2014 and 2015 Guaranteed trade in rate? Gimmick or Not?

[cane.mba]

Let's be honest, if we were worried about money, we'd sure as heck stay away from this site! I haven't even started thinking about my winter mods list, but I think it might be a doosey! I blame everyone of you for that!

 

[B_Mutter]

Here is what we have learned about the Trade In Program guys... The new 2015's don't qualify for the 2.99 rate anyway but we will go with this just for demo....
If you are financing the boat and qualify for the 2.99 rate you can take that but if the Trade in Program is your thing then the rate would be 3.99 for the 180 months. You can not take any shorter loan (but that doesn't mean you can't pay more per month). Here is the kicker to the trade in program. All service must be done by the selling dealer (i.e. oil changes, winterizations, recommended services), you can only trade the boat into the selling dealer, you can ONLY trade the boat in during the 60th month.. not the 59th or 61st. You get one shot at trading it in. We have some web training and seminars to do on the new program. When I get more info I will spread it. If you have moved during the 5 years you will have to show proof of address change in order to trade in with a different dealer.

 

[BigN8]

Sounds like a big fat carrot

 

[OrangeTJ]

Sounds like way too many limitations to be of real value.

 

[0627Devildog]

So in other words. . . . . Gimmick.

 

[robbo3]

It's almost like a 5 year lease on the boat, they'll make up any negative equity, but you've essentially rented the boat for the 5 year term.

 

[HidnNOS]

Gimmick? It's more than others are even considering offering.

 

[OrangeTJ]

True. What would be cool is if was was actually like a lease in that you could just turn it in at the end of 5 years and not owe anything further, regardless of whether you bought a new one or not. Given what boats cost these days, I'm a little surprised that there aren't lease options like that.

 

[0627Devildog]

It is a way to lock you into the brand, and smart marketing. But if you read between the lines they are not offering you much. 1. Who takes a 15 year loan on a boat? 2. Trade MUST take place in the 60th month (no flexibility here makes it gimmicky) 3. Must be done at original dealer or proof of adress change? 4. You can't do ANY of your own maintenance over 5 years? Seems like way too many restrictions to ever actually qualify. That is the definition of a gimmick in my mind, but to each their own.

As far as it being more than others are offering. . . . .maybe others don't want to tarnish their brand with gimmicky offers?

 

[Williamsone46]

I think there is real value in it for some people.

1. Who takes a 15 year loan on a boat?

90% off or customers utilize Yamaha's 180 month financing.

2. Trade MUST take place in the 60th month (no flexibility here makes it gimmicky)

Not a 100% sure on this, I need to look in it that on a webinar.

3. Must be done at original dealer or proof of address change?

Do to the fact that this commitment is between the buyer and the dealer more then it's between the buyer and Yamaha, makes sense to me.

4. You can't do ANY of your own maintenance over 5 years?

Although the maintenance can be easily done by customer the majority of our customers have them serviced at the Dealer. Plus the dealer is locked into taking your trade, so it kinda makes sense that the service be done by the dealer so we know it's history.

I don't think it's for everyone but it does add real value to some people.

I think you'll find it 50/50 on weather dealers opt in our not. It's a big commitment for the dealer.

 

[0627Devildog]

90% off or customers utilize Yamaha's 180 month financing.

WOW. I didn't realize that number would be so high, considering what a poor financial decision that is.

Do to the fact that this commitment is between the buyer and the dealer more then it's between the buyer and Yamaha, makes sense to me.

I have 4 dealers in my area, and while I am loyal to the one I purchased with. . . . this would preclude me from negotiating with other dealers for the best price. Being locked into the dealer give you as a consumer less room to negotiate.

****Disclaimer/Reminder - NONE of this even applies to me since I bought my boat outright. So these are just my thoughts on the matter coming from a Sales/Service background.

 

[Williamsone46]

WOW. I didn't realize that number would be so high, considering what a poor financial decision that is.

I don't see it being a bad financial decision at all. Someone could finance it @ a credit union for around 4.5%-5.5% for 60 months and pay around 6k in interest w/ a $950 payment. Or they could finance it with Yamaha factory financing @ 2.99 for 180 months and pay around 12k in interest w/ a $350 payment. Sure your going to pay 6k more in interest over the life of the loan but the payment puts it in reach of more families making it more accessible. I'm sure you and most would agree the quality time we get with our family and friends on the boats is worth it.

 

[txav8r]

The more I hear on this, the more I think it is a pretty good deal for those that do take a 180 month term. Those folks that do, have the most at risk...if they have taken a term based on monthly payments without the ability to pay it off at an earlier point. So while it doesn't help them get right side up in an upside down note, it does entice them into the deal in the first place. I am seeing this not as a consumer deal, but as a marketing tool. Anyone on the fence that is a full term buyer, certainly has reservations on 180 month term, thinking that they are locked into that boat for 15 years. This gives them the ability to pay as they go, and still be able to trade boats in 5 years if they so choose. The catch...they have to maintain it. I agree with @Williamsone46 , the vast majority of owners of Yamahas or boats in general, do not maintain them on their own, they seek full dealer support because they don't participate in user groups like jet boaters.net or have the background to do so. We are in a niche group gentlemen and we represent a small portion of the marketplace. While a higher percentage of jetboaters.net members maintain their boats themselves, that is not the norm outside of this forum. As we know, outside this forum, help to do so is scarce. What I don't like the sound of, is a deal that prevents an owner from doing his own wrenching. It is that wrenching that gets an owner familiar with his boat, increases his understanding, makes him a safer boater, and ultimately takes better care of his boat. I get that the dealer has to insure the boat is cared for to the letter, in order to make this offer, but ultimately, it is Yamaha putting up the money to guarantee the value, not the dealer, so forcing a buyer to let a dealer do the work is troubling to me. Because we have all read dealer horror stories. There are good ones, hell, there are GREAT ones! But there are also those that cut corners. I know of one for instance, that uses LFR6A-11 plugs in the 1.8L boats and swears there is no difference. I took this to NGK directly as many guys here even felt they could just regap the plug. The electrode is longer, and bending it that far weakens it, and subjects it to breaking at the weld...that is directly from NGK. So some of the things that a dealer or owner for that matter are cheaper and claimed to be "just as good"...but it may not be. The question is...who is more likely to maintain their boat to a higher standard, dealer maintenance or owner maintenance? So I see this as Yamaha support of the dealer network to reclaim or maintain service on these boats. Now if Yamaha would just make sure their service network is equal across the board.

 

[0627Devildog]

Gentleman, there is not a financial advisor in the world that would tell you a 180 month term on a boat is a good financial decision. While I agree it give more families access to the boats. . . . sub prime also gave more people access to housing. We see how well that worked out. . . . . . Making something expensive more attractive by manipulating the financing does not make it more affordable. That is all I am saying.

 

[txav8r]

Gentleman, there is not a financial advisor in the world that would tell you a 180 month term on a boat is a good financial decision. While I agree it give more families access to the boats. . . . sub prime also gave more people access to housing. We see how well that worked out. . . . . . Making something expensive more attractive by manipulating the financing does not make it more affordable. That is all I am saying.

I couldn't agree more, but we own boats right? What about owning a boat is a good "financial" decision? So in reality, doing a 180 month term on a bad investment is worse? Some would say if you don't have the discretionary income to pay for it outright, your making a bad investment. I don't think Dave Ramsey followers are boat owners...

 

[Williamsone46]

Gentleman, there is not a financial advisor in the world that would tell you a 180 month term on a boat is a good financial decision.

I wouldn't be so sure about that. Most financial advisors would suggest taking a 1.99%-2.99% for a 180 months and invest your money into something that could make money instead of pay it off and let that money sit and depreciate in the driveway. Surprisingly a good number of people that have the ability to pay cash choose to utilize the low interest and keep their money for other investments.

 

[BigN8]

Gentleman, there is not a financial advisor in the world that would tell you a 180 month term on a boat is a good financial decision. While I agree it give more families access to the boats. . . . sub prime also gave more people access to housing. We see how well that worked out. . . . . . Making something expensive more attractive by manipulating the financing does not make it more affordable. That is all I am saying.

I bought my boat with Yamaha financing using 180 month term at I believe 1.99%. I have enough money to buy the boat out right. When I bought the boat I also knew I would only keep it for around 7 years. My money that is invested is earning well above 1.99% or even 2.99% for that matter. So why would I buy a boat out right? Owning a boat is stupid. In my mind I am leasing this boat.

I may even sell it before the 7 year mark. We are considering that now, since the kids are so busy which makes our lives busy, we don't use it as much. So right now after 4.5 years of ownership, having financed at a very low rate, my boat payoff amount is exactly what the market is bearing for this model boat.

So essentially I have owned the boat for 4.5 years, am not upside down, and the money I have put in 401k and My Scottrade account has absolutely killed it over the last 4.5 years.

There is some good financial sense in using other peoples money to finance major purchases. If I'm buying something major from Home Depot and they are offering 0% interest for 18 months, I absolutely take that deal, even though I've got the cash to buy it I won't. I'll let my money work for me elsewhere and take the 18 months to pay in small chunks.

I've done this all my life. You just create a file, write down inside the front cover the term and what the payment amount needs to be monthly to pay it off by the end of the term to avoid the finance charges.

You may pound your chest by slapping a check down on the desk and walking out with the title in hand, but to me.......that's just not money smart.

 

[HidnNOS]

WOW. I didn't realize that number would be so high, considering what a poor financial decision that is.



I have 4 dealers in my area, and while I am loyal to the one I purchased with. . . . this would preclude me from negotiating with other dealers for the best price. Being locked into the dealer give you as a consumer less room to negotiate.

****Disclaimer/Reminder - NONE of this even applies to me since I bought my boat outright. So these are just my thoughts on the matter coming from a Sales/Service background.

How can you tell anyone what would be a smart or not decision? I'd say it's dumber to own something so expensive outright that is absolutely depreciating every month. Doe

 

[HidnNOS]

I wouldn't be so sure about that. Most financial advisors would suggest taking a 1.99%-2.99% for a 180 months and invest your money into something that could make money instead of pay it off and let that money sit and depreciate in the driveway. Surprisingly a good number of people that have the ability to pay cash choose to utilize the low interest and keep their money for other investments.

EXACTLY

 

[BigN8]

I wouldn't be so sure about that. Most financial advisors would suggest taking a 1.99%-2.99% for a 180 months and invest your money into something that could make money instead of pay it off and let that money sit and depreciate in the driveway. Surprisingly a good number of people that have the ability to pay cash choose to utilize the low interest and keep their money for other investments.

@Williamsone46 I think you and I were banging the keyboard at the exact same time with the same message. It took me longer using an iPhone!!