on your bank).

[HawkOperator]

Thank you guys for the information! I Will start a thread on our adventure.

[JFN]

I just had a guy from UK who has a start up here in Calif., with Richard Branson as an investor, offer to buy my house but couldn't get the financing because he didn't have assets here in US and didn't want to move what he did have. This is a home - not going anywhere- and Richard Branson is betting on his success. What banker wouldn't want a relationship with a guy with those prospects? There are forms not logic involved. Bankers don't make judgements based on merit - they have become the DMV.

[OceanoMare]

Since this was revived in April, I guess I'll revive it one more time and bring closure to the thread.

Based on my experience:if you relocate with a major tech company they'll have a preferred bank for you to do your stuff with. They'll se you up and consider your credit score to be >800 for mortgage, car loan, credit card rates* and in some cases boat loans too - for the 1st year. After that, whatever you credit score is decides what rates you get if you get something at all. So financing is not a problem. Again, this is my experience with a particular bank, your L/100Km may vary.

* also, credit card companies in the US are funny...but that's another story