Formula Financing
 

Just curious about the Formula special financing. Has anyone ever used/done this?

I get the flyers in the mail, and often check them out and wonder if people do the options of financing vs. cash back.

Just seems that it's cool, then in 18 months or whatever, WOAH! Big step in the payment. I guess if I were doing it, I'd take the financing and make the actual payment after the 18th month to get equity in the boat, but not have the shock of a jump, just keep bumbling along.

Just curious, seems like there is an easy way to get a boat that someone may not otherwise be able to afford, but then have to sell in 18 months. Wonder how many people wind up trying to sell when the payments jump?

Thoughts? Anyone use it?

Mark

I'm on a deal from 2000 for 36 months at 4.5%, then going up to 8.5%. I bought the boat based on what I could pay at 8.5%, and have just been applying the extra $ to the principal of the loan. That way, when the 8.5% rate kicks in, the outstanding balance will beless than it would have and so will the payments. (Hence the term "Equity Building".)

On the other hand, when the loan rate kicks up, I might just transfer the entire remaining balance to a home equity line of credit I have at prime rate + 0%. Look at the long-term payments, and don't bite off more than you can chew. When the "good deal" part of the loan ends, shop it around. There are no penalties for early payment on my loan - make sure you get the same deal.

Remember to by a boat with the proper facilities to qualify as a second home so the interest will be tax-deductible no matter where the loan comes from. ;)

Chuck thanks for your info on the loans. At the AC show the paperwork on the formula all said $****.** per month for 48 months then I read the fine print. 15-20years. Also is your boat still at Dredge Harbor? I just got off the phone with Bill Jr, about the rubber on the lift.

iam on the 0% deal for 18 payments,we are going to make double payment's until the regular payment comes in :)

The boat is (hopefully) still at DHM - I haven't checked on it lately. One of the engines is at Innovation in Sarasota, but should be coming back shortly.

Last weekend my local Formula dealer was trying to sell me a 2002 312 FasTech (actual catalog boat). Base price on boat was $168,000 and he was willing to knock off a whopping $17,000. Bottom line was with financing $145,000 (after 10% down) the payments were $604 for the first 18 months and jumped to$1078 for the remaining 18.5 years of a 20 year loan. The rate jumped to 6.99% after the 18 months. I don't see how this finance deal can be beat. The only problem is the $168,000 for a 312!!!! I think this guy had just put the crack pipe down when I walked into his office!!!!!!!

Mike