Financing a boat

[shep546]

Hey guys,

I am thinking of selling my current boat (16 foot crestliner) and financing a new one over 20 years.

I am looking at 20 foot kingfisher models for big lakes and possibly some offshore fishing.

I was wondering those of you who financed for long term, who you went with, what kind of interest rates you were looking at and how much of a down payment was required? Thanks in advance.

[Sooner]

Math was never my strong area but going over 20 yrs, won't you have bought your boat at least twice, even with a low interest rate?

[shep546]

Originally Posted by Sooner

Math was never my strong area but going over 20 yrs, won't you have bought your boat at least twice, even with a low interest rate?

Same can be said for my $400,000 mortgage.

Obviously borrowing and paying interest is never a smart thing financially but otherwise I could never afford a boat like this right now in life (I'm fairly young).

Life is short and I don't see the point in waiting until I'm 50 and buying my dream boat when I can buy it in my late 20's and get way more out of it.

[Skoaltender]

Your plan is to finance the boat for 20 years!?!...

[shep546]

Wasn't really looking at discussing the merits of financing the boat for 20 years (even though a lot of people do it).

Please keep your personal opinions to yourself, I'm looking at others who may have actually gone this route.

Thanks.

[Sooner]

I only posed a question, no opinion of what you should or shouldn't do. Enjoy your dream boat.

[The Spank]

For me it's a balancing act. Fortunately I can afford a higher monthly payment as buying my boat was my only debt. My house is paid for and I drive an older truck (2003) that has been paid off for years now. I don't need a fancy truck or big house. So being debt free I wanted a new boat but still wanted to be able to max out my rrsp contributions. I took my boat loan over 5 years instead of 15. I take the same amount of my payment each month and put it into rrsp's. Then once a year the tax return from the rrsp investments goes into a lump sum extra payment against my boat loan. This past year my return equalled one year of loan payments so that cut a year off my loan and means I am giving the bank less interest overall.

[The Spank]

One of the other issues I don't care for with long term financing is that by the time you pay off that loan besides the enormous amount of interest paid out is that the boat will be at the end of it's life cycle and I'd be right back where I started. Just my opinion though and I can understand where you are coming from and may have done the same thing in my 20's too but not now in my 50's.

[shep546]

The interest paid over 20 years will be in the 15-30k ball park. So the difference between buying a 20 foot kingfisher or a 24 footer... or buying a hewescraft vs a kingfisher.

[dodgeboy1979]

to answer your question.... from experience check with the bank you deal with regarding loans. They know your financial history the best and often times will give you a better interest rate.

[JSMPP]

I think RBC does most boat loans from dealerships, 15 yr max amortization, rates in the 6 to 9 percent range depending on your credit. Down payment would be minimal if anything. It's been a while since I looked at boat financing though but would be surprised if much has changed.

[neilsledder]

Lots of guys will give you slack for the financing thing, it's like they are making your payments. With the price of them who can afford them other wise? And what you going to stop living and doing what you love. Any ways is get a quote for 10 or 15 years you might find it's not that much more per month as you pay a lot less interest. After this weekend my boat goes up for sale and will also be buying a kingfisher! Happy boating!
Right now you can find good deals on left over models. Or try to find a demo, they will have full warranty as they haven't been sold but are cheaper.

Sent from my iPhone using Tapatalk

[Kurt505]

Any idea what the boat will be worth in 20yrs?

Kingfisher is an awesome boat, but you might be better served selling your boat and truck, taking that money to buy a new boat outright, then get yourself a brand new truck at 0% interest when they offer that deal. Just a thought.

[shep546]

Not really concerned with the depreciation, hopefully I'll have it for life.

Obviously I'll have to replace the motor after 10+ years.

[nick0danger]

just be aware as with an RV, if you need to apply for a mortgage, it does make it harder to be approved if that is something you think you will be doing. If you have a mortgage no worries.

[Penner]

There is no easy way to say it so If one needs to finance over 20 years for anything they are probably buying something they can't really afford. Better to save up and may the switch when you can afford it. Like the other fellow said bt the time you've paid it off you'll have paid for it twice.

[shep546]

Originally Posted by Penner

There is no easy way to say it so If one needs to finance over 20 years for anything they are probably buying something they can't really afford. Better to save up and may the switch when you can afford it. Like the other fellow said bt the time you've paid it off you'll have paid for it twice.

Funny I bought my first house at 21 years old... I guess I couldn't afford that?

Your logic is seriously flawed. I will easily be able to afford the payments on it and I have VERY stable employment. How can I not afford it?

Most guys buy a boat like this in their 50's and only have a few years to enjoy it, assuming they don't croak before they even get a chance to buy it.

Thanks for the financial tips though!

[JD848]

I had brand a new boat at 55 and made payements,50 is not old,you guys think like your life is over when you hit 50 ..I was in my prime in 2008 best shape of my life and I was almost 50.Got hurt in a accident and Manitoba is no fault,there paid for my teeth and that's it and back is toast last year and my right arm is no good,but I ain,t stoppen or laying down .

.I am heading to texas to take a couple courses and will pay that boat in one year and back to alberta..IF your arrs is dragging at 30 you won't be no runner at 50, ,if you were buying 50 foot searay I would say think hard,they lose there value fast.I picked up a nice boat in 09 in florida ,for 12000 and used it till I got hurt and sold it for 18,000 the boat had a few things I fix up fast ,but I saved 50 grand.When Katrina hit I flew down and purchased to hoes and loader from cat for 10 cents on the dollar,see when you get older your smarter so we have a big advantage over a 30 year old,Kurt gave you a good tip,somtimes you shuffle stuff and avoid interest which seems to be your main point.

[Buckhead]

Originally Posted by shep546

Not really concerned with the depreciation, hopefully I'll have it for life.

Obviously I'll have to replace the motor after 10+ years.

In financing a boat or RV about 10 to 12 years is the sweet spot in regards to interest paid and that sort of thing. If you have the means to pay it off sooner that is also an option.

I have been running outboards for more than 40 years. Most outboards will last at least 20 years with some decent maintenance.

[Bigwoodsman]

Originally Posted by shep546

Funny I bought my first house at 21 years old... I guess I couldn't afford that?

Your logic is seriously flawed. I will easily be able to afford the payments on it and I have VERY stable employment. How can I not afford it?

Most guys buy a boat like this in their 50's and only have a few years to enjoy it, assuming they don't croak before they even get a chance to buy it.

Thanks for the financial tips though!

If you can afford it by it! If you're questioning the term etc and in doubt then don't. It's up to you not what someone on AO says.

Personally I wouldn't finance it for 20 years. A lot in life can change.

BW

[kevinhits]

Seriously....This guy is a troll......I would not give another word of advice to him

[Penner]

Originally Posted by shep546

Funny I bought my first house at 21 years old... I guess I couldn't afford that?

Your logic is seriously flawed. I will easily be able to afford the payments on it and I have VERY stable employment. How can I not afford it?

Most guys buy a boat like this in their 50's and only have a few years to enjoy it, assuming they don't croak before they even get a chance to buy it.

Thanks for the financial tips though!

Last time I checked a home or property in most situations over time will gain in value. A boat like a vehicle in most situations is going to depreciate in value. Plus one doesn't sleep in a boat and unless you make a living fish'in, a boat is not a necessity of life but a roof over your head is. One also needs to think about if they were to croak who will be inheriting your debt.

If you don't have the cash in hand you ain't buying squat as the banks buying it. Just saying...

[Howard Hutchinson]

With all due respect, buy the boat you want, however you want. If you KNOW you will keep this boat forever then you will be fine. The challenge is what you want now may not what you want in 5 years. Times change, employment changes with with lesser salary sometimes, Families grown etc.. At that point you will be upside down, should you try to sell it you will be hard pressed to get what you owe
I had a boat for 7 years (valued (market value was at $37-$40k) which I was only able to use for 25hrs. (2009 Lund Gran Tyee Sport 1750)as I hurt my shoulders and was unable to transfer in and out as I am a paraplegic, so I had to sell. After 3+ years of trying to sell it I finally sold it to a fellow and I had to pony up $6K to make up the difference.

Again if you plan on keeping it, go for. Indeed you only live one my friend.

All the bet on whatever you choose.

[ShortsideK]

Originally Posted by kevinhits

Seriously....This guy is a troll......I would not give another word of advice to him

I agree.

[icehunter]

An this boys and girls is how ppl get so far into debt,that if something happens like a job loss,injury etc they are hooped. A small payment here,one over there,another one next week,interest rates go up,job is cut and you have financial hardship.

To the OP,do the math on payments over 20 years and see what the end cost is. Of course you can finance for 20,they want you to. Just like they want you to run a CC balance so they can make interest. But don't forget that when you reach that 30% of monthly income on different bank loans,financing etc,the banks wont give out any more money to you.

Ultimately its your money and payments,do what you want but think wisely before jumping into it. Don't think just for today,think about the future. An don't forget that while that fancy boat is sitting stored for 7 months of the year,you are still paying ins on it. Oops..damn... there is another payment!!

[normstad]

Originally Posted by icehunter

An this boys and girls is how ppl get so far into debt,that if something happens like a job loss,injury etc they are hooped. A small payment here,one over there,another one next week,interest rates go up,job is cut and you have financial hardship.

To the OP,do the math on payments over 20 years and see what the end cost is. Of course you can finance for 20,they want you to. Just like they want you to run a CC balance so they can make interest. But don't forget that when you reach that 30% of monthly income on different bank loans,financing etc,the banks wont give out any more money to you.

Ultimately its your money and payments,do what you want but think wisely before jumping into it. Don't think just for today,think about the future. An don't forget that while that fancy boat is sitting stored for 7 months of the year,you are still paying ins on it. Oops..damn... there is another payment!!

I think the OP has said he is aware of all this. But, like in many cases, knowing it and experiencing it is two different things. Many people will only learn in hindsight, by experiencing things. That's the reality.

[JD848]

Just make sure you have a good disability ,anything can happen at any time no matter how much you make.Every cowboy never worries about the fall until your hurt bad,make sure what you owe equals the value to sell that day that way it's just a wash,if not you can get in a real jackpot.

[EZM]

Ok Shep - I'm not going to add to the obvious pitfalls of financing anything that depreciates over the term of the loan. Makes it worse when it's a want and not a need and at high interest rate. I think you have heard enough on that.

If you MUST go down that road, I would suggest use your credit facility that offers the lowest interest rate, over the most flexible repayment scheme.

At current interest rates, using a conventional vehicle/boat/rv loan when financing a high risk (from a depreciation and foreclosure recovery perspective) the bank is going to hit you up.

A low interest secured line of credit on your home will cut your total out of pocket in HALF.

If you must, and assuming you have equity in your home, your line of credit is your best credit facility. Low interest, flexibility, etc...

[Deep]

Trolling...............

[fish99]

you said you own a home refinance it and bye the boat , house loans are your cheapest rates.