Splitdecision271

Maybe MagicFloat can be of some service...

Going over financing with this sales rep, says current Escape program offers 1.49% first 36 months then ballooning to 4.99%. I've seen a lot better deal wiith the Escape program. I believe my parents got locked in at 1.99% full-term several years ago for their Formula. At a in-water boat show last summer, sales rep told me leftovers were 0% first 36 then 1.99% for the duration of the loan. Do rates always drop at boat shows?

Anyone please feel free to chime in on this one?

t500hps

and.......rates are probably better in the fall when sales are down. This is prime season so the rates would be the at their "worst".

selpel

First the rates DO NOT BALLON! It is a simple interest loan with a buydown. The rates you see are governed by prime as the cost of money moves everyday. You WILL see better rates at a show because the volume of sales increase. Also different loan companies have different rate structures and that is way you see so many different programs.
Before someone sez, Whats it gonna cost me , it does not cost you anything as it is paid for by Formula. The best way to find out Formulas program at any given time is to check their website.
Also fall programs (if the prime allows) are usally better than spring or summer programs. By doing this Formula provides new boat orders to fill it`s production line during the winter.

382 newbie

It does cost the buyer in added pricing. Nothing is free. Formula does not take this interest money out of their pocket. It is a good deal for some but not for all. I would think that it would make a boat tougher to sell in 3-5 years because of the payoff.

t500hps

I understand the note is not a balloon but a traditional note with a buydown for the first "X" years (mortgage companies have been doing this for years). I also understand how the cost of borrowing money changes therefore the financing plans offered change occasionally.
But how does it cost you (me) nothing? It costs Formula a certain amount to build each boat....they are going to HAVE to get that $$$$ amount.
Formula offers great rates to entice the average buyer. The great rate would help to average buyer who has very little to put down and wants to finance the boat til hell freezes over. But don't they offer a cash rebate instead of the great rate? (I believe this has been discussed before) IE: I get a 6% rate from my local credit union and buy the boat. As part of the transaction I get a $7,000 rebate (hypothetical) and can put that towards the balance of the loan therefore borrowing LESS money. Formula gives me the cash that they would have used to buy the rate down to 1.99% (or whatever percentage they are offering at the moment).

Someone correct me if I have this wrong but can't you buy the boat for less if you have the cash or financing already in place.......

Magicfloat

"You pays your money and you takes your choice" Some English dude said that about 150 years ago,still valid today. Formula has the absolute best buying programs in our crazy industry,but they are not free. 382 Newbie and T500hps have it right. It may work for you and it may not,depends on what you are looking for. I always tell my buyers the pros and cons of the program and let them choose.Every buyer has different needs,most of my customers take all the rebates,don't do the buydowns,and arrange their own financing,but that doesn't fit every situation. Ask your sales guy for available options,and then decide.After all,you are buying a Formula,so you can't lose,I'm just saying look at the different options, then decide. Happy Boating,y'all

axapowell

Robert,

You ALWAYS seem to have a way with words!!


Dave