Boat Financing.

[NoBozo]

Another thread referencing boat insurance alluded to how a boat might be financed..and the insurance requirements.

I have always wondered..how many people that buy boats actually get a loan to do so. I have owned boats since 1967. I have always paid cash to buy a boat. Am I in the minority..?? My last BIG boat was a C&C 32 (Sail) bought NEW in 1980. I paid roughly $50K. CASH

I am not bragging and not trying to appear to be elite. I'm just wondering..how many of you finance your boat purchases.

[MAXUM]

I only buy what I can pay outright for. Then again I hate making payments on anything! Although I must say putting gas in the boat is as bad as a payment. Grr.... we need cheaper gas!!!!

Will be interesting to watch the results of this one roll in.

[upthesaukee]

We paid cash for our used 19ft. Paid cash for new engine a year or so later.

Now looking at a 25-27 foot bowrider, and will not be paying cash. We are seriously considering using our home equity loan, and paying it down like a regular loan. We have 2% interest on our HEL.

Also want to talk to our financial guy first.

[caloway]

I for one hope to never have 50k in my checking account. It's got much better things to do than earn 1% apy.

[gf2020]

I have purchased 2 new boats in the past 7 years. Both were financed with 10 year boat loans. If the boat meets certain requirements, boat loan interest is deductible just like mortgage interest as a second home.

[brk-lnt]

We paid cash for ours, but I would also finance if the terms were right.

For the most part, we pay cash for everything other than real estate, or if something is financed (vehicle, etc.) we have more than enough to pay it off, but may choose to finance if the interest rates are low enough. I like the security of knowing that I have the cash on hand should things ever get drastic. Probably being overly cautious. If any purchase over $500 has any kind of zero-interest financing option, we'll take that almost 100% of the time (and then pay it off before any interest/penalties).

[NoRegrets]

Advice my accountant gave me 35 years ago. Never do anything because a tax advantage. Do what is right then take avantage of the tax position.
With accrued interest you will have paid over twice the loan value at the end of the term.

I am surprised the percentage of purchased VRS. financed is so close.

[codeman671]

I financed my new one this year with 20% down through the dealer. The whaler and 2 jet skis I bought all in cash over the winter. I typically roll my entire armada over every year or two, I look for good deals in the winter (particularly out of the south and have them hauled up), use them for the season and sell all in the fall. As long as I take my time and buy right I usually get a season of use in and either break even or profit.

I had the cash to by the new pontoon from selling my last boat but we are looking to make a real estate change this year so I wanted as much cash in hand as possible. If we sell we probably wont be back on the lake for a while if at all so the pontoon goes. Carrying a bit of interest for the season is no big deal. I know I wont own it for long.

[jrc]

One salesman at a major marina told me that I would be surprised but in general, the bigger the boat, the more likely it was bought without financing.

People buying $500K plus boats, don't need to finance. You don't spend half a million on a toy unless you have serious cash.