Boat finance options

[The Elkster]

If people have the money to make payments they have the money to save and pay cash. If they choose the payment route then the only difference is that over the long haul they will shortchange themselves of a lot of toys that the interest could have covered. Not to mention putting them on the financial edge should they lose their job. Ahhh well, I will buy your boat for half price with cash. I don't need new. Bought second hand all my life and all its done is save me money. One key to saving...don't let ego drive your spending. Keeping up with the jones will put you in the poor house quick.

[Morph1]

Originally Posted by flower

I just don't agree with financing for anything.

that's your choice, the truth is that 85% of folks do have to finance - unfortunately , if you were to buy a new boat my best bet is you would have to finance it cause you would not be able to afford it.
Buying new guarantees good results and product satisfaction, buying used you may end up in a financial pit spending more money on repairs than your monthly payments on a brand spanking new unit...

Hey cash king lol there is always the flee market

I would evaluate your job terms first, and get an assurance that you won't get laid off, then buy what you think you can afford, but buy it new if you're planning to keep it for a long time.
You can get an excellent fishing boat in range of 15,000 bucks,
drop a down payment of at least half and you're laughing.
There are things that yes you can buy them with cash, but some of them unfortunately you gotta finance.

Best of luck on your purchase.

Cheers !

[newffish]

Just watch the insurance costs on loan .I got dinged 5000 for a 5year term on a 11yr amortization .was two years into loan by the time i realized it(wife actually did the loan) .So i payed that loan out immediately and tried to recover some of those insurance costs.boat 15000+options/extended warranty 3000+borrowing insurance5000+pdi 800+financing charge,that girl has to make money also. 500=cost to borrow 24300+6000down. A little over 179 a month ,but at the end of the first five years when you renew your boat loan you get dinged more insurance costs. After a total of 30 months in the loan i got back 600 dollars from the loan insurance company.So make sure you know all the hidden costs when borrowing.And make sure you are not financing the cost of insurance.not many people can reach in their pockets and grab 20-30 grand to buy a boat,so finance it and enjoy it you only live once and you can't take it with you.good luck (p.s don,t let wife use HSBC,it will cost you)

[Waxy]

Originally Posted by The Elkster

If people have the money to make payments they have the money to save and pay cash.

EXACTLY!

The problem is, everyone wants it NOW.

I understand that, I also understand wanting something new and shiny. However, my understanding of basic economics, and the advantages of being smart in that department, tends to overrule my instant wants 95% of the time. I prefer to keep as much of my money in my pocket as I can, and maximize what I do spend. Unfortunately, that generally means having some patience/discipline and being prepared to buy used if that's how the numbers work out.

Waxy

[Rumtan]

At this time the cheapest you can borrow from is a home line of credit....its secured to the equity in your home. If you have to borrow then i suggest checking this avenue first.

[gpguy7]

guys guys, look at the big picture here. I wouldn't finance it if it wasn't open ended. meaning that i could pay off on the boat at any time i want. you are all looking at it like your paying off your minimum balance, kind of like when you have a maxed out credit card, when that isn't my intention. Yes I could pay it off over the 15 years and pay 40000 for a boat, but ideally i'll pay it off between 4-7 years in chunks instead of having the one huge monthly payment every single month.

[NCC]

The trouble with taking loans over 10 -15 -20 years on toys is that the toys depreciate faster than the loan is paid off. I knew of a few cases where guys went to sell or trade RV's and they owed far more than what the trailer was currently worth. If you get in a money crunch you can't sell the toys because you owe more than their worth.

[pdfish]

Originally Posted by NCC

The trouble with taking loans over 10 -15 -20 years on toys is that the toys depreciate faster than the loan is paid off. I knew of a few cases where guys went to sell or trade RV's and they owed far more than what the trailer was currently worth. If you get in a money crunch you can't sell the toys because you owe more than their worth.

To be fair, comparing the depreciation on a boat (especially aluminum, and especially something like a Lund) is not the same as that on a trailer.

[The Elkster]

Buying new doesn't guarantee squat. I know plenty of people who have bought new vehicles and been dinged with lots of costs. Meanwhile I always buy used and have basically never had problems. All the issues were already worked out and they'd dealt with the hastle and the high initial depreciation. Warranties are way overrated and a new owner often has many kinks to work out costing time, inconvenience and money (labor isn't covered by most warranties) not to mention all the money you have to spend in servicing to keep the warranty valid. Buy new if you like but if everyone used some critical thinking and got over the "shine" factor they would see the mountain through the trees.

gpguy if you really think you are disciplined enough to pay extra when the cash becomes available and there is a reasonable chance that extra cash will come available then it may not be the worst thing in the world. Reality is that many people who finance toys are not the most disciplined so I have my concerns.

Good luck whatever you decide.

[Freedom55]

Sure you can afford the loan payments. Can you afford to operate it, tow it around and maintain it? How about insurance and accessories? Fishing from a boat requires special tackle and equipment (eventually you will want to troll for instance). Big boats require big water. Any of that around here? No problem. Get an Esso card. Can you afford to purchase all that or will you finance it as well? These are not cheap toys to own.
Not to put too fine a point on it but I waited my whole life for a 20,000 boat (cash)and the spending continues as I can now fish when I please. No more bosses making sure that my toys stay in the driveway. Dave Si.

[gpguy7]

I've owned and currently own a boat, I know full well the extra costs. I was merely asking a few questions about boat financing. For those of you who are concerned about my financial position, I appreciate it, but I am not struggling. If I didn't feel I could afford to purchase, I wouldn't be serious about doing so. I appreciate the positive comments from many of you, as well as advising me on some of the negative points of financing. That's what I love about this forum. thanks again
gpguy

[Rainbow_boats]

Working for an Alberta Dealer I can make a few points here.

1- You can finance a boat for any length of term up to 20 years (depending on the overall purchase amount). As bad as it sounds, the interest rate will vary according to the purchase amount, where your OnApprovedCredit qualifies, etc.

2-The purpose for such a lengthy term is not to collect more interest. For the better majority of our loans the interest rate is the same for terms of 5, 10, 15 or 20 years. Not like in the automotive business, whereby usually the longer you go the higher the interest rate. Therefore, most consumers are taking the 20 year term, and paying the loan down sooner (as it is an open loan, such that there is no penalty to pay off early).

Ideally, over the winter months make your min. payment, and when your using the boat in the summer double your payment.

Because the interest rate doesn't go up for longer term loans, this makes the winter months allot easier, and your not penalized for paying the loan off early.

[gpguy7]

Thanks Rainbow, it's greatly appreciated. That's exactly what I was looking for, and you made it fairly simple.

[FishinFreak]

gpguy7 I bought my Lund last year through Rainbow Marine in Edmonton its financed for 20 years through RBC because their intrest rate was better than at my credit union and 3 other lenders I checked. I financed to keep payments low but left it openended to allow principle only payments as budget allows. Rainbow had the best deal on the boat I wanted and I got atleast 12 quotes before I bought. hope this helps

[beermilk]

you only live once. a comet could come to earth tomorrow.

what would you rather have 500,000 in the bank or be 500,000 in debt when it hit who had more fun haha j/k but still dont be afraid to spend money. plus intrest rates have gone down probbaly the best time to get a loan now

if you cant afford the bank probbaly wont give you the loan anyways

have fun with your new boat

[mooseknuckle]

Originally Posted by beermilk

you only live once. a comet could come to earth tomorrow.

what would you rather have 500,000 in the bank or be 500,000 in debt when it hit who had more fun haha j/k but still dont be afraid to spend money. plus intrest rates have gone down probbaly the best time to get a loan now

if you cant afford the bank probbaly wont give you the loan anyways

have fun with your new boat

agreed it's understandable that some folks are a little scared to spend these days the best way to stimulate the economy is to get out there and spend our hard earned bucks it's what makes the world goround. Buy the sucker I hate regrets more than apologies. Have fun.

[Cal]

Ummm contraty to popular belief over spending was a big part of what caused both this recession and the great depression as well. In fact over spending has been a factor in most, if not all the major recessions that we've had since the 1900's. Just thought I'd clear that up as I see people excusing extravagent spending these days by saying it will stimulate the economy and not saying that GP guy should or should not buy his boat.

Whacha selling your old one for GP?

[gpguy7]

My younger brother is taking it off my hands because it's more suitable to what he needs, it's parked in calgary at a relatives place for the time being. He lives down there and the smaller lakes are more suitable to the little 14 foot tinner misty river. I'm up in GP and want to be able to get out onto sturgeon and slave lake and just don't feel comfortable attempting the bigger water in a 14 foot aluminum although it has served me well, its just time to upgrade to a fishing machine that i really enjoy and can maybe enter some NAWT and SAWT tournaments comfortably.

[Cal]

I've spent some time on Slave in my canoes. Somedays you dont fish much, just bail and try and keep it upright, but usualy nobodys out in the bigger boats either on those days, just me trying to surf in a canoe Lots of guys fish out of 14 footers at least on the slave lake end. True you cant enter the tournys though. My wife has been trying to make me give up my dirt bike so I might try to bargain for a boat.

[gpguy7]

gotta love wives like that...im lucky enough (or maybe not lucky enough) that I don't have a wife to make me sell my stuff lol . I've got a few friends that use their 14 footers out there as well, a couple of them that almost went down with their 14 footers too! For myself I've wanted to get a boat where I can do tournament fishing as well as local fishing and have the luxuries of rod storage, tackle storage, and casting decks as well as pedestal seats. More or less a convenience and comfort upgrade, as well as I'd like to have some power that's a little more than the old 15 horsepower I had on the aluminum my little brother was lucky enough to inherit!

[Cal]

Naw she's all right, this is the first time she's ever put her foot down. Somthing about me being a manic I guess? I was gonna bargain for another street bike but I even scare myself on those things, the tunnel vision efect is unreal at 250ks. So maby a boat somthing around 14 feet with a 15 horse moter is what I'm thinking.

[Emerica]

I stopped financing things since I got my first drum kit. While I had a good deal on the plan, I'd always tend to go back into the store to pay, but throw on another bell or whistle. Then i sold the kit for about half what I paid to move to BC. I paid for my new kit in cash, while using desks, tables and the ground as my kit in the meantime.

The only reason I can see in financing something is rebuilding credit, and even then isn't there better ways to accomplish that?

Spend some of the money you would otherwise spend in interest on a tube or some small floater and a trolling motor, and bank the payments you *would* be making or more if you can. You will be out on the water, you'll have a troller ready. Plus the payments you are making are gaining interest for you, not a shark.

If stuff goes bad, you're possibly up, not down, sure you don't have the cool boat but where does that get you besides half what you paid, IF it's paid off.

Just my thoughts.