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Those who financed their Bu


Tacostik

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I am hoping to own a Wakesetter before the end of the year. I have been watching prices and saving money so hopefully by the time the seasons end I will be ready for the right boat to pop up. I was looking for some input from those who financed their boats. Any warnings or recommendations on companies? What sort of APR's did you guys get? Any other thoughts would also be appreciated.

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I am hoping to own a Wakesetter before the end of the year. I have been watching prices and saving money so hopefully by the time the seasons end I will be ready for the right boat to pop up. I was looking for some input from those who financed their boats. Any warnings or recommendations on companies? What sort of APR's did you guys get? Any other thoughts would also be appreciated.

New or used?

I bought used and used a local credit union to finance the boat. I put about 33% down, and got 7% interest for 8 years, with great credit. They oddly wouldn't do shorter, but no penalty for early pay off.

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Just refinanced (new bank) our loan with local credit union. 5.5 % for 12yrs. They also wouldn't adjust the term lower but no penalty to payoff and hope to do so within 5yrs.

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I am hoping to own a Wakesetter before the end of the year. I have been watching prices and saving money so hopefully by the time the seasons end I will be ready for the right boat to pop up. I was looking for some input from those who financed their boats. Any warnings or recommendations on companies? What sort of APR's did you guys get? Any other thoughts would also be appreciated.

Just curious, have you owned a boat before? If not, you may consider spending a little less and paying cash. I just bought a 2000 Wakesetter and ended up paying cash. I wanted something newer with more bells and whistles, but in the end couldn't justify the price these things go for. Although I grew up on the water, I decided to spend a little less now, prove to myself that my wife and our now 1 year old daughter will actually be on the water as much as I think, and then potentially upgrade. Once we prove the boat will get used a lot, it will be easier to justify spending more on it. Heck, we've dumped thousands into the boat already excluding the purchase price - shipping it, storing it, insuring it, buying all the gear, etc. I can't wait to actually use it now :clap:

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I guess I should comment on financing some. Don't forget to consider a home equity line of credit rather than the boat loan. The rate may be better and the interest is tax deductible :rockon:

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Just curious, have you owned a boat before? If not, you may consider spending a little less and paying cash. I just bought a 2000 Wakesetter and ended up paying cash. I wanted something newer with more bells and whistles, but in the end couldn't justify the price these things go for. Although I grew up on the water, I decided to spend a little less now, prove to myself that my wife and our now 1 year old daughter will actually be on the water as much as I think, and then potentially upgrade. Once we prove the boat will get used a lot, it will be easier to justify spending more on it. Heck, we've dumped thousands into the boat already excluding the purchase price - shipping it, storing it, insuring it, buying all the gear, etc. I can't wait to actually use it now :clap:

Yeah my dad and I have owned sailboats since I was a baby, we currently own 2 center console skiffs, a glacier bay cat, and a whole slew of kayaks canoes and dinghys. I actually live on one of the most prime stretches of the river for riding in my city, so use will not be an issue. Obviously none of these will be near as nice or pricey as the boat I'm hoping to buy, but in the end it is just a boat. As far as paying cash, I am married to a CPA and now that she has greenlighted the project, I'm comfortable that the finances will work out. :whistle:

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Yeah my dad and I have owned sailboats since I was a baby, we currently own 2 center console skiffs, a glacier bay cat, and a whole slew of kayaks canoes and dinghys. I actually live on one of the most prime stretches of the river for riding in my city, so use will not be an issue. Obviously none of these will be near as nice or pricey as the boat I'm hoping to buy, but in the end it is just a boat. As far as paying cash, I am married to a CPA and now that she has greenlighted the project, I'm comfortable that the finances will work out. :whistle:

:thumbup: It definitely sounds like you'll get some use out of it. Enjoy your new purchase, when the time does come!

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:thumbup: It definitely sounds like you'll get some use out of it. Enjoy your new purchase, when the time does come!

Thanks man, I'm looking forward to it but it can't come soon enough!! Doesn't help that a ton of rich kids live right across the river and they cruise by daily w/ their awesome boats and busty high school girlfriends. Excellent motivation IMHO.

Edited by Tacostik
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Thanks man, I'm looking forward to it but it can't come soon enough!! Doesn't help that a ton of rich kids live right across the river and they cruise by daily w/ their awesome boats and busty high school girlfriends. Excellent motivation IMHO.

Moral of the story...chickmagnets are priceless !

I did the credit union thing too. They would give me 4 years, no more. Around 8.5% I think. I got pre-approved for an amount, then went and found the boat. Took me over a year to find the one I wanted. Looked at many, and drove many a mile looking for the right boat.

I looked at a few CC's, but didn't like their interiors. When I found "the 'bu", I knew it was going to be mine when the wife of the seller cried when I was test riding it. They become like family, and a chickmagnet at the same time. :innocent:

Steve B.

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I guess I should comment on financing some. Don't forget to consider a home equity line of credit rather than the boat loan. The rate may be better and the interest is tax deductible :rockon:

+1

Line of Credit is how we did it. I think we are around 5% - 3 year term.

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Another CU loan here. Found a small CU (1 branch use to be a teachers only CU), who's rate was 3.5% for 60 Months!

Shop around.

that's awesome!

We went with BofA when we bought a boat in January. Most CUs have crappy rates on boat loans and require a lot down. For various reasons we didn't have a ton of cash to put down so we opted for BofA. Interest rate wasn't terrible (around 7%) and we essentially only had to put down tax and license. Not bad.

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Just curious, have you owned a boat before? If not, you may consider spending a little less and paying cash. I just bought a 2000 Wakesetter and ended up paying cash. I wanted something newer with more bells and whistles, but in the end couldn't justify the price these things go for. Although I grew up on the water, I decided to spend a little less now, prove to myself that my wife and our now 1 year old daughter will actually be on the water as much as I think, and then potentially upgrade. Once we prove the boat will get used a lot, it will be easier to justify spending more on it. Heck, we've dumped thousands into the boat already excluding the purchase price - shipping it, storing it, insuring it, buying all the gear, etc. I can't wait to actually use it now :clap:

Couldn't agree more, my Dad always said, "Never borrow money to buy toys". The best toys, trucks,cars, homes, etc. are the ones that are paid for...period. Happy shopping and have fun!!!!

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Just got approved today from USAA at 6.39% for up to 15 years. That is the lowest rate I found for that long of a term. Dealer was quoting anywhere from 6.99-8.00%. I assume they add to the rate just like cars. No pre-pay, minimal down (if any) and a 30 second online approval. Needed the wife's military service to qualify.

Good luck with your search!

-J

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I wrote a check and paid cash because we had saved for our boat. But I didn't want to give up all my cash at once. So I took a credit card that I had that was offering me a 0% balance transfer for up to 24 months. I then paid myself back my cash with the credit card and then put half of that money back into my savings account earning 2% and the other half back into investments. Total cost to me was $250 balance transfer fee. Considering the fact that I am making 2% interest alone it was a good deal. Plus with the market being up, it is working out really well on our end. We just pay the minimum balance every month on the CC.

Only downside was that we had to open another CC for our daily spending and we were only given a $5k limit. So we have to watch our spending to make sure we don't go over our limit and get hit with more fees; if it was just personal spending we wouldn't have a problem but we use it for my wife's business too.

Just and idea FWIW.

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I had cash for the boat but went with a B of A loan at 5.29 %. Between the 2% I get for the cash that's in a money market fund, and a rising stock market, my boat payment is about $100 a month.

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Yep USAA here same terms described above....

30% down & trade in... and then financed the rest. Yep nasty payment.

3yrs in Iraq... life is too short to wait. I am not doing Tantrums and inverts when I am 50 and can drop 70-90K cash on a boat. And not waiting another 5-10yrs till my boys 15yrs+ to start either.

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:(

Just curious, have you owned a boat before? If not, you may consider spending a little less and paying cash. I just bought a 2000 Wakesetter and ended up paying cash. I wanted something newer with more bells and whistles, but in the end couldn't justify the price these things go for. Although I grew up on the water, I decided to spend a little less now, prove to myself that my wife and our now 1 year old daughter will actually be on the water as much as I think, and then potentially upgrade. Once we prove the boat will get used a lot, it will be easier to justify spending more on it. Heck, we've dumped thousands into the boat already excluding the purchase price - shipping it, storing it, insuring it, buying all the gear, etc. I can't wait to actually use it now :clap:

Agree.

You don't need a new boat to have fun or wakeboard, even at a very high level. Paying interest on a depreciating asset should be avoided if at all possible if the only available rates are higher than the money's potential if invested. Otherwise, you're taking it on the chin on both ends, perhaps even upwards of 20% of the value as the "real" cost a year for some of the loans described in this thread. I second the notion to stay well within your means, pay all or as much as possible cash and finance very little. If you do finance, make sure there are no prepayment penalties. Shorter term will save money over lower rates. Do the math on what each scenario will cost in interest and be realistic as to what makes the most sense. Financing a boat for 15 years in the 6's requires you to pay about half the loan value in interest. :( Careful.

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I agree with the posters looking to pay cash. That's our intentions and it seems to be the right thing to do in somewhat uncertain times.

To me financing a boat isn't a GREAT idea, as lets be honest, it's a pure luxury item, unless you ride of a living. It's okay though as long as your boat loan isn't underwater, no phun intended.

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