|I would like to know how many people have long term loans for their boats. is it a common thing to have a boat payments spread out for 12 years.|
|Mine is 12 years, I have also heard of some that are 15 years.|
|as many as you can.... |
As long as there is no "prepayment" penalty, spread it out as long as you can. Then just be dicipline enough to send more than the required payment each month. That way if you run into financial troubles, you are not saddled with a large payment. Yet, by paying more you will pay the boat off in "X" years instead of 12.
|None I am a strong believer in no loans for toys |
|I did 15 years at 5.5% interest through Bank of America. I agree with Sean but well I will pay it off earlier and I definitely pay my bills. |
|Sean, love your Cal-Air, beautiful! Yup, cash for my toys too.|
|(ralph)Thank you we love it to I cant seem to say enough good things about that boat |
|Some people aren't rich enough to save 15k, 25k, 35k for a boat so they must finance. It's bad enough saving for a house. By the time I got married and paid for the ring, wedding, honeymoon, had a baby, bought a house, and now having a second baby, I had to finance my used boat because all my CASH was gone! By the time I would save up enough cash again my kids would be old, especially since I will be paying $1400 a month for 2 kids in day care! Yes this is the Bay Area. |
To answer the original question, I financed for 10 years and I'm putting extra money towards each payment to pay it off early. Notice my priorities, the TOY came last.............
|(wake fun) It is not that I am so rich. I too have kids and a house but maybe it is that I am a little older and saved a little longer.My last boat was a 87 Ski Eliminator that we had for years before we got the Pro -V. I just have a harder time having monthly bills than I do with saving and paying cash. I also don't have to pay day care and Bay area Prices for every thing. Maybe you should look inland alittle bit Placer county is booming and is close to great lakes I have 9 within a 1 hour drive.|
|you only live once might as well have a toy like this while you are young enough to (fully) enjoy it. |
i did 10 yrs. once i graduate again (grad school) I plan on paying it off as fast as possible.
|I just figured that by the time I would save up enough money to afford a boat with cash my kids would be way older. I wanted to start them out young having fun on the boat and camping so I just said screw it and bought a used boat and got the loan. I guess I could save up pretty fast if I totally stopped contributing to my 401k plan. That's like $500 a month right there!! Anyway, this is my first boat and hopefully it will get paid off soon and then I will use that money to go towards the next boat years from now like Sean did. |
I totally agree with Tim also. Do these things while you can and are able to do them. Time flies by.
|I'm a firm believer in don't buy what you can't afford. If you can afford the payment and don't mind paying $75K for a boat going all the way out to the end of 15 years, go for it. I started with a 15 year and paid it off within a year. |
|Yeah, listen to Scott. Don't buy what you can't afford. I had to buy used because I didn't have a huge down and I'm dealing with day care costs right now. In the future I can sell my current boat, make some money, and get something a little newer. Don't get over your head in toy payments. I'm sure half of the one and two year old boats for sale are because people can't afford them or get sick of paying $500 a month for the next 15 years.|
|Who are you people referring to boats as "toys"? We are wakeboarders here! The lack a boat (or constant access to one) could possibly force us into depression or insanity, hurting not only ourselves, but society in general, and most of all, those people we love most. Like food, beer, shelter, and gasoline, boats are a necessity to our being. |
Oh yeah, to answer the question... 15 years, but paying it down as fast as possible. Long term loans provide the flexibility of small payments if things get tight, but IMO you should be paying out at least double or triple what your payment is so that you actually own the boat by the time you want to get rid of it.
|Well said Matt, I agree 100%! And I even agree with the order in which you placed the items.|
|If you can afford it, do it, can't buy youth.|
|What is this word "OWN" that all of you are using??? |
I told my wife the day I bought my first boat that I would always have a boat payment. For me to go more than five years with either a vehicle or boat is next to impossible. I will always be willing to pay for the newest, latest, greatest gadgetry.
Am I the exception to the rule on this one?
|No Cliff your not. |
I totally agree with Tim, you can't buy youth. You do have to be smart about buying toys but if I waited till I could pay cash for a 40k boat then I would be too old to even want to use it.
|i'm with you griff. the itch for newer shizzle just comes too often for you not to scratch it|
|we did 15 years and will sell it next fall, and get a new boat. do I like having a payment, no. 5.75% is pretty good rate for a toy. I only have one car payment, so it's more than manageable. I regret not buying the boat earlier. you can't get time back.|