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Old     (dan_forrest)      Join Date: Jan 2006       03-10-2006, 10:08 PM Reply   
I bought an older boat and paid cash for it and I know many one here have done the same. But for those who have bought nicer boats (Mastercraft, Malibu, Tige, Air Natique......) and have financed them, what are your monthly boat payments. I am thinking of upgrading someday and am just trying to get some numbers.
Old     (poser007)      Join Date: Nov 2004       03-10-2006, 11:46 PM Reply   
I would say depending on how much you spend and your term and rate.....30,000-60,000 you are gonna be looking at payments between 250-600
Old    mplv            03-12-2006, 7:07 AM Reply   
figure 10 bucks a thousand financed and you should be close
Old     (yosquire)      Join Date: Jun 2005       03-12-2006, 9:40 AM Reply   
don't forget insurance @ $400-$800/yr
Old     (fullonsalesgrp)      Join Date: Jan 2004       03-12-2006, 4:06 PM Reply   
I bought our Vride with a friend, we each pay 160.00 and thats with insurance.
Old     (ebone66)      Join Date: Dec 2005       03-13-2006, 8:54 AM Reply

Type it in bro
Old     (will5150)      Join Date: Oct 2002       03-13-2006, 2:01 PM Reply   
DC-if you own your home, do an equity credit line and the interest is tax deductable, not to mention around 2 points+ less what a bank or boat co. will charge. Boat co's let you go 15 years on a note- which is crazy- but if you really want it, you can get a lot of boat for very little. I'm not an advocate of financing toys, but if you're going to do it, do it right.
Old    aboehm            03-13-2006, 3:27 PM Reply   
DC-I'm a CFP and would have to agree with Will. A HELOC gives you a more competitive rate, tax deductability and interest only options. Pay it off as you can.
Old     (hal2814)      Join Date: Feb 2006       03-14-2006, 5:33 AM Reply   
I'm going to have to seriously disagree with Will and aaron here. It would be foolish to finance a "toy" using your house as collateral. Think about what you'd be doing there. Your house could be taken because you fail to make boat payments. I fail to see how that's doing it right. It's a much safer proposition to borrow the money for a boat against that boat. That way if something unfortunate should happen, you won't have to worry about making boat payments just to keep your house. I'd also argue that paying it off as you go is a terrible idea unless you have a profession that gets more pay seasonally or where much of your pay is tied up in money that is paid out sporadically. Otherwise, it would be very easy to be very upsidedown on your loan over the course of 10 or 15 years because you weren't diligent in paying down the principle.
Old     (will5150)      Join Date: Oct 2002       03-14-2006, 6:30 AM Reply   
Dante, You're not going to lose your house with a HELOC- Home Equity line of credit. If for some reason, you don't make the payment and the bank needs to come after you, they can secure the boat. On a 30,000 line of credit, the payments are only 200-300 a month and if you're that unsure of making the payment, you should get your priorities in order and not but the boat at all. As I stated, I am NOT a fan of financing toys- I don't even have car payments, but I know that is rare. the tax savings of doing the HELOC will make the effective interest rate 1.5 -2% lower than the actual rate and save a lot over the life of the loan. I would NEVER let the term go 15 years on a boat either. If you or anyone is questioning this strategy, I'd recommend speaking the a CFP in person, and not getting your financial advice on a boating web site.
Old     (zo1)      Join Date: Aug 2002       03-14-2006, 6:45 AM Reply   
Will and Aaron have got it right...
Old     (hal2814)      Join Date: Feb 2006       03-14-2006, 7:08 AM Reply   
You can indeed lose your house by failing to make a HELOC payment. There are different rules depending on the state you are in concerning how exactly a lender must approach a defaulted HELOC.

I have my priorities in perfect order but I should probably qualify my fears here. When I was a kid, my dad was a builder in the middle of a severe real estate bust out in Texas (sparked by the oil bust out there). I've seen firsthand how a steady, stable income can turn into nothing and stay that way for a long time, even outlasting a lot of savings. Our family moved to Georgia and was fortunate enough to get here just before Atlanta's big real estate boom. The years between were really tough financially. That $200 - $300 seems pretty easy to maintain but when you've taken a severe blow to your income, you'll realize that the $200 - $300 a month could be spent in a much better fashion, like feeding your family.

I do agree though that meeting with a real CFP or two would be the best way to get a plan of action together regarding financing a boat.
Old     (ebone66)      Join Date: Dec 2005       03-14-2006, 7:11 AM Reply   
It's actually a pretty bad idea to give financial advice on message boards. Especially if you are registered. It may actually be considered an SEC violation. A HELOC may be a good option but w/o asking DC about 20 more questions nobody knows.
Old     (nizzle77)      Join Date: Apr 2005       03-14-2006, 8:38 AM Reply   
Equity line is a great option....Plus the glory of an equity line is that as you pay it down your payments go down as well. Before you do anything you have to make sure you have job stability and a good paycheck. But if you know you can afford this HELOC is the way to go. Tax benefits are great.
Dante to you, I understand your experience I am myself in real estate and work with quite a few builders. Some who feel they have a steady income then the dryspell hits. Most of the time they are not prepared and get buried. But I feel if you can make the payment a heloc is the way to go IMO. hmmm am i gonna get martha stewarted for posting financial info?
Old     (dcooper)      Join Date: Mar 2005       03-14-2006, 2:26 PM Reply   
HELOC's are higher rates than a boat loan, especially at higher LTV's. The rate will also continue to rise over the next year. As they have have for the last two years. The reason it is called a home equity line of credit is because it is secured aginast your house. No payments = no house. Plus if you want to sell the house you have to pay-off the loan or sell the boat for capital to buy a house.
Old     (dan_forrest)      Join Date: Jan 2006       03-14-2006, 6:58 PM Reply   
There are a lot of options out there I see. I was just curious as to what some of you fellow boarding addicts were paying and what is reasonable. I was fortunate enough to purchase a home before a boom in the real estate market in Arizona. So my plan is to, when I sell and relocate, take some equity made and purchase a boat and the rest goes for the new house. I think picking a boat will be a more difficult decision than picking a home.


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