Reply With Quoteduplicate.
| Search Fishin.com |
Senior Member
I've had 5 boats in my life, not including my canoes.
Every boat has been a progression to a better boat. My next boat will probably be a nice glass boat. Maybe NOT. I purchased my last boat in 2006 and paid CASH for it. I have been saving dollars since then for my next boat. When I get to a point to when I'm ready to buy it, I will sell my existing boat, look at my budget, and BUY a good, CLEAN used boat.
AND I will pay cash.
Later,
Geo
Senior Member
duplicate.
Senior Member
I was fortunate that early in life I was taught the wisdom of not borrowing money for items that depreciate in value.
Senior Member
I was fortunate that early in life I owned a boat. Wouldn't trade those memories for the interest payments back to this day.
Now I have 3.
To each his own.
Here's a good link to save for when you are boat or car shopping. The calculator helps you to se the impact of interest rates, and terms (length of loan) not only by payment but by total interst paid too if the loan runs the full term.
http://www.dinkytown.net/java/AutoLoan.html
If you think a boat costs a lot when you pay on it for 60 months/5years, just look what happens if the loan runs 10-15 years.
The biggest thing to think about is what's called "negative equity", where you owe more on the laon than the boat is worth. Long term loans create negative equity because you are paying so little on the true principla of the loan. Shorter the term of the loan, the more quickly the loan payoff amount drops below what the boat is worth, and that creates positive equity.
It's always a foot race between depreciation and loan payoff. Keep the term short and you give your self a chance to have the loan payoff fall below the depreciated value of the boat or car.
Long terms on big boat loans, actually encourages people to walk away from their loan and boat...to default. The monthly payment is low, so they keep it a couple years and party, than they just stop paying, and let the boat get repossessed. Thats why interest rates are always higher for longer term loans that shorter term loans. Banks protect them selves from risk thru higher interest rates.
There's calculators at this link that also allow you to show how just adding 10% above each monthly payment due can save you tons of interest money. If you can't do it every month, just doing it every other month makes a big difference.
Last thought. You can do home equity loans to get low rates and long terms for boat loans. But remember.....if they come for your boat due to non=payment, they may decide to go after your house to make up any shortages on the loan payoff. Only ever go the home equity route when you are sure you are secure financially.
And yes, I know, you can sleep in your boat, but you can't go fishing in your house.
Senior Member
Spot on, George.Originally Posted by GeoFisher
Make boat payments to yourself and use them to buy the next upgrade. It's a fundamental lesson we can teach our children . . . you don't build wealth by going into debt. It takes maturity and discipline to say no to instant gratification. Having said that, I appreciate the original poster's humble observation in sharing his experience and offering food for thought.
Junior Member
I have a friend who is part owner in a boat dealership. I asked him why not sell boats in the 18.5 foot rage with 150s on them so people can afford them his reply was we can't sell them had one sit for over a year all everyone wants are the 20+ footers with the big engines. I think you miss understood part of my original post Geo fisher i have a 17.5 with a 115 that has been paid for awhile. I to don't understand the thought of long term loans for boats. People can fish a lot cheaper than 50-60 thousand plus.
Senior Member
both of my boats are paid for. one was a 2 yr loan, the other was cash in hand. I vowed to NEVER have another boat loan....boats are expensive enough as it is...fuel, upkeep, slip rental, insurance, taxes, regitration and on and on.
however i cant begin to tell you how tempted i am to buy Hurricane Bobs boat, i have fished out of that boat and let me tell you it is a striper fishing machine !!! i dont want to dump my savings into a boat when i already own 2, and i dont want to have a boat payment. hmmm....the ol "cake and eat it too" problem, lol.
back to original post....congrats when your boat is paid for....very liberating feeling.
Administrator
Congratulations on paying off the loan! Gotta feel good.
Senior Member
Congrats on paying off the loan. I bought my first boat in 1990, Ranger 363V. I payed about 16K for it with a 7 year loan at 11.99%. I was still in school and working part time and had no credit and needed my StepDad to co sign. I never missed a payment and got 21 years out of that boat and traded it in for on a newer used one a few years ago. I am in a totally different situation now than I was then, but, I think I got my value out of that boat.
Now all I have to do is convince Walmart of that and maybe they will let me lease milk and eggs. After all, I never retain possession of them for long, and after being used they come out exceptionally depreciated.
Won't it be great if we could "rent" beer.
Seriously, that is great guidance. If it depreciates rent or lease it, if it appreciates buy it.
I got it. Plan B.
We all put money in a pool, rent 5 slips at Cland, J-town dock, and buy 5 boats with pool money. Then we set up a key lock box on one of the slips, with a combination lock all have the combo for. When you go fishing you walk to the dock, select a boat, and grab a key.
Now to make this work, all I have to do is figure out the rules about who cleans out the live wells, who gases the boats, and who cleans out the porta-potties.
I'll do the livewells............
Posting Permissions