[QUOTE=LaughingCat;2772675]I'm liking the 50/50 idea. Or maybe 65% cash/35% financed.
65/35%.. That is me too. I like to pay it off as fast as I can when I can.. I hate owing on anything. I am the type that likes to keep things too. I drive a 99 F-350 Dually... I love it.. I got 180k on it and there is nothing wrong with it. i put Nav in it... Still extremely comfortable to drive. Outside is still 98% Immaculate... I look all the time at new stuff and just can't break down to spend 60k on another truck that runs the same as mine.
Most will probably laugh but If it ain't broke... Don't fix it!!
I Have All My Money In Debt, This Way I Dont Worry About The S & P Down 38 % !!!!
not saying stocks being down 38% is not bad but if you've been in the market the last 10 years your probably still up or close to even, 100K invested 10 years ago averaging 5% would be 160K less 38% is 100K, unless my math is off
buying a 100K boat with cash 10 years ago? worth maybe 50K?
btw, I finance with 20% down and keep it a level I can easily afford
Hey Laughing Cat,
Do not discount the advice on the "refreshes". Offshore Steve and the others are on the money here.
If you are going to truly jump into High Perf boating, in a big 100mph + boat, with the good stuff and really use the boat. $50-$100K in additonal repairs and upgrades will go away in a hurry.
If you like the rush of the speed and power your gonna use and abuse it.
The first time your baby rips a drive off or pops a rod can be a drag. The estimate and repair bill can make you gulp. If its real fast stuff it will happen more than once. Puts a lot of guys upside down and on back on the trailer. Budget accordingly.
If you are going to save up 300-400K on a USED Big SKater, Mti, Fountain ect. You better save another 300-400k to keep it running. I bought my little 28 Skater 5 years ago for 85k and now have 165k in it(it has been re- rigged and re powered twice) this figure does Not include insurance, storage, gas, oil or maint.Hell I still need a new paint Job
Just a little food for thought
Everybodys circumstances are different. One thing that is very troubling to me is that ( not so easy in todays economic crises ) lenders give loans on go fast boats for up to 15 yrs. they lose 20% when they leave the dealer. All the partys involved except the uneducated 1st time buyer knows that the chance of having any equity in the boat at anytime is zero but the bank wants to lend the money only to sell the loan as fast as the wrote it. the buyer dosen't want to know anything except when can I pick up my new boat. it's financial insanity. And people wonder why there is so many insurance jobs on boats
Last edited by GARBAGEMAN; 01-08-2009 at 01:52 AM.
I really like your post. One reason I have been waiting to buy is I hate the feeling of, "I put everything I have into getting this boat. I sure hope it doesn't break." Years ago, at a time when my cash flow and wealth were very, very low, I bought a used 20' HydraSport CC. It ran great, but I was always concerned about repairs.
After reading your post, it reaffirms my thought of having low monthly carrying costs so if there is a big repair, repower, refresh bill, it doesn't consume my happiness. I figure, if I wait until after we move into the waterfront house, by then, insurance bills might be lower and the unfortunate but fortunate deflation of boat prices will play in my favor.
I told my wife 3 years ago that someone is finishing their $90k kitchen remodl that we will get for pennies on the dollar. I feel the same about the high performance boating market. No offense or insult to existing owners, but I am a finance/investment guy and have an eye for trends. Builders are not going to be asking top dollar prices for boats in the future. It is likely the MSRP will stay sky high, but the "rebates" will be enormous.
"I'm just looking for clues at the scene of the crime."
Cigarette built about 40 boats last year and Outerlimits may have built 1/2 that. If they have a 25% deduction in orders for the 09 stuff then Cig will make 30/ OL about 15. They now need more money per boat to cover the cost of management (*note Skip axed Neil so he may save a few bucks this year), facilities, regular personnel etc.
Now this doesn't take into consideration the past debt like owing Mercury for past engines/drives (Fountain reportly carries significant debt on parts that purchased on credit terms). Plenty of home builders/contractors get into this pinch when the current work won't pay off the debt from past work and then they get stuck on a job with no credit with suppliers (using today's deposits to payoff yesterday's debts).
The other issue is on boats that were financed in good times with little/ no down at 6-8% interest and the boat has now plummeted in value but the owner can't sell/ trade since the payoff far exceeds the current value. The banks don't care, the owners are pissed they are upside down/ won't maintain boat since it is just a hole of negative equity now. You are trying to buy it right yet all parties involved aren't in a position to help even if they wanted to.
I could buy a boat now on credit or wait until I was 50 to pay cash. No brainer IMHO. Ok- so I could have paid close to cash now but why deplete my account. Looking back? GREAT move because I am going to save at least what my boat cost by being a cash buyer in the housing market right now.
I spent 1/2 of what I could afford to borrow so I have stripper, beer, fuel, repair money so I could enjoy the boat.
Keep it within budget and go get a loan! Only live once...
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