Banking Uncertainty: What boat buyers need to know in 2023
Rising interest rates and bank turmoil have boat buyers asking questions about financing.
Bank collapses, emergency bailouts, and tumbling bank stocks—the headlines are unnervingly familiar. Thankfully, experts agree that today’s turmoil is nowhere close to the 2008 global financial crisis. However, if you’re making a major purchase, such as buying a boat, you’re probably wondering if rising interest rates and bank turmoil could affect your boat loan financing.
With some regional banks in the US struggling, skittish depositors who are worried their money isn’t safe have been withdrawing their funds. Financial institutions are responding by tightening lending standards and becoming more selective about who gets loans.
“We’ll almost certainly continue to see some tightening as banks pull back on lending,” explained Shawn Rogan, President of Sterling Associates. “That could certainly create some challenges for a boat buyer working directly with a single lender to procure a boat loan.”
Benefits of Having Options
Working with multiple lenders is one of the most effective ways to overcome the challenges of the current economy.
“We have twenty-one banks that we work with, and each bank has its nuances,” said Rogan. “In these uncertain times, it’s a major strength for us because we’re not dependent on any single bank. When one bank is tightening, there will almost always be other banks that looking to fill that void and make good loans.”
Relationships Matter
As an individual bank grows more discerning about lending, they will favor a client with a better credit score and a firm with a strong track record of placing good loans.
“Bankers trust us to place good loans and offer stability in an uncertain market,” said Rogan. “Sterling Associates has been in business for thirty-two years, and our philosophy has always been to invest in our people, limit staff turnover, and build strong relationships with our customers and our lenders. Bankers personally know who they are dealing with, year after year, and customers know that they can work with the salesperson they have relied on for previous loans.”
Getting the Best Rates for Your Boat Loan
Working with a boat loan specialist to finance your next boat is one of the best ways to ensure you end up with the best possible boat loan at the best possible terms. By having access to multiple lenders and strong relationships with customers and bankers, a boat loan specialist will be able to secure lending even in a climate of tightening standards.
Purchasing the boat of your dreams is an important decision. If you’re feeling uncertain about the boat loan process, an experienced guide can help answer your questions and provide responsive customer service with unmatched expertise.
You can check out the current boat loan rates at Sterling Associates and speak to one of their financing experts at 800-286-8073.
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