Throwing money around like its water!
 

Im hoping someone here can explain something to me. The other day I sat down and started reading an issue of one of my favorite boating magazines and something started bugging me. Have any of you noticed that when you read an article on a new kick ass boat that someone spent a ton of money on that if you turn a few pages to an ad for some marina or brokerage service that the same boat that you were just reading about is for sale? Maybe im one of the few but I worked my butt off to get where I am today and value a dollar. Yes now i do like some of the finer things but i treasure each thing because I know how much work I had to do to get it. Like boats I may spend a load of cash on what i want but I will also keep it for lets say 10 years or so. I dont want to offend anyone but to use this for an example. I read the article in "Powerboat" a few months ago on the "Speedracer" boat and I read that it had a price tag of over 1 million dollars, I flip 2 pages to the Pier 57 ad and there it is for sale. Now I dont know about you but if I was going to spend over 1 mil on a boat like that I think I would want to enjoy it for more than one season. I was talking to a friend of mine the other day and he did the same thing he bought a new Skater 40' with a pair of huge Sterling engines spent over $700,000 for the boat just so he could run over 160mph once! Then he put the boat up for sale 3 months later with less than 10hrs on it. To me this seems like a huge waste of resources, time and money. Plus the huge loss that someone would take on a fairly new boat like that. Maybe its just me! I wish I could piss away money like that. I can understand the whole bigger, badder , faster thing, some people need the newest greatest thing on the market but when there isnt a real market for used boats in the price range that these people are trying to get for them then why not wait and save up a little more money and buy your "real dream boat" the first time instead of crowding marinas full of all these used performance boats that maybe 1% of us can afford and maybe 1/2% of can really drive. Thats my 2 cents.

Re: Throwing money around like its water!
 

Trust me everything is for sale....no matter what you have that you think you have your hard work into you would sell for the right $$$....thats all they are doing.

Re: Throwing money around like its water!
 

I completely agree with you. I also think the price of a new boat is REDICULOUS.

Re: Throwing money around like its water!
 

+ I don't think speedracer is selling for a big loss, which may be why it is still for sale. I am not 100% on that because I don't know exactly what he has in the boat but I am pretty sure he has been offered more then what he has in it.

Re: Throwing money around like its water!
 

Really break down a boat....its a fiberglass tub with a a couple big blocks in the back.... does it cost alot to make them....sure it does.....most of us dont think of buying a brand new rig for 500k-1million+....but lets face it, you have to have some serious cash flow to operate these rigs or work damn hard for it.......the ones you see forsale are mostly people who can afford to have a new model each and every year......

Re: Throwing money around like its water!
 

these people dont do loans... they just wire transfer :drink:

Re: Throwing money around like its water!
 

I am nowhere near that tax bracket but like with cars I get bored with them usually with in 6 months. I will put a lot of work into them fixing them up restoring them and what not and drive them one summer and thats it I am ready to move on and try something else. I am the same with boats and my boats were nothing like speedy or those kinds of boats. It is just the been there and had that syndrome. Always wanting to try something differnet. At least that is what it is for me. Part of the fun is having it built and designing and then once you run it, its time to brings something new to the table.

Re: Throwing money around like its water!
 

Definitley not trying to be rude, but the answer is because it's their money and they will spend it how they want.

You'll see ad's for these boats mainly to attract attention to the dealer or manufacturer, but usually everything is for sale.

Re: Throwing money around like its water!
 

I like it when rich guys spend bunches of their money. I could probably think of better ways to blow a few hundred grand but it is none of my business and maybe he does that also. Would you prefer he put it in the stock market and sit on it rather than back into the economy? It seems crazy to me too but as a percentage income, it's like me eating 2/3's of a value meal and throwing the rest away. It's no big deal.

Re: Throwing money around like its water!
 

I get it.

So as percentage of income, it's like me eating 2/3rds of a tic tac and then throwing the rest away. :D

Re: Throwing money around like its water!
 

With that boat it might be becuase he can't get insurance for it. how many companys do you know that will insure a 160+ boat.

Re: Throwing money around like its water!
 

some people seem to enjoy the build process more than than owning the finished product. I see it with houses also, someone spends a few years building some spectacular house and before you know it's on the market. (although with homes you try to make a profit). It seems rich people get bored easier, maybe that's cause they can afford to :D

Re: Throwing money around like its water!
 

reminds me of the cigarette called Strip Poker I was at Smoke on the Water a couple years ago and the dealer said I could take it for 800,000. Then about a year later we read about laying outside uncovered and repoed minus a motor I think. Yikes what a shame sometimes

Re: Throwing money around like its water!
 

I highly doubt its due to a lack of insurance! If you can afford to buy a boat like that chances are you could also afford the full replacement value of it . Im also sure that if someone with a boat like that were to injure someone else with the boat i.e (hitting someone on a jet ski). He could afford to buy his way out of the impending lawsuit.

Re: Throwing money around like its water!
 

LMAO, it's not.

He's been offered plenty for it. It's not for sale until he's done with it. The ad is mainly for show, unless the check is big enough. :D

Re: Throwing money around like its water!
 

Look at the "Man of Steel" boat . That was the hottest boat going then it went up for sale. The boat didnt sell right away now the paint is stripped and the motors are out of it to try and dump it for less money. If i was the guy who put my long hours into painting it or building those monster motors I would be pissed to see something like that go to hell like that.

Re: Throwing money around like its water!
 

They go for sale immediately because once the owner is seen a few times in his latest creation the thrill is gone and its off to the new project. Its all about "Hey, look at me!!!!".........

Re: Throwing money around like its water!
 

Aint that the truth!

Re: Throwing money around like its water!
 

If you're making 30-50mil a year... then it wouldn't be such a big deal.

If you enjoy building the boats, this is a cheaper way to go about it than acutally going into business to do it.

Re: Throwing money around like its water!
 

Ms PatriYatch has a very good point, some are more into the build process and might even be burned out in some cases before its done.

I know of three 300-500k boats that were listed as soon as they were completed all for more than the owners actually paid so dont assume they are taking a beating. Are they really for sale, probable not for much less than the asking price. I dont know what the average sell time is on a boat in this range but Im sure in some cases it could take a year or two.

There is also a mentality that comes with some boat owners that which asks "how much will it cost to run the boat for X amount of time". If it costs a couple hundred thousand to run a boat for 2 years than thats the number they (and their accountants) are interested in. Not weather the boat costs 900 or 1.5.

Lastly I know most want to believe there are guys out there that money is no big deal. Ive yet to meet one. Most guys with this kind of money are very shrewd business people who have some disposable income to spend on a very expensive hobby. They arent dummies and they rarely throw money around for no reason......thats how they end up with alot of it :drink:

Re: Throwing money around like its water!
 

People with money see the world differently than most, they work for it, have it, and if they can spend it, why not.

I might complian how someone drinks expensive scotch, high dollar beer, put blowers on motors to go a few miles an hour faster, wear high cost shoes instead onf ones from Wal Mart, get a $15 burger at a nice joint instead of a $4 one at Hardees. We all have our excesses.

I think the question to ask is not "why do they spend it like that", but instead "how did they get it to spend".

When I see people blowing money like that I do not think they are screwing up, I know I am screwing up because I can't!

Re: Throwing money around like its water!
 

In Florida you see this kind of stuff all the time where someone has a boat most of us would love to have (Top Gun, OL, etc.) and they don't take care of it because it's just a throwaway toy to them. On top of that they have a $10m house, a few Ferraris, and a 65' Hatteras that they never use. It's all relative, I have a bunch of crap in my garage that I don't use. I own two snowmobiles and I live in Florida, figure that one out, I haven't. Stormrider said it right, if you make $30-50m , who cares. I would.

Re: Throwing money around like its water!
 

I noticed the same thing with large yachts.........big bucks new
and for sale as soon as completed, sometimes during build.

So I asked someone the same question and was told these things
take years to sell. Why wait till you're done with it then wait those
years. Put it for sale and use it in the mean time.

We all look at the guy with more and ask why, meanwhile someone
else is probably questioning our decisions. Lets face it its their money
and if it's ok with them, then so be it.

Re: Throwing money around like its water!
 

How about the 42 OL Legacy Epoxy that was in one of the mags listed for $800K and change.... now there is a small ad in the back of the mag for a couple hundred less... :eek:

Re: Throwing money around like its water!
 

MAN, you people waste WAY to much money! :eek:

Re: Throwing money around like its water!
 

Yeah... and then there is a better comparison. The guy who sells the 125 dollar burger because he figured out that a certain segment would pay 125 bucks because they can.
A guy can always look back and say he was "owner" of "MegaSuperKiloVCatRecordBoat."
But the paperwork will say "Bob's Contracting."
Or "Bob's Chevrolet/Hummer."
Many people are in businesses that can justify the hot boat of the month as a business investment. Even outside of Marine.

Rare is the individual who will put this kind of bread out for personal jollies with no other promotional value. Just an expense. No value add.

I will never be this guy... because I will never make that kind of coin. But I have to study this guy for my work. I have to know what he will spend and what his capacity is. (will vs. can)
And I would walk past the guy who is displaying wealth any day to go speak with a person who is attaining wealth.

The guy who I want to talk to bought income producing assets all his life and wants to help sick kids.
Income producing assets.
Not liabilities.

You betcha that if a truly wealthy dude has one of these exotic boats.... it's because it is somehow an income producing asset or he is one die hard boat junkie.

Either way.... I'm playing the odds on the old boring dude in the 15 year old car who never owned a Rolex. But somehow accumulated 100 rental units and millions in cash. I'm talking about wealth. Not cash flow.

Re: Throwing money around like its water!
 

They don't count their money, they WEIGH it!

Re: Throwing money around like its water!
 

It's all relative, when you are their level it's not a big deal. At my level i sold my 04 Kachina 30 that I paid 73K for for 62 and change a year later only to turn around and buy my 34 but I needed the 34 because after 1 time in the Pacific with my 30 I knew I didn't have enough boat. As far as the Speedracer boat goes I dont believe 1.2 mil changed hands but whatever it doesn't really matter either way now does it.

Re: Throwing money around like its water!
 

Sounds like my uncle. :D


so imagine if they made 100 million or 200 million a year. :drink: some people just don't care it's just money

Re: Throwing money around like its water!
 

Some people enjoy the project as much as owning the boat...... :drink:
right.........TooOld????? :D

Re: Throwing money around like its water!
 

I think the point that was origianally inteded for this thread was that these very rich people got where they are (most of them) by making smart money decisions. They are smart people.

It doesn't seem like a smart decision to buy a $800K toy, use it for a year, turn around and sell it for $500K-- a loss of $300K.

Whatever the reason, alot of people here listed very good reasons, it doesn't really matter, it's just the fact THAT THEY CAN AFFORD TO DO IT. :D

Re: Throwing money around like its water!
 

well another spin on this is.
you are in the right circles and have the cash.
the builder want to get boats out so u get a large discount,,,
magazine prints retail
you run it while its for sale and maybe you get close or just under what you actually paid the new owner thinks he got a great deal as he saw in print the price and got it for less as it had a few hours on it.
another spin
you have the cash the builder needs to pre sell as he is tight for cash give u better deal this way.
you are in with the click and if you drive that brand boat others will want it too so builder will give deeper deal to get one out with you in it,,
a milion scenerios but bottom line i know some folks wioth big $ and they dont have it due to throwing it away.. they are generally pretty smart,,
some will become dealers so they can buy at cost and then use as demo and resell that way...
just ssome ideas. i am sure there are people with money not being an object but i think in most cases they have other ways of making it to thier benefit,, anoother spin
dealerputs in dealer inventory ? has flooring company finance it and then the business absorbs it and its just another write off against profit..
i can come up with a bunch of scenerios..

Re: Throwing money around like its water!
 

You guys are also forgetting many of these boats are corporate owned so a small loss per year is a write off. I have two friends that change boats every 18 months and get out of them before they break. Refreshing Sterling power can run big money and when you become a good client of a particular brand you get substantial discounts so why not dump last years model for something new!


Jonas beat me to it!

Re: Throwing money around like its water!
 

Your right on the money

Re: Throwing money around like its water!
 

I like that one. :D

Re: Throwing money around like its water!
 

speaking of high dollar boats that barely got used, whatever happened to "Lick This"
anyone have a pic of it?

Re: Throwing money around like its water!
 

I completely agree. But the only thing that is positive about this is being able to buy a (still) brand new amazing boat with literally only a few hrs on it and save $$$$$$. Be that as it may, the selection for this might not always be there, but no matter what, a deal can most likely be worked out. If the boat isn't 100% the design/style you want, maybe the huge savings can sway you into getting it for a comparatively great price!

Re: Throwing money around like its water!
 

I have a bud that made 60-70mil for 3+yrs in a row... now he's probably making 30-40mil / yr.
And he wont even buy a boat. Just not for him. But he's got 2 jet skis. :D

But I'll tell you one thing... if my wife was out spending a minimum of 20k/ month on clothing, you bet I'd go buy any toy I wanted... and lose what ever I wanted, just so I could do it. Its the price of having the fun at that level.

Re: Throwing money around like its water!
 

smoke em if ya got em

Re: Throwing money around like its water!
 

Sure doesn't seem like a good decision to invest 1mil , run a few poker runs , and sell for 700k... but its boating so we should probably toss any logic :D

Kind of like trickle-down Reganomics of boating... keeps the builders working, people dreaming, and when done well raises the bar enough to keep the game exciting...

Most of these boats are made in usa so its a good thing!