|
I know the issue of price point boats has, and is still, being passionately debated on WW, but nobody that I'm aware of seems to have brought up the idea of manufacturers lowering their financing rates for boats.
Quickly looking around Searay and Mastercraft appear to be charging 9% (not sure about others as it wasn't readily available) and some other financing companies are around 7%. I strongly suggest that if manufacturers were to lower their financing rates they would likely gain additional sales.
I like to pay cash for all my purchases or finance them for short periods of time at reasonable rates.
As an example, I quickly crunched numbers on the Searay website and came up with the following:
Boat purchase $35,000 w/ $10k down ='s $25k to finance (all #'s rounded and approximate)
Payment per month
A. 5 yrs @ 9% ='s $519
B. 5 yrs @ 5% ='s $472
C. 5 yrs @ 0% ='s $416
D. 3 yrs @ 9% = $795
E. 3 yrs @ 5% = $749
Note: I used 0% above for interest sake (haha) iot see what the savings per month would be iot save up the same amount of principle and buy the boat with cash.
Also note that I didn't factor in the interest that could be made if the money were invested while saving for a boat.
Interest over 5yrs (depending how you calculate it)
A. ~ $6200
B. ~ $3360
C. obviously $0
D. ~ $3620
E. ~ $1974
Anyway, paying over 10% of the purchase price in interest for a depreciating asset seems absurd (option a, b, d). I know there is some intrinsic value in living for today, but I'm planning on retiring early and don't want to throw money away. Paying 5.6% on the purchase price (i.e. $1974 in interest) I could live with - it's less than the price of a good vacation, comparable to a real estate agent fees and $6.58 per hour if you put 300 hrs on the boat over the 3 yr finance period.
Boat manufacturers take note... there are people out there who have the means to purchase a new boat, but choose not too based on your financing rates.
As for the other half of my caffeine-induced rant:
Build a boat without:
1. Mis-matched upholstery (Axis) - basic would have looked much better - my old Sidewinder has a better looking two-tone interior
2. Billet / chrome anything - I have no need for my boat manufacturer's name to be machined into my tower or better yet, my exhaust tips that will sit in the water all summer. It looks great if you trailer your boat or have a boat house, but unfortunately there are those of us who prefer to keep our boat in the water for the majority of the summer and don't want to be polishing "bling" iot to keep it for oxidizing.
3. Disco lighting - save it for the options list
4. 300+ hp engines (yes, I'll be the first to admit that I love hp, but there are lots of boats out there with 250-265 that work fine.
5. Complex electronic gauges that are going to break down when exposed to the elements
6. Crazy graphics packages that are going to date faster and look worse than late 80's neon / turquoise ski boat graphics
7. Bizarre towers that are going to look worse that Mastercraft's old "Safe-T-Top" in a few years once they go out of style
Build a boat that is:
1. 19-20' range
2. Strong
3. Durable
4. Reliable
5. Basic analog gauges - VDO gauge package perhaps
6. Basic engine - 5.7 260hp Mercury or PCM Prosport 275hp / 305 lb torque - have other options available though - perhaps even a V6 boat iot save some money. A 220hp 4.3 with the right trans / prop combo for holeshot could work for some people (i.e. prop for holeshot and have WOT top out around 30-35mph)
7. Basic stereo package - cd w/ mp3 input and 4-6 speakers
8. Non-skid deck instead of carpet
9. Basic tube tower that blends in with, and compliments, the lines of the boat - perhaps powdercoat or anodized as an option
10. Ballast tanks as an option - perhaps fitted for, but not with - i.e. tanks are built into the hull, but owner installs afterwards via a kit or aftermarket parts
11. Basic graphics - i.e. two-tone gelcoat something that isn't going to date and will always look appealing ie. metallic Mastercraft Stars and Stripes, red / black Prostars, some Nautique 2001s, older Donzi's, etc)
Build that for $30-35k with a decent financing rate and it would be a strong seller. I know people will say it can't be done, but Searay, Regal, etc, seem to be able to build a boats in the mid 30's, so why can't someone build a basic inboard in that price range?
|
Hybrid Mode
