Jump to content

Welcome to TheMalibuCrew!

As a guest, you are welcome to poke around and view the majority of the content that we have to offer, but in order to post, search, contact members, and get full use out of the website you will need to Register for an Account. It's free and it's easy, so don't hesitate to join the TheMalibuCrew Family today!

Sign in to follow this  
Fman

Purchasing a new boat every year?

Recommended Posts

Fman

I was just curious how people are buying a boat every year and not taking a hit on depreciation? You see this quite often on many sites, are they just financing the boat every year and willing to take a $10-15k hit every year? I know there are some who only look at the "payment", regardless if its a 5,10 or 15 year loan.... I just payed our boat off a few months ago, financially to me it just makes no sense trading in every year and taking a loss.... but maybe I am missing something? Are the dealers just taking the boat back in on trades to compensate for the depreciation, sales taxes, luxury tax, fees, etc?

To keep me payment free it seems like I would have to come out of pocket $10k+ to buy another boat to compensate for all the depreciation and fees that are tacked on when purchasing, then add another $4-5k in stereo/upgrade losses.

Are dealers offering programs for certain customers that agree to order a new boat every year???

Edited by Fman

Share this post


Link to post
Share on other sites
rammer998

Very good question Fman. I've always wondered the same thing. The only thing I can think of is some need the best of the best every year and or they have lots of money to burn. I cant imagine taking a hit every year. Hopefully some peeps will chime in on this thread.

Edited by rammer998

Share this post


Link to post
Share on other sites
martinarcher

I was just curious how people are buying a boat every year and not taking a hit on depreciation? You see this quite often on many sites, are they just financing the boat every year and willing to take a $10-15k hit every year? I know there are some who only look at the "payment", regardless if its a 5,10 or 15 year loan.... I just payed our boat off a few months ago, financially to me it just makes no sense in doing this.... but maybe I am missing something? Are the dealers just taking the boat back in on trades to compensate for the depreciation, sales taxes, luxury tax, fees, etc?

To keep me payment free it seems like I would have to come out of pocket $10k+ to buy another boat to compensate for all the depreciation and fees that are tacked on when purchasing, then add another $4-5k in stereo/upgrade losses.

Are dealers offering programs for certain customers that agree to order a new boat every year???

That's awesome. Thumbup.gif I'm also a member of the paid for boat club. but mine cost me a few pennies less. Have a 2011 paid for before 2012 rings in is pretty darn awesome IMO.

Share this post


Link to post
Share on other sites
Fman

That's awesome. Thumbup.gif I'm also a member of the paid for boat club. but mine cost me a few pennies less. Have a 2011 paid for before 2012 rings in is pretty darn awesome IMO.

Yes, I am very fortunate to have my boat paid for. But this was part of my plan when I ordered it last year....

Share this post


Link to post
Share on other sites
A-hole

Yes, I am very fortunate to have my boat paid for. But this was part of my plan when I ordered it last year....

perfect time to upgrade to the NEW wakesetter 247...I got a friend that has got to have your76869607070-87-mgjugke

woops my keybord broke...................

Share this post


Link to post
Share on other sites
Bobby Light

Gonna go out on a limb here and guess that the vast majority of the people who do this either have a promo deal with their dealer or they buy it through a business where they try to write off any depreciation.

Share this post


Link to post
Share on other sites
jrad12381

I know where your coming from, and have been wondering the same thing for the last month as I have gone back and forth on a daily basis to buy a new boat or keep mine. I have an 05 vlx thats in great shape that I bout in 06 and paid cash for it. I am having the hardest time swallowing the fact that I will be taking on a $350 boat payment to get me into an MXZ. I think paying sales tax on a big purchase is just insane, but I guess someones got to do it. If my dealer wasnt giving me such a sweet deal on an MXZ, purchasing a new boat would not even be in my thought process right now.

Share this post


Link to post
Share on other sites
Bake's Marine

We had a lot of customers that purchased a new boat often. I would say it was a mixed bag, in my opinion most were customers we had built relationships with, they worked boat shows for us, helped at events, etc. and both parties knew they would be back to buy another boat later. They got a great deal, helped support us, we helped sell their "old" boat so they were sheltered for the tax on whatever their old boat sold for so it worked out as good as possible.

I would say most of them always took some sort of hit but that was in the "good days". With today's pricing I would think it would be a lot harder to make ends meet to buy and sell every year and have it make sense.

-Paul

Share this post


Link to post
Share on other sites
saidainc

$350 boat payment for your MXZ????

My payment for my MXZ is $611 :(

Share this post


Link to post
Share on other sites
james11music

$350 boat payment for your MXZ????

My payment for my MXZ is $611 :(

Yikes!

Share this post


Link to post
Share on other sites
Michigan boarder

$350 boat payment for your MXZ????

My payment for my MXZ is $611 :(

Yikes!

Gulp! My entire maintenance, repairs, and improvements budget for the 2012 season is $855...a month and a half of MXZ payments!

Share this post


Link to post
Share on other sites
Fman

I know where your coming from, and have been wondering the same thing for the last month as I have gone back and forth on a daily basis to buy a new boat or keep mine. I have an 05 vlx thats in great shape that I bout in 06 and paid cash for it. I am having the hardest time swallowing the fact that I will be taking on a $350 boat payment to get me into an MXZ. I think paying sales tax on a big purchase is just insane, but I guess someones got to do it. If my dealer wasnt giving me such a sweet deal on an MXZ, purchasing a new boat would not even be in my thought process right now.

I would be more concerned on how long are you financing, some will go 15 years which IMO is rediculuos, at this point you are renting the boat and going to take a massive loss when selling it, if you can even get what you owe. Anything more than 4-5 years seems like someone is buying something they really cant afford. I had a $1300/mo payment on my VLX but I paid the remaining balance off in 8 months. When I was shopping for a new boat I had some dealers only concerned about payment amount, and I was more concerned with pricing because I knew the boat would be paid for quickly.

I always say life is short, play hard and have fun.... but I also say, play smart, live within your means, and be financially responsible.

I guess to each is own, whatever works for people.

Share this post


Link to post
Share on other sites
Fman

We had a lot of customers that purchased a new boat often. I would say it was a mixed bag, in my opinion most were customers we had built relationships with, they worked boat shows for us, helped at events, etc. and both parties knew they would be back to buy another boat later. They got a great deal, helped support us, we helped sell their "old" boat so they were sheltered for the tax on whatever their old boat sold for so it worked out as good as possible.

I would say most of them always took some sort of hit but that was in the "good days". With today's pricing I would think it would be a lot harder to make ends meet to buy and sell every year and have it make sense.

-Paul

Thats probably why our country is so upside down right now, people spending money like drunken sailors, or borrowing $ against there house that they are now -$200,000 upside down in. Oh wait, I will just turn the keys in and walk away from the 15/30 yr contract I signed up for.... even though they borrowed $100k+ in home equity loans they will never pay back!!!!

Guess I am old school, when I sign up for something I stick to my word.

Share this post


Link to post
Share on other sites
pennery

Thats probably why our country is so upside down right now, people spending money like drunken sailors, or borrowing $ against there house that they are now -$200,000 upside down in. Oh wait, I will just turn the keys in and walk away from the 15/30 yr contract I signed up for.... even though they borrowed $100k+ in home equity loans they will never pay back!!!!

Guess I am old school, when I sign up for something I stick to my word.

I would bet alot of people tried to stick to their word but I imagine if you lost your job, sticking to your word would become alot more difficult...

I think the depreciation hit is alot less on our boats than a new car every couple of years. We are pretty lucky up here as we don't see too much depreciation in the first year. I can't see my self ever buying a $70K vehicle but I have no problem buying a $70K boat... Everybody has a different opinion on financing. If you put that $70k you spent on the VLX in an investment that made 12% would it make sense to finance the boat at 6%?

Share this post


Link to post
Share on other sites
Michigan boarder

I would bet alot of people tried to stick to their word but I imagine if you lost your job, sticking to your word would become alot more difficult...

I think the depreciation hit is alot less on our boats than a new car every couple of years. We are pretty lucky up here as we don't see too much depreciation in the first year. I can't see my self ever buying a $70K vehicle but I have no problem buying a $70K boat... Everybody has a different opinion on financing. If you put that $70k you spent on the VLX in an investment that made 12% would it make sense to finance the boat at 6%?

Nope, cuz then it's an 18% cost (6% rate on your loan plus %12 opportunity cost by not investing).

The numbers will never work. If we relied on numbers nobody would ever own a boat. "The look on your friend/kid/sibling when they first get up on a board/ski.....priceless".

Good for you guys that can afford it, if I could I would too.

Share this post


Link to post
Share on other sites
Fman

I would bet alot of people tried to stick to their word but I imagine if you lost your job, sticking to your word would become alot more difficult...

I think the depreciation hit is alot less on our boats than a new car every couple of years. We are pretty lucky up here as we don't see too much depreciation in the first year. I can't see my self ever buying a $70K vehicle but I have no problem buying a $70K boat... Everybody has a different opinion on financing. If you put that $70k you spent on the VLX in an investment that made 12% would it make sense to finance the boat at 6%?

Yes, I have sympothy for someone who loses there job, would never wish this among anyone. My wife and I have been very blessed with excellent employment even through some rough times. That being said, loosing your job is an entire different situation. However, there were many that are still employed, never lost there job, but are just not happy with there real estate situation and decided to quit the game after borrowing thousands against there home and now dont want to pay it back.

Personally for me, I will take being debt free on vehicles and boats, rather than trying to play the investment game in the stock market. Especially financing something that is depreciating every year you own it. If you can make 12% back right now you are doing better than most that have investments, 12% this day and age is pretty unheard of.

But like I said, to each is own.... I was just curious about the same people every year who purchase a new boat and how they did this other than taking a hit in the pocket book. But as Martin said, maybe they have money to burn?

Share this post


Link to post
Share on other sites
Bill_AirJunky

............... an investment that made 12% ...................

SHARE!! :crazy:

Share this post


Link to post
Share on other sites
Steve B.

I would bet alot of people tried to stick to their word but I imagine if you lost your job, sticking to your word would become alot more difficult...

I think the depreciation hit is alot less on our boats than a new car every couple of years. We are pretty lucky up here as we don't see too much depreciation in the first year. I can't see my self ever buying a $70K vehicle but I have no problem buying a $70K boat... Everybody has a different opinion on financing. If you put that $70k you spent on the VLX in an investment that made 12% would it make sense to finance the boat at 6%?

Exactly, short loan or long loan, it's real hard to make a payment when your job get's shipped to China.

Rant off :innocent:

Steve B.

Share this post


Link to post
Share on other sites
Bobby Light

Exactly, short loan or long loan, it's real hard to make a payment when your job get's shipped to China.

Rant off :innocent:

Steve B.

Or India, or worse yet they ship someone from China or India here to do the job instead of qualified Americans :rant: .

Share this post


Link to post
Share on other sites
Murphy8166

Exactly, short loan or long loan, it's real hard to make a payment when your job get's shipped to China.

Rant off :innocent:

Steve B.

I know I'm totally off topics here.

Well the reason your job is going to China is b/c there are less regulations over there. For example, USA used to be the largest porducer of forged steel, now China is. The reason is b/c of a little agency called the EPA. I could go on and on with examples - but you get the point

Election is coming - vote for the guy who beleives in as little governement as possible and you will see those American jobs come back to America!

PTBAA

Share this post


Link to post
Share on other sites
TallRedRider

Thats probably why our country is so upside down right now, people spending money like drunken sailors, or borrowing $ against there house that they are now -$200,000 upside down in. Oh wait, I will just turn the keys in and walk away from the 15/30 yr contract I signed up for.... even though they borrowed $100k+ in home equity loans they will never pay back!!!!

Guess I am old school, when I sign up for something I stick to my word.

AMEN!!! There are some that lost their homes due to bad circumstances, and some due to greedy decisions. Every situation has a story, but I personally have seen some folks walk away from their home, when I knew good and well that they could make the payment. Sorry about the off topic rant. Or they could have made the payment if they decided to sell their Malibu;).

Fman, I think you hit the nail on the head, most of those folks were taking a beating. I had a great relationship with another brand dealer in Vegas and flipped a boat pretty quickly and was about to do another when he went bankrupt. The cost was not as much because I was able to purchase the new boat at a lower price than he was willing to sell to others, which buoyed up the price of my used boat. But it was still very far from a smart financial decision.

Share this post


Link to post
Share on other sites
A-hole

I know I'm totally off topics here.

Well the reason your job is going to China is b/c there are less regulations over there. For example, USA used to be the largest porducer of forged steel, now China is. The reason is b/c of a little agency called the EPA. I could go on and on with examples - but you get the point

Election is coming - vote for the guy who beleives in as little governement as possible and you will see those American jobs come back to America!

PTBAA

ya' i'm in the hvac industry...between epa,dept. of energy,state regulations,city codes...these poore customers are taking an un-needed beating...I'm talking a 2008 ....$300.oo job now costing 2k+ to do.It is getting out of hand in my & others business...THEY call it "oversite"...I call it hire a bunch of critics/regulators/inspectors/testers.....& make a bunch of laws that will fine me for anything .

we are doomed....sorry...rant Not over but, concluded here:).

Share this post


Link to post
Share on other sites
notorious_benny

10 year loans on a boat!!! Yikes!!

I did it the hard way and saved for mine.

Owning my boat completely makes me less inclined to want to upgrade it. Why take a hit financially when your current boat only costs fuel and servicing!!

Share this post


Link to post
Share on other sites
Fman

We kind of went off-topic here, my intent was not to analyze how people pay for there boats, its really none of my business.... and everyone has a different way of doing things. I just wanted to find out if there were dealer programs out there that were available to absorb the depreciation, sales tax, fees etc when trading in a boat every year. It seems like taking a loss of some amount is the only way it would work.

I got an email from someone who is considering trading in there 2012 F21Tomcat (yes 2012) for a 2012 Malibu VLX.... the MB boat is beautiful, Wetsounds stereo, etc.... and after responsing to him about options he is looking at, I thought, why would you even think about doing this???? You probably wont get back what you owe on the MB, and the VLX is going to be another $10-$15k over this price??? I dunno, I was a little surprised, not sure what more he would benefit from the VLX other than the G3 Tower, little bit more ballast, wedge, Maliview/MTC, but space wise I think the Tomcat actually has more room. And the Tomcat probably has a better surf wake and comparable wakeboard wake to the VLX.... whatever floats your boat! :biggrin:

Edited by Fman

Share this post


Link to post
Share on other sites
jrad12381

I would be more concerned on how long are you financing, some will go 15 years which IMO is rediculuos, at this point you are renting the boat and going to take a massive loss when selling it, if you can even get what you owe. Anything more than 4-5 years seems like someone is buying something they really cant afford. I had a $1300/mo payment on my VLX but I paid the remaining balance off in 8 months. When I was shopping for a new boat I had some dealers only concerned about payment amount, and I was more concerned with pricing because I knew the boat would be paid for quickly.

I always say life is short, play hard and have fun.... but I also say, play smart, live within your means, and be financially responsible.

I guess to each is own, whatever works for people.

My plan is to pay the boat off fast. Like everything I own I pay extra every month to pay down the principle. I am doing a 12 year laon via BofA at 4.49% which seems very good on a boat loan. Hopefully I will have it paid off in 5-7 year range, but its nice to no that if something goes terribly wrong in my life I am commited to a $350 payment vs. a $1,300 payment.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×
  • Create New...