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Involved discussion on finances and plans to purchase boats

Old 07-18-2002, 12:40 PM
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Default Involved discussion on finances and plans to purchase boats

I have not seen anyone really touch on this subject and I feel a little awkward asking but I really would like in a few years to get a bigger more expensive boat than I have now.

I see all these Cigs, outerlimits and skaters ect and I am not dumb, I know what they cost
even your lower end boats like baja and sonic or "cookie cutter" boats as some refer to them as.
Where does the money come for this?

I see a boat with a price tag of 245 and I just about poop my pants.
and paymets like 1400-1600 a month for 20 years.
What the HELL am I doing wrong?
I think 400 a month for a car payment is insane.
Is it a business that is buying these things?
Is there a way to do your taxes to write some of these things off.

I know a few of the board members personally and alot of you I just know from here. But I cant help but sit here and scratch my head and think to myself that not everyone here is a Doctor and or a lawyer or what have you.
Im not asking you to tell me what you make in a year, that I dont care about. But im asking for in a few years I would like to go larger on a boat with of course more power ect.
Maybe a 38 sonic or 35 sonic, 38 TG or somewhere in that arena.
That is a big jump from a 30' baja that is 12 years old.
If I save money each month Ill be able to put some cash down but not like this insane 45% down, 1499.99 a month for 20 years.
How do you guys do it?
Me and my wife together make a good amount of cash per year I think. We have a nice 4 br burb house with the 2 car garage, IG pool ect, have 1 trans am and 2 trucks, boat ect.
im NOT financed to the hilt but when someone says yeah this car is going to cost you on a lease 695 a month, im ready to pull out a shot gun and waste em cause in my mind that is absolutely INSANE.
Either explain to me how you do it or tell me im nuts and living in the past or something.
I just dont get it.
and I know for my demographics, I bought a very inexpensive house in comparison to all the TOLL BROTHERS homes that are going up all over the US and in the 700 thousand range right across the street and they are being bought faster than they can be built.
Where does this money come from????
Is it cause I work for someone that makes me a chump?
Can someone explain what they had to do as a plan to be able to get themselves into a cig or a boat lets say for 250-300 thou?
That is a HEFTY price tag and I need a plan my friends.
Thanks to all that reply to this in advance.
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Old 07-18-2002, 12:56 PM
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Jason…. You have taken the words right out of my mouth.

See link from the Formula section…..

I too am looking for that next boat, trying to scheme how I will make this happen. Everything I have will be paid off (2 sleds, 2 trucks, 2 cars, home, boat) by early next year and then the sky’s the limit. But I don’t want this to be a payment for 20 years event either. I own my own business and am too wondering if this can be a benefit to make the goal a reality. Come on guys and gals…. Tell us your secrets!
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Old 07-18-2002, 12:56 PM
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Some guys look at it as how long will i keep it and what is the estimated value at that time and them put down enough to where your payoff is at your perceived value at the time you sell. Therefore you are technically renting it for a few years. If you dont put anydown you will probably be upside down unless you steal the boat.

My boat payment is $1200 and cars are $1300 (3 of them) I make a decent income and could afford more payments but not justify them. I have never owned anything long enough to see the end of the term (A.D.D.) so i just look at how much it will cost me to own it and not how much it cost. example new mercedes is pricey but it holds the value the best and is easy to resale so if it stickers for 100k and 2 year old models are dselling for 70k it is going to cost me 15k a year to own it for two years.

I am sure all of the opinions will differ greatly.
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Old 07-18-2002, 01:01 PM
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I don't know if this really answers your question, but I deal with those types of people all day. You would not believe how much money is out there. Forget $1,600./month payments, I'm talking cash for boats $300,00 and up....

A great majority are self-made, i.e. started/built their own companies, or work in family businesses. Middle-aged (45+), and have been boating for a long time. Started small just like everyone else.

There are a few young ejerks out there, but the majority are as described above. It really does make my head spin sometimes......
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Old 07-18-2002, 01:08 PM
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A few years ago Powerboat magazine did a survey of the readers of there magazine. It had some of your answers you are looking for. I could be wrong but I thought medium income was around the $500,000 range.
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Old 07-18-2002, 01:09 PM
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interst on a second mortgage is tax deductible . boat applies if it has a head and kitchenette.
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Old 07-18-2002, 01:17 PM
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I hear ya, Im a lot older than you with grandkids and I have a very modest house and l make decent money for a working stiff and I had to sell my formula 311 because I couldnt handle the loan, gas and upkeep. Even my boat now keeps me broke because I cant leave well enough alone. I dont understand it either. We must be doing something wrong. I did use equity in my house to buy my present boat. That helped with interest and taxes.
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Old 07-18-2002, 01:24 PM
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I don't know anyone with those types of boats personally. Like RT said, you'd be amazed at the money out there. Many of these people are paying cash, or $100k plus down. They ain't eatin Mac n Cheese, that's fo sho.

Almost everyone I know with a boat has two incomes in their family. And they can't afford new 38 Cigs.

I'm related to some (not closely enough thought) that can afford new $3-500k boats, but they don't buy them. 1 has an airplane and the other has probably a 1/4 mil in vintage signs. But they own companies doing $50 mil or so. And I know at least one could pay cash.

You gotta be a BIG balla'.

Jay, as to what you're doing wrong? You're not picking the right lotto numbers

As far as getting to more reasonably priced 35' boats or so, many get there over time and hard work. And many buy them a couple years old.

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Old 07-18-2002, 01:33 PM
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Okay well a MEDIAN income of half a million bones, that would explain where the skaters and outerlimits come in at.
Those people that do that and pay the dollars it takes to get there I can see but im talking average joe with a decent job here being able to get into something and not have to walk past it at a boat show but actually climb up on it and say to sales dude, hey, is there one I can test to see if it rides like it looks?
not just get a hard on and walk away with your tail between your legs.
I am a network manager for a small company in PA.
Me and my wife together dont even make 150 K a year and I think we are doing pretty well.
She has a 2000 ford explorer on a lease that is up in September and she thinks that a mercedes 500 LS USED was a cute car, so we drove one and it was 43 grand, to lease it with inception fees and other stuff tax ect. it was 695 a month
Im like your kidding? Salesman looked at me like I was a poor chump and basically in a nice way told us to leave.
okay Mr I sell to upper class and your trailer trash. (that is how I felt)
am I drunk or what? Toll brothers is building about 200 homes across the street from me and in their brochures say starting price is 550 thou , most end up being 700-750 with options like door handles and cabinet handles and floors.
I paid 254 for my house and im proud of what I got, but man where the hell does it come from? I have been plauged with this for a long time now cause it seems the salaries go up about 3% a year but the cost of everything is going up about 400% across the board.
Should I be investing in the stock market? CD's, Bonds and stuff?
should I at the age of 31 be financially stable to buy a 300 thou boat for cash? I have worked very hard to get where I am at and I look around and I feel like the world is passing me by and im doing something wrong. a financial plan to prepare myself in a few years to buy a bigger boat is what im after here but in my simpleton mind, if you dont make 500-900 thou a year and are a ceo and ect your boned in the butt baby.
and then you get treated like your a douche at the dealers and boat sales places.
went to RPM boat sales in NJ a few years back. Saw a Larry Smith 1987 (in essence a scarab) boat.
was nothing pretty
twin 420's TRS drives and a cabin wiht rubber flooring and just 4 couches facing each other.
Boat was on a trailer with no brakes cause dude that owned it was using a CDL dump truck to pull it.
boat was 20 grand. I figured at that time making little money cause of my recent career change I could do it but would be tight.
about 300 or so a month, plus money to put into it to make it look nice, new trailer ect. Needless to say I could not afford it so I walked away and the sales person was mad cause he thought I was prop kicking and was not serious.
Im trying to come up with a plan to overcome these obstacles here. and no I doubt Ill be able to come up with the cost of depreciation for 3-4 years worth on a 300 thou boat (and at the rate these are going up, probably boat in a few years will be up another 150 K)
So what to normal average people do?
I see the second mortgage thing as tax decuctible which is a start. Wife wants amenities like micro, enclosed head, so on and so on. So maybe I can swing that but still going to cost me 1200-1400-1600 a year which at this point in my life I cant see being able to do.
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Old 07-18-2002, 01:36 PM
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This may not answer your question jay but it's a money thing and made my head spin. Last week my 24' baja was on blocks at a marina and I was under it in a pool of sweat with a bottle of wax. A guy walks up looking for the yard mgr. We talk, he leaves but before he does says he loves my boat, and he was sincere about it. Real down to earth, not cocky. Later I see him messing with his 38 step-hull Scarab, then he left the yard in a new Ferrari Modena. Holy crap I was talking to a millionaire!!!

I think the majority of big bucks speedboat owners are successfully self employed. Business & tax laws make it easier and cheaper to own expensive toys. All you need is operating capital and 3 sets of tax books.
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