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Old     (tre)      Join Date: Jul 2002 Location: WI       01-30-2019, 9:57 AM Reply   
I'm in the market for a new boat. I purchased my current boat new and it is going on 10 years old. I've often thought about changing boats every other year but I worry I'm going to take a massive depreciation hit. For the guys who do this, do you have a great relationship with your dealer and because you buy frequently you get a low price? Do you trade your boat or sell it private party? Based on past experience, I've never been offered a fair price on a trade so I just keep my boats a long time but I'd love to buy a new boat every other year.
Old     (h20king)      Join Date: Dec 2009       01-30-2019, 12:28 PM Reply   
I am able to make it work because of my relationship with my dealer and the factory. I never do a trade in. I have my dealer sell for us leaving some money on the back end for them as well. It took years and many boats for it to all work out.
Old     (DatTexasBoy)      Join Date: Aug 2012       01-31-2019, 6:45 AM Reply   
^^^^^ What he said!!!! All about the Dealer relationship.
Old     (dakota4ce)      Join Date: Oct 2015       01-31-2019, 6:54 PM Reply   
How have the basically annual 5-6% price increases figured into this? It has to be a losing proposition but worth it for the new wip, right?

Unless youíre getting wholesale prices. Then it could fly.

Howís it work with interest expense? Or is the secret a cash purchase at basically wholesale?

Last edited by dakota4ce; 01-31-2019 at 6:57 PM.
Old     (dakota4ce)      Join Date: Oct 2015       01-31-2019, 7:19 PM Reply   
Not trying to be a dick, BTW. I have just always wondered how these deals compute. I donít have an insider track like this to killer prices.
Old     (h20king)      Join Date: Dec 2009       02-01-2019, 4:47 AM Reply   
Like I said it all depends on dealer relationship . Another factor is access to low interest lending. We got 2.9% combine that with the right pricing and options. I made $1500 on our last boat subtract interest paid for 7 payments and in the end I was up $500 . Not making any real money buying a new boat each year but not loosing either. I'f you stretch it to a new boat every 2 years one should expect some losses. We don't do it to have the latest and greatest but because of hours. Fairly common knowledge that boats with 400 +hours are hard to sell and we average just over 200 hours a year.
Old     (h20king)      Join Date: Dec 2009       02-01-2019, 4:51 AM Reply   
Another thing I should mention is we only do a 10 year loan and put 40% down .if you go any longer on loan term you don't pay any principal with that fast of a turnaround
Old     (dougr)      Join Date: Dec 2009       02-01-2019, 4:51 AM Reply   
I have been getting new boats every 2 or 3 years for about 15 years, until the swing became too great and the difference in product became too minimal. i also have a great relationship with my dealer and love the feeling of getting a new boat, but we have decided to keep our 2015. We just love the boat, love the layout, like the benefits over our 2012 and feel the new boats will not generate any additional value. Also, look at the cost of new boats. a 24 ft boat is 100k to 200k. so to keep in the same "trim" level or model level, its almost double what we have been paying for top end model boats. just cant see the value at the moment. I would love a new ri257 or g23 but its just not beneficial if the cost does not justify the performance and experience.

i also do not buy used boats, so its hard to move to used boats, as i know how boat owners vary. nothing bad about how anyone takes care of their boats, but I see a major difference with my area, and see boats on docks for years that never move, or boats sitting without the cover for 3 or 4 months. So i worry about having problems that I did not create.
Old     (h20king)      Join Date: Dec 2009       02-01-2019, 4:59 AM Reply   
Doug it's worth it in my opinion. Centurion has come a long way since 2015. Super stoked on this year's ride
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Old     (dakota4ce)      Join Date: Oct 2015       02-01-2019, 8:43 AM Reply   
Quote:
Originally Posted by h20king View Post
Another thing I should mention is we only do a 10 year loan and put 40% down .if you go any longer on loan term you don't pay any principal with that fast of a turnaround


I think this is the key bit of information. So you are not losing a ton of interest money whereas someone who puts 10% down is paying almost all interest. And it looks like you are getting outstanding pricing if youíre selling your boat for more than you paid for it after putting hours on it. So clearly your inside relationship is getting you a very uncommonly low price. Accurate?
Old     (h20king)      Join Date: Dec 2009       02-01-2019, 9:20 AM Reply   
Thinking more about it there is loss if you factor in my labor. I always go with the standard stereo and no transom lights. Factory stereo is a $8200 option and transom lights another 1k. I have a stereo dealer I have also been using for years so I save money there as well. $4400 dollars in gear plus my labor gets a full wetsounds system. I then sell the factory take outs on average for 1k taking my stereo cost down to $3400. Add in $ 500 -700$ for transom lights and I have a loaded boat for less $$ than the guys that order all the factory options and I am able to sell for the same price range. Hope that all makes sense.
Old     (dakota4ce)      Join Date: Oct 2015       02-01-2019, 10:33 AM Reply   
Quote:
Originally Posted by h20king View Post
Thinking more about it there is loss if you factor in my labor. I always go with the standard stereo and no transom lights. Factory stereo is a $8200 option and transom lights another 1k. I have a stereo dealer I have also been using for years so I save money there as well. $4400 dollars in gear plus my labor gets a full wetsounds system. I then sell the factory take outs on average for 1k taking my stereo cost down to $3400. Add in $ 500 -700$ for transom lights and I have a loaded boat for less $$ than the guys that order all the factory options and I am able to sell for the same price range. Hope that all makes sense.


Totally. So there isnít a free lunch magical cost way to trade boats every year or 2. You have clever ways to make it work, and you spend other forms of currency too (time). Youíre earning your money in a few ways. Wisely.

Sometimes itís promoted as a neat trick, when in actuality itís a well thought out system that has special requirements if it works (like yours). Most people who finance the majority of the boat still claim they can pull this off, when in actuality theyíre losing several thousand dollars a year I suspect. At a minimum.

Boat dealers arenít in the charity biz!

I could see doing stereo myself sometime...actually kind of like that stuff.
Old     (simplej)      Join Date: Sep 2011       02-01-2019, 12:24 PM Reply   
Considering the way the used market is going you['re probably better off keeping every boat 5 years...
Old     (SoulSurfer)      Join Date: Oct 2016       02-03-2019, 9:52 AM Reply   
Definitely cool for those who can make it work and not hurt too badly financially. I suspect some are just OK with the pain. I suspect some others who claim they aren't losing (not in this thread) conveniently ignore the interest they've paid. I hear people say things like "I bought it for $80K an sold it for $79K so I only lost $1K". However, they put 10% down and made 12 $800 payments against their 15 year loan that were basically all interest, so in reality they lost closer to $11K toward interest and depreciation alone for that year of ownership, excluding things like storage, mods, maintenance, etc..
Old     (dakota4ce)      Join Date: Oct 2015       02-03-2019, 12:18 PM Reply   
Quote:
Originally Posted by SoulSurfer View Post
Definitely cool for those who can make it work and not hurt too badly financially. I suspect some are just OK with the pain. I suspect some others who claim they aren't losing (not in this thread) conveniently ignore the interest they've paid. I hear people say things like "I bought it for $80K an sold it for $79K so I only lost $1K". However, they put 10% down and made 12 $800 payments against their 15 year loan that were basically all interest, so in reality they lost closer to $11K toward interest and depreciation alone for that year of ownership, excluding things like storage, mods, maintenance, etc..


^^^^ You get it. Shoot there is a bunch of guys talking about $1600 ceramic coating on another thread. Holy cats. Light some hundred dollar bills on fire!

Last edited by dakota4ce; 02-03-2019 at 12:21 PM.
Old     (Hyperryd)      Join Date: May 2014       02-03-2019, 11:35 PM Reply   
Definitely doesn't work in California with 9% sales tax and over 1% luxury tax. It is what it is. You pay to play if you go new, however there are ways to limit that loss that have been listed above. I couldn't care less how someone pulls it off. I say congrats to you. I wish I could do it. I do laugh at some of the owners goggles that blind them to the losses though.
Old     (h20king)      Join Date: Dec 2009       02-04-2019, 4:22 AM Reply   
California and other states taxes are crazy. I live in Oregon so no tax if I lived in a different state definitely would not get new boats every year or 2
Old     (DatTexasBoy)      Join Date: Aug 2012       02-04-2019, 8:38 AM Reply   
One way to avoid some taxes is to do in and out at dealer. Sell boat your self and just let the buyer know all paperwork will be done at the dealer of your choice and they basically make it look like a trade. Then you only pay taxes on the difference and not the total price of new boat.
Old     (tyler97217)      Join Date: Aug 2004       02-04-2019, 11:56 AM Reply   
H20king... that boat is sexy. My favorite one of yours yet for sure!!!
Old     (h20king)      Join Date: Dec 2009       02-04-2019, 12:38 PM Reply   
Thanks Tyler can't wait to see what you come with this year.
Old     (nick213)      Join Date: Jul 2013       02-04-2019, 3:19 PM Reply   
Quote:
Originally Posted by tyler97217 View Post
H20king... that boat is sexy. My favorite one of yours yet for sure!!!
That it is, and the biggest baddest to. Canít wait to surf it in August!

The tax thing in CA is the reason I canít get a new boat every few years. Until I move out of CA Iíll keep upgrading every 5-7 years with used boats.
Old     (scottb7)      Join Date: Oct 2012       02-04-2019, 5:44 PM Reply   
Quote:
Originally Posted by SoulSurfer View Post
Definitely cool for those who can make it work and not hurt too badly financially. I suspect some are just OK with the pain. I suspect some others who claim they aren't losing (not in this thread) conveniently ignore the interest they've paid. I hear people say things like "I bought it for $80K an sold it for $79K so I only lost $1K". However, they put 10% down and made 12 $800 payments against their 15 year loan that were basically all interest, so in reality they lost closer to $11K toward interest and depreciation alone for that year of ownership, excluding things like storage, mods, maintenance, etc..
Your too nice. I don't believe a single person that says they make money or break even. They just not adding everything up...And the ideas about saving on sales tax by making look like a trade in...Ya, if you can find a dealer that is isn't afraid of losing license for scamming sales tax from their state.

I don't believe any of those stories.
Old     (h20king)      Join Date: Dec 2009       02-05-2019, 5:09 AM Reply   
Scott glad you do not believe. If everyone could do it I would have nobody to sell to.
Old     (scottb7)      Join Date: Oct 2012       02-05-2019, 6:58 AM Reply   
Not sure I get your point. You selling a used boat. I didn't say people don't buy used boats.
Old     (Matt0520)      Join Date: Feb 2019       02-08-2019, 4:48 PM Reply   
Quote:
Originally Posted by SoulSurfer View Post
Definitely cool for those who can make it work and not hurt too badly financially. I suspect some are just OK with the pain. I suspect some others who claim they aren't losing (not in this thread) conveniently ignore the interest they've paid. I hear people say things like "I bought it for $80K an sold it for $79K so I only lost $1K". However, they put 10% down and made 12 $800 payments against their 15 year loan that were basically all interest, so in reality they lost closer to $11K toward interest and depreciation alone for that year of ownership, excluding things like storage, mods, maintenance, etc..
Great point! Not a great comparison (housing vs a luxury good) but I look at something like mortgage interest in the same way, I'm losing the money...but I view it as a 'fee' for owning the home, granted 3% fixed on an appreciating asset is very easy to live with. And the interest is a write off.

Same with the boat, I look at the interest as the same thing...which is really what it is. A fee for borrowing. With current rates, I can also use my cash elsewhere or in my business, and make the same or more on it.

That, and the fact that we own both of our vehicles outright so no interest there, makes it completely OK for me to be sinking money into a super expensive memory-making machine. But I'm not under the delusion that I'm not losing money.

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