Promo boat financing

I just got offered the opportunity to be the promo boat driver for a local marina. Only issue is I need a bank in Wisconsin or Illinois that does an interest only loan on a boat. Do you guys know any banks around those two states that could help me out with that?

Getting an Epic?

Blackhawk Community Credit Union will. They have locations in Delavan, edgerton and Janesville.

Who are you goin to promo for?

Im getting a promo for Centurion. You guys still having your annual get together in the spring for Midwest Wakeboarder? How you liking Florida Nick?

Scott, why interest only financing? I am just curious. My parents used to promo for Centurion and always did a normal loan. Not very familiar with interest only boat loans, but it sounds a little risky.

The reason why I want to do that is because then I'm not paying anything towards the principle of the loan. It doesn't make any sense if, im just keeping the boat for 6 months and then selling it. Ski teams and other types of people do it all the time, there is almost no risk to it. Unless interest rates sky rocket in 6 months. But thats why you get a fixed rate interest loans.

Did you talk to the marina? They should be able to easily get you in toucvh with the right people.

I am planning a spring event still. I need to nail down a date and location. I am weary of setting a location too soon as it would appear right now the water will probally be high again in the spring.

Are you goin through Duchows?
I tried to look into them the first year they were carrying centurion. I was in their booth for over 15 minutes at the milwaukee show and never even got a hey, hows it goin! I think they were still focused on their I/Os???

Duchows is out of business THANK GOD! yet another terrible dealer in the Chi Town area for Centurions.

I understand Lake Effect picked them up as the manager over there(an old Bu salesman) has connections with the new Centurion rep who used to be the BU rep for him. I will say they probably lost a ton of potential customers over at the Chicago show with their outrageous "made up" sticker prices on their boats. The ol "yup this boat stickers out at 63k but we will give it to you for 40k today" philosophy hurt them more than it potentiaaly helped if you ask me. I know for sure they lost 2 customers to Supra/Moomba because of the game they wanted to play with the prices. OH well, IMO not a great way to start off with a new line and try and build a customer base. I mean 93K for an Avalanche HAHAHAAHAHA!



Scott what Model you getting?

(Message edited by xstarrider on January 27, 2008)

Im getting a Enzo sv230. Let me know when you got a date locked down for the event.

Scott

NIIIIIIIICE

Scott the only risk would be if you couldn't sell. Will the dealer buy back if you can't sell? My parents sat on one of theirs for over 2 years even at a discounted rate. You shouldn't have that issue with an enzo though.

Nick

So did you ever buy a boat?

Scott,

How can you say there is no risk on an interest only loan...the risk is you still owe 56k but the market will only pay $50k for the boat. There is no such thing as a guaranteed sale price unless your dealer agrees to buy it back at what he sold it to your for.

Glad to here you are joining the Centurion team! An Interest only loan is not something I would do.

The risk would really be the same regardless of the loan. The amount of principal he would pay over the course of the season would be minimal in comparison to the cost of the boat.
That's the deal with a Promo boat. You hopefully get it at a good enough discount that you could sell it at the end of the season and at least break even. Many people make money. Those that i know who are successful at the promo boat deal have their boat up for sale the second they take delivery. They go to a lot of events and offer to take people out in the boat to show it off. Usually by mid season they have found someone who wants to buy it and they set up an agreement to purchase the boat at the end of the season.
I know of a couple instances where promo boat owners arranged to sell their boat directly after the last event of the season. They would take the boat to the event and the new owner would take it home. The thing that kills a lot of people is the sales tax. At least in california that is a big issue. i don't know how it works in your area but If you can somehow work your way around that it could save you a lot of money.

Scott,

Have you considered a loan with balloon payments, the first being a couple years out ? You do need to consider interest that will accrue during the season.I always take that into account.Depends on the "deal" you're getting to make it swing.

Kevin haven't bought anything yet. Ill probably are you at the show.

Im still weighing all my options. I actually might have a buyer for the boat at the end of the season. Im still working out the terms with him though. Im really not to worried about selling this boat. We specially customized this boat to be able to sell the best in my market. Also I got a great deal on the boat. Im just sitting back and seeing what you guys are recommending then I'm going to make up my mind.