finance up to 20years? Does anyone do this
 

I have seen 10, 15 years, does anyone do 20 years on 60k-70k

I'm not positive, but I think you can go 20 on anything over 50K.

I would not recommend financing a performance boat for 20 years. At least not without a HUGE down payment. It is not really good for either the bank or the borrower.

The amortization schedule should be consistent with the life of the asset financed. That does not mean that I do not think a performance boat will last 20 years. But the original drive, power, interior ect does usually not last that long.

I know banks doing it around here on boats less than 4 years old. 80% of the boats on the water in my closest local lake are close to 20 years old and out there pounding every weekend. It has to be something you have no desire to get rid of in 2-5 years or you will lose your a$$. I beleive Bb&t was the most recent one I received a long term finance rate from

Like I said, you will want a huge downpayment. Unless you want to keep it for 20 years.

I wouldn't finance a house for 20 years, but if you want to finance a boat for that long, at least make sure you can deduct the interest.

personally if you have to do 20 years on a boat you probably shouldnt be buying it. Its a boat. 10 years from now it will be worth half of what you bought it for. This makes no sense

Ive always felt that 10 years should be the max term for a boat loan. Too much maintenance cost down the road and you want it paid off before you have to bite that bullet. I agree that if you have to look at 20 yr finanancing you probably cant really afford the boat (or the maintenance).
I like my toys paid off!!

good call thanks

Hit the nail on the head, you'll pay over double for the boat if you finance a boat for twenty years, wait a while and save up, it'll be tons better in the long run.

Here's what your asking for......My $.02, you can't afford it, if this is a used boat you'll still be paying for something that should have sunk already. (most brands, not all)

$70,000
7.5%
20 years


$563.92
Monthly Principal & Interest $135,339.66
Total of 240 Payments

$65,339.66
Total Interest Paid

good calculations. My rule of thumb is I always like to pay at least 75% down for toys. My rule of thumb is if you can put close to 50% down you cant afford it

Add in a 5% lost opportunity cost & the decision to buy/finance that boat really costs $223,000 over the 20 years (and even more if you go out more than 20 years).

I agree. Save up and buy when you can afford it. I know that's not what you want to hear, but I am in your same situation right now. Boatless sucks!

That or get an older or smaller boat. There are plenty of 27-29's for 40 grand or less out there. Hell I bought my twin 91 for 26, engines were brand new in it upolstry was new. It looks no worse than a 2005. I know how it feels sometimes you have your heart set and want to get something but it doesnt work. I have a brand camaro and had to make the choice of keeping the camaro or getting a newer boat well I opted for both. Also if you look there are a lot of 33ft or 10M fountains out there in the late 80's that are nice

He's got a 1998 28ft Donzi now....Personally, I wouldnt go 10 years older to gain 2-5 feet.

me either but I wouldnt go for broke or get a crazy loan to do it either.

Me neither. Ive got a friend who bought a 2002 Nordic Heat 8 years ago for $75k and put zero down. Financed it over 15 years at $700 per month...Here we are 8 years later, he's already paid $67k in payments (the balance is $45k) and he now has 750 hours and its only worth maybe $32-$34k. We laugh about it all the time because I kept telling him before he signed on the dotted line to go buy a used scarab or a baja for $35k but he just wouldnt listen. Now he wishes he would have.

Im a firm believer in buying used. If the boat is newer, putting 25% down (minimum) and financing max term of 10 yrs. If the boat is over 10 years old max term should be 5 years.
Bottom line, you should own your toys--not the other way around!!

Right on and its this new American attitude that everybody is entitled to have what they want, and they deserve whatever they want is rediculous. Shame on banks for letting people do this and trapping people in loans. But people did it with houses too, cant say I feel bad for them either

[QUOTE=Powerquest_Baby!!;3353331]Ive always felt that 10 years should be the max term for a boat loan. [QUOTE]

I agree for the most part.....I financed my boat for 15 yrs (after a large down payment) and set up my payments as if it was a 10 yr loan (meaning I was paying extra principal each month). My rational was that if things got tight and I needed to switch the allocation on my $$ around, I could reduce my monthly payment to a more managable amount. Fortunately I never had to do that, but it all depends on what your situation is like. But I agree with what most have said, if you are doing it because you can't afford a 15 yr, but can swing a 20 yr, you probably should just stick with the boat you have.

[QUOTE=Big Time;3363729][QUOTE=Powerquest_Baby!!;3353331]Ive always felt that 10 years should be the max term for a boat loan. I agree with your plan but you have to have the discipline. I do it with cars. I get 6-7 year loans gives me a lower payment and I pay big chunks when i can. I usually have car notes no longer than 4-5 years.

I don't think anyone who finances a boat for 15 or 20 years plans on actually paying on it for full term. I feel like my money is better off in investments or in the bank than in the boat.

Money is there if I wanted to pay off the boat. It's also there if something really bad happens and I want a roof over my head and eat:)

True but that kind of means you cant afford it either. Your taking a hit on interest and potentially paying way more then the item was initially worth. If you cant afford to make payments on a boat unless it has a 15 year loan you shouldnt do it flat out, sorry. In a sense your saying well I can kind of afford this boat but not really, so I am going to stretch out the payments so I can have it, and hopefully pay it off early. This is how people got into trouble with homes too, they were offered variable interest rate loans and teasers then once something changed they were done. Just not smart but to each his own i guess

I respectfully disagree. It's my 5th boat and I've flipped my previous 4 for a profit. When I plan to only keep a boat 1-3 three seasons interest is not much of a factor.

Do not get me totally wrong. I put a healthy amount down (I think about 35% on my current 342). I also have great credit and relationship with my bank which in turn gets me good rates. When the interest between a 7 and 15 yr loan is 1% why not take it out longer? You can always pay more.

It sounds like you know what you are doing. But in reality out of 10 people maybe 1-2 are going to do the right thing, most are going to do the wrong thing. This is all like anything else that people that live off of credit cards they live 20-30 grand above their level and only pay 15 bucks a month for it and they will never be free of that debt. Like I said im sure you got it nailed but I would think you would agree you would have to be careful.

Personally on toys I like to pay at least 50% down and borrow no longer than 5-7 years. That way if I come upon hard times I will probably get close to the 50% i put into it back. Versus if you say put down 10% and had a 15 year loan, there could be a potential where you say borrowed 90 grand and put down 10. We will say you are in year three of your loan. And you have a 759 dollar a month payment on a 15 year 6% loan. So ok you paid off about 25-26 grand on this boat and now owe 65 grand. Chances are on a 100 grand boat its probably now worth about 65 grand. You get nothing out of it and potentially have to pay the bank after you sell it.

Now flip the situation you paid 50 grand down on a 100k boat your payment is now 730 a month for a 7 year loan, so actually less. Now you are in year three of your loan, well you just paid off about half of your 50k loan and owe 25. Sell boat for 65 and your getting 40 grand back instead of slim to nill.

So really even if the long loan is smart it really isnt smart, I guess the more you put down the better. Every situation is different and obviously the amount you put down and the amount you borrow will skew things.

And Im not against credit I have it you have it everybody has it. But regardless of how much you make, what your job is, or how smart with it you are, its always a liability that can come back to haunt you, the more you have the more issues you area going to run into

Absolutely agree. Just wanted to explain my reasons for doing it the way I do it. Every situation is different.

Plus I obviously write the interest off on my taxes.