New boat often?

[robertdodson]

Question...I have been one to get a new boat ever 7 years or so. I know that some get a boat...finance it over 12 years or so...then sell and get new boats much more often. Just curious...do you end up getting upside down or are you able to sell what you owe on it and simply get a new one for about the same payment...sort of a lease? I appreciate it.

[V8 Killer]

I would imagine it all depends on their down payment. Financing for 12 years (which sounds INSANE to me in the first place) with a minimal down payment, then getting rid of a heavily depreciating asset (especially in the first few years) relatively early into that 12 years is a recipe for being upside down.

My advice is finance a boat for as few years as you can without AT ALL struggling to meet a payment. Don't pay cash for it outright though, at least not with interest rates where they are (and have been for years). If interest rates go up 1.5 - 2 times then it starts to make sense, possibly, to pay cash. But right now with rates stupidly low, paying 100% cash for something doesn't make any sense. At least not for those of us that have our money working for us.

The other advice I would give, parallel to what I just said, is to finance for 10-15 years. However, make monthly principal payments based on paying it off in X years. That way if you have a bad month you only have to make the minimum payment...just don't let that become habit.

Sorry to not be able to directly answer your question, I'm sure others here can though.

Cheers,

Dusty

[Ziplock]

This is sorta what I have done the past couple of seasons. I look at mine a lot like a lease, BUT I am certainly not dragging it out over 12 years. Last year,(2012 230) I put down roughly 25%, and financed for 6yrs. This year (230 w/NSS), with a bit of negotiation, I was able to put down exactly the same amount, (didn't loose ANY equity) got a better interest rate, financed for 7 years this time, though I have payments set at 5, and my payment went up 50 dollars.

This is how I managed,

Hope it helps.

[pe4me]

That was a great 1st answer. I love boating, just no enough to spend 100k on a new one. (Income doesnt support this either)Assuming u buying brand new. Either way the key is to buy it right. That can look so different it's hard to quantify. Typically you pick up a left over, demo or low hour used so you get factory and finance options similar to new. Buy a boat that is and will be a "hot" set up and then it usually commands more $ when it comes time to sell.
If a dude bought a loaded up 06 and older 210 with the right options/colors, he probably does alright on inboards only or dealer. I think buying a new G "smart" may prove to have a similar return down the road.
IMHO, there is no mistaking the position we are in, it's a luxury and the average guy is going to have a hard time staying ahead of the game unless u exercise sound financial moves knowing that the fun factor will have to justify the expense. Unless of course you stay well within your means.

[nyryan2001]

I think it depends what boats you are talking about. They way I use and flip boats is more akin to a lease than a purchase.

Roughly 20% down and long loan low payments. that same 20% equity transfers to the next, and the next... maybe going down a little from 20%, to 17% to 15%. THAT equity is what allows the bank to do 12, 15, 20yr loans. Its safe and secure loan for the bank. You gotta have perfect credit, else you cant do this. And you gotta be able to make your payments.

Highly depreciating?? thats NOT been my experience whatsoever...but I think I have been into the highest demand boats, they dont depreciate like others, and I have a terrific market to work in in Dallas. I would go so far as to say almost ZERO depreciation on the boats most highest in demand and when done right. I mean this. I think this is highy region dependent on where you live and the strength and demand of your local market. I get nailed harder on taxes than anything, thanks Oklahoma, no tax rollover. But make no mistake, you are not making money or even breaking even doing this. It does cost some money.

2 things gotta happen for ^^ this to work. You gotta take GREAT care of your boat. Nearly perfect care. I run my boats hard, but I do not damage my boats and they are kept in like new condition. This allows me to get a premium on trade or consignment. Hours really dont matter. Folks wanna see a spotless bling appeal new condition boat completely setup ready to go.

somewhere just under 300hrs combined in my last 3 boats... I had one 1" gel scrape on the Wakesetter from a dock during a 30mph winds in an electrical T storm..otherwise they've all been flawless in new condition. Take care of your boats.

You gotta order your boat with the right options, and no more.... those options that folks are willing to pay for on the USED market, and NO others. You'll eat depreciation on those percieved not essential extras. Futhermore.... you gotta have your boat setup in the way folks want it... ballast, stereo.... trailer. Folks should look at the boat and think: "There is absolutely NOTHING I will need to do to this boat, its EXACTLY the way I would use it from day 1".

Lastly... your Dealer... You gotta have a GREAT dealer to do this. your pool of potential buyers willing to pay 100k+ on a 1-2yr wakeboat want the security of the dealer name behind the sale and the service and support that comes with it. Very hard to get 100k boats sold private party on craigs, and the internet.

With all this being said... I dont plan to trade anytime soon...satisfaction level is off the charts with this current boat.

[V8 Killer]

Ryan,

Your answer is 100% dead-on...for a very, very specific situation as you said (hottest boat, great dealer, perfect credit, hot DFW market, etc.). I was giving a more general answer that should fit a larger % of people.

You actually plan to keep your 2014 for a while though?

Cheers,

Dusty

[fatchance720]

10% down and I did a 15 year loan, that's right 15! YOLO, lol one of the only reasons I did 15 was to make payments cheap and my interest is 3.79 through Costco. I can use as many write offs as I can get for my taxes. I am fully prepared to loose up to 20k if and when I sell the boat, if not then a bonus.

[nyryan2001]

Ryan,

Your answer is 100% dead-on...for a very, very specific situation as you said (hottest boat, great dealer, perfect credit, hot DFW market, etc.). I was giving a more general answer that should fit a larger % of people.

You actually plan to keep your 2014 for a while though?

Cheers,

Dusty

Yes, first, its a PITA and pricey to finally outfit the boat setup the way I want it....custom stereo, underwater Lifeform LEDs done right, window tint, custom ballast, heater...etc etc. All of this I do aftermarket myself, so lots of coordination and hauling the boat around to get done, also registration PITA....first because its what I want on the boat for me and some of these not avail OEM like stereo upgrades, also builds value into the boat at a relative discount, as these thing IMO folks want to see on these boats and are willing to pay for when done right.

Also, I'm so happy with it, I cant concieve at this point anything on any newer boats I would want. The upgrade to the 550, surfpipe, Polk stereo, the 2014 more subtle graphics and my choice of custom colors/design....I'm pretty happy at this point, and it was definitly worth the upgrade and hassle for me this time. But no, no updgrades in my future anytime soon.

The only thing that could change this is that I move often...and could potentially be in saltwater. That could possibly drive a decision into a cosatal G perhaps. But I have a pretty strong mindset that with minor precuations we could run our G's in salt for years before issues such as drive cables etc have to be replaced...minor expenses IMO.

[lucky7t]

Put 1/4 down and financed for 5 years. It puts me in a place to trade if I want to but honestly I'm having second thoughts lately. Maybe it's my old age . The thought of going deeper in debt doesn't sound good especially when we have a very nice newer boat and it'll be paid for in two years.