Sterling Starr

Sterling Starr

Spring

2020 Edition

Boat Loan RATES

RV Loan RATES

Refinance Today

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Proudly Serving the Industry Since 1987!

Our 33 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 in good hands when 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

We are excited to see the first signs of Spring and the prospect of getting back on the water soon! Sterling Acceptance stands ready to help with all your financing, documentation, titling and insurance needs. Rates are in a very low cycle so it is also a great time to refinance!! All transactions can be completed in over-night mail so no in-person closings are required. As boaters ourselves, we appreciate and understand the value of boating and RVing. At this tumultuous time in our nation and around the world; spending time with family on the water sounds like a great way to leisurely enjoy the beautiful waters, beaches and parks all over the country.

We look forward to working with you this year and wish you and your family a peaceful, healthy and fun spring boating season!

Best Always,

Fourth Quarter Recap

As reported by the NMMA Marine CEO Sentiment Survey

As 2019 fourth quarter sales are being reported, we are seeing that the industry is continuing to grow as a whole. According to Trade Only Today, the NMMA reported their Q4 results which seem very promising. From the NMMA’s Marine CEO Sentiment Survey, 88% report conditions overall are “stable or expanding” in the fourth quarter of 2019. Slightly over half surveyed predict conditions to improve even more over the next six months, while 40% expect things to remain steady. Comparing to years past, these statistics show that the future of boating looks promising, and only 12% reported a decline in conditions.

Hiring and Sales were other topics of the survey. 48% of marine manufacturers report modest to substantial growth in sales for quarter 4. Another 24% say sales are in line with what they were a year ago. Hiring continues to be on the rise with 38% reporting “modest to substantial hiring beyond attrition” in the fourth quarter. Many add that it’s been difficult to obtain the talent needed in new employees, possibly hindering this statistic.

This survey also reports on capital expenditures and raw costs of materials. When one industry is expanding, we see other industry growth, leading to an increase in economy growth overall. 61% reported “modest to substantial investment in capital expenditures”. A possible negative for some, the raw cost of materials has seen a “moderate to substantial increase” of 56% as reported. However, the increase in expenditures, increase in material cost, and increase in the industry hiring need, may lead to quarter over quarter growth in 2020.

Source:

https://www.tradeonlytoday.com/industry-news/a-brighter-outlook

2019/2020 Fall & Winter Boat Show Recap

Annapolis Powerboat Show, Annapolis Sailboat Show, Ft. Lauderdale Boat Show, Baltimore Boat Show, New England Boat Show, Rhode Island Boat Show

" The Rhode Island Boat Show is growing and I only see it getting bigger and better. The traffic was heavy over the weekend and the dealers walked away with signed contracts. I think everyone was pleased with the outcome!"

- Mary Ann Savage, North East Sales Manager

" The turnout at this year’s Baltimore Boat Show was amazing! The NMMA expanded the show by 30,000 square feet which made a big difference.

There was a wide representation of new boats and local dealers. If this show was any representation of the 2020 Boat Sales season, then we are in for a GREAT year."

- Kate Hamill, Mid-Atlantic Sales

"The Ft Lauderdale Boat Show is one of our favorite shows. As usual the foot traffic was overwhelming and the new layout of the welcome tent provided the vendors an opportunity to meet more of the attendees. This continues to be an encouraging show for the boating community and proves boating is not slowing down anytime soon."

- Dave Trostle, Vice President

"Once again the Annapolis Fall Boat Shows showed tremendous interest from buyers in the boating community and the promise of a prosperous new decade! These are wonderful shows to be a part of, and the Sterling Team couldn’t be happier with the turnout. Sail and Power alike, we are always so pleased to see everyone and share in their excitement. Here’s to 2020 Boat Shows…and beyond! "

-Matt Brown, Corporate Sales Manager

USCG & State Titling Services

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

Contact our D ocumentation Specialist , Katherine Henard

TODAY for all your documentation and titling needs!

410.268.1545 / 800.525.0554

katherine@sterlingacceptance.com

2019 National Marine Lenders Conference & 2020 Workshop

What it is, and why it's important

For over 4 decades the National Marine Lenders Association (NMLA) has held it's Annual Conference at various locations nationwide. Lending specialists from across the country come for education, economic updates, and networking opportunities. Specialized breakout sessions, intriguing class content, and nightly activities give the attendees a well-rounded experience.

Sterling Acceptance President, Karen Trostle, is an NMLA past president and current board member. SAC staff continue to be present on NMLA committees to stay actively engaged in the marine lending community.

The NMLA also holds an annual "Workshop" which allows industry employees the opportunity to learn from the experts. This is a great opportunity for colleagues of all levels to learn the basics of marine lending, advanced underwriting, boat valuations, effective marketing strategies, and much more.

This year, SAC President Karen Trostle taught two classes at the NMLA Workshop. One featuring Collections, Repossession and Re-marketing and the other on Vessel Registration and Lien Perfection. Vice President Dave Trostle also taught; this year on Collateral Valuation.

Visit the NMLA website at https://www.marinelenders.org/

Foreign Deletion Service

Struggling to find a reputable company to

handle your foreign deletions?

Look no further!

We are happy to announce that we will now be able to provide Foreign Deletions for the following Flags:

British Virgin Islands, Jamaica, and Canada

We understand the hesitancy that could come with purchasing a Foreign Flagged vessel, let the professionals at Sterling Acceptance help ease those concerns.

Call us at 410.268.1545

RV Buying & Financing

Financing your RV purchase is easy, & possibly a tax deduction!

Sterling Acceptance has many long-term relationships with recreational lenders that offer attractive rates and terms on the purchase of new and pre-owned RVs. The best rates are available on those seven model years and newer , and financing is readily available on RVs going back 10 model years. Sterling Acceptance also offers financing on some diesel coaches up to 15 model years old; special rates and terms apply.

The standard terms for an RV loan are 15 years for loans of $25,000 and above , with 20-year financing offered on loans of $75,000 and over . Down payments range from 10-20%, and many lenders offer rate discounts for larger investments. Keep in mind the more money you put down now, the better your equity position when you are ready to trade up or sell your RV. It is a simple case of "pay me now or pay me later."

If your RV has eating, sleeping, and bathroom facilities it may qualify as a second home, allowing you to deduct the mortgage interest expense. Check with your accountant to see if this deduction will work for you.

If you wish to finance your RV purchase, we recommend you get pre-approved with Sterling Acceptance . Once we receive the completed loan package we generally have a loan decision in just a day or two. You will be in a better position to negotiate your best deal knowing your loan is already in place. Loan approvals are good for 30-60 days from the date of approval by the lender.

Boat & RV Industry Statistics

Clickable Flyers

For more information on National Boating Statistics visit the NMMA website

For more information on National RV statistics , visit the RV Industry Association website

Collateral Valuation

A recap on how recreational lenders value collateral

There are many areas a lender considers when making a loan for a used boat, one of which is the value of the collateral offered to secure the transaction.

The question all lenders must ask before deciding how much to lend: ”Is the selling price representative of today’s market value of the collateral?” There is no standardized formula for determining the value of a used boat and each bank has its own procedures and guidelines.

For boats we use a combination of available resources including, but not limited to, marine valuation guidebooks, comparable boats listed for sale or recently sold (internet, periodicals and/or lender’s internal historical database), and marine surveys. Used boat values vary, so things like current economic conditions, supply and demand, geographic location, current condition of the vessel (its machinery and equipment), age of the boat, and even the reputation of the manufacturer, enter into the equation.

The BUC (Boat Underwriting Corporation) evaluation guide, a mainstay in the industry since 1961, is also considered by lenders. Its' values are derived from reported sales and their own proprietary valuation formula. NADA and ABOS are also valuation guides, employed by lenders, primarily for vessels under 30 feet. For RV's, NADA is the primary valuation tool used by lenders.

Marine surveys are required on most used boat purchases. Lenders generally require the surveyor to be a member of either the National Association of Marine Surveyors (NAMS), or the Society of Accredited Marine Surveyors (SAMS). The surveyor includes an “estimated market value” in his/her report, which is taken into consideration when the lender is reviewing the survey. For RV's, a vehicle inspection with photo's is likely required.

Collateral valuation is not an exact science, and values are a moving target requiring considerable research to determine the current market value of a used vessel. Sterling Acceptance staff have more than 40 years experience in the recreational industry. We take the time to research the particular vessel a client is looking to purchase or refinance, and provide the most accurate information to the lender on behalf of our clients.

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

2020 Upcoming Spring Boat Show's

At this time the following boat shows have been postponed. Sterling Acceptance will provide updated information and additional details as they become available.