How long did you finance your boat for?

[White Lightning]

Interesting topic everyone. I think it comes down to personal choice. My choice is to not finance. But I am pleased to hear that many are willing. I live in Canada and like the rest of the world we continuosly hear how bad things are stateside. The fact that some are willing to buy boats and finance them lets me know it may not be as bad as it looks (although I realize things aren't easy either). I am tired of the doom and gloom scenarios which show up daily. Life needs to carry on and to look on the brightside it will be cheap to fill up the Bu this summer. The money saved on fuel can help with the boat payments.LOL We live in interesting times. Happy boating all!!

W.L.

[LS-One]

I wonder if all of the poster's on this thread that subscribe to the only pay cash for toys belief ever finance their auto's ?

My guess is the argument would be the car is a necessity for transportation therefore ok to finance.

[Jimmypooh]

I wonder if all of the poster's on this thread that subscribe to the only pay cash for toys belief ever finance their auto's ?

My guess is the argument would be the car is a necessity for transportation therefore ok to finance.

If that's the case I'm backwards. I financed my boat and payed cash for the car.

[AzSyndicate]

I am backwards too. I financed the boat, paid cash for the Truck. I feel that auto's depreciate so quickly, you really need to have them paid off as soon as possible. The boat on the other hand, it seems to hold value much better. I felt comfortable paying cash for half the boat and financing the rest for 15years. I would have rather gone 5 year loan, but the credit union gave us the best rate at 15 years so we took it, but plan to pay it off much sooner. The wife and I are very good about paying extra to payments so I figured I could be safe and not spend all my cash on hand cause this economy sucks., have a cheaper minimum payment, and fell a little better financially.

[Squag Mon]

I am backwards too. I financed the boat, paid cash for the Truck. I feel that auto's depreciate so quickly, you really need to have them paid off as soon as possible. The boat on the other hand, it seems to hold value much better. I felt comfortable paying cash for half the boat and financing the rest for 15years. I would have rather gone 5 year loan, but the credit union gave us the best rate at 15 years so we took it, but plan to pay it off much sooner. The wife and I are very good about paying extra to payments so I figured I could be safe and not spend all my cash on hand cause this economy sucks., have a cheaper minimum payment, and fell a little better financially.

We think the same way. Must be the way to go.

[Jimmypooh]

I'd be curious to see the correlation between a few things like:

Age

Married

Salary

Kids

But I think this info is too personal for most to share.

I will say that I'm 26 and single, and financed my boat with my sister (single also) for 15 years. We feel that having a boat at this point in our lives is very important. It's more than just a want but a way of life. We keep plenty of money in the bank, but refuse to sacrifice fun because we wont finance. You have to live life the best way you know how. Some people go out to bars every night, others go out to eat a lot and that may be the best way for them. For us, it's owning and playing with our bu.

Don't get me wrong, I do a lot of other stuff, I just don't spend money on frivolous stuff, like a car or going out to eat. I'll boat, snow ski, snowmobile, and other larger fun things. And I have fish, but they aren't large

It's very interesting to hear people's theories on financing and lifestyle.

[TheKiwi]

Usually I would only pay cash, due to the fact that its a "toy" and only really gets used 5 months of the year. If that!

But because I'm looking at it as a toy, and it will be a toy in my family for years, and years to come, I don't mind financing half of it if possible, because I know, we won't be purchasing another boat in New Zealand within the next 10 years.

[wakeup]

I'd be curious to see the correlation between a few things like:

Age

Married

Salary

Kids

But I think this info is too personal for most to share.

I will say that I'm 26 and single, and financed my boat with my sister (single also) for 15 years. We feel that having a boat at this point in our lives is very important. It's more than just a want but a way of life. We keep plenty of money in the bank, but refuse to sacrifice fun because we wont finance. You have to live life the best way you know how. Some people go out to bars every night, others go out to eat a lot and that may be the best way for them. For us, it's owning and playing with our bu.

Don't get me wrong, I do a lot of other stuff, I just don't spend money on frivolous stuff, like a car or going out to eat. I'll boat, snow ski, snowmobile, and other larger fun things. And I have fish, but they aren't large

It's very interesting to hear people's theories on financing and lifestyle.

I don't have a theory, but it is all about being financially responsible. You can have an income of a million dollars a year and have a net worth of zero, or you can make 100k a year and have a million dollar net worth.

Found a few meetings in the past with a reputable certified financial planner went a long way in developing a plan designed just for "me" vs. general recommendations.

[Guest J-Ro]

I would be willing to bet that in the last 2 years new boats have depreciated more than new autos.

[WakeGirl]

I would be willing to bet that in the last 2 years new boats have depreciated more than new autos.

Having just bought a vehicle (& spending a good long while doing it), I wouldn't be so quick to take that bet. I think you're splitting hairs either way, both have fallen off of a cliff in terms of supply, demand, value & depreciation.

[twiggy]

Five years ago after my girls decided that tubing behind a pontoon was boring, my family decided to buy a 1989 Supra Comp. When I went to the banker he gave me the famous saying there are only two good days of a boat owner. The day you buy it and then the day you sell it. Well I proved him wrong and we had a blast with it. My girls were 7 when they first started slalom skiing. Now we all slalom, wakeboard, and hydrofoil. The boat became a place for us to escape, as a family and have fun without the phone ringing or the kids on the net. Look I am sure that we probably should not have loans on our rigs but if we wait until we can afford them our kids will be grown and out of the house. Last fall I upgraded to a 2004 Rlxi which I can't wait to use here in a few months. Live some for today along with saving some for tomorrow.

[Jimmypooh]

Live some for today along with saving some for tomorrow.

That's a great philosophy

[Five Cent Worth]

Five years ago after my girls decided that tubing behind a pontoon was boring, my family decided to buy a 1989 Supra Comp. When I went to the banker he gave me the famous saying there are only two good days of a boat owner. The day you buy it and then the day you sell it. Well I proved him wrong and we had a blast with it. My girls were 7 when they first started slalom skiing. Now we all slalom, wakeboard, and hydrofoil. The boat became a place for us to escape, as a family and have fun without the phone ringing or the kids on the net. Look I am sure that we probably should not have loans on our rigs but if we wait until we can afford them our kids will be grown and out of the house. Last fall I upgraded to a 2004 Rlxi which I can't wait to use here in a few months. Live some for today along with saving some for tomorrow.

Arguably the best post through this whole thread. Let’s be realistic here – we all know in a perfect world you shouldn’t finance a toy/boat/depreciating asset yada, yada, yada… But most of us realize that often times, time is more important than money, (all within reason) as all on the board have boats which aren’t good financial investments.

[Five Cent Worth]

Live some for today along with saving some for tomorrow.

That's a great philosophy

Couldn't agree more. There is a happy medium to everything.

[fijidaniel]

Very well spoken indeed. I personally am a fan of buying used, so I financed my 2000 VLX last year for 10 years but am currently on track to pay off in 8. Age: 27 yesterday, married for 1.5 years with no kids.

Life is good as a D-I-N-K!!! (dual income no kids)

Edited February 28, 2009 by fijidaniel

[Ndawg12]

I wanted a damn boat and I wanted it now!! 10 years baby!!

[IamN2Speed]

Five years ago after my girls decided that tubing behind a pontoon was boring, my family decided to buy a 1989 Supra Comp. When I went to the banker he gave me the famous saying there are only two good days of a boat owner. The day you buy it and then the day you sell it. Well I proved him wrong and we had a blast with it. My girls were 7 when they first started slalom skiing. Now we all slalom, wakeboard, and hydrofoil. The boat became a place for us to escape, as a family and have fun without the phone ringing or the kids on the net. Look I am sure that we probably should not have loans on our rigs but if we wait until we can afford them our kids will be grown and out of the house. Last fall I upgraded to a 2004 Rlxi which I can't wait to use here in a few months. Live some for today along with saving some for tomorrow.

Arguably the best post through this whole thread. Let’s be realistic here – we all know in a perfect world you shouldn’t finance a toy/boat/depreciating asset yada, yada, yada… But most of us realize that often times, time is more important than money, (all within reason) as all on the board have boats which aren’t good financial investments.

So here's my $.02 This seems much like the debate I would get in with my ex-wife when it came to 'toys'. Budget, depreciation, investment, blah blah blah.

I financed my boat. I stretched the payments out as long as I could so my payments would be as little as possible with the only goal to not be upside down come time to sell it. I kind of looked at it like leasing, and I don't mind paying $260/mo for the luxury of owning a boat. For me, I didn't see it like a "toy" like my ex did. I looked at it as something to provide my family with recreation and fun. However, I completly underestimated the benifits. Owning a boat has not only provided us with immesurable fun on the weekends, it has brought me closer together with my extended family, and many friends. We are on the lake just about every weekend, and have friends and family with us every day. Owning a boat has brought more enjoyment to me, my family, and friends that I would have ever imagined.

I lost my job 6 months ago, and have been struggling to find a job in a very competitive market. I have done everything possible to make sure I don't loose the boat. For us, that would make a depressing situation so much worse. At least we will have our enjoyment on the weekends with eachother.

-Keith

[Laycon Row]

Five years ago after my girls decided that tubing behind a pontoon was boring, my family decided to buy a 1989 Supra Comp. When I went to the banker he gave me the famous saying there are only two good days of a boat owner. The day you buy it and then the day you sell it. Well I proved him wrong and we had a blast with it. My girls were 7 when they first started slalom skiing. Now we all slalom, wakeboard, and hydrofoil. The boat became a place for us to escape, as a family and have fun without the phone ringing or the kids on the net. Look I am sure that we probably should not have loans on our rigs but if we wait until we can afford them our kids will be grown and out of the house. Last fall I upgraded to a 2004 Rlxi which I can't wait to use here in a few months. Live some for today along with saving some for tomorrow.

Arguably the best post through this whole thread. Let’s be realistic here – we all know in a perfect world you shouldn’t finance a toy/boat/depreciating asset yada, yada, yada… But most of us realize that often times, time is more important than money, (all within reason) as all on the board have boats which aren’t good financial investments.

My boat may be depreciating but it has held up better than my stock portfolio.

[dalt1]

Funny this topic popped back up. I just wrote a check and paid off my boat. WOOHOO! Feels good. Paid for 2 1/2 years on a 5 year note. Time to start saving for my next boat. Truck was paid for when I drove it off the lot. I don't like paying interest.

[H2Idah0]

I paid cash but I heard the following and feel I could have made a mistake.

"A dollar borrowed is a dollar earned.

A dollar repaid is a dollar lost forever."

Either way, every time I look in the shop and see the boat gleaming, I don't really care how I paid for it.

[eskomojoe]

Financed the full price of a 08' 247 LSV for 15 yrs at an unbelievable 4.75%. I am broke, but i love everyday I spend on the water.

[ajdouglas]

I need help !

I buy a boat, it doesn't get used enough to justify the cost. I sell. Spring comes and I start looking again. And I could easily talk myself into another boat. This summer would make 3 years without a boat. I can afford another boat, but the real question is what is it going to cost, and what do I give up!

So I break out a spreadsheet and start adding numbers. When I do this, I try to keep in mind what do I do IF I have to sell. When I start adding numbers, the payment isn't the killer, it's all the other costs.

On a 50K boat, I put down 8K and finance 42K @ 5.15% for 12 years, payment would be about 392 / mo. With this kind of payment structure, I'm thinking I would never get upside down and I could sell if I had to.

Other costs are the Storage, Insurance, Maintenance, Gas, etc which add up quickly. For me this adds another 291 / mo. So payment (392) + other costs (291) = 683 / mo. Now we are talking real money (at least for me). This payment comes due in Nov, Dec, Jan, Feb, etc when the boat is not being used.

Now, just for fun, I add in interest on the money I am spending, or I look at other ways to blow my money and it's so hard to justify the cost.

Can someone come over to my house and smack me upside my head and tell me "Don't be a fool, forget about a boat!"

Can someone come over to my house and smack me upside my head and tell me "Go for it, you'll love it and it's something your kids will remember forever".

Damn, I hate being responsible! Life was so much easier when I was younger and only thought about the present!

Signed, I NEED HELP

[WakeGirl]

I need help !

I buy a boat, it doesn't get used enough to justify the cost. I sell. Spring comes and I start looking again. And I could easily talk myself into another boat. This summer would make 3 years without a boat. I can afford another boat, but the real question is what is it going to cost, and what do I give up!

So I break out a spreadsheet and start adding numbers. When I do this, I try to keep in mind what do I do IF I have to sell. When I start adding numbers, the payment isn't the killer, it's all the other costs.

On a 50K boat, I put down 8K and finance 42K @ 5.15% for 12 years, payment would be about 392 / mo. With this kind of payment structure, I'm thinking I would never get upside down and I could sell if I had to.

Other costs are the Storage, Insurance, Maintenance, Gas, etc which add up quickly. For me this adds another 291 / mo. So payment (392) + other costs (291) = 683 / mo. Now we are talking real money (at least for me). This payment comes due in Nov, Dec, Jan, Feb, etc when the boat is not being used.

Now, just for fun, I add in interest on the money I am spending, or I look at other ways to blow my money and it's so hard to justify the cost.

Can someone come over to my house and smack me upside my head and tell me "Don't be a fool, forget about a boat!"

Can someone come over to my house and smack me upside my head and tell me "Go for it, you'll love it and it's something your kids will remember forever".

Damn, I hate being responsible! Life was so much easier when I was younger and only thought about the present!

Signed, I NEED HELP

Seriously, don't ever do that. A boat, no matter what you pay for it, will almost never get used enough to justify the costs. You have to be willing to deal with that & accept it as most here have alluded to. To be frank, if you can't do that, then you need to be looking at a different hobby. I grew up in & around boats, & my uncle gave me that bit of advice a long, long time ago after telling him the same type of thing that you posted. Spending any amount of time worrying about it isn't worth it. Buy what you can afford, whether it be by way of financing or cash, & enjoy it.

[Baddog]

Of course they cost too much and the only way you can ever justify them is :"because you want it!"