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Old    jay_23            08-25-2006, 11:30 AM Reply   
i've been doing some boat shopping and i think am going to order one at my local boat show in feb. i was wondering if anyone could give me a guest on what my payments would be around. the boat should cost about 40k after taxes at 6% apr for 15 years.... the dealer does not want to give me any numbers until the show. so if anyone bought a boat that cost about the same price, that would be great. thanks in advance.
Old     (dcwillette)      Join Date: Sep 2005       08-25-2006, 11:38 AM Reply   
I'd like to know where your finding a 15 year loan at 6% for a boat today! Even 15-year home loans are going for 6% today.
Old     (insuranceman)      Join Date: Jun 2005       08-25-2006, 11:38 AM Reply   
Around $340 per month if nothing is put down and you can still get a 6% in february
Old     (peter_c)      Join Date: Sep 2001       08-25-2006, 11:39 AM Reply   
Find a payment calculator and use that to determine the amounts. You know about how much you are going to put down on it although the interest rates may go up a little.

HOLLY COW! A 15 year loan? You are going to be upside down in the boat unless you double your payments regularly.
Old     (litlone873)      Join Date: Jan 2005       08-25-2006, 11:48 AM Reply   
Insuranceman is correct.

$40k @6% for 15 years = $337.54 per month. Good luck with that.
Old     (brucemac)      Join Date: Dec 2005       08-25-2006, 11:55 AM Reply   
so what is more reasonable with less time upside down? a 10? or are people doing 7's these days. we're considering an upgrade in a year or two as well. it would be something we'd keep for a while though. i don't think i could stomach a $600/month payment unless i pay off my yukon.
Old     (jon4pres)      Join Date: May 2004       08-25-2006, 11:57 AM Reply   
0 down and 15 year loan on a boat.
You will be paying more interest than principal for the first 3 years of your loan.

I would not trust anyone that that you will get that rate now or in Feb. unless it is in writing. I would think with 0 down and 15 year loan your interest rate will be closer to 8 or 9 but who knows.
Old     (ripr)      Join Date: Mar 2002       08-25-2006, 12:02 PM Reply   
If you're planning to upgrade anywhere less then 3 years, I would hold off and save the cash for a large down payment on a boat you'd look to keep for 5-10 years.

Banks aren't fans of zero down, 15 year loans on new boats. If you can get in the boat for zero down, you're gonna take a hit on the interest rate or your dealer/finance guy isn't playing the game by the rules.
Old     (jon4pres)      Join Date: May 2004       08-25-2006, 12:04 PM Reply   
When looking at total cost.

40k @ 6%

15 years = $60,775.20 pmt of 337.54
10 years = $53,301.60 pmt of 441.18
7 years = $49,092.06 pmt of 584.44

It is your money but by the time you pay off your boat you have a 40k boat that you have 60k in and it is 15 years old and worth consideraly less than 40k.
Old     (dmontandon)      Join Date: Jul 2006       08-25-2006, 12:36 PM Reply   
here's a link to loan calculator...
Old     (acurtis_ttu)      Join Date: May 2004       08-25-2006, 1:20 PM Reply   
I really hate stereotyping people, so take this with a grain of salt. I'm assuming alot here, btu your 24 according to your profile , still early in your career, over the next 5-6 years yoru salary will proabbly double. Your in a similar situation I was @ 24, you want a new boat but need a payment to fit your lifestyle. Why not pass up ordering a new boat, find one a year old (it's taken the %20 depreciation hit) this way your can finance the same boat, one year older, finace over a slighly shorter term and more than likely not be upside down when you sell. In addition as your income increases you can pay more against your principal, and still afford to put gas in it.
I'm a little worried that your thinking of purchasing a $40k luxury item and coudln't figure out your monthly payments? FYI....please don't fall into the sales trap of what do you want your payments to be at?

(Message edited by acurtis_ttu on August 25, 2006)
Old     (guido)      Join Date: Jul 2002       08-25-2006, 1:22 PM Reply   
He didn't say anything about 0 down. I wouldn't be suprised if he could get a 6% loan. They're still around. My credit union is writing them like crazy.

Personally I dig the 15 year loans on boats. It keeps the payments to a minimum. That said, I only keep my boats around 2 years. I couldn't imagine paying out a loan for an entire 15 year term.
Old     (biz)      Join Date: Mar 2004       08-25-2006, 2:20 PM Reply   
What is the name of the Credit union that is doing 6% loans? Looking at a new boat myself and haven't seen anything close to that...

(Message edited by BIZ on August 25, 2006)
Old     (awf_axis)      Join Date: Aug 2002       08-25-2006, 2:28 PM Reply   
If you have a home with a little equity, use it. You can at least deduct the interest on the boat, and deduct it along with the personal property taxes you'll pay on the boat.

In my case, after tax benefits, the interest rate is really around 3%.

If you need to sell in a hurry, you'll have the pink slip already in hand.

Old     (airrantz)      Join Date: Jun 2004       08-25-2006, 2:33 PM Reply   
BECU for Washington State residences is at 6.49% for 15 years right now. Up to 20 years if it's a Mastercraft X-80. They are typically the lowest rates in the state so I'd be suprised if you could find 6%. It was 5.49% when I bought mine a year ago to give you an idea of how much rates have gone up.
Old     (airrantz)      Join Date: Jun 2004       08-25-2006, 2:35 PM Reply   
10% down though at BECU.
Old     (weazy)      Join Date: Aug 2006       08-25-2006, 3:23 PM Reply   
I did a 60k loan for 12 years at 6% for my malibu at peoples credit union a year an half ago and they are still doing them. the payment is 590$ a month but I make the minum payment in the summer when we spend more on gas and then in the winter months i add extra couple hundred bucks a month at it. It is amazing how quick it starts adding up especialy in our long wet winters
Old     (trainwreck)      Join Date: Jun 2006       08-25-2006, 3:23 PM Reply   
I bought an 06 Supra 21V w/6.9% APR for 17 years. LOL! Yeah, its a long ass term, but I can pay more when I feel like it. I put zero down as well.

I walked in and walked out the same day with my boat. Helped prep it myself. :-) This of course was after a long bit of shopping.
Old     (oaf)      Join Date: Jul 2002       08-26-2006, 12:52 AM Reply   
I you want toys you better own something you can write off. I am doing a Home Equity loan for my new boat plus my own cash so I use the intrest as a write off. If you don't own a home you should get your priorities straight. I don't want to preach here but a home should be a priority over a boat if you are going to take money out.
Old     (hal2814)      Join Date: Feb 2006       08-26-2006, 3:09 PM Reply   
Uh Coach, why is it important to write off the interest on a boat? Specifically, why is writing off boat loan interest worth risking your house over? When you take out a home equity loan or line of credit, it should be for home-related costs. If you're hurting financially over buying a boat so much that you're risking your house just so you can write interest off, then maybe you need to get your priorities straight.
Old     (bennygoodx)      Join Date: Aug 2006       08-26-2006, 3:30 PM Reply   
I had to put down 10% and they did the deal for 7.25% and 140 months. I tried for 240 months because I love using banks' money for toys. They were willing to shop me around a bit, but that's like letting your credit score get chopped up by vulchers...
Old     (oaf)      Join Date: Jul 2002       08-26-2006, 5:40 PM Reply   
I might be harsh as to what I stated before, but shelter should come before toys. Shelter and even a car are going to be a necesity not a boat. Saying that a home equity loan can be used for what ever you want. In my situation I need the write offs. If you are telling me you don't need any write offs then you might not be making very much (I don't know this and it is not meant to be a dig towards you). There are many ways to work the system to your advantage and writing off intrest is one of them. If I take a boat loan or a car loan I am not gaining anything (unless I get a 0% car loan for 72 months then I would take that option). Risk might be involved it you are worried about your monthly income but if that was the case a bank isn't going to lend you the money. I know I will not lose my home, I have protections set up. To gain an addional write off it is worth it to me. To buy a boat and take money out for it before owning a home makes no sense to me. Buy a cheaper boat and pay cash and save money for a house. This is just my opinion just like everyone else has one here. Do what you what you want how you want I just wouldn't by toys before a home.
Old     (dcwillette)      Join Date: Sep 2005       08-26-2006, 6:08 PM Reply   
First, let me state that I do own my home. Or should I say that I have a mortgage, the bank really owns it.

Now, I would be interested in eveyone's opinion on this situation:

Facts: Due to your employment, you are forced to move every 2-3 years on average. Sometimes sooner and sometimes longer. I say "forced" because you have the choice of quiting or moving when told.

Assumptions: The real estate markets have about a 5% average appreciation rate. Closing cost and fees on each house you sell will run $15K-20K per sale.

Question 1: Do you throw money away in rent at each location or buy numerous houses? If you buy houses, you have the option of leasing them out or selling when you move. Remember, 2-3 years between moves.

Question 2: If you choose to rent does this mean that you never buy a nice car or a boat or other expensive toy?
Old     (oaf)      Join Date: Jul 2002       08-26-2006, 10:04 PM Reply   

In many cases the company that is asking you to move will pay for moving costs, cost of living increases (example moving from Texas to California) and they will help pay all of part of your closing costs. If your company is not willing to pay for your movement I would look else where. If you are chosing to make the move for work you should try to end the vicious cycle at some point. If you rent you should try to own somewhere and rent your place out to cover the mortgage so you can sell if necesary. I hope to be in a situation in a few years to own multiple properties. Moving every 2-3 sounds like coaching college football or NFL. I just think that throwing money away on rent or other loans might be necessary for some but if you make good money and are renting and throwing money away and don't have a tax write off the government it taking you for a ride. You end up being the a major provider for the free loaders on welfare and other government programs.
Old     (dcwillette)      Join Date: Sep 2005       08-26-2006, 10:47 PM Reply   

Your not telling me anything I don't already know. The point I'm trying to make is that sometimes people's situations and lives don't fit the molds and rules that we believe we should follow. If someone with a normal life/career was buying a $30K-60K boat and renting thier home I would agree that they need to get thier priorities straight.

I asked my questions sincerely because it's something I constantly deal with and have to re-evaluate. I'm looking at buying a second property right now which why this topic struck a chord with me.

I'm not sure what you would consider good money and I'm reluctant to post too much personal information on the internet. I do ok.

This is not a dilema for me because of not being able to afford to buy homes. It's an issue of making smart decisions given the lifestyle that I chose to live given my employment. If I didn't have to move so often I would have been looking at $350K homes instead of $180K-220K homes today. The issue is renting out a $200K+ home for an amount that covers or comes close to covering your mortgage. You can make all the money in the world but you won't have it long if your losing money by fliping houses every year. Same goes for throwing rent money away.
Old    kyle_dobson            08-27-2006, 12:16 AM Reply   
If he has good credit he should have no problem getting 6%. These boats have become so outragous you don't have a choice but to go 15 years unless you have some serious jack
Old     (tyler97217)      Join Date: Aug 2004       08-27-2006, 1:09 AM Reply   
ok sorry to use weavey as an example, but i have feeling i know where he bought his boat.....
-you can get any interest rate you want if you pay that much for your boat. they will give you that low interest rate to make you feel better about your purchase. as an example would you rather pay 6% for a $60k vlx or pay (realistic) 7.5% for a $52K VLX......(there is no 6% financing on toys, even with 800+ beacons w/o margins for the seller. if so drop me a line)

pssst... they can make money on your finance choice
-your home is a great investment...don't use it towards a bad investment

sorry to be harsh on this post but very true.....

good luck and boats are very fun, but be smart about your purchase....

(Message edited by tyler97217 on August 27, 2006)

(Message edited by tyler97217 on August 27, 2006)

(Message edited by tyler97217 on August 27, 2006)


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