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

[Williamsone46]

@BigN8 lol, I was using a Note 3.

 

[0627Devildog]

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...

Actually, Owning outright is exactly what Dave Ramsey would say to do. . . . . . We saved disposable income for 6 years to have cash on hand to buy her outright.

 

[0627Devildog]

Let me rephrase that. . . . there is no GOOD financial advisor worth his salt that would advise a 180 Month term on a boat in the context of this offer.

I was simply putting this in the context of the CURRENT offer. Which is 3.99% over 180 months to qualify for the trade credit (which is strictly administered) and is just not a great deal in my OPINION. That said, I agree that there are in fact instances where it makes sense to finance with other people's money. I did exactly that with my 2014 JGC, because I got 0% APR for 36 month. 36 Months was plenty of time to pay off the loan amount which was <$10K as a result of my trade and credits. I have also been known to take 0% at HD on big purchases, and am good about keeping track of them and paying them off before the interest rate kicks in. Both of which I agree are SMART financial decisions.

That said, I didn't pay cash for this boat so I could pound my chest. . . . . I just didn't want to pay to use someone else's money. During the preceding 72 months leading up to the purchase I was making payments to MYSELF, and that money was earning interest and dividends during that time. I also have a fully funded emergency fund and continued to funnel cash to general savings, and contribute to my retirement fund, Live life etc. . . . I sacrificed nothing by not using someone else's money. Whether you own it outright or finance it it is going to depreciate. . . . . . From my perspective the 180 Month loan term is set up to do exactly what @Williamsone46 indicated. . . . "Bring more people into the market". Unfortunately, a LOT of those people only get in because of the payment terms and NOT because they can actually afford the boat (and all the expenses that go with it).

To each his own gents, didn't mean to get anyone's panties in a bunch. . .

 

[Bruce]

Personally I like the program. Not as a buyer of a new boat who will want to trade it in but as potential buyer of a 2015 in 2019. I would add too many mods to the boat to consider trading it in. I prefer to pay cash for low hours well cared for used boats. It seems like this is a good move toward a "certified pre-owned" program for Yamaha. It also encourages owners to have their boats serviced the right way at the right time and gives the dealer the opportunity to check for issues with the boat they will be buying back. If I was willing to buy new and not go crazy modding then it would give me comfort to know that I could trade the boat in without being upside down in 5 years.

 

[HidnNOS]

Let me rephrase that. . . . there is no GOOD financial advisor worth his salt that would advise a 180 Month term on a boat in the context of this offer.

I was simply putting this in the context of the CURRENT offer. Which is 3.99% over 180 months to qualify for the trade credit (which is strictly administered) and is just not a great deal in my OPINION. That said, I agree that there are in fact instances where it makes sense to finance with other people's money. I did exactly that with my 2014 JGC, because I got 0% APR for 36 month. 36 Months was plenty of time to pay off the loan amount which was <$10K as a result of my trade and credits. I have also been known to take 0% at HD on big purchases, and am good about keeping track of them and paying them off before the interest rate kicks in. Both of which I agree are SMART financial decisions.

That said, I didn't pay cash for this boat so I could pound my chest. . . . . I just didn't want to pay to use someone else's money. During the preceding 72 months leading up to the purchase I was making payments to MYSELF, and that money was earning interest and dividends during that time. I also have a fully funded emergency fund and continued to funnel cash to general savings, and contribute to my retirement fund, Live life etc. . . . I sacrificed nothing by not using someone else's money. Whether you own it outright or finance it it is going to depreciate. . . . . . From my perspective the 180 Month loan term is set up to do exactly what @Williamsone46 indicated. . . . "Bring more people into the market". Unfortunately, a LOT of those people only get in because of the payment terms and NOT because they can actually afford the boat (and all the expenses that go with it).

To each his own gents, didn't mean to get anyone's panties in a bunch. . .

Why throw that money away vs having 50K + to invest and make more off of to PAY FOR YOUR BOAT. Makes no sense to me

 

[jetboater4life]

Why throw that money away vs having 50K + to invest and make more off of to PAY FOR YOUR BOAT. Makes no sense to me

We are talking about risk here. Earning more than 2.99 in a given year isn't always a given. If the stock market were to get cut in half as it did not too long ago then would you be able weather the storm? A loss of a job is more likely during tough times. Selling a luxury toy is also more difficult in that scenario. I subscribe to what Dave Ramsey preaches, but don't follow it to the letter. Everyone is at a different spot on the financial freedom curve and using other people's money to buy large toys may be a low risk deal for some of us that can easily weather the storm.

 

[davel501]

We are talking about risk here. Earning more than 2.99 in a given year isn't always a given. If the stock market were to get cut in half as it did not too long ago then would you be able weather the storm? A loss of a job is more likely during tough times. Selling a luxury toy is also more difficult in that scenario. I subscribe to what Dave Ramsey preaches, but don't follow it to the letter. Everyone is at a different spot on the financial freedom curve and using other people's money to buy large toys may be a low risk deal for some of us that can easily weather the storm.

I think we can all agree that if you are looking at this as a payment you can afford while making all of your other monthly payments but never getting anywhere besides having a lot of depreciating stuff then you are doing it wrong.

 

[0627Devildog]

Makes no sense to me

Which is probably why no one will ever mistake you for a Rocket Scientist. . . . .

First, while I was saving the money it was compounding interest and dividends in case you missed my post above. To get into the figures, the $36K of principal I put in over 6 years covered the cost of the boat AND my docks @ $60k (during a time that I was building a 2nd home and had little time to use a boat anyhow). Second, at 3.99% you would have to make that on your investments minimum to just break even. Third, you are assuming that you can make gains of > 3.99% on any investments you have. In today's market, you might be right. But would you still be giving the same advice if this were 2008? Markets are at all time highs right now, but what goes up . . . . . .

Additionally, I just don't like owing anyone anything.

 

[HidnNOS]

You are stuck thinking you can only invest money into a stock market... who is the R.S.? Some people are happy hoping to make 2.99% in a market like you, others look at making 2.99% as A LOSS

 

[BigN8]

Which is probably why no one will ever mistake you for a Rocket Scientist. . . . .

First, while I was saving the money it was compounding interest and dividends in case you missed my post above. To get into the figures, the $36K of principal I put in over 6 years covered the cost of the boat AND my docks @ $60k (during a time that I was building a 2nd home and had little time to use a boat anyhow). Second, at 3.99% you would have to make that on your investments minimum to just break even. Third, you are assuming that you can make gains of > 3.99% on any investments you have. In today's market, you might be right. But would you still be giving the same advice if this were 2008? Markets are at all time highs right now, but what goes up . . . . . .

Additionally, I just don't like owing anyone anything.

I'm no rocket scientist, but i did study nuclear engineering, reactor theory, quantum physics, and my math skills tell me your wrong.

Also, I will quote my wise and departed grandpa who once said, "son, if it fucks, flies, or floats.....rent it don't buy it"

Peace!

 

[HidnNOS]

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.

A'men

 

[jetboater4life]

I think we can all agree that if you are looking at this as a payment you can afford while making all of your other monthly payments but never getting anywhere besides having a lot of depreciating stuff then you are doing it wrong.

Certainly we agree on that but I would bet we are in the minority.

 

[Freezer41]

It would probably take me 5 years to save in order to buy a 242LS outright. The money would be invested, probably in stocks, until then. I may or may not have good returns. Who knows how much the MSRP of a 2020 model would be. 70k? Not out of the question. If I could get a 2.99% 180mo loan, 5 years later I'll have paid close to 9k in interest. With new boat prices continually going upward that bodes well for used boats holding their value. I don't think I'd be upside down owing 40k after 5 years. Maybe I'm wrong. @BigN8 what % did you have to/elect to put down?

 

[BigN8]

I put no money down. Initially I was looking at used boats, because I know that anything new is heavily depreciated the first few years. So I really searched for a good used Yamaha. But then the local dealer offered an increadibly low interest rate over the later part of the summer on all Yamahas except the 242 series. That is why I bought the SX 240 and then added a tower. I don't have the file in front of me but I am pretty sure I got the financing for 1.99% and I also got the 5 year YES warranty for free. That is why I pulled the trigger on the new boat.

So I have owned the boat just over 4 years and my payoff on my statement is exactly what the market is right now for this model and year boat. I am actually thinking of putting it on the market right now because I find that we are just "forcing" ourselves to go boating right now. Two daughters playing high school volleyball and basketball it seems I spend a lot of time on gym bleachers. Perfect example, it was beautiful this Saturday and I was at a volleyball tournament from 10:00-5:00.

I would also like to mention my Scottrade account saw double digit growth and my 401k saw VERY high double digit growth over this same 4 year period.........but hey, I'm no rocket scientist so pay no attention to me!

 

[Kane Martin]

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?

I took the 180 month financing...but only because the APR was 2.99....had I gone 60 month it would have shot up to 6.99%....so will just have some flexibility on payments now I guess....there is not early payment penalty.

 

[0627Devildog]

I would also like to mention my Scottrade account saw double digit growth and my 401k saw VERY high double digit growth over this same 4 year period.........

Funny, I thought I was the one "beating my chest"?

 

[BigN8]

Funny, I thought I was the one "beating my chest"?

Just figured I would defend us "non-rocket scientists" out here with some historical facts.

 

[BoaterGuy]

I thought I would just chime in here... the past 4 years have been a result of money pumping by the FED and easy money policies by the central banks of the rest of the world.

Interest rates this low and prices this high are not here to stay. There will be a correction and prices will fall and interest rates will rise. Frankly, in the past 4 years you pretty much could have thrown darts to pick stocks and experience nice returns. The question is... do you get to keep them in the long run?

 

[Craig]

One of the great things about this forum is that you get honest differing opinions from the membership. The even greater thing is that they recognize the value in these differing opinions and respect them, because just like good government it takes hearing all points of view to make an educated decision.

 

[davel501]

One of the great things about this forum is that you get honest differing opinions from the membership. The even greater thing is that they recognize the value in these differing opinions and respect them, because just like good government it takes hearing all points of view to make an educated decision.

I think you mean