How do you afford these boats

[G_Anders]

I really like the boats that Malibu has to offer but spending 60K on a Wakesetter is crazy. What do most of you do for financing (5,10,15,20 year notes) on your rides. It seems 15 years make the payments affordable but at the same time who keeps a boat for that long! I feel if I get an 07 buy 09 I make want a different one, would I loose big time or what! It seems boats hold there value. Any insight would help me on my decision

[Birm]

I really like the boats that Malibu has to offer but spending 60K on a Wakesetter is crazy. What do most of you do for financing (5,10,15,20 year notes) on your rides. It seems 15 years make the payments affordable but at the same time who keeps a boat for that long! I feel if I get an 07 buy 09 I make want a different one, would I loose big time or what! It seems boats hold there value. Any insight would help me on my decision

37 years old, bought my bu last summer. Dreamed, and saved for a long time.

[wakecrashin]

28 yrs old... Now own 07 210 SANTE.. 15yrs... $450/ month

[chathamsolutions]

28 yrs old... Now own 07 210 SANTE.. 15yrs... $450/ month

Don't let this fool you. As I was wishing for my boat, a good friend said that same thing, 'Come on man, it's only $500 a month.'

This is a COMPLETE LIE!

The only reason you should buy a boat is if you are going to love being in and around the boat - on AND off the water. I spent over 3 hours in my boat today, sitting in my driveway. This was after I spent at least an hour last night as we got in from a week at Trinity. And I haven't even gotten to the vinyl yet That'll be at least another hour, if not two. The red dirt from that place is crazy.

What I'm trying to say, if you don't love being in and around your boat - regardless of the money, then don't do it.

You would be MUCH better off financially if you found a friend that lived close that had a really nice boat. Or even a couple of friends. Let me put it this way:

Assume I have a good friend that has a boat and he's willing to take me out every weekend wakeboarding, 52 weeks a year. In return for picking me up at the launch ramp and dropping me off at my car at the end of the day I'm willing to give him $200. If this were true, I'd come out ahead monetarily. And this doesn't account for the cost of my time. If I were to calculate the cost of my time cleaning the boat, it's closer to $300 a weekend.

- This is never a conversation I have with my CFO BTW.

If wakeboarding and boating were about the money, then I'd look to hook up with a 28 year old, like wakecrashin above, and offer to give him $200. He'll happily call you EVERY time he wants to go out - I know I would.

Since it's more than just the money (because it doesn't make sense AT ALL monetarily) you find a way to make it work. 'It's all about cash flow.' Take out the longest loan you possibly can, or borrow the equity from your home, whatever it takes to get on the water - that's where I'm at

Good luck. And don't ever let your CFO know about the true financial details.

[G_Anders]

How fast do boat deppreciate once they are driven off, is it like a car?

[G_Anders]

I notice the new 07 wakesetter LVS are the same price as the 06 used

[chathamsolutions]

How fast do boat deppreciate once they are driven off, is it like a car?

Just this weekend a friend of mine put it this way. He said you loose about $7K a year. $3500 in depreciation and another $3500 in costs. This doesn't include gas BTW - my example above DOES include gas, thus the $200 a weekend.

Anyway, if you buy a Malibu, MC or SAN you're likely to have this type of depreciation. It's what I've experienced with my 2004. If you buy a good quality boat, but not one of the top 3 (I.E. Tige, Calabria, Sanger, Centurion, Sky Supreme, MB, etc.) you're likely to get a better deal up front, but have quicker depreciation over time.

[chathamsolutions]

I notice the new 07 wakesetter LVS are the same price as the 06 used

Right now the '07's are being priced to make room for the '08's. If you can find one on a lot that has all the stuff you want, this is a good time to buy.

[G_Anders]

So are you guys taking out 10 year notes or 15?

[chathamsolutions]

...

Since it's more than just the money (because it doesn't make sense AT ALL monetarily) you find a way to make it work. 'It's all about cash flow.' Take out the longest loan you possibly can, or borrow the equity from your home, whatever it takes to get on the water - that's where I'm at

...

[VinRLX]

So are you guys taking out 10 year notes or 15?

I mortgaged the house. That's about what it takes with the price of boats these days.

[Big Mac]

I mortgaged the house. That's about what it takes with the price of boats these days.

Home equity loan is usually a good way to get the money...that way the interest you pay is tax deductible.

Edited August 19, 2007 by Big Mac

[doughickey]

Why do so many folks feel they have to buy new and get exacty what you want and all the latest bling? There have been a few threads lately about all the hassles and heartaches associated with new boat purchases with multi warrenty trips back to the dealer, and then most of us spend gobs of time and $$$ adding other stuff as well.

If money is tight (as it is with many folks) or it's hard to justify to your CFO or yourself why you would spend $60K+, then buy used.

Sure, you may not get exactly the features you want..... or the latest...... but these boats have been fantastic for years. For skiers, Malibu has had the diamond hull since 1998. To somebody buying their first ski-boat, they would likely not notice the difference between a 1998 Response pull or a 2008 Response pull. If you compare to the RLXi, likely a similar story. Sure the pro's and the sales folks will say the RLXi is a better ski hull..... but I suspect the difference (if any) would not be noticeable to 98% of the folks riding their stick behind the boat. So, for skiers.... you have many many years (1998 ~ 2007) to choose from.

As for Wakeboarders (I'm in unfamiliar ground here), I suspect their is a similar situation. Lots of folks on The Crew could identify the years and models that come closest to providing a very very similar ride to the newest hulls. Heck, if the old hulls were so terrible (and the newer ones so much better) then EVERYBODY would be dumping the old models. They're not.

All that to say..... buying used can get you the ride you want, with a little less bling, but a LOT less expense. And you'll be happy.

Then some day, when you find that pot of gold, you may (key word is may) decide the brand new hull is what you want. (Just be prepared for warrenty work).... and like many of us..... letting your old boat go after getting it set up exactly the way you like.... it's hard to see it get towed away from your driveway behind somebody else's truck.

Edited August 19, 2007 by doughickey

[JAGMAN]

Buy a Ride series boat and you can walk out the door saving 20K. Still 40K is a lot of money, but here is something else to consider; Would you rather have a boat to enjoy when you are in your 20's and 30's, or wait (until it makes more financial sense), and miss out on those years?

I chose now.

"Your biggest depreciating asset is your life." ---Read that recently, couldn't agree more!

[Jameslo]

It's just my way of thinking, but I don't finance toys. If you can't go in and buy it on the spot, you might want to consider buying something a little less expensive.

Get something you can afford and take the money you were about to put into finance payments and put it in a "Toys" account. Make the payment to yourself. One day you'll have the money.

If all goes well in life, and there are no emergencies that require you to have to get that money (health emergencies, home emergencies, etc.), then you can walk in with a checkbook and drive away with any boat you want. If you can't afford to save the money then you couldn't have afforded the boat.

The "I want what I want and I want it now and I deserve to have it and I can get it on credit" mentality can really bite you in the butt. Five minutes with a credit application can get you into more trouble than you can get out of in a lifetime.

If you're determined to buy a late model, high dollar boat, I'd look at people needing to sell because of job loss or job transfers, or bank repos. They're motivated sellers that bought what they wanted and bought it now because they deserve what they want and can..... you get the idea.

Best of luck to you no matter which direction you go.

[wakecrashin]

chathamsolutions.... I agree!

Do what you got to do to get on the water. The way I look at it is whether I buy used (1-2yrs old) or new Im still going to have a $400 payment. For me personally, I find a couple dollars extra a month gives me piece of mind with a full warranty and knowing how the boat was taking care of. Reagrdless of how great of deal we got, its a boat and youll prob lose money! IM willing to deal with that because I have one hell of the summer going on the boat on the weekdays and weekends. Ive made some wonderful friends boating and and you cant put a price on that. Yes my boat coast more that $450 month once you add in gas, oil changes, gas, beer, gas..... but you know what Im 28, no kids and I can afford it and you only live once!

So my best advice is that if your considering whether or nor to get a boat because your notice sure if you can afford it, then dont get one. Its alot of money and time, but if you LOVE to do it, its worth every penny!!

"Some people have boats, some people go on vacations"- Unknown\\

Good Day!!!

Jameslo_ I def hear you, but I would never fork out 60K out of my checking for something that only loses money...

Edited August 19, 2007 by wakecrashin

[wakecrashin]

Invest 60K over 15yrs @5% compounded daily= $124,735

Finance 60K boat over 15yrs @ 7%= $97,073

If you have 60K in the bank, you prob can afford a $500 payment, so why not make a $124,000 over the xt 15 yrs when your only putting put $500 month into the boat.

p.s. If you put a portable sink and a portable toilet in your boat, you can write it off as a second home... write off the interest that is.

[Jameslo]

Jameslo_ I def hear you, but I would never fork out 60K out of my checking for something that only loses money...

It's a choice to be made. The alternative is the possibility of oweing more on something that it's worth, and oweing it for a long, long time. I can't think of much you buy that isn't either guaranteed to be worth less (car, boat, etc), or stands a chance of being worth less (including houses).

How one buys a boat can be as much of a personal choice as the boat one buys. I just prefer to own the toys I have unless (a) I can afford to buy it outright if need be, and (B) there's a good financial reward for using someone else's money.

[krward]

No question buying a boat and paying cash to avoid more debt is an ideal thing. I also thinking that learning to board, ski, surf, and etc is something you NEED to do when your most valuable 'ASSet' is still young. I don't claim to have any answers or be the authority on much. That being said, my experience with boat is this. I have owned 2 different tournament boats. I am 30 years old and have 3 kids. I bought used and didn't get everything I wanted, but what I did get was a CFO and three kids who LOVE boating and now we have a membership to a private lake and go out with the family at least 2 usually 3-4 times per week. BTW I just finally ran all 6 at 34 MPH and 15off. Next step is 36 MPH.

I will contrast that with my brother. He waited until he could pay cash for a boat which by that age he was 40. Has 4 kids, and the youngest is 9 or 10 now. All his kids play football, basketball, soccer, some musical instruments, and have all kinds of stuff going on. They might use there boat 6 or 7 times a year and he has to drag his family out because they don't really like boating and love the other stuff they do. But they do have an i/o with no tower, so maybe if he got a little nicer setup the kids would want to go more often.

I also know 62 year neighbor that in his mind can finally afford to do something with his money like own a boat. He said this to me "I am so glad you are enjoying life a little bit when you are young. I waited until now to spend any money on toys and I am too old and tired to feel like doing it anymore. Be reasonable, but never wait to enjoy life until you are older."

So I agree that if you have the money you should pay cash. If you don't want a HUGE payment scale down and get something good (I love our 02 sunsetter lxi) and keep the rest of the 500 payment for GAS and the many other things that come with boating.

Good luck with whatever decision you make.

[zilla]

chathamsolutions.... I agree!

Do what you got to do to get on the water. The way I look at it is whether I buy used (1-2yrs old) or new Im still going to have a $400 payment. For me personally, I find a couple dollars extra a month gives me piece of mind with a full warranty and knowing how the boat was taking care of. Reagrdless of how great of deal we got, its a boat and youll prob lose money! IM willing to deal with that because I have one hell of the summer going on the boat on the weekdays and weekends. Ive made some wonderful friends boating and and you cant put a price on that. Yes my boat coast more that $450 month once you add in gas, oil changes, gas, beer, gas..... but you know what Im 28, no kids and I can afford it and you only live once!

So my best advice is that if your considering whether or nor to get a boat because your notice sure if you can afford it, then dont get one. Its alot of money and time, but if you LOVE to do it, its worth every penny!!

"Some people have boats, some people go on vacations"- Unknown\\

Good Day!!!

Jameslo_ I def hear you, but I would never fork out 60K out of my checking for something that only loses money...

PARTNER up with some one you can trust.

You can't always go to the lake and most of the time you guys are going together anyways

so your $ 500.00 payment is now $250.00 much more affordable

[Big Mac]

PARTNER up with some one you can trust.

You can't always go to the lake and most of the time you guys are going together anyways

so your $ 500.00 payment is now $250.00 much more affordable

Yikes! I can't think of a more sure-fire way to destroy a friendship.

[zilla]

L O L

PARTNER up with some one you can trust.

You can't always go to the lake and most of the time you guys are going together anyways

so your $ 500.00 payment is now $250.00 much more affordable

Yikes! I can't think of a more sure-fire way to destroy a friendship.

[wahoo]

I've seen a few people go in as partners on buying a boat. One time it worked out ok but not great and the other was a disaster. I wouldn't do it, too many issues come up despite the best intentions and agreement on how you will handle issues.

There are many, many varaibles involved in this decision that influence how much debt you should be willing to take on for it. I spent way more than I planned to spend but got a great deal for what I bought which a new 05' VLX. I had planned to buy used for around $30K but since I didn't really know where to look and it was in May I had a hard time finding what I thought I wanted and ended up just buying a new one. Even though I have been around boats all of my life this was the first boat that I actually owned. I didn't have a lot of expereince on tournament style tow boats like these either. One thing that I learned is that I didn't really know what I wanted in a wakeboard boat and that I got pretty lucky picking what I did. If I were you, I would buy used the first time and figure out what you really want and don't want if you're not absolutely sure now.

While I agree in theroy about being able to pay for something in cash as opposed to credit, what someone above said about being able to enjoy it now is also true. I'm an athlectic, physicaly fit 36-year old guy but I don't really know that I'll be wakeboarding at 50. I know that if I waited until I was 45 to buy the boat and learn to wakeboard that I would be lucky to ever progress far enough to even clear the wake. If you want your kids to have this experience then you don't have much choice. If I lived at the beach I wouldn't have this boat, I'd be surfing and maybe own an old fishing boat. If I lived in the mountains I'd have season passes to ski resorts and maybe a cabin, but I live near nice lakes so I have a nice wakeboard boat.

My personal philosphy towards this is that you have to have balance. Invest to provide a secure future but live life today. I don't think I got it perfectly right in my boat buying decision though. I did spend too much money but not because I can't make the payments or it's causing me to worry about money but becasue I could have enjoyed a clean 3-year old boat just the same and had more money left for my other hobbies such as golf or snow skiing. My golf game has gone to hell since buying this boat, partly because when it's a nice day outside I'm on the water because I want to be and partly because I paid $50K for this boat and I'm going to use it.

I think most people take out 15-year loans to buy these boats and then try to pay them off early. Buying a boat is about the worst financial decision you can make. I use the word "decision" as opposed to "investment" to emphasize this point. This money could be doing wonders for me if I had invested it. Of course, the same could be said for buying a $60K car. I once got into a conversation with a friend of mine (who makes a little less money than me btw) who asked "why would you pay close to $50K for a boat" yet he was driving a used Porsche 911 that he paid about the same amount of money before. It's about priorities. I personaly think I get more enjoyment out of my boat than he does his car. From a financial perspective, the smartest thing I could have done was buy neither, drive a $5K Honda and invest everthing I can so that one day I sit in my mansion and bask in my success. Now, if you can't afford to fund an IRA and buy this boat without adversely affecting other important areas of your life then you may want to re-think it. That is what I think for what it's worth.

[uk_exile]

Our boat isn't new so doesn't fit into the $60k categorty but is worth approx 1/2 my yearly salary so is a big investment. But it's one my family wouldn't live without. The fact we don't eat out, never go to movies and have 10 and 12 year old vehicles doesn't bother us at all. Family time on the water make the sacrifises (sp?) worth it.

[jetskipro550]

This is an easy one...use your friends boats, or your dads