November 2020

November 29, 2020November 29, 2020

Loan Options for Financing a Boat

In this week’s blog, we welcome Lauren Cordell, a guest blog writer. She shares with us different loan options for financing a boat.

4 Loan Options to Lower the Financing Costs of Boat Ownership

There is nothing more refreshing than driving down to the lake on a warm summer day and lounging about on your boat. However, unless you have a tremendous amount of cash lying around, you’ll likely need a boat loan to bring your fantasies to life.

For most people, financing a boat is a heavy financial challenge. Fortunately, there are a few boat loans to ease the load from boat financing. Setting aside time to think about a reasonable spending plan and financial capability for your purchase can undoubtedly help you choose the type of boat loan that caters to your lifestyle.

How to Finance Your Boat

Financing a boat begins with searching for a credible lender for boat loans, discussing, and applying. Finding a boat loan lender is not that back-breaking since banks have found that most boat purchasers are great customers for loans.

Nonetheless, you can also opt to hire a boat loan expert instead of directly contacting a boat loan lender. Boat loan experts commonly interact deeply with the client regarding the application, credit faction, examination, and underwritings.

Boat Loans

It’s undeniable that the costs of boat ownership are expensive. Thus, a lot of people opt to get a boat loan to help them financially. A boat loan is a type of installment loan with a scheduled regular payment, which lasts from 2-15 years. Loan terms and interest rates differ depending on the lender, your loan size, income, credit score, and the type of loan you chose.

Secured Boat Loans

A secured loan implies that the cash lent to you comes with a need for collateral. Collateral is something of significant worth that the lender can use to recover the loan’s expense if you fail to pay the installments. Vehicles, homes, and other valuable things are the usual loan collaterals. Furthermore, you can also sign off the boat itself as collateral.

Secured loans provide borrowers with many benefits. First, they commonly have lower interest rates compared to unsecured loans. Lower interest rates are an effect of the lender receiving lower risks because of the collateral. Secured loans are likewise open to borrowers who have a messy financial record. Furthermore, secured boat loans generally have longer reimbursement terms and higher loan cutoffs than unsecured loans.

However, the primary risk is that you’d need to give up your collateral if you fail to pay the installments. Secured loans are ideal for borrowers who need a more significant loan amount, are OK with the risk related to it, and those who don’t qualify for unsecured loans.

Unsecured Boat Loans

An unsecured loan does not need a guarantee. However, that does not mean it comes without risks. Unsecured loans generally have larger interest rates and many additional limitations compared to secured loans. Even the application process is more complicated to make up for the absence of collateral.

Numerous individuals opt to apply for personal loans when searching for the ideal boat financing choices. A personal loan is a type of unsecured loan that can provide preferable rates than traditional funding entities. They commonly have flexible reimbursement terms and competitive interest rates. You can likewise make additional installments or take care of the whole debt early.

To reiterate, in contrast to secured loans, you don’t need to sign off your boat or other valuables as collateral. An unsecured loan is solely dependent on your financial soundness and evident income. After receiving your loan request approval and funding, the lender will transfer the whole sum into your account.

In-house Financing

In contrast to the more specialized terms in the boat financing world, many boat dealers also offer in-house financing. It’s financing that happens “in house.” It generally occurs inside the walls of the dealership, wherein you plan to purchase your boat.

If you’re prudent, you and the dealer can both benefit from this fiscal agreement. You get your dream boat, pay the interest throughout the loan’s course, and the dealer profits from the income. Win-win situation for both parties. Some even closely manage the lender’s application up to closing deals for a quick and hassle-free experience.

In the most ideal situation, you acquire your boat and pay a competitive interest in it throughout the loan period. If you default on the advance, the dealer keeps the money you’ve already paid. In addition to losing cash, they can also repossess the boat based on the terms that you consented to when signing the agreement.

Second Mortgage

You can go for a home equity loan or a second mortgage on the off chance that you decide not to apply for a personal loan. Home equity loans would utilize your house as a guarantee for your boat loan. And because it requires collateral, it is considered a secured loan.

As stated before, interest rates tend to be lower for secured loans compared to unsecured loans. In short, home equity loans can be incredibly risky because the stakes are exceptionally high. If you fail to pay off the loan installment, the lender has the power to seize your house.

Where to Get a Boat Loan

The three most common places you can turn to for a boat loan are online lenders, banks, and credit unions. Usually, the application process is quick, and approval is mainly dependent on your financial assessment and capacity to repay the loan.

When weighing where to get a boat loan, consider the loan lender’s annual percentage rate, which incorporates the interest rate and additional expenses, to compare the costs and installments that are ideal for your budget.

Banks

Banks and other loaning organizations are the standard go-to’s to apply for a boat loan. Inquiring in your local bank for loan options is a smart start. Establishing a positive, pre-settled relation with a bank can be very useful in helping you get faster approval with a decent rate.

Although many boat dealers currently offer financing choices of their own, this isn’t generally the case. Furthermore, any financing that a boat dealer offers should be subject to comparison with rates that different loan lenders offer.

Credit Unions

Credit unions are like banks but are non-revenue driven organizations intended for individuals who share a collective bond. You might be qualified to enter a credit union for numerous factors — maybe it’s for individuals who live in your locale, people who went to or are in the same school, or have likewise served in the military.

Luckily, the majority of credit unions do not have uptight membership prerequisites. Thus, becoming a member to apply for a boat loan won’t be that much of a challenge. However, while credit unions ordinarily offer personalized client support, they don’t generally keep track of the most recent banking tech. As a result, applying for a boat loan online may not be possible.

Online Lenders

Searching for boat loan lenders online can also be another practical technique for boat financing. Some online lenders offer any type of loan that caters to your lifestyle and needs. At the point when other lending organizations can’t provide the terms you need, finding an online loan lender could be the key to owning your boat.

Takeaway

Setting sail on your boat is a precious experience, and your lack of funds should not hinder you from achieving that dream. Apply for a boat loan that you know you can take on financially today and in the days to come. Furthermore, choose a lender you can trust and provide you with the best terms for your lifestyle. With a little effort and consistency, that summer day lounging in your boat will not be far along in the future.

Author’s Bio

Lauren Cordell has worked as a professional content writer for over five years. She is an avid fan of the outdoors and especially loves incorporating her travels in her writings. Lauren usually spends her free time with her family during the summer and drives down to the lake to spend their afternoon on the family boat.

November 26, 2020November 26, 2020

Thankful this Season

Though 2020 packed a lot of punches, we’re still thankful this season for everything we experienced this year. While Scott and I are celebrating this Thanksgiving as a party of two, so are many others. When we owned our large house, we hosted Thanksgiving every year for up to 27 people and even after downsizing, we continued to share the holiday with my family. This year is different, thanks to the covid pandemic.

How can we be thankful this year? Well, considering the shutdown, we still had a fantastic year. Yes, our trip to the BVI’s was cancelled, but we were able to spend time on the water with family and friends all year long. Considering we sold the boat in July, we were very fortunate.

During the shutdown, we were still able to take the boat out and anchor for lunch.

Scott and I used the shutdown to get more projects done on the boat and work on the dinghy. While we may not have been able to visit marinas that were shut down, we were thankful to be able to spend quality time with family and friends on the boat at our marina.

Remember, when the gray whale swam down our fairway?

Making the best of it

Once the restrictions started to lift, we managed to visit a lot of places this past year. Though it was obvious things were different with the pandemic in place. Port Orchard was quiet, Camano was distanced and the crowds were few. My motto is, “you have to work with what you have and make it great”.

When we were in Port Orchard, our favorite restaurant has this sign outside of the restrooms. How ironic, right?

The beauty of the PNW

While we were stuck at home for most of the shut down, we also are thankful that we have such a great place to live with an awesome view.

Our last trip on the boat was a trip to Des Moines with my close friend Jen. We headed down for the day simply to get fuel. Not a bad day on the water.

With family and friends on Camano, there was never a shortage of time at the beach or on the water.

Our annual family photo for July 4th certainly had a different feel this year though.

No shortages of dogs either

Scott and I miss our two goldens, Mac and Maggie, everyday. So when I have the chance to love on one, I never miss a chance. This year, we were so lucky to have so many encounters. My favorite one, was getting a visit from Tiller, who I met a few years ago at our company rendezvous. She reminds me of Mac and I sometimes think he’s come back as Tiller.

The Journey is part of the Fun

Scott and I finally met one of our Instagram followers, Jeff from MV Why Knot, who lives on his 32′ Nordic Tug!

Looking for our next liveaboard, we traveled to Anacortes and were finally able to “getaway” for a weekend.

Wanting something longer, we decided to charter a yacht and cruise the San Juan Islands. It certainly wasn’t the trip we were expecting, but then it wouldn’t be a journey otherwise. Plus, we’re thankful we didn’t sink.

At the end of the day, we can honestly say we’re thankful for how everything turned out for us this year. It could have taken many different turns and we’re truly blessed on how the year unfolded. Take a moment this season to give thanks and appreciate what you have. It could be gone tomorrow.

Happy Thanksgiving to you and your families and thank you for following our journey. Follow us on social at @BoatingJourney and please subscribe to our YouTube channel (see our latest episode below)

Ally & Scott

November 16, 2020November 17, 2020

Tour a 1995 Sea Ray 550 Sedan Bridge

As most of you know, Scott and I are looking for a liveaboard boat, and in this week’s blog, we take a tour of a 1995 Sea Ray 550 Sedan Bridge. Sea Ray has a long history of producing beautiful yachts going back to the 1980’s. Then in 2018, Sea Ray announced that they were no longer going to produce any boat over 35′.

The Sea Ray Sundancer has been an iconic brand among cruisers. With roomy interiors and fast motors, they quickly became the perfect vessel for families and for entertaining. This 1995 Sea Ray has all of the original features, so it was fun to go back in time and check it out.

Classic design of the 550 Sedan Bridge

Though this motor yacht is 25 years old, it still has a classic design. The exterior is sleek and is in great shape.

The cockpit has plenty of seating and comes with seat covers that look practically brand new. Enter the salon through the large sliding glass door (a feature we love). On our Bayliner 4087, we had to go down a set of stairs to get into the salon and we like this setup much better.

1995 Upgrades

The first thing you will notice when you enter the salon on this 550 Sedan Bridge, is the dining room table. This is actually a plexi-glass table and chairs, which was an upgrade option in the day.

We love the comfy couch and all of the extra room you have to entertain in the salon. The bar stools are original and fit perfectly!

The galley has all of the original equipment, including a built-in coffee maker, icemaker, microwave, liquor cabinet and stovetop. Considering when this was built, the backsplash is still very up to date!

If you love old movies, you’re in luck! This yacht also comes with a VHS & DVD player. Just like our Bayliner, this yacht offers a lower helm, which we never used.

Living Quarters

All of the sleeping berths are down in the forward section of the yacht. The master stateroom is in the V berth, which offers a queen size bed. Plus it comes with a fun quirky rug!

It had plenty of storage for clothes, plus a make-up vanity. I suppose you could use it as a desk, but you would be staring at yourself all of the time!

The master head was nice and roomy, with a separate shower and a vacuflush toilet.

But wait! There’s more!

There are also two more staterooms off of the hallway. One has bunkbeds and the other has a day bed with a vanity. Again, you could use that as an office possibly. The bunkbed stateroom, is where the washer/dry combo is located. Both staterooms share a fairly large head, which has a separate shower (a big plus for us!)

Plus the day bed stateroom also came with a built-in tv.

The Fly Bridge & Engine Room on the 550 Sedan Bridge

One thing that does give me pause on this boat is the stairs up to the bridge. A deal breaker for me, is any sort of ladder. But once you get up there, it’s awesome! There’s lots of seating for entertaining, plus built-in cup holders and a mini fridge.

The helm has B & G with Raymarine electronics and has great visibility for docking and cruising.

The engine room was pretty roomy with access from the cockpit. This Sea Ray comes with twin Caterpillar 3406 diesel engines that have less than 1500 hours. Diesel engines typically are good up to 5000 hours, so this boat has a long life left in it.

So did we make an offer?

This 1995 Sea Ray 550 Sedan Bridge is a great boat, but for us to consider it as a liveaboard, we would need to give it a cosmetic facelift. Unfortunately, we’re not looking for a fixer upper, as we want something that is turnkey. But it does have everything we are looking for (except a walk around bed too).

If you are looking for a great cruising boat for the PNW, this is a fantastic yacht and it’s ready! This boat was actually in the Tri-Cities and the owner cruised it down the Columbia River to the Pacific Ocean, up around Neah Bay and to Lake Union! That’s pretty impressive!

If you would like to check this boat out, please visit Union Marine at Lake Union in Seattle!

As always, thank you for following our journey! Please be sure to subscribe to our blog and YouTube channel (link at the end of this blog). You can follow us on social media @BoatingJourney.

Next week, we’ll take you on a tour of a 2005 Sea Ray 550 Sedan Bridge. This will be a fun comparison of the 1995! Stay tuned! You can view the boat (until it’s sold) here: www.unionmarine.com . Check out our YouTube episode below.

November 5, 2020November 5, 2020

Sailing Lessons on Lake Union

Scott and I have wanted to take sailing lessons for years and last month, we finally took a lesson from the Center for Wooden Boats (CWB) on Lake Union. The Center for Wooden Boats offers a variety of sailing packages or single lessons. We decided to take a lesson and schedule a “sailing checkout” so we could rent one of their small sailboats boats at any time.

The center takes reservations online and when I booked our lessons in August, they were full until the end of September. Luckily, it was a gorgeous sunny day and perfect for being on the water.

Normally the center is open to the public, but with the pandemic only those with reservations were allowed in. The boats are moored at their livery. At the turn of the 20th century, liveries were boathouses where the working class could rent a boat for leisure. The CWB Livery continues that tradition.

What type of sailboat did we learn on?

Scott and I have only sailed on a party catamaran and a small Hobie Cat in the Caribbean. We understand some basic terms, but sailing is much different than power boating. Everything has a name and a purpose. Our instructor Christian was very knowledgeable and shared a ton of information on the different terms.

Our sailboat was about 20′ long and known as a Blanchard Junior Knockout (a fractional sail boat). According to the CWB, the Blanchard boat company was formed by experienced boatwright Norman J. Blanchard Sr. in 1923 on the northeast side of Lake Union. It went on to become one of the most well-known and respected boat shops in the northwest. In 1932, N.J. Blanchard and Ben Seaborn designed the Blanchard Senior Knockabout, a small cabin sloop, in response to comments made by local boaters about how the International Star design had no cabin. The Senior was a cabin daysailer with the rig of a Star. (credit CWB)

The Blanchard Junior Knockabout was a new design which came shortly after. A 20’ open sloop, the hull was scaled down from the 26’ boat. The 20’ boat had only a short fore deck and aft deck and the long cockpit would easily seat 3 adults on each side bench. The 26’ cabin cruiser was called the Blanchard Senior Knockabout (BJK) and the 20’ version was the Blanchard Junior Knockabout (BJK). (credit CWB)

Time to take sailing lessons!

Christian got in the boat first and raised the main sail. Then I climbed in and sat in the front, so Scott could steer from the stern. Remember, there’s no motor on this boat, so Scott gave us a big push off and we headed north. Our instructor was so calm explaining everything to us. I immediately got nervous that we were heading towards a very large yacht and Scott was completely in charge of our forward direction.

Christian dove right in and showed us how to catch wind for moving forward. Our issue was we really didn’t have any winds. They were coming from the north at 1-2 knots, and predicted to kick up to 3-4 knots a couple of hours later. So Scott did his best moving us up the lake. At one point, the boat keeled over about 15 degrees and it freaked me out, as I was on the downside of the boat, near the water line. Watch the YouTube video and see how I reacted.

During our sailing lesson, we learned about wind indicators on the sails, different types of knots and how to hold the lines properly. Let’s just say, there is a completely different language in sailing, compared to power boating.

Christian also did a man overboard exercise by throwing a floating cushion into the water. Our job was to tack back and work our way to the cushion to rescue it. When you are a power boater, whether it’s a motor yacht or a dinghy, you rely solely on your engines to move you. By only having a sail and wind, it’s a lot of work!

Docking the boat

After an hour and a half, it was time for Scott to dock the boat and let me take the helm. We’re used to not only docking with engines, but with thrusters. This should be fun! With the winds coming from the north, we headed south. You sail the boat parallel with the dock and then turn perpendicular towards the dock. When the bow is about 3′ or so from the dock, you use your tiller to turn parallel to the dock. Also, keep in mind, the tiller works in the opposite direction you want to go (similar to a hand-controlled outboard engine). Scott did a great job!

Once we touched the dock, we switched seats and I was at the helm.

We only spent about 30 minutes with me, as it was 2:30p and we had reserved our lessons from 1 – 3p. Our plan was first the lesson, followed by a scheduled “check-out.” Before using the sailboats, you must pass a short checkout sail to make sure that you are comfortable handling traditional small boats. Checkouts cost $25, take approximately 30 minutes, and require demonstrating single-handed sailing and docking skills, and understanding right-of-way rules.

By 3pm, the winds picked up to about 5 knots and Christian asked Scott if he still wanted to do his checkout. With the winds and our limited time on the water, we all agreed we need more practice before attempting our sailing checkout. Figures, the winds picked up after our lesson.

Are we going to become sailors now?

Scott and I both agreed, sailing is hard work! It’s bad enough trying to steer a power boat through tight, shallow channels and watch for debris. But then to be on a vessel that has a lot of moving parts (sails, lines, halyards, winches), no thanks! However, in the future, we might still complete the checkout, so we can rent a boat on nice days. The CWB has more than just the Lake Union location. They also have a livery on Camano Island at Cama Beach! Who knew?

Overall, it’s a great program and very affordable for those who want to learn to sail. We’re fortunate to live so close to and have so many options to be on the water.

As always, thank you for following our journey! Please be sure to subscribe to our blog and YouTube channel (link at the end of this blog). You can follow us on social media @BoatingJourney.

Next week, we’ll take you on a tour of a 1995 Sea Ray 55 Motor Yacht. Stay tuned!