Boat Financing ?

[Bulletproof]

Dumb question, but I'm lazy tonight and don't feel like doing a bunch of research.

Thinking about biting the bullet next spring/summer and blowing some serious coin on a kick-arse bass boat.  Think I'll name it "Suck my Wake"!?

Have any of you guys financed a purchase of lets say 40K, over like 20+ years. ?I know they do long term loans almost like house mortgages, but I'm not sure if they do loans for anything long term on a boat that is a year or two old? ?Definitely don't wanna buy brand new, but am thinking a big down payment and long term loan may make it very affordable if it would apply to a 1-2 year old model. ?I figure if I can get a long term loan my payment would only be like 200 bills a month roughly. ?Obviously I would be paying a buttload of interest, but I figure I will probably only keep the boat like 4-6 years then sell. ?Pretty cheap payment for a great ?boat, assuming resell doesn't hit ya.

So whaddya you guys think good move?

[djkimmel]

Seems like I've seen some going over 10 years now for RVs and boats, but I'm not near 100% sure.

My main concern about keeping boat for 4 to 6 years with a low principal payout during that time would be owing a lot more than it is worth when you go to sell it. I'd try to balance that out as close as possible if I could.

Just look at resale values in the blue book for models/brands similar to what you are interested in and see what they are worth when 5 to 7 years old. Figure out how close you'd be with a low payment. It wouldn't be too hard to guesstimate.

[blakstr1]

my credit union will go up to 15 years for a boat.  the c/u rates are usually pretty good too, you can actually sign and drive...no $$$ down.  another option may be if you have a house is to do a mini-mortgage against the collateral of your house.  way better interest rate and deductible interest, just a thought.

[cameraguy]

"So whaddya you guys think good move?"

With the limited info provided I would say no, absolutely not.  Like Dan said your loan will be upside down in 4-6 years and either will have to keep it longer or sell it at a substantial loss. 

Don't let testosterone overrule rational thought.  The "suck my wake" mentality could set you back financially for many years to come.  The fish don't care if you have the biggest, baddest, fastest boat on the lake. 

Like homes, buying boats over the years becomes a succession of stepping stones.  Improve each time you buy.  Try buying a 8-10 year old boat that has a good reputation for longevity and good resale value like a Ranger.  You'll still go plenty fast, still catch fish, and have a much more solid footing financially. 

Home equity loan to buy a bass boat???....I think my head is about to explode. 

[smbassman]

Yep, CU's are the way to go.  Usually up to 15years for the high priced rigs - but 10yrs is pushing it with the depreciation rates for bass boats.  I would recommend that you look at resale values as Dan mentioned and consider what you will owe in 4-6years compared to what boats of that age are going for.  And don't make the mistake of owing more than the boat is worth(accordig to selling prices or trade in value not blue book).  I have tried to be safe by making sure I haven't bought anything in my life that I didn't have enough for a down payment and payback terms that always kept me in a position that if an emergency came up, I could offload the item at a irresisstable price and not end up in the hole.  I haven't faced that situation yet, but with Michigan's economy it is better to be safe.

Also the home equity option is there if you own a home, but remember you are putting your home up for collateral for a toy.  Only do this if you are financially stable enough to eliminate the risk of losing your home.  Meaning you have enough to pay off the boat at any time if needed. 

BTW- if you are looking at a 1 yr old boat @ $40K, plan on a payment of ~$360/mo for 10yrs with about $8K down.  They are not cheap and also when the motor warranty is up and you still have 6-7 yrs to pay off the boat, a $6K powerhead repair is a possiblity.

Sorry for the pessimistic outlook, but the reality is that modern boats are being priced out of reach for the average guy.

[djkimmel]

I know about wanting something so bad...

I bought a used boat and I chose the brand for longevity, toughness and resale value/reputation. I knew I'd probably be keeping it for some time. With that in mind, I did go 10 years on the loan. I wanted the payments to be lower in case I went through some rough patches (which I have), but not too low that I would never be able to sell it for close to what I owe since I don't want to take a loss.

The motor is always a big concern because a major repair can bite you bad. I was lucky that the few times I needed a major repair, I had the money. I would not recommend my method for getting new motors every few years to make that easier... Not really the way to go.

Seems like you can almost count on a major repair of some kind somewhere along the way, so I'd consider that factor. And add in insurance. Bob at Worldwide Marine Underwriters could help you there quite a bit if you give him a chance.

A guys gotta do what a guys gotta do...sometimes... but it helps to go in with both eyes wide open. Only you know what you can really handle or not.

Still. Knowledge is power.

[robtheboatman]

The finance term is determined on the amount financed.  Usualy 12k-25k = 12 years, 25k-50k = 15 years, 50k-100k = 20years.  Interest rates are determined by credit score, amount financed, and how old the boat is.  Rates have went up over the last few years, but have leveled off over the last year at about 8%.  If you are worried about depreciation,  I would recomend a new, non-current model year boat.  You still have a new boat, but at a big discount.  I always have some of these "deal" boats in stock.  They may not be exactly what you are looking for, but they are usualy a great value.  If anyone has questions, feel free to call me.
Rob

[Andy]

I have a bud that picked up a 2000 519 ranger for 8,000 last year. it was in need of some TLC , seats, carpet and some good cleaning and that ranger looked brand new. That could be one the way to go. You can add the bling bling later when the cash is in hand.

[Andy]

Bulletproof
Hook up with Cameraguy on his 202 Champ if he still has it. Thats one SWEETTTTTT boat. I know I have one.