Sterling Starr Summer Newsletter

Sterling Starr

Summer 2019 Edition

Boat Loan RATES

RV Loan RATES

Visit our Website

Proudly Serving the Industry Since 1987

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

Sterling Acceptance is having an excellent year thus far, and we are so thankful to see so many happy customers on the water! As boaters ourselves, we appreciate the value of boating and RVing, and thank all of our customers for giving us the opportunity to be apart of your journey.

The Spring boat shows were very successful and energized with new boaters! 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!

Wishing you and your family a fun and relaxing Summer.

Best always,

2019 American Boating Congress

Highlights, Attendance, Legislation, Supportive Links

Highlights

Attendance up 40%; 25% were first-time attendees
250 organized visits to Capitol Hill vs 180 last year
Two presidential cabinet-level speakers addressed the event- the Administrator of the EPA and the Secretary of Department of Commerce
Companies such as Beneteau America, Jeanneau America, Brunswick Corp., and Yamaha Marine Group were present in larger numbers as compared to previous years
Increased credibility from members of Congress has been given to the marine industry since the passing of the “Modern Fish Act” last year.
Ben Speciale, president of Yamaha’s U.S. Marine business unit & chair of the NMMA board of directors says, “Advocating in Washington, D.C., sets the foundation for the next 10 years… We always need to look at growing the industry through legislative issues in the long term.” (Trade Only Today, May 16, 2019)

Source:

https://www.tradeonlytoday.com/industry-news/abc-2019-american-boating-congress-ends-on-high-note

A ctive Legislation Topics

Ethanol- E15

Studies show E15 destroys engines in a wide variety of boats, generators, lawnmowers, & other commonly used consumer products. Federal law prohibits the use of E15 in these engines, however “3 in 5 consumers mistakenly assume E15 is safe to use”, according to the NMMA. Further, these consumers state the current warning label is “inadequate” and is commonly placed with an obstructive view. We encourage you to support the Consumer Protection and Fuel Transparency Act of 2019 (H.R. 1024)

Source:

https://www.nmma.org/advocacy/issues/ethanol

Workforce Development

Workers needed! The NMMA reports there are currently 31,000 open jobs in the U.S. marine industry. Qualified technicians, service repair workers, and manufacturing workers are being sought after and in high number. Of these openings, 59% are in boating service, and of the open service jobs, 88% are specifically for marine technicians. We support Pell Grant expansion in the Higher Education Act to support marine trade positions. We support on-the-job training programs, apprenticeships, and professional development support..

Source:

https://www.nmma.org/advocacy/issues/manufacturing-labor

For the many other important topics discussed, presentations, literature, and statistics, visit:

https://www.nmma.org/advocacy

NMMA Economic Impact Flyers

The NMMA created flyers to give out during the ABC this year. Each recaps the annual economic impact recreational boating has on each state individually and the U.S.A, in an easy-to-read, highlighted manner.

Click here to see the U.S.A. Flyer

Click here to see all State Flyers

State Sales Tax Caps

A buyers potential for extreme savings

Texas House of Representatives voted to pass a bill putting the tax cap in Texas at $18,750. Some critics of the bill will say it is a “tax break for yacht buyers” says Ryan Guillen, a Texas State Representative. “In an effort to keep boat sales and registrations in Texas, this is a must”.

Since many states across the U.S. (Florida, Maryland, Virginia, New Jersey, South Carolina, & more) have put tax caps into law, many boaters have conducted business in those states for the break. For Yacht purchases specifically, in states with no tax cap, the extra expense could be in the hundred thousand dollar range.

Specifically in Texas, with a 6.25 percent sales tax (with a possible additional local tax), a $2 million yacht for example, would have sales tax of at-least $125,000. If the proposed bill is signed off by Texas Governor Gregg Abbott, only $18,750 would be paid, saving the consumer over $100,000.

This obvious benefit to the consumer does come at a steep cost for the state. TradeOnly reports that “Texas would lose about $2.3 million in sales tax over the next two years”, but Guillen says the “industry will improve because of this bill, which will be seen in just a few years”.

To remain competitive, non-tax capped states may be following suit, as we have seen many do in the recent past. We are hopeful this will further expand and improve the marine industries economic growth.

Source:

https://www.tradeonlytoday.com/industry-news/texas-house-kills-then-reverses-course-and-passes-bill-for-tax-break-on-yachts

NMMA 2018 Statistic Reports

NMMA April & May 2019

The 2018 Powerboat and Sailboat Sales Trends were released by the NMMA in April and May this year. These reports show production and retail sales data, in an organized manner, in number of units sold.

According to the 2018 Sailboat report, sales increased 18 percent from 2017 and the import of sailboats into the U.S. was up 34 percent! Sales are up in unit volume to the highest in four years (NMMA).

The 2018 Powerboat report also showed impressive growth. “New outboard, inboard and sterndrive boats were up 3 percent in 2018, and corresponding dollars were up 10 percent. Retail sales of new outboard boats, which include fishing and pontoon boats, were up for the eighth consecutive year in 2018 to an 11-year high of 177,600 units” (NMMA).

Coming soon, the NMMA will release the pre-owned boat market statistics for 2018, which we are eager to see!

The full reports can be purchased by visiting: www.nmma.org/statistics/publications/statistical-abstract.

Source:

www.nmma.org

https://www.nmma.org/press/article/22695

https://www.nmma.org/press/article/22611

Mortgage Interest Tax Deduction

Financing your boat purchase can save you money

Does your boat have “sleeping, cooking, and toilet facilities”?

If so, according to the

" 2018 Publication 936 "

from the IRS, you may be able to deduct the interest paid on your boat loan! Click the above link to be taken to this publication.

Financing your boat loan can give you an additional tax break that you may not have been eligible for previously, and would not be eligible for if you pay cash for your purchase. Currently, you can deduct interest paid on your boat loan by meeting the “Qualified Home” and “Second Home” requirements set forth by the IRS. Read about these requirements using the above link, page 4.

Reporting the interest you paid should be easy. The IRS Form 1098 “Mortgage Interest Statement”, or a similar form, may be given to you from your lender (who you make payments to), by January 31 of the following year.

If this form is not provided to you, you can still report the interest amount on “Schedule A” of “Form 1040” (likely line 8b), says the IRS. Read more on reporting interest paid, using the above link, page 8.

Source:

https://www.irs.gov/pub/irs-pdf/p936.pdf

Updated from the IRS as of May 13, 2019

Sterling Acceptance recommends contacting your accountant if you have further questions on personal qualification for this deduction, and the proper filing measures to suit your individual needs.

2019 Nationwide Spring Boat Show Recap

Annapolis Sailboat Show, Bay Bridge Boat Show, Palm Beach Boat Show, & The Newport Beach In-Water Boat Show

" I always enjoy the Annapolis Spring Sailboat Show, as it marks the start of the Spring boating season for many people. We saw a surprisingly decent turnout, despite the rain and 15-20 mph winds on Friday and Saturday. Although smaller than the fall show in October, there was a great mix of new and used brokerage boats for guests to climb aboard."

- Matt Brown, Corporate Sales Manager

"The Newport In-Water Boat Show held in Newport Beach, CA was undoubtedly the largest and best display of new and pre-owned boats and yachts in recent years. The four-day event appeared to draw boaters throughout Southern California and the brokers and dealers are optimistic sales will be made."

- Peggy Bodenreider, West Coast Sales Manager

"Palm Beach is o ne of the nicest boat show venues on the east coast. Great downtown setting, docks are well laid out and logical to traverse. Nice mix of new and vessels with a wide representation of manufacturers. Lots of positive reports as far as sales by both brokers and new boat dealers. Weather was great for the show also."

- Dave Trostle, Vice President

" We saw a great turnout this year at the Bay Bridge Boat Show. Growing crowds suggest there is a resurgence of boating as the go-to family activity in the Chesapeake Bay area. This is a nice, family-friendly boat show, which allows us to remember why many of us began boating!"

-Matt Brown, Corporate Sales Manager

Top 10 Boat Names for 2019

Annual BoatUS List

#1 Aquaholic

#2 Pearl

#3 Forever Young

#4 Second Chance

#5 Squid Pro Quo

#6 More Cowbell

#7 Pegasus

#8 Feelin' Nauti

#9 Why Knot

#10 High Maintenance

Some of Our Favorites

from years past:

Grace

Seas the Day

Serenity

The Good Life

Happy Ours

See BoatUS's story behind each name at

https://www.boatus.com/pressroom/release.asp?id=1521

Years past top 10 names can also be accessed at https://www.boatus.com/boatgraphics/top-10-boat-names.asp

Finance Advice From The Experts

Multiple articles written throughout the years 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

Liquidity & Net Worth

Facts, tips, & explanations on what recreational lenders expect

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]