Question before buying a new boat vs used boat

[dan02gt]

Re: Question before buying a new boat vs used boat

Boat 17000
Engine upgrade 1500
Minn kota 1150
Sonar 900
Kicker 1800

Taxes 3352.5

Total 25702.5


Let's use a 10 year loan at the current boat interest rate of 6%

it's 285.35$ per month

285.35$ per month for 10 years = 34242

That's the way I see it.

With the 5%-10% difference in currency, it comes up to a minimum of 20% difference in retail price between USA and Canada, it's often 30% difference.

For instance, with cars, when the canadian $ was equal to us $, the subaru made in japan like the STI cost 15k$ more in canada than USA. Also most US dealership refused to sell to Canadiens, they make so much profit here in Canada....

So you were considering interest on the loan as part of the total price. That make sense, especially if you planing on taking the full term of the note to pay it off. It also looks like they gang rape you on taxes too. N.C. charges 3% sales and use tax with a max of $1500.00. $3352.00 on $21800.00 is insane!

 

[shingo]

Re: Question before buying a new boat vs used boat

On 300k$ new house, we pay 15% tax, so 45000$ in tax.

On a new car, it's 15%, on used car it's 8%.

For example if you buy a new car at 20000$, you will pay 3000$ and if you sell it a year after for 17000$, the new owner will pay 1360$. The item is taxed twice.

The worst is that we pay around 9.5% taxes provincial and 5% taxes federal, but the provincial taxes are applied to the federal taxes, so we are actually pay taxes on taxes.

so 10$ + 5% tax = 10.5 $ for the federal taxes

and then 10.5$ + 9.5% = 11.50$

So like I said, we pay taxes on taxes.

Around 57% of my earnings goes into taxes.

 

[Home Cookin']

Re: Question before buying a new boat vs used boat

Pay attention, Americans; we are headed that way.

 

[shingo]

Re: Question before buying a new boat vs used boat

Pay attention, Americans; we are headed that way.

Just to continue off topic, we have provincial election coming up which consist of 3 party, one extreme left party, one left party and one center left party.

The extreme left has a 40% vote intention, the left party is around 26% and the center left party is at 13%, the rest of the vote are in garbage party.

It's a beautiful place but the overwhelming number of unsustainable social program is just too expensive.

 

[firechildc]

Re: Question before buying a new boat vs used boat

Pay attention, Americans; we are headed that way.

For some of us, we are already in that situation. If you are self employed in America, you are already paying well over 50% of your income to the local, state, and federal tax man. I should know… been self employed for three years now. Getting KILLED on taxes.

Now on topic… aluminum boats are a lot of fun and it sounds like you got a great one, shingo. My first boat was a 14 foot Alumacraft with a 10hp yamaha. I'm a fan of buying used boats, simply because I like to work on them. You're going to be working on it anyway, might as well save a little coin up front. You know what they say boat stands for… B.O.A.T.: Bust Out Another Thousand.

This hobby ain't cheap. Hahaha.

 

[dan02gt]

Re: Question before buying a new boat vs used boat

Pay attention, Americans; we are headed that way.

Yes we are. It's scary, and I fear for what my daughter is going to have to deal with in the coming years.

Firechildc,

I own a S corp and love paying capital gains tax on money that I invested back into the business and never took as income. I guess the government feels all us small business owners are just swimming in extra money to pay for other people's health care and unemployment for people that haven't worked in 2 years.

Sorry about the off topic rant.

 

[JimS123]

Re: Question before buying a new boat vs used boat

When I went into business in 2002 my health insurance was 32 grand. Yeah, not a misprint.....$32,000.00 a year for the 2 of us (no kids left in the house). Joining a business organization got it down to $6000 a year, but all the other taxes ate up much of what was left.

Regardless, during the 9 1/2 years I operated the business we bought 3 boats - two brand new, one an antique, and paid cash for all of them. The way I look at it you can't take it with you. Also, if that second hand clunker isn't good enough for somebody else, why should it be good enough for me?

Everybody here points out the thousands of $ needed to bring some used boats up to snuff. Well, the new one doesn't need that. Instead of busting out another thousand, bust out a few hundred to customize the new boat, and thousanads won't be needed for repairs for many years down the road.

My 5 year old Starcraft so far has cost me maybe 30 bucks total. A coupla spark plugs and a few tubes of gearcase oil. My dealer currently has a 10 year old mint condition used boat of the same model, and his asking price is only $1200 lower than what I paid new 5 years ago. If I got that much for mine, I would consider the depreciation to be zero. Five vacation week-long rentals would have cost more than that!

 

[JimS123]

Re: Question before buying a new boat vs used boat

This hobby ain't cheap. Hahaha.

I have numerous friends that wouldn't be caught dead in a boat. They often comment that I must spend a lot of money on the boat(s).

They all have other "hobbies", or just plain different lifestyles. In comparison, going out to dinner in fancy restaurants 3 nights a week, going to the casino every weekend, sitting around inside their air-conditioned houses using energy all summer, or just plain taking the Sunday drive in the country in their Suburban.....all cost a lot more money than I spend on my boats! In fact, thinking about all that just makes boating look cheaper all the time.