Looking for information on a boat loan

I’m all for paying cash for things and having the least debt possible, but come on…..

If you have good/excellent credit, borrowing money for a toy isn’t the end of the world.

If you want to shore fish for five years and pinch your pennies to buy a $30,000 boat that’s fine with me.

If you want to enjoy those same five years of your life in a nice $30,000 boat, for a couple thousand bucks in interest, even better.

Life isn’t easy and life isn’t cheap. But life is VERY short in the grand scheme.

You can make money, but you can’t make more time.

The difference from saving $500 a month for five years or spending $547 ($47 interest) isn’t much different, and worth every penny for the memories and fun you will have in it.

Or you can sit on shore for five years and pay for two extra cases of beer each month with all that money you saved.

If you are a wise investor, instead of dropping $20,000 or more in one shot, you will use other peoples money to buy a toy, and earn a higher percentage on your investment than you pay in interest.

B-man
Well stated –
Life is way, way, way,too short!

blackbay wrote:

If you are a wise investor, instead of dropping $20,000 or more in one shot, you will use other peoples money to buy a toy, and earn a higher percentage on your investment than you pay in interest.

That’s an oxymoron.

A WISE INVESTOR WOULD NEVER BUY A BOAT…… (I’m serious)

B-man nailed it. Couldn’t agree more.

B-man wrote:

I’m all for paying cash for things and having the least debt possible, but come on…..

If you have good/excellent credit, borrowing money for a toy isn’t the end of the world.

If you want to shore fish for five years and pinch your pennies to buy a $30,000 boat that’s fine with me.

If you want to enjoy those same five years of your life in a nice $30,000 boat, for a couple thousand bucks in interest, even better.

Life isn’t easy and life isn’t cheap. But life is VERY short in the grand scheme.

You can make money, but you can’t make more time.

The difference from saving $500 a month for five years or spending $547 ($47 interest) isn’t much different, and worth every penny for the memories and fun you will have in it.

Or you can sit on shore for five years and pay for two extra cases of beer each month with all that money you saved.

This X 1000000!

The reason for the 240 month loan is how else is a guy making 40k a year supposed to afford a 50-70K boat? Not a good practice but that is what it’s there for. I keep thinking someday I will have a brand new boat but with prices the way they are I doubt I will. Don’t think I could ever justify the cost to me

Finance, but buy used, a boat is not the worst thing to finance, just don’t get sucked into financing things like furniture.

I’m not big on borrowing for toys either. However I have known many guys in their 40’s, 50’s that saved to pay cash for that retirement rig and dropped over dead before getting to the finish line.

Have your family finances in order. If you can swing the payment and want a new toy go for it. Don’t put anything up for collateral. If your job, health, wages, tank walk in to the bank and drop the keys on their desk and say sorry. Heres the reality of life in 2018. There is no loyalty between banks and their customers. They are in the business of making as much money off you as they can, and they do. Be willing and able to play their game their way. As Wells Fargo says “it’s a new day” and we are out to screw you a second time and have enough advertising money to make it happen and believe you to be stupid enough to let us do it..

CBMN wrote:

I have done all of my recent vehicle loans thru Bob Bowman with Wings in Minnetonka. IDO member but don’t know that he is on very often recently. Very knowledgeable and easy to work with. No need to drive to Minnetonka either I have done all my transactions thru other branches closer to home. Feel free to shoot me a PM if you want contact info. Rates are usually as good as I could find anywhere.

Another Bob Bowman Wings Financial supporter here!

Dutchboy wrote:

I’m not big on borrowing for toys either. However I have known many guys in their 40’s, 50’s that saved to pay cash for that retirement rig and dropped over dead before getting to the finish line.

At least they didn’t leave their family with a $40k boat loan to pay off.

I personally would never finance a toy or luxury item. If you must, put as much down as possible and pay it off as soon as possible.

If you’re looking new, I think Alumacraft is the biggest bang for your buck. You can get an 17-18ft 90horse tiller for around $25k.

Jonesy wrote:

The reason for the 240 month loan is how else is a guy making 40k a year supposed to afford a 50-70K boat? Not a good practice but that is what it’s there for. I keep thinking someday I will have a brand new boat but with prices the way they are I doubt I will. Don’t think I could ever justify the cost to me

In all reality, a guy making $40k probably shouldn’t spend $50-70k on a boat, but that’s just my opinion.

Each person’s financial situation is different though. If that guy doesn’t have kids and lives well within his means on other items (house and vehicle), then an expensive boat might not be out of the question.

I myself have never taken a loan longer than 60 months on a toy or vehicle. That’s my personal cut-off. If I can’t afford to pay it off in that time frame, that to me means it’s probably more than I should be spending.

I will say though that if we didn’t have to spend $1,600 a month on daycare that I would definitely have a nicer boat (but I can’t complain about my current rig)

I also completely agree with not financing smaller purchases like furniture, appliances, new carpet, electronics, etc. That’s a slippery slope that can leave you with a dozen monthly payments on things that should have waited until you could pay cash for them.

B-man wrote:

I also completely agree with not financing smaller purchases like furniture, appliances, new carpet, electronics, etc. That’s a slippery slope that can leave you with a dozen monthly payments on things that should have waited until you could pay cash for them.

On the flip side, if you are a fiscally responsible person (and I’m sure we run the gamut here), and if you can get some furniture for 0% interest, that’s free money. It’s not an excuse to overbuy, but…

Ralph Wiggum wrote:

On the flip side, if you are a fiscally responsible person (and I’m sure we run the gamut here), and if you can get some furniture for 0% interest, that’s free money. It’s not an excuse to overbuy, but…

That was where my comment earlier fit when I said, ideally, the best way to buy anything is to be able to use cash. That doesn’t mean that cash is the best way to buy everything.

A low interest short term loan with your cash somewhere else may be better. Just be smart about it. Someone making $40k a year has no business leveraging a $60k boat for 20 years. Really, no one does but business feels no shame so they offer these silly deals.

That is the outlier.

I knew a guy that ran his small business in the 90’s – 2000’s using no interest introductory rate credit cards as lines of credit. He was great with money and he made it work. When chatting he’d make a comment like, the books are in the oven. He’s retired now with a million dollar plus house near the ocean in OC CA that is paid off.
There are examples of credit being used for the consumers advantage. As I said before, you just have to be smart about it.

And yep, although I’m not circling the drain yet, I may kick the bucket tomorrow. Ideally the last personal check I write should bounce. That doesn’t mean I should over leverage, lessen retirement planning, or put my families finances at risk to finance a toy today. You only live once, unfortunately it should be done within one’s means.

Talking about financing a luxury item on a public forum can get tricky because there will be people all over the spectrum advocating their point of view.

Just so there is no misunderstanding, I don’t begrudge anyone spending their money their way. I watched family members and coworkers happily leverage their way through life. One is retired living (if you can call it that) off medicare and medicaid after living his life to the fullest every day. He enjoyed it then. He’s making the most of it now. I help out when I can. He’s happy.
The coworker expects to work her entire life because as she puts it, as soon as a loan is paid off they are off shopping for the next new toy to be financed.
If you are happy with that future, roll with it. No hard feelings.

Ralph Wiggum wrote:

<div class=”d4p-bbt-quote-title”>B-man wrote:</div>
I also completely agree with not financing smaller purchases like furniture, appliances, new carpet, electronics, etc. That’s a slippery slope that can leave you with a dozen monthly payments on things that should have waited until you could pay cash for them.

On the flip side, if you are a fiscally responsible person (and I’m sure we run the gamut here), and if you can get some furniture for 0% interest, that’s free money. It’s not an excuse to overbuy, but…

I still disagree on “small” purchases, even with 0% financing.

That $2,000-$3,000 sitting in your checking or savings account is aquiring negligible interest.

If you made your payments by check/mail the money you “save” is almost gone in postal fees alone. Not to mention your time every month making the payment.

If you pay wirelessly, there is almost always a “convenience fee.” Again, it will easily wash away any savings and could actually cost you more over the life of the term.

B-man wrote:

<div class=”d4p-bbt-quote-title”>Ralph Wiggum wrote:</div>

<div class=”d4p-bbt-quote-title”>B-man wrote:</div>
I also completely agree with not financing smaller purchases like furniture, appliances, new carpet, electronics, etc. That’s a slippery slope that can leave you with a dozen monthly

That $2,000-$3,000 sitting in your checking or savings account is aquiring negligible interest.

If you made your payments by check/mail the money you “save” is long gone in postal fees alone. Not to mention your time every month making the payment.

If you pay wirelessly, there is almost always a “convenience fee.” Again, it will easily wash away any savings and actually cost you more over the life of the term.

I disagree. We financed both of our couches from a place that offered a free 60 inch TV and 0 percent for 6 months. Knowing I had money in the bank i did it. Got the free TV and had it payed in full at 6 months. No convenience fee and received a free TV. I guess if my 12 minutes to set up a payment plan online was worth the TV cost then i messed up.

Just have to be wise about financing. A lot of the time financing is a smart way to help your credit. I just make sure if i borrow like my couches 5500 bucks i already have it in the bank. Helps my credit more then just writing a check. And by the time its paid off I had already saved that much back up

If the 0% is totally “free” without any convenience fees I can see your point.

I also agree that if you have crappy credit, a small line of credit like that will help your score “IF” (and that’s a big IF) you pay it off and on time.

Did you have to finance to get the “free” TV?

If so, their goal was to get everyone to finance and charge the people who didn’t pay it off in 6 months 20%+ interest on the balance.

The TV wasn’t really free, you paid part of it with an inflated price on the couches, and people who pay the interest later cover the rest.

It’s a hell of a sales pitch, and it works. By paying your debt off in time you came out ahead some. A lot of people don’t do what you did and don’t end up ahead.

A wise man wouldn’t buy a boat.

Alagnak Pete wrote:

B-man nailed it. Couldn’t agree more.

Another Bob Bowman Wings Financial supporter here!

My first “new” boat came from Crane Lake Resort. It was a 2003 that I could pick up anytime after Labor Day. Saved about $4000 over the best deal I could find. She’s been good to me.

The old Lund is 15 years old, was ridin hard and put away wet. I couldn’t imagine making payments on her yet! She might be worth $3k not sure. It’s a fact that she’s worth more then that to me.

All the advice here is great depending on each person’s financial situation and beliefs.

Good luck in your new purchase and make sure you post a picture of your new catching machine once to get it!

Straight cash Homie.

Upgrade a little at a time with cash and eventually you’ll have what you want.

walleyebuster5 wrote:

Straight cash Homie.

Upgrade a little at a time with cash and eventually you’ll have what you want.

or you will die while waiting to afford the fun you want now. like others have said there are smart ways to use financing and dumb ways. I financed a boat at 7 years. Ill have it paid off after 4. I will have paid a total of about $1500 in interest or roughly 4.5% of what the boat cost meanwhile I will have enjoyed using the boat for 4 years whereas it would have taken me much longer to save up for that with cash. And if $hit hits the fan I can sell the boat now for what I owe if not more. borrowing money will always carry some risk but you can minimize it to the point that it wont disrupt your life too much if it doesn’t work out. Just my 2 cents

crappie55369 wrote:

<div class=”d4p-bbt-quote-title”>walleyebuster5 wrote:</div>
Straight cash Homie.

Upgrade a little at a time with cash and eventually you’ll have what you want.

or you will die while waiting to afford the fun you want now. like others have said there are smart ways to use financing and dumb ways. I financed a boat at 7 years. Ill have it paid off after 4. I will have paid a total of about $1500 in interest or roughly 4.5% of what the boat cost meanwhile I will have enjoyed using the boat for 4 years whereas it would have taken me much longer to save up for that with cash. And if $hit hits the fan I can sell the boat now for what I owe if not more. borrowing money will always carry some risk but you can minimize it to the point that it wont disrupt your life too much if it doesn’t work out. Just my 2 cents

I agree… But at any time in my life where I can use Randy Moss’ “Straight Cash Homie” I take full advantage of it. To each their own.

B-man wrote:

If the 0% is totally “free”

Did you have to finance to get the “free” TV?

If so, their goal was to get everyone to finance and charge the people who didn’t pay it off in 6 months 20%+ interest on the balance.

The TV wasn’t really free, you paid part of it with an inflated price on the couches, and people who pay the interest later cover the rest.

It’s a hell of a sales pitch, and it works. By paying your debt off in time you came out ahead some. A lot of people don’t do what you did and don’t end up ahead.

I agree they want to get the people after 6 months at 20 percent. But it was 5500 if I paid cash that day or 5500 and a TV because I financed and paid it off early. Take advantage of them when u can

Comparing financing a new boat to a car is foolishness. For one the Car will depreciate substantially faster.
Why are some people so afraid to finance a “toy”? For crying out loud, how long would it take someone to save up $30K to pay for a new boat in cash? I financed my boat for 6 years, paid it off in 3. Since I financed it, I was able to fully equip it with electronics, batteries, life jackets, trolling motor, etc. If I had waited to pay in cash that would have added easily another year while watching the annual price increase of said items go up another 8 to 10%.
Finance the boat, pay it off early. You are paying someone for the convenience of buying and enjoying something now.
To the OP, search for brand new left over units. You will save thousands of dollars. I did, saved at least $8k when I bought my boat in 2010. Holdover boat, holdover motor and holdover trailer.

crappie55369 wrote:

or you will die while waiting to afford the fun you want now. like others have said there are smart ways to use financing and dumb ways. I financed a boat at 7 years. Ill have it paid off after 4. I will have paid a total of about $1500 in interest or roughly 4.5% of what the boat cost meanwhile I will have enjoyed using the boat for 4 years whereas it would have taken me much longer to save up for that with cash. And if $hit hits the fan I can sell the boat now for what I owe if not more. borrowing money will always carry some risk but you can minimize it to the point that it wont disrupt your life too much if it doesn’t work out. Just my 2 cents

This is pretty good advice to my mind. I’ve never financed a boat but I’ve also never owned one worth more than a couple grand. It does strike me that I could “save up” my whole life and still never be able to buy the boat I want, because there will always be something that comes up with the house or the cars or medical bills that will take priority for those “fun” funds I have stashed away. That’s just the hard truth. You can’t say “sorry, family, i know you need money, but dad’s only got $5k left to save ’til he can afford a brand new Warrior, so this pile over here is off limits!”

Life’s about balance.

Over the years I’ve come to terms with the need to finance toys. However, at the same time, I realize that more of us doing is what validates the high prices by the manufacturers. If fewer of us did buy into the financing game, they would be forced to lower their prices. But this is where we are.

Money is like a game. I would say vehicle, boat, house get what you can afford and have a plan like a game of how fast you can pay them off early. Vehicle and boat with the stupid mo way they want for used boats I can’t see going used unless it’s cheap and your paying cash. Better to spend a bit in interest than have a money pit

For everyone saying they’d only go used where are you finding good deals on used boats. If anything is over 17′ and has a decent sized four stroke your spending 13-15 plus even on pretty old ones

CaptainMusky wrote:

Why are some people so afraid to finance a “toy”? For crying out loud, how long would it take someone to save up $30K to pay for a new boat in cash? I financed my boat for 6 years, paid it off in 3.

How long? Apparently 3 years! Lol.

I’m a CPA. I ponder these types of issues every day professionally. I’m also a fisherman that would be miserable without a boat.

The question I ask myself: What am I working for? To be old with a pile of money? Or, to enjoy life while I can. In my scenario, what do I want my children’s lives to be like?

I know too many people that have retired, then died shortly after.

Be responsible. Make sure you’re covered. Finance as sparingly as possible. But, when you have a passion for something, do it. The interest on a loan isn’t necessarily wasted. You’re paying to do something you enjoy. You just have to pay a little more because you can’t afford to pay cash for boat (just like the other 95% of us).