Sterling Starr Spring Newsletter

Sterling Starr

Spring 2019 Edition

Happy first day of Spring!

Boat Loan RATES

RV Loan RATES

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Proudly Serving the Industry Since 1987

Because of you, Sterling Acceptance Corporation has wrapped up another EXCELLENT year in 2018! Spring is here and we are working hard to prepare for a prosperous 2019. Our 32 years in business, exclusive loan programs, competitive rates, and nationwide lending territory, makes Sterling your number one choice for

financing and closing!

The Sterling team offers over 40+ years of industry knowledge and expertise, so you will be well taken care of working with us. We will walk you through your entire purchase, & offer support EVERY step of the way. We also offer in-house USCG documentation, state titling services, and yacht insurance; your true one-stop-shop .

A Message From The President

Thank you to everyone for your business over the years! Sterling Acceptance is excited about the upcoming Boat Show season where we will be exhibiting from Boston, to Miami, to California to Virginia and back to Annapolis. We really appreciate our loyal customers and value our great dealer relationships. We look forward to working with you on new boat purchases, pre-enjoyed boats or refinancing your existing loan to the great rates available today. Our Annapolis office is also geared up to do your Coast Guard Documentation, State Titling or Yacht Insurance!

Stop by and see us as the shows! Have a great spring boating season.

Best always,

Promising Growth & 2019 Projection

Announced by the NMMA January 2019

As reported by the NMMA this January, retail powerboat sales increased an estimated 4% in 2018 from 2017. This is the highest amount since 2007, totaling about 280,000 units sold. Another 3-4% of growth is projected for 2019, allowing for a promising outlook which impacts the boating industry as a whole.

"The recreational boating industry has been on a seven-year climb that's expected to continue into 2019, bringing even more people to the water," said Thom Dammrich, NMMA president. "Driving these sales is a combination of the economic growth we've seen over the past decade, particularly with consumer confidence hovering near all-time highs and consumers seeking out boating as a way to spend quality time with family and friends outdoors. At the same time, over the past five years, marine manufacturers have put a concerted effort on offering new products that attract consumers with different interests and budgets, bringing out new buyers..."

Boating supports our economy...

The NMMA estimates the recreational boating industry contributes $170.3 billion in economic activity to the U.S. economy; which has been largely increased since their last evaluation in 2012. In addition, they report that currently 35,000 marine businesses exist, creating about 691,000 direct and indirect American jobs.

Rates Look to Stay Put

According to the Vice Chairman of the Federal Reserve

Bloomberg News reports that Federal Reserve Vice Chairman Richard Clarida said in an interview on Fox Business Network, "A lot has really happened since the first week of December," and "some of the global growth data has been softening." He continued, "I don't see a recession on the horizon", implying, even with the December 2018 - February 2019 government shutdown.

The Wall Street Journal and Reuters report Clarida says the Fed can afford to stay patient in 2019, stating the Fed will make decisions on future rate increases on a "meeting by meeting" basis.

Miami International & New England Boat Shows

February 2019

Recap & Outlook

"Miami is always a fun show. We spoke with some great clients & received positive feedback on their plan to purchase. Good foot traffic this year points to very stable boat sales in 2019."

- Matt Brown, Corporate Sales Manager

"I was very pleased with the outcome of the NE Boat Show. It appears the new boat dealers sold a lot of their inventory and deals are closing immediately following the show. I think this will be a banner season!

- Mary Ann Savage, Northeast Sales Manager

Liquidity & Net Worth

Facts, tips, & explanations on what recreational lenders expect

By the Sterling Acceptance Team

Lenders want to see an applicant with liquid assets such as cash, stocks, bonds, and mutual funds that can easily be converted to cash within 30 days. These assets combined should show that you have the money for the down payment, sales/use tax on the boat if not included in the loan, and reserves set aside for loan repayment and living expenses should your income decrease unexpectedly. The standard down payment requirements range from 10 to 20 percent of the purchase price and it’s wise to have savings after the down payment of 6 to 12 months’ worth of total payments (home, auto, boat, etc.).

The main categories for liquidity are cash in the bank, stocks/bonds/mutual funds, retirement accounts (if you are 59 ½ or older), and cash surrender value of life insurance.

As they say “Cash is king!” Cash is simply the most liquid of all assets, as it loses no value and can pay debts directly. The lender will want to verify cash, so it needs to be on deposit in savings, checking, or money market accounts – not in the mattress! Stocks, bonds, and mutual funds are fairly liquid, as the current market value can be confirmed with brokerage statements and these marketable securities can be sold easily within 30 days. Retirement accounts may be considered liquid if you are 59 ½ and can withdraw without a penalty. Lastly, you may have a cash surrender value on a life insurance policy , which is the amount the insurer would pay you if you were to cancel your policy today.

Liquidity is included in your assets when calculating your net worth . Your total assets, less your total liabilities, equal your personal net worth. The lender will review your personal financial statement to be comfortable the market value placed on your assets can be verified or substantiated. The debts are generally listed on the credit reports obtained by the lender. Your total net worth ideally should be twice that, of what you wish to borrow.

Assets include:

· Cash, marketable securities, cash surrender value of life insurance

· Retirement funds

· Real estate

· Loans receivable

· Vehicles

· Closely held companies

· Personal effects; jewelry, furnishings, etc.

Liabilities are any short or long-term debt:

· Credit cards, revolving accounts

· Unsecured loans

· Real estate mortgages

· Vehicle loans

· Personal loans

· Student loans

The personal financial statement is an important tool, as it gives a snapshot of your financial condition, your savings and spending habits, and your financial positioning for the future. It is well worth the time and effort to be sure you provide a complete, current, and accurate personal financial statement with your loan application package.

Top 10 States

Showing economic activity in the boating industry for 2018.

Announced by the NMMA January 2019

Florida

California

New York

Texas

Michigan

Washington

New Jersey

Tennessee

North Carolina

Missouri

$ 23.3 billion

$ 13 billion

$ 8.4 billion

$ 7.7 billion

$ 7.4 billion

$ 6.9 billion

$ 6.6 billion

$ 6.0 billion

$ 5.5 billion

$ 4.5 billion

Finance Advice From The Experts

Multiple Articles Written by the Sterling Acceptance Team

We want you and your customers to have the best buying experience possible. These articles are meant to assist in the finance/buying process. We hope our knowledge and opinions are beneficial to you, and encourage you to contact us with any questions!

Click the headings to read the full article

Credit Reports & Recreational Lending

Why we need them; How we use them;

What you should know

Another Good Reason to Finance Your Boat Purchase

Financing your boat purchase may earn

you a major tax deduction

Collateral Values

Insight to the way recreational lenders

will value your collateral

RV Buying Tips

A list of buying and financing tips

USCG & Titling Services

Offered by Sterling Acceptance Corporation

Clients who pay cash still may need U.S. Coast Guard Documentation & State Titling work done. Sterling Acceptance can assist you in completing these tasks and handling all correspondence.

Contact our documentation specialist, Katie Henard TODAY for all your documentation and titling needs!

410.268.1545 / 800.525.0554

[email protected]