20 year boat loan

[airdvr1227]

Re: 20 year boat loan

That's an unfair portrayal. What you're actually saying is people are stupid enough to not ask the price, only the payment. That never happens.

 

[UncleWillie]

Re: 20 year boat loan

That's an unfair portrayal. What you're actually saying is people are stupid enough to not ask the price, only the payment? That never happens.

That is EXACTLY why people will lease a car instead of buying one.
They do not care what it costs, only how much it costs per month.
They accept that they will be making car payments forever and the monthly cost is all that matters.

I have a friend that I tried to talk out of leasing and this was their logic!

 

[WIMUSKY]

Re: 20 year boat loan

That's an unfair portrayal. What you're actually saying is people are stupid enough to not ask the price, only the payment. That never happens.

Not sure if that was meant to be tongue in cheek or not........ It happens all the time. That's why a lot of dealers give you the monthly payment and not the price of the vehicle. They know people are more interested in the payments..... Why do you think they like to say, "what kind of monthly payment are you looking for?".

 

[WaterDR]

Re: 20 year boat loan

That is EXACTLY why people will lease a car instead of buying one.
They do not care what it costs, only how much it costs per month.
They accept that they will be making car payments forever and the monthly cost is all that matters.

I have a friend that I tried to talk out of leasing and this was their logic!

Leasing has it's upsides...you usually get rid of it before the warranty runs out, never have to worry about selling it etc... and if you owna business, the entire payment is tax deductible.

 

[smokeonthewater]

Re: 20 year boat loan

That's an unfair portrayal. What you're actually saying is people are stupid enough to not ask the price, only the payment. That never happens.

seriously? Of course people are stupid enough to not ask the price but more importantly they are impulsive enough to NOT CARE what the price is..... many years back when I was in high school I worked at a chevy dealership and I'd see it all day... the ONLY thing they wanted to know was the monthly payment.... they didn't care about interest rates, extra costs, or what it all would add up to after 8 years of paying..... They also didn't care that they would only get $1500 trade in on their old car that was worth $5000 and they owed $9000 on it so they were adding another $7500 to an 8 year loan with a steep interest rate. They would drive away in a $23,000 car that was gonna cost em nearly $40,000 by the time they paid it off.

 

[bruceb58]

Re: 20 year boat loan

Friends don't let friends lease!

 

[aspeck]

Re: 20 year boat loan

Leasing has it's upsides...you usually get rid of it before the warranty runs out, never have to worry about selling it etc... and if you owna business, the entire payment is tax deductible.

And if you own a business, the interest is deductible and the depreciation is deductible. Works out about the same either way ...

 

[WIMUSKY]

Re: 20 year boat loan

And if you own a business, the interest is deductible and the depreciation is deductible. Works out about the same either way ...

Yep.......

 

[bruceb58]

Re: 20 year boat loan

And if you use your vehicle for pleasure and business, you may want to only use the standard mileage deduction. I have never seen the upside of leasing for business for the tax consequences. I think the main reason very large companies do it is because its easy. For small sole proprietor businesses, it isn't worth it.

I am sure there will be some sales guy coming around to tell us why this is all wrong!

 

[WIMUSKY]

Re: 20 year boat loan

And if you use your vehicle for pleasure and business, you may want to only use the standard mileage deduction. I have never seen the upside of leasing for business for the tax consequences. I think the main reason very large companies do it is because its easy. For small sole proprietor businesses, it isn't worth it.

A while back we looked into leasing. Can't remember the reasons why, but, it wasn't going to work out for us..... For my truck we use the mileage deduction...... A far as equipment, we only can depreciate it so far. Then the wife tells me to go out and buy something....lol

 

[bruceb58]

Re: 20 year boat loan

Leasing has it's upsides...you usually get rid of it before the warranty runs out, never have to worry about selling it etc... and if you owna business, the entire payment is tax deductible.

1) You can get rid of anything before the warranty runs out. Doesn't have to be leased.
2) You can't always deduct the entire payment. You still have to keep track of business and pleasure usage which means technically you need to have a log of miles in either case.

 

[frantically relaxing]

Re: 20 year boat loan

It's been my experience that longer loans are actually higher on interest rates, not lower. so while I agree with your thought about the longest loan time, and flexibility to pay off early, it comes at a cost.

Obviously, lower interest with longer terms isn't always the case, and it sometimes has to do with different loaners, but:

Before our Chap we bought a new 2007 Bayliner 175BR. Interest for a 5 year loan and a 10 year loan was 8%. A 7 year loan was 7%...

When we financed our Chap and our Allegro DP motorhome a couple years ago, everything from 5 to 20 years was 5.99% at our credit union (both were used, and we didn't go 20)

And just 2 weeks ago while inquiring about financing a new hot tub, a 5 year rate was 8%, and a 7 year rate was 7%.

It happens...

 

[greenbush future]

Re: 20 year boat loan

Obviously, lower interest with longer terms isn't always the case, and it sometimes has to do with different loaners, but:

Before our Chap we bought a new 2007 Bayliner 175BR. Interest for a 5 year loan and a 10 year loan was 8%. A 7 year loan was 7%...

When we financed our Chap and our Allegro DP motorhome a couple years ago, everything from 5 to 20 years was 5.99% at our credit union (both were used, and we didn't go 20)

And just 2 weeks ago while inquiring about financing a new hot tub, a 5 year rate was 8%, and a 7 year rate was 7%.

It happens...

I agree it does, my examples were from mortgages, and what I saw, your examples are spot on, thanks for the examples. I still wouldn't finance longer than the use period, but that's just me, I'm conservative, and don't own a big boat. I guess if I was spending $100K I might have to look at some type of loan.

 

[airdvr1227]

Re: 20 year boat loan

I've been in sales since 1988. Although there are exceptions I've found most buyer's to be pretty savvy. What I have seen is a bunch of people who have closed minds and are not open to new possibilities and new ideas. Boats are not cars. I've sold both.

 

[briangcc]

Re: 20 year boat loan

I've got a 15yr loan on my Four Winns. It enabled me to buy new so I know the service history and boating history on this boat. That's something I'm willing to pay a premium for.

When looking for this boat, I visited a number of marinas and looked at all the other 19'6" options out there. This was the best bang for my buck as most marinas wanted 10-20k more for the same boat I bought. Basically, I was paying a premium for the other brands.

The reason I took out a 15yr loan was that it allowed me to step up into a larger boat while maintaining the same payment I was making on my Bayliner AND 115 hp Honda outboard. Yes, I'm upside down on the loan right now. Yes, I won't be doing that again with the next purchase. No, looking back at this particular purchase I wouldn't have changed a thing. Larger boat, same payment, 5 year warranty on powertrain = no brainer.

Next purchase will more than likely involve a loan but I wouldn't go over a 15yr term to do it. If we can't afford it on a 15yr payment, we'll wait until we can. This is a personal preference as the boat we'll be stepping into will be new, not used.

No purchase, other than a house and in this economy even that's dicey now, is a smart one as the item will depreciate in value.

 

[QC]

Re: 20 year boat loan

I am sure there will be some sales guy coming around to tell us why this is all wrong!

You can't trust those slimey sales guys, so just ignore 'em.

 

[jkust]

Re: 20 year boat loan

I've got a 15yr loan on my Four Winns. It enabled me to buy new so I know the service history and boating history on this boat. That's something I'm willing to pay a premium for.

I truly didn't realize that loan term lengths that long for smaller boats were available. As the economy was tumbling a few years ago, I got a solicitation from Formula boats toubting their ultra long term financing. I thought it was a function of their high prices.

 

[bruceb58]

Re: 20 year boat loan

You can't trust those slimey sales guys, so just ignore 'em.

Ha!

 

[lncoop]

Re: 20 year boat loan

Ha!

I hear they're almost as bad as those engineer type guys.:laugh:

 

[bruceb58]

Re: 20 year boat loan

I hear they're almost as bad as those engineer type guys.:laugh:

Those guys are the worst!