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Financing


lambo1967

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22 minutes ago, fin-addict said:

X2

X3, but to be clear, here's why - your loan balance will go down slower than your depreciation curve.   You know what's worse than making payments on a boat you own?   Making them on one you don't own, or one you can't use, or being stuck with a boat you hate because you owe more than it is worth.   If you think that you'd be okay with that, try this:

Figure out what the 180 month payment will be on the boat you are thinking of buying.

Make payments on that boat for 3 years before you buy it - put them into a savings account.

If after three years, you still feel good about it, take the money out of your savings account, go buy that same boat,  and get the shortest term loan you can afford.   

:)  I know, that is not the answer you were hoping for.   it stinks, but way better to stink hypothetically than in reality!   

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Who actually owns a boat for 180 months? Most people keep a boat ~5 years; which if you are buying right and using the free cash to make back some of the interest then its really not a bad way to get a boat that would otherwise be unaffordable. What I don't recommend is stretching yourself 20 years with minimum down and not having at least enough cash to make sure you aren't upside down. 

That being said, I don't finance them unless its a short term investment where I can let the banks money work for me.  

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Ill never figure out for the life of me why on all these forums someone asks something, there seems to be a need to provide life advice for a decision that the OP didnt even ask input on??!

OP... have no answer but if you are going thru a dealer I imagine they can provide that info.  Other than that the amount of time you can go is often correlated to a given amount... in other words they will only go say 10 year on an amount over a certain price

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OP , I’ve used LightStream in the past but most private banks only go 8 ish years on boats.

USAA and navy federal will go the length you requested. This is one advantage of a dealer, most of our banks do 15-20 year financing regularly 

Over 25k is 15 year max, over 50k is 20 years, down payment around 10%, stud credit somewhere in 4.2-4.9%, good credit under 6.5%

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11 hours ago, FINCHASER said:

Ill never figure out for the life of me why on all these forums someone asks something, there seems to be a need to provide life advice for a decision that the OP didnt even ask input on??!

OP... have no answer but if you are going thru a dealer I imagine they can provide that info.  Other than that the amount of time you can go is often correlated to a given amount... in other words they will only go say 10 year on an amount over a certain price

It was certainly meant with the best of intentions.  If it offended anyone, put your big boy pants on.   A question was asked, an answer was provided.  No need to flame folks for providing their take on the appropriate answer.   Been in finance a long time.  A lot of people really dont know how badly long term loans can hurt them.   

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13 hours ago, whichwaysup said:

It was certainly meant with the best of intentions.  If it offended anyone, put your big boy pants on.   A question was asked, an answer was provided.  No need to flame folks for providing their take on the appropriate answer.   Been in finance a long time.  A lot of people really dont know how badly long term loans can hurt them.   

... and it’s free advice, solicited or not, take it for what it’s worth. 

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15 hours ago, whichwaysup said:

It was certainly meant with the best of intentions.  If it offended anyone, put your big boy pants on.   A question was asked, an answer was provided.  No need to flame folks for providing their take on the appropriate answer.   Been in finance a long time.  A lot of people really dont know how badly long term loans can hurt them.   

If you call that flaming you should take your own advice on the pants

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  • 4 weeks later...

A little late to the conversation, I financed mine for 180 months for the reason that I could afford the payment and that I will not sell the boat as this was and is going to be my retirement toy.  I also put $10,000 down knowing that this is it.  I also made myself and my wife agrees that any and all bonus' that I receive will go toward the principal.  I plan on having it paid off within 8-10 years possibly earlier.  I used US Bank, financed 25K @ 4.50%.   

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When I financed mine they didn't even ask how long I wanted the loan to be... came with 15 years (and I put down 20k).     Kinda wish I would of said something and made the terms shorter but oh well... It will eventually get paid off.  

 

Financed through fifth third btw....  

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1 hour ago, MuddyBottomBluz said:

As long there are no penalties for paying the loan off early (it's in the fine print) then no worries.  If you plan on keeping the boat for a long while, go for it! Whatever floats your boat! No pun intended:D!

No penalty for early payoff.  I checked...

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