Boat ='s what percentage of annual income?
04-24-2010, 09:56 AM
#21
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Not only are income taxes going up but with Obama's sur-tax on medical devices you may not be selling as much and thus not earning as much.
Unless you have some rich parents or inlaws you can count on down the line don't even think about buying a $200K boat at this point in your life. You need to sock more savings away IMO.
Unless you have some rich parents or inlaws you can count on down the line don't even think about buying a $200K boat at this point in your life. You need to sock more savings away IMO.
04-24-2010, 10:27 AM
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04-24-2010, 10:56 AM
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About 30% of my current income (est gas, insurance, break downs, etc). But I wouldn't trade it in a heart beat. Throw in the truck that I have to own just to tow it and its about 36%. Financed it on 5 years though to get it paid off fast. An average month in gas for me is around 500 if I don't run any poker runs. Throw in a poker run and you can add another 2-300 per run on to that easy.
04-24-2010, 11:53 AM
#24
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There is no fixed formula for buying a rig.
I really enjoy boating and will always own a boat, so the costs to me are worth it, and the costs are substantial but there are simple choices you can make to make it more affordable.
storage - Slip/ no slip
single engine vs 2
baller setup (blowers turbos) vs regular guy setup
2nd home deductible vs not.
Im a high income earner and could easily afford a much larger boat than the one I have, but multiple factors having nothing to do with price and more to do with convenience and use factor won out over size.
The most expensive boat you can buy is the one you use 5 times.
I can tell you after owning multiple boats over a lifetime, and owning 2 now as I type that they payment itself is usually the cheapest part of ownership.
If you look at the ownership in a holistic fashion the true costs is usually about double what the payment itself is in any case.
The single largest hidden cost is usually a rebuild of the drive system and powerplants at X hours.
This expense can be half the cost of a boat and depending on your setup can be anywhere from 125 hours to 6-700 hours of use in. More exotic rigs require maintenance at as low as 25 hour intervals.
SO really its a combo of things - kind of like a cell phone it isnt what it costs to buy but what it costs to own.
Is it worth it - to me every penny!
Will it be to you? Hard to tell but most guys get hooked and continue.
This is one of the last freedoms we have- where you can let a powerfull machine rip without fear of the man, getting hurt, having to wear a helmet etc.
outside of a plane, or chopper there are very few cooler toys.
Uncle Dave
I really enjoy boating and will always own a boat, so the costs to me are worth it, and the costs are substantial but there are simple choices you can make to make it more affordable.
storage - Slip/ no slip
single engine vs 2
baller setup (blowers turbos) vs regular guy setup
2nd home deductible vs not.
Im a high income earner and could easily afford a much larger boat than the one I have, but multiple factors having nothing to do with price and more to do with convenience and use factor won out over size.
The most expensive boat you can buy is the one you use 5 times.
I can tell you after owning multiple boats over a lifetime, and owning 2 now as I type that they payment itself is usually the cheapest part of ownership.
If you look at the ownership in a holistic fashion the true costs is usually about double what the payment itself is in any case.
The single largest hidden cost is usually a rebuild of the drive system and powerplants at X hours.
This expense can be half the cost of a boat and depending on your setup can be anywhere from 125 hours to 6-700 hours of use in. More exotic rigs require maintenance at as low as 25 hour intervals.
SO really its a combo of things - kind of like a cell phone it isnt what it costs to buy but what it costs to own.
Is it worth it - to me every penny!
Will it be to you? Hard to tell but most guys get hooked and continue.
This is one of the last freedoms we have- where you can let a powerfull machine rip without fear of the man, getting hurt, having to wear a helmet etc.
outside of a plane, or chopper there are very few cooler toys.
Uncle Dave
Last edited by Uncle Dave; 04-24-2010 at 12:00 PM.
04-24-2010, 01:00 PM
#26
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...
It isn't the payment or fuel that is the expensive part, it is the DEPRECIATION!
My buddy just sold his 07 Top Gun this week. Buying it new (boat was a demo of sorts) he lost 125K plus fuel/insurance/maintenance over a 30 month period/260 hours of use. Boat was free and clear from day one, no loan.
125K in raw depreciation divided by 260 hours is $480 an hour. Throw in fuel/insurance/maintenance and it is probably closer to $600 an hour. So whether idling in a no wake zone or running 80 MPH to the Bahamas the boat is costing $600 an hour.
Now if you divide your usage (less hours) by the expected depreciation plus loan costs your avg. $ per hour will be substantially higher. That is when you realize your 12-15 outings a year are costing you 5K each!
My buddy just sold his 07 Top Gun this week. Buying it new (boat was a demo of sorts) he lost 125K plus fuel/insurance/maintenance over a 30 month period/260 hours of use. Boat was free and clear from day one, no loan.
125K in raw depreciation divided by 260 hours is $480 an hour. Throw in fuel/insurance/maintenance and it is probably closer to $600 an hour. So whether idling in a no wake zone or running 80 MPH to the Bahamas the boat is costing $600 an hour.
Now if you divide your usage (less hours) by the expected depreciation plus loan costs your avg. $ per hour will be substantially higher. That is when you realize your 12-15 outings a year are costing you 5K each!
04-24-2010, 01:07 PM
#27
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There is no fixed formula for buying a rig.
I really enjoy boating and will always own a boat, so the costs to me are worth it, and the costs are substantial but there are simple choices you can make to make it more affordable.
storage - Slip/ no slip
single engine vs 2
baller setup (blowers turbos) vs regular guy setup
2nd home deductible vs not.
Im a high income earner and could easily afford a much larger boat than the one I have, but multiple factors having nothing to do with price and more to do with convenience and use factor won out over size.
The most expensive boat you can buy is the one you use 5 times.
I can tell you after owning multiple boats over a lifetime, and owning 2 now as I type that they payment itself is usually the cheapest part of ownership.
If you look at the ownership in a holistic fashion the true costs is usually about double what the payment itself is in any case.
The single largest hidden cost is usually a rebuild of the drive system and powerplants at X hours.
This expense can be half the cost of a boat and depending on your setup can be anywhere from 125 hours to 6-700 hours of use in. More exotic rigs require maintenance at as low as 25 hour intervals.
SO really its a combo of things - kind of like a cell phone it isnt what it costs to buy but what it costs to own.
Is it worth it - to me every penny!
Will it be to you? Hard to tell but most guys get hooked and continue.
This is one of the last freedoms we have- where you can let a powerfull machine rip without fear of the man, getting hurt, having to wear a helmet etc.
outside of a plane, or chopper there are very few cooler toys.
Uncle Dave
I really enjoy boating and will always own a boat, so the costs to me are worth it, and the costs are substantial but there are simple choices you can make to make it more affordable.
storage - Slip/ no slip
single engine vs 2
baller setup (blowers turbos) vs regular guy setup
2nd home deductible vs not.
Im a high income earner and could easily afford a much larger boat than the one I have, but multiple factors having nothing to do with price and more to do with convenience and use factor won out over size.
The most expensive boat you can buy is the one you use 5 times.
I can tell you after owning multiple boats over a lifetime, and owning 2 now as I type that they payment itself is usually the cheapest part of ownership.
If you look at the ownership in a holistic fashion the true costs is usually about double what the payment itself is in any case.
The single largest hidden cost is usually a rebuild of the drive system and powerplants at X hours.
This expense can be half the cost of a boat and depending on your setup can be anywhere from 125 hours to 6-700 hours of use in. More exotic rigs require maintenance at as low as 25 hour intervals.
SO really its a combo of things - kind of like a cell phone it isnt what it costs to buy but what it costs to own.
Is it worth it - to me every penny!
Will it be to you? Hard to tell but most guys get hooked and continue.
This is one of the last freedoms we have- where you can let a powerfull machine rip without fear of the man, getting hurt, having to wear a helmet etc.
outside of a plane, or chopper there are very few cooler toys.
Uncle Dave
But be sure not to mention any of the first couple...... you know about the cost.
just sayin..........
04-24-2010, 01:43 PM
#28
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FWIW, my boat cost me 25% of my annual gross income and I put about 1/3 down on it. 1-owner, low hours, 9 years old, clean. I have a lot of toys so I feel much more comfortable being fairly conservative about my purchases. At the very worst, I cannot be upside down in anything. That chit would drive me crazy.
Last edited by Keytime; 04-24-2010 at 10:35 PM.
04-24-2010, 02:47 PM
#30
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Funny dook-! the "wife" sounds like a justifiably hard sell. (smile)
As Far as the - "never buy new thing let some one else take the hit"
Yeah... well sometimes this is true and sometimes its not.
Sometime the big "hit" goes to the second owner.
Boats are a lot like airplanes in that the rebuilds are brutal- cannot be financed, can take multiple mechanic visits to get correct, and can even be dangerous to flat out ignore.
VERY few guys can really afford to maintain high HP engines and therefore the value of the boat falls off as rebuild hours approach. The engine choice(s) you make up front will RADICALLY affect your hourly operating cost.
I can get 2.4 MPG cruising on the ocean and LA to San Diego (150 mile) trip isn't cheap, but isn't brutal either.
Get a used boat AFTER a rebuild and you'll probably be happy
Catch one before- and you'll wince at the bill and the "savings" and joy of ownership vanish.
Before plunking your money down on any used rig make sure you know where it is in relation to the "big spend" and what that will REALLY cost you.
Uncle Dave
As Far as the - "never buy new thing let some one else take the hit"
Yeah... well sometimes this is true and sometimes its not.
Sometime the big "hit" goes to the second owner.
Boats are a lot like airplanes in that the rebuilds are brutal- cannot be financed, can take multiple mechanic visits to get correct, and can even be dangerous to flat out ignore.
VERY few guys can really afford to maintain high HP engines and therefore the value of the boat falls off as rebuild hours approach. The engine choice(s) you make up front will RADICALLY affect your hourly operating cost.
I can get 2.4 MPG cruising on the ocean and LA to San Diego (150 mile) trip isn't cheap, but isn't brutal either.
Get a used boat AFTER a rebuild and you'll probably be happy
Catch one before- and you'll wince at the bill and the "savings" and joy of ownership vanish.
Before plunking your money down on any used rig make sure you know where it is in relation to the "big spend" and what that will REALLY cost you.
Uncle Dave
