Boat Financing

[Baxter]

Something else that I forgot to add. Back in 2009 when the US housing market crashed and millions of folks lost jobs and homes.... Luxury items like boats did not sell enough to keep boat dealers and manufactures afloat. Used and new boats were being sold at rock bottom going out of business pricing just to get some funds into those companies to keep them afloat. At that time the US and Canadian exchange was also at par. If you bought a new boat then and sold it 10 years later, you would have broke even since after the recovery prices shot up through the roof.

Perhaps another opportunity like that may be around the corner with the economic impact of what's happening. If you are lucky enough to weather this storm and have the funds available, there may be some great deals on new down the road.

I have been thinking the same thing, but SO FAR at least, not the case. Doesnt help that the US dollar is way higher than CAD at the moment. Watching this closely.

Also thinking some amazing used boats may come on the market privately soon too as people in financial trouble dump them for crazy low prices. Hate to take advantage of someone in that situation, but I don't set the market either. If it turns into a buyers market with a flood of inventory and I can get something at a steal, I will take it.

 

[Baxter]

Be aware of the financial risk when financing new boats. Because of the initial depreciation, you will be in a situation five or so years in where you owe the bank more than can be recouped in a used market. Hopefully you wouldn't end up in a situation requiring a forced sale at that point . Now the difference might not be much, but...

Yes, this is one thing I fear a bit, but not too much. We bought our travel trailer 4 years ago. As of today I think I still owe about $2,000 more than it is worth. Will be upside-down on that loan for at least another year or two. BUT the trailer has given our family a huge number of amazing experiences and great memories for my kids, so as far as I am concerned worth every penny. I expect the boat will offer the same life experiences (actually, I expect more with a boat!)

 

[Baxter]

Financing is a very profitable venture for boat dealers.... It bogs my mind when I see that many people are financing boats for 20 to 25 year terms. Over that long period, interest will be horrendous even with today's low interest rates. The dealers tack on additional things that you may not need or ant afford but when amortized over 25 years it makes it looks inexpensive based on how little it adds to each monthly payment.

I've done the math and it is painful. One boat I was/am considering comes to just over $50,000 all in. At the end of a 15 year term of paying for it, total payments break the $80k mark. That of course does not include the other associated boat ownership costs - that is just the payment to the bank. Which is why I am currently reconsidering my options.

So boys and girls, it pays to do a LOT of research before making a big purchase! (hence this very forum thread I started!)

 

[Mike park]

Have you thought of getting a secured line of credit from your bank paying what you want as a monthly payment or making lump sump payments as you go

 

[Rain City]

Just cash out all your RRSPs and get a payday loan and you're set. Put the balance on your credit card.

 

[Baxter]

Thanks for the info, some of it was very helpful (and some not ) Also thanks to those who PM'd me with more info. All very useful.

Looks like I may have a boat in my driveway tomorrow. Fingers crossed!

 

[the butcher]

Good luck and post an update with pictures for proof of life. I want to see a picture with your boat and tomorrows front page of the newspaper next to it.

 

[Buckethead905]

The loan to value ratio on a HELOC is actually 80%, not 65%, unless that is what your particular bank offers, which would be terrible in my opinion. If your credit is good like you mentioned you should be able to get your HELOC at prime or prime + half a point. I’m currently sitting at 2.45% on my HELOC. As some others have said, I would certainly look for a newer used boat that has most of the extras included at a discounted price. That Kingfisher 1825 with a 90hp Yamaha was 28k on sale 4 years ago, I think I still have the quote from Jes. I ended up getting a test ride in one through a friends friend, I got back to the dock with my guts hanging out of my prolapsed asshole after the **** kicking we took in a moderate chop. Maybe something to consider before you purchase.

 

[Rain City]

The loan to value ratio on a HELOC is actually 80%, not 65%, unless that is what your particular bank offers, which would be terrible in my opinion. If your credit is good like you mentioned you should be able to get your HELOC at prime or prime + half a point. I’m currently sitting at 2.45% on my HELOC. As some others have said, I would certainly look for a newer used boat that has most of the extras included at a discounted price. That Kingfisher 1825 with a 90hp Yamaha was 28k on sale 4 years ago, I think I still have the quote from Jes. I ended up getting a test ride in one through a friends friend, I got back to the dock with my guts hanging out of my prolapsed asshole after the **** kicking we took in a moderate chop. Maybe something to consider before you purchase.

Lol.

 

[Buckethead905]

Lol.

 

[brutus]

Just cash out all your RRSPs and get a payday loan and you're set. Put the balance on your credit card.

Lol you the man, owning a boat priceless

 

[brutus]

The loan to value ratio on a HELOC is actually 80%, not 65%, unless that is what your particular bank offers, which would be terrible in my opinion. If your credit is good like you mentioned you should be able to get your HELOC at prime or prime + half a point. I’m currently sitting at 2.45% on my HELOC. As some others have said, I would certainly look for a newer used boat that has most of the extras included at a discounted price. That Kingfisher 1825 with a 90hp Yamaha was 28k on sale 4 years ago, I think I still have the quote from Jes. I ended up getting a test ride in one through a friends friend, I got back to the dock with my guts hanging out of my prolapsed asshole after the **** kicking we took in a moderate chop. Maybe something to consider before you purchase.

Just like 4x4 ing in a corvette lol, no thanks i will keep my glass boat