Since we are regulated by the OCCC, many of the forms you will see in your loan package are the exact same forms most companies in this industry use. As a regulated loan company, we have to abide by stringent rules established to protect the rights of consumers. We are audited often, and have never received a fine for any of the processes we have in place! So you can feel confident when dealing with us. We do what is right, and we do what is fair!
We have a few requirements when providing a boat loan:
1) You must be a Texas resident for at least 2 years.
2) You must have been in your current occupation for 2+ years. If your prior position is in a closely related field, we have made exceptions.
3) You must have an established bank account for 2+ years.
4) You must have a credit score of 600 plus.
5) Your payment must come out of that bank account once a month, automatically, on the same day every month.
6) You must be able to meet the down payment requirements on the boat which is usually 20% plus TTL. TTL in Texas is roughly 8%. The minimum down on any boat is $3,000. Minimum loan value is $10,000
7) You must be comfortable with the monthly payment we calculate for your loan.
8) Your boat must be 1998 or newer with a purchase price of $13,000 or more.
9) Your boat must have Texas titles in the name of the seller
We do loans on all the boats we sell. But we also do loans on any boat that you find. We can handle the loan process if you buy from an individual or if you buy from a dealer. Let's walk through the loan process so you know how it works.
BUYING A BOAT FROM AN INDIVIDUAL (You must be a Texas Resident-Seller must have Texas titles)
If you find a boat you like from an individual, ask them if they are ok working with your finance company. If they are ok with that, give them a non-refundable deposit to hold the boat, usually in the $200 range. Then send us their contact information. We will make sure the titles are ready to negotiate and they are in the sellers name. We have seen plenty of issues with this step. So having us help with the transaction is good business! Once the titles look good, we will process a bill of sale with the seller for the price you negotiated. All the details of the transaction will be outlined for the seller - price, payment method, amount we pay, amount you pay, timing, and even that you, our customer, will be picking it up. Once this is signed by seller, then we focus on your loan documents.
We will electronically send you all the loan documents once we have serial numbers. Read through them carefully and sign all lines required when you are ready to move forward. These are all industry standard forms. Email back once you sign. Then place the originals in the mail. We must have the originals to transfer title.
Once the loan docs are complete and the seller has signed the Bill of Sale, we will electronically transfer the amount we are financing to the seller. Once they receive those funds, then you arrange to pick up the boat, and you will deliver the rest of your down payment direct to seller, in cash or whatever currency they request. At that time, once the seller has ALL their money, you can take the boat home. They will mail us, direct, the titles and we will handle all the registrations and transfer of titles.
BUYING A BOAT FROM A DEALER (Must be a Texas dealer and You must be a Texas Resident)
The process is slightly different, but overall the same steps occur. Your selling dealer will register and transfer titles, but the rest of the process is similar.
Having a niche on older boats, and customers working to rebuild their credit, our lowest rate we offer is currently 10.5%. That rate is adjusted by your credit score, which we have you pull and self report. If we pull it, it lowers your credit score! We have terms up to 6 years but our standard terms 48 and 60 months depending on size of loan.
If you have great credit, and are buying a new boat, I don't think we can compete with the low rates you would qualify for with a bank or credit union. But for those older boats, please give us a call!
We look forward to helping you with your next loan!