Boat Financing

[Tightline11]

I have to agree with what has been said by several people get started with a credit union. We have one with my place of employment and they have beat my bank every time. Got my boat 2nd hand for three years at 1.7%. The bank wanted 4.5%. My two new trucks were done for 4 years at that good ole 1.0%. The more time you have with them the better they treat you.

[2ndamendment]

Sound financial advise is pay for it in full the day you bring it home. If one does not have the funds on hand to pay it in full, then one can not afford the item.

[scott craft]

Originally Posted by 2ndamendment

Sound financial advise is pay for it in full the day you bring it home. If one does not have the funds on hand to pay it in full, then one can not afford the item.

I think it's pretty interesting that you're the only one on this thread that doesn't think getting a loan for a boat is a good idea. I wonder why more don't think like that?

[Lake Chuck Duck]

Saving up and buying a boat cash without a loan? Common sense. But realisticly I would rather not wait a couple years to have a boat.

[PUREBAY2200]

If u can get a low interest rate....6% or less then financing is a good option as long as u put 10-20% down.
Go long on the term and pay more when u can. Knock that note down ASAP! Boats don't hold value;except yellowfin. U don't want to buy a boat and finance 100%.
Give Urself some breathing room when u figure the note.
Add in insurance, gas, cost of owning a boat etc.
For example
You can set aside 600$ for a hobby; fishing.
300-350$ for ur boat note
All the rest will get eaten up by gas in boat & truck, boat insurance & incidentals.
Also U need an emergency fund to cover things that break and aren't covered by warranty or to meet ur insurance deductible.
A boat is fun , but brings a lot of costs that few people include when figuring how much they can afford for a boat. It's not just the boat note; consider all the associated costs.
Hope this helps.

[BayBolt23]

Great point PureBay

["W"]

Originally Posted by PUREBAY2200

If u can get a low interest rate....6% or less then financing is a good option as long as u put 10-20% down.
Go long on the term and pay more when u can. Knock that note down ASAP! Boats don't hold value;except yellowfin. U don't want to buy a boat and finance 100%.
Give Urself some breathing room when u figure the note.
Add in insurance, gas, cost of owning a boat etc.
For example
You can set aside 600$ for a hobby; fishing.
300-350$ for ur boat note
All the rest will get eaten up by gas in boat & truck, boat insurance & incidentals.
Also U need an emergency fund to cover things that break and aren't covered by warranty or to meet ur insurance deductible.
A boat is fun , but brings a lot of costs that few people include when figuring how much they can afford for a boat. It's not just the boat note; consider all the associated costs.
Hope this helps.

Soooo your giving boat buying advice??? Is that kind of like a burger king worker giving advice to a lawyer on which BMW he should buy???

["W"]

Originally Posted by PUREBAY2200

If u can get a low interest rate....6% or less then financing is a good option as long as u put 10-20% down.
Go long on the term and pay more when u can. Knock that note down ASAP! Boats don't hold value;except yellowfin. U don't want to buy a boat and finance 100%.
Give Urself some breathing room when u figure the note.
Add in insurance, gas, cost of owning a boat etc.
For example
You can set aside 600$ for a hobby; fishing.
300-350$ for ur boat note
All the rest will get eaten up by gas in boat & truck, boat insurance & incidentals.
Also U need an emergency fund to cover things that break and aren't covered by warranty or to meet ur insurance deductible.
A boat is fun , but brings a lot of costs that few people include when figuring how much they can afford for a boat. It's not just the boat note; consider all the associated costs.
Hope this helps.

So what happens when you buy a boat under powered and then buy a bigger motor and go 10,000 in the hole and have a boat worth 35k but owes 45k...I know a guy who did that
What would you tell him or what advice ???

[slickfish]

Originally Posted by "W"

So what happens when you buy a boat under powered and them buy a bigger motor and go 10,000 in the hole and have a boat worth 35k but owes 45k...I know a guy who did that
What would you tell him or what advice ???

Simple mathematics wise one. You lose money.

["W"]

Originally Posted by slickfish

Simple mathematics wise one. You lose money.

Yes I know that...just wondering why that person is giving financing advice when they had a 30k boat and owed 50k on it??

[PUREBAY2200]

I'm speaking from experience.
Lessons learned.

[PUREBAY2200]

Originally Posted by "W"

Yes I know that...just wondering why that person is giving financing advice when they had a 30k boat and owed 50k on it??

As usual ur statements about me are incorrect.

[PUREBAY2200]

I learned a lot on my purchase; when I repowered I didn't not add any debt to my loan. Used the money from sale of original engine plus cash to buy new engine.
So I wasn't in the hole after repowering.
I didn't put nearly enough down; and when I sold my boat it was hard to find the right buyer at the right price.
But it was a lesson learned and I'm trying to prevent someone else from making the same mistake.
If that's makes me a bad person ; Owell.

[southern151]

Sound advice purebay.

Keep in mind, your heckler thinks that having paid in equity in a boat considers that making a profit...

[PUREBAY2200]

Thanks Corey; and yea I know his thought process.... Lol
I just wanted to clear the story and state facts.

[scott craft]

Originally Posted by Lake Chuck Duck

Saving up and buying a boat cash without a loan? Common sense. But realisticly I would rather not wait a couple years to have a boat.

It wasn't too long ago I would have took a loan out no matter the cost. Now I'm trying to pay stuff off, hopefully I never have to take out a loan again.

[eman]

Whatever you do ,DO NOT FINANCE W/ Bank of America.
I listened to what i was told and did not read ALL the fine print.
Financed for a long term w/ low notes figuring on paying an extra 5 -6 notes a year.
No such luck . In the fine print it said that any extra payment went towards intrest on loan So to pay out early i would have to pay full amount of loan for term.
But good thing is when i get ready to sell it someone is going to get a heck of a deal on boat and motor w/ less than 55 hrs.

[2ndamendment]

Originally Posted by scott craft

I think it's pretty interesting that you're the only one on this thread that doesn't think getting a loan for a boat is a good idea. I wonder why more don't think like that?

Scott as you and purebay have stated, 'each of you have learned a lesson about finances' and now each of you are looking at finances in a different way.

Borrowing from a financial institution for 'things' other than a home loan is well stupid. If a person is fortunate enough to have cash on hand to pay for a home, then that person is ahead of most. When a person borrows money, that person is now debted to the loan originator. Every dime a person pay's towards a loan note is a dime that is not saved or invested. Hince no saving for the next 'thing' a person wishes to aquire which leads to another loan note for most. See the pattern and understand the debt and misery that follows. One of the biggest self hurdles we as humans face is personal patience. We as a society see something and want it NOW.

When a person experiences the satisfaction of purchasing 'things' on a paid for basis. The freedom of not oweing some institution every month is gratifying.

["W"]

T

Originally Posted by 2ndamendment

Scott as you and purebay have stated, 'each of you have learned a lesson about finances' and now each of you are looking at finances in a different way.

Borrowing from a financial institution for 'things' other than a home loan is well stupid. If a person is fortunate enough to have cash on hand to pay for a home, then that person is ahead of most. When a person borrows money, that person is now debted to the loan originator. Every dime a person pay's towards a loan note is a dime that is not saved or invested. Hince no saving for the next 'thing' a person wishes to aquire which leads to another loan note for most. See the pattern and understand the debt and misery that follows. One of the biggest self hurdles we as humans face is personal patience. We as a society see something and want it NOW.

When a person experiences the satisfaction of purchasing 'things' on a paid for basis. The freedom of not oweing some institution every month is gratifying.

I will have to disagree with u ,, I have had many loans in my life time with out much debt piled up. I rate my finances A+ as we live off one income and have plenty of luxuries due to planning

#1 all debt is not bad debt
#2 if I was a multi milliare I would still finance stuff like house, vehicle and other small things

Why would you want to say use your cash money when you can use the banks at low rate ?

Take my Truck now....I could of paid cash for it but why when I'm paying a 1.99% rate using the bank and my money is making 15-25% returns in investments ?

I would pay 6% interest to a bank before I would pull cash that's making 15-25% returns?

Also if you have no debt you have no credit ...Credit is a good thing as I have built up over 800 credit score over my life time and I can benefit off cheap rates and equity in products I own?


So I will never use my cash when I can use the bank at low rates when my cash makes more interest than I pay

[PUREBAY2200]

I actually agree with W.
He states the truth.
Things have changed in the financial world.
Some folks have realized this..... Others still think the opposite of reality.