I’ve got mine financed for 12 yrs and I fine with it. When I went into it I looked at the depreciation vs. the amortization schedule and found the sweet spot where I could put x amount down and even if I had to pay the min. payment I would never get upside down. I bought it during the high times and I’m still ahead of the curve 4 yrs. later when prices have dropped. The way I looked at it at the time was it was the only way that I could buy a boat that would do what I wanted to do. We don’t take a lot of vacations and trips so the boat payment is essentially our vacation every year.
I figure I’ll probably always have a boat payment so I might as well have one for a boat that I enjoy.
I say if you can put enough money down to stay ahead of the curve then go for it. I wouldn’t do 100% though. Just think about how many ads you’ve seen in the Carolina Trader from guys trying to unload a boat because of baby’s/moving/lost jobs/etc. You need to be able to get out from under it.
Bunch of good advice here. Like Dixie said, having a 12 or 15 year loan doesn’t mean you have to take that long to pay off the loan but it does give you a good cushion early on and during the loan if you run into hard economic times.
Most likely your income will increase during the loan and you'll be able to double up and pay off in half the time. With the rate of inflation much higher than what a savings account will pay, boat loans aren't too bad a deal.
It’s a personal decision.
Do what’s best for you.
My personal thoughts are this…
If you’re going to finance a boat, you might as well get the payments as low as possible.
There usually isn’t a huge difference in the interest rate in a 7year vs. 15 year loan.
If the rates are the same, go for the longer term and lower payments.
Like mentioned above if times are hard, you can make the minimum payments.
If times are good, you can always pay more in without any penalties (in most cases)
I say if you are under thirty and love the water then go for it. You can enjoy a boat for 15 years. You would be getting it new and if you take care of it, 15 years won’t be a problem. Sounds like even after 15 years your total payments will still be below retail so that sounds like a good deal. You’ll have 15 years of photos and memories that you wouldn’t have if you waited till you have the cash.
A wise man once told me ‘don’t pay cash for anything’. If you have the cash, borrow and pay the interest rate and invest your cash wisely. After 15 years, you will have the boat paid for and hopefully and nice investment of Exxon stock.
PS If you get tired of the boat after 2 years, get some good insurance from Gotcha and fill it with gas and take a bunch of fishing buddies that smoke to the ledge. Make sure you take an EPIRB and life raft just in case. You never know.
Very well said... Life is short... all you "I paid cash" guys good for you.. but how many years did you miss out being on the water.. how many memories and good times.... if you are going to use the boat get it finance it and enjoy it... if you are not going to use it much... just charter...
The cheapest part about buying a boat is the purchase price. I hate the idea that I’ll be fixing/replacing/upgrading something I haven’t even paid for yet…
classicmako.com There was one in charleston a few weeks ago that was very slick(rebuilt). It was a red one that was absolutely gorgeous. I’m sure someone here has a link to it. There are WAY TOO MANY great deals on used boats these days.
I just did my boat for 15 years and had no second thoughts. Bigger boat and I don’t have to pick my days to get offshore like I had to. Will it take me 15 years to pay for NO (HOPE NOT). I also found a new 07 still sitting on the lot marked way down and it was the boat I had been looking for. To good to pass up.
Someone earlier said Mako wasn’t what it used to be. I thought that, too; even though I’m pretty uneducated on the subject.
I also asked the salesperson…but…well, what else do you think they would say. They said Bass Pro bought them out, it went somewhat downhill, but they restructured and now they’re just as great as they used to be.
In today’s market, what are some good names that aren’t SUPER INFLATED due to the name? I mean, I know of Grady, Scout, Sea Pro, Key West, etc…and I know Sea Boss & Sea Fox are “cheaper” boats.
If you can not write the check and you have to ask, then stay away from the deal for two reasons.
You are not sold on the boat or you would already have it in the yard.
I gurantee you that if you should have some sort of emergency and sell the boat at the current retail value according to Kelly Blue Book in a year or five years you will be upside down in the boat value vs loan amount. You would have to pay money to the bank after you sold the boat to knock out the balance, due to depreciation.
I strongly reccomend that you look for a good deal on a used boat and if you have to finance it stay under 5 years. Goodness knows there have been, and cotinue to be some great deals on used equip and depreciation works in your favor on used vs new. Good luck!
Just found a 24’ '99 Hydra-Sport that’s got a 06 Suzuki 250 (warrantied until 2012) on it for $19k in Wilmington. I’ll probably go look at it on Friday.
Looks like a great boat for a great price! I’m psyched!
I am not a boat pro by any means but i was at Bass Pro today at MB and they have 2 makos for sale out there that are marked pretty cheap. They are CC but they have the 24ft one for the same price you are going to by a 21ft WAC if i am not mistaken. I hoped on it and looked around it and it “looks” like a really nice boat but I have never rode on one.
I too am going back and forth on buying new or used. Used is much cheaper but usually not under any safetynet of warranties where as a new boat has all warranties and a higher price. I guess it all comes down to what you are willing to pay and the risk that you are willing to take buying a used boat or new.
I am just happy my wife slowed me down a little and convinced me to look a little more before I purchased. I would have bought a boat months ago and I still really don’t know exactly what i want. I have been looking at SEA HUNT pretty hard. They look like great boats and they seem to have features that I am looking for but I know little about them.
A 24’ with a 150 to me seems a little under powered. My 23’ has a 225 and it is about right out of the hole and cruising. USMC if you use USAA at all thats who I went through great low interest rate.
The first boat I bought I financed for 5 years. I paid it off in about 3.5. It was a new boat.
I loved it, but hated it at the same time. I hated knowing I was paying interest and a monthly payment on something that I wasn’t using as much as I thought I should. And as mentioned before, each time something breaks I got the sick feeling of why am I having to fix something I am still paying for.
I sold it after 5 years at a 33% loss off purchase price (not including interest and repairs/maintenance). In five years I grew tired of it, my needs changed slightly (and I develped new needs/wants).
After that, I started watching local ads for used boats. If you have been around boats it is not hard to tell a good deal from a beater…if somewhat mechanically inclined even easier, check the usual suspects. Since I have bought and sold 4 boats. Each time, when I buy I pay cash, make a weekend worth of minor repairs/upgrades to make it mine and usually purchase for MUCH less than a new one…I am talking 50-75% off new prices.
The benefits here are with patience, cash on hand and the willingness to put in a little elbow grease you can have a nice looking boat that you know well after going through and checking it out well and making needed repairs/adjustments.
I am on #5 now…and after taking a small beating on the first, I am boating for free on #5. Hold onto your money and be willing to pay cash fast when a good deal presents itself. Now, if I have to go a month without using it, or put a scratch in the gelcoat…big deal, it was a free boat aside from a little time/effort.
Restoring faded and scratched gelcoat and fixing 12V systems is easy work…and those two things alone will sell a used boat in a private market FAST and for good money.
USMC, I like the layout of the 214 Mako, but you should also check out the Grady White 208. I wasn’t able to test drive the Mako, but I did the 208 and thought it handled very well. I ended up getting a used GW 226, but wish I had the 228 (I have kids and like the full transom look) water doesn’t come into the back, but it sure does give you a sense of security.
To finance or not is a personal decision, but I say look at a used one. A lot of good deals out there.
Grady White 226
“That thing has gone democrat on me!” – refering to my broken lawnmower