242X? All in the numbers.....

[Shuck Water]

Just like how next year is an election year, I have started my campaign with the wife for a 242X E-Series.

Ultimately it comes down to the numbers, so here’s where I’m at:


2012 242 Limited S

-60 hours on the engines

-Mods: Thrust Vectors, EZ locks, and Perfect Pass.

-Estimate Trade Value at $37,000.

-Loan Balance: $46,000 - <$9,000> in the hole.


2016 242X E-Series

Purchase Price - $72,000 – Just guessing this will be boat show pricing.


Assuming the 2.99% financing rates are still available. The goal is to keep my payment reasonably the same, around $415 per month, which puts my loan amount at $60,000. That means I need $12,000 for the 2016 and $9,000 of the negative equity giving me a $21,000 gap!


How to bridge the gap.


-Yamaha has the upgrade plan in which they will contribute up to $5,000 towards negative equity. That brings my gap down to $16,000

-Increase the loan to $65,000, it’s only an extra $33/Mo. I just cancelled my XM subscription so I’m 75% there already. Now it’s an $11,000 gap.

-2016 upgrades planned on the current boat: Upgrade stereo and speakers estimate at $3,000. Need a new cover, estimate at $650. Install a permanent ballast system, estimate at $1,350. Total planned upgrades are $5,000. That’s cash already spent in my mind, now the delta is down to $6,000.


So for $6,000 would you pull the trigger and upgrade?


What am I missing here?


Other Options

I do like surfing and wakeboarding and did consider looking at a 2012-2013 wakeboard boat. However, I love the transom seating area on Yamaha, it’s easy to board for my parents who are only getting older, the new bimini is huge, which in Texas during the summer is a must. It’s almost like the more I try to get away from the Yamaha the more I keep coming up with reasons to stay.

 

[msavold]

Interesting... (also because I've started a file for a similar sales pitch, probably this time next year )
Two thoughts/curiosities: was the $5k "upgrade plan" available when you bought the boat? And wouldn't you want to do the stereo upgrade (o.k., speakers at least) to the new boat?
Other than that, yeah, I'd jump on it for $6k. My wife... not so much!

 

[BlacklimitedS]

Sell your boat. That would close the gap even more. Also while I feel your boat is worth 37K on trade that might be a little strong.

 

[jawsf16]

I imagine the 5k loyalty deal would be eaten up by a poor trade value... Sell it yourself for starters. Also don't forget about tax on the new boat. The trade would help there obviously.

I think your 6k difference is a total Justification Total and not realistic. That being said, if you want it and can afford it then get the Mrs on board and do it!

 

[OrangeTJ]

I
I think your 6k difference is a total Justification Total and not realistic. That being said, if you want it and can afford it then get the Mrs on board and do it!

Ding ding ding ding! We have a winner! I remember doing similar math every time I traded up on motorcycles. I think I once even convinced myself that buying one was going to be a net positive for my cash flow as compared to selling the one I had and not getting another. That's right, I was able to work the math such that a new Harley was less expensive than no motorcycle at all!

Anyways, if you want the X and have the funds, good times await! If I were looking in that price range, I'd at least consider a V-Drive along the lines of an MB B52 or an Axis T22, a jet from another manufacturer like the Chap 243 or a sterndrive like the Bryant Calandra or Regal 2300 (or 2100 Surf) or Cobalt 220.

 

[SCSTWG]

I suppose it comes down what value you and your wife put on the new and upgraded boat. The first thing that jumped off the page to me was you have a 2012 with only 60 hours on it. Given that you are only using the boat about 20 hours/year, I would have a hard time justifying the value proposition. I am probably more conservative financially, but my approach would be to pay the loan balance down over the next 18 months, save for a significant down payment, look for a better deal on a leftover E-Series at the end of next season or possibly even wait for the right used one in 18-24 months. I don't think looking at the monthly payment alone paints the entire picture as you need to calculate the interest over the loan, length of the commitment, additional negative equity, etc.

I also agree with @OrangeTJ that at $72k there are a bunch of other new and used boats that are worthy of consideration.

 

[dan_hoog]

I agree with the other more conservative posters. The new boat is 35K more in value, less any incentive on trade in, plus sales tax. Your existing boat already has much depreciation behind it, while the new boat is starting at retail.

I'd hold off for what else Yamaha may offer in a year or two and then consider new/used and maybe other brands in that price range.

The fact that you are borrowing and managing payments will push that 30K+ delta beyond the horizon. If your habits change and you see an even more compelling boat in a couple years, you would likely have a higher financial hill to climb.

That's my two cents. Good luck in whatever you decide and always enjoy using your boat.

...Dan

 

[GTBRMC]

@Shuck Water - I agree with most of the fiscally conservative thoughts above.

However... nearly any financial professional would agree that boat ownership is not a good financial move. B.O.A.T. and all that. And yet, here we all are.
If the financial hit, today and in your future financial position (think opportunity cost and power of interest over time as you head toward eventual retirement), is something both you and your wife agree is worth it and you can afford - then it may well make sense for you two.

@MotherYamaha - This is where your pricing has driven your value proposition over the last handful of years. Back before the 2010 model year boats, the MSRP prices were significantly lower than comparable boats and the resale values were considerably higher. This meant a smaller hurdle to get in and less financial pain to get out or upgrade. Time will tell if the resale values hold better than the competition on the newer models, but one of your major economic advantages vs the competition (lower initial purchase cost) is definitely gone.

Note: Lower maintenance and operating costs still provide similar value, from all indications.

 

[BigN8]

No freakin way that boat is worth going in the hole that much. Just my $.02 worth. Your current boat provides the same amount of fun to the family. You are simply caught up in the hype if the bells and whistles of the new model.

 

[Shuck Water]

@jawsf16 Never heard of the term "Justification Total" LOL, but there is merit in that thought process.

The intent would be to right the ship on negative equity, but yes I would go deeper into debt from a loan balance perspective.

@BigN8 Of course I'm caught up in the hype, it's looking like a bad ass boat. The funny thing is that aside from my boat and my house I have no debt. I pay off my cars quickly and almost never buy new vehicles. Boats are my Achilles.

I preface all of this that I haven't been out on a 242X yet, so I'm preparing for a mental let down. However, given what I've seen so far, this could be one of the best amalgamations of water sports and general use boats out there.

Or I'm full of crap and an idiot.

 

[SCSTWG]

I am beginning to feel like we are his wife......also known as the "fun police".

 

[Shuck Water]

I am beginning to feel like we are his wife......also known as the "fun police".

Yeah, you guys are pissing on my dreams....just kidding LOL

 

[SCSTWG]

Yeah, you guys are pissing on my dreams....just kidding LOL

The flip side of the coin is that we are all now even closer to the end of our lives, so if this is what you want and you can make it work than go for it. I took me more than 5 years to talk myself into buying a used boat at a great deal, so I am coming from the ultra conservative side. I do agree that it is a great combination of watersports and general purpose and the 2015-2016 models offer a lot of nice upgrades over the 2010-2014 models. I like the touchscreen, lower noise levels, hinged seats, etc. All attractive for sure. Personally, at $72k I would go for a Bryant Calandra.

 

[thegrapeguy]

I got back in the boat game this year. Had an LS 2000 from 2000-2009. Same old story - my wife wanted a jet boat and I wanted an Axis T22 since I am into the wakeboard/wakesurf sports. However the Yamaha is a better fit with our shallow water and a decent resell being that many boats on our lakes are jet boats... Having a qualified service dealer nearby is relatively important too. They do not sell the towable boats like Axis/Malibu/Nautique - just Yamaha jet boats and pontoon boats and a few sport boats.

Starting in August I started looking. So I saw some 242 limited S boats, one from 2014 and one from 2015. The price point was like 62k for the 2015 and $54k for the 2014, both new… Then I saw a 2015 212x for $49,500 with the 2.9% financing and choice of $1000 back or 2-year ext warranty. I was psyched. The 242's did not have those deals in August…

I didn't need a 24 footer like you seem to need though wouldn't have minded it. But the deal available on the 212x was tempting. Then I started following a 2014 212x on ebay. A couple of them actually. In one case the boat did not sell at 39k. In the other case the gentleman set his reserve high at 45k (contacted him for his reserve) and let it ride. It made it to 39k. Now granted someone could have bid it up but I felt not in this case. I would have maybe seen the bidding go up closer to 45k. And there was one frantic bidder who placed many bids inching it up to $37,500 but then got out. 2 more brought it up to $39k. The boat coincidentally showed a location on a nearby lake.

In the meantime I did not lose my desire for the Axis type boat and the best deal I could find was a 2014 Axis T22 for 53k. Would have had to travel across the country to pick up and drive back… Also though it was plumbed for Plug and Play the ballast work had not been done and some money would probably be put into that making the total cost closer to 60k. And also the amount of time to get off work and drive across the country. Or fly to check out the boat and have a company ship the boat back to me.

But the brand new 2015 212x with the financing and ext warranty kept calling me. Happy for the family, I get a tower and some ballast. Maybe I get with Gantlin and get the wedges and get some extra ballast work done and I'm sitting pretty good.

However after researching the differences between 2014 and 2015 212x I saw only minor differences and the graphic on the 2014 ebay boat was a cool carbon fiber deal which I really liked. Then I decided to contact the ebay seller about his 2014 212x and it turned that coincidentally he was located in my town and had it slipped in the same marina/dealer down the road from me. He had mentioned a nearby lake on the ebay ad but actually had it on my lake. Too much fate I think.

I drove the boat, 19 hours, no wear, trailer cover, factory cover, bow and stern cover, he gave me the slip at the marina till the end of the year so I don't have to buy hoist till next spring. I was welcomed into the dealer family circle for future service, future slip rental, gas purchase, etc.

So we cut a deal for $37,500. Is it a steal? No, but it is fair - I believe it is worth what a 2014 used 212x with essentially 2 seasons on it should cost. That's roughly 12k of depreciation in 2 years. I ended up with a 25k loan with my credit union for 5.4% for 12 years and my wife and I used home equity at 2.99% and some cash for the rest. Cost $41,300 with tax, DMV and 1st year of insurance.

I'm not sure my financial story can relate to yours but every new year brings a new boat with something better. I still don't feel the e-series is the perfect wake boat in the sense it still doesn't have stock wedges and surfgates and ability to ballast the boat to one side without mods… Coolest feature to me would be the new throttle system. The 212x I have is a pretty heavy/clunky throttle move.

I feel like some other posters that for $72k that you could get a heck of a ready to go wake surf/wake boat or perhaps the Four Winns TS222 (maybe one year old). I was told to stay with 2014 or better when it comes to Axis/Malibu because of Surfgate. But if you set your mind with Yamaha - a 2016 Yamaha 242x E-series jetboat would be the best current "pretty perfect" boat to get your hands on!

 

[Williamsone46]

@Shuck Water I don't believe Yamaha's Guaranteed Trade-In started until 2014 and you had to buy your boat from a dealer that is participating in that program. The program is not retroactive to previous sales prior to the program coming out.

 

[Shuck Water]

@Williamsone46

 

[Englewoodcowboy]

All I can say is do what you feel is right by you and what works for your family. I was in the same boat this year when I finally was able to take my whole family out on my AR192 and it failed to meet my expectations with a full load miserably. I searched and decided I needed an upgrade and locked in on the 2015 212X. I ended up selling my 192 for what I owed, I took about a 6K hit in the scheme of things with taxes, fees etc that you simply lose right off the top it all boiled down to a net loss of about 3K of what I bought the boat for. I used it last year etc. and it was great for 2 or 3 people and what I was doing at that time, now I have a boat that does all that I want it to do no matter what time or who I take with me. In the end it was worth the loss to step up to what actually fit my needs, that is something you have to decide. My friends tried to talk me into a used Nautique or Axis etc. but I was not looking for the boat to be the best at one particular thing, I want it to be decent at a few and that is exactly what the Yamahas do. They are not perfect surf boats or wake boats etc however they are decent at them plus they are decent party boats, excellent tubing boats and decent for fishing. Mention fishing on a 100K Nautique and listen for the gasps and watch for the stares... but if you are into one thing and that is all you do then by all means you need to look at a boat that does that one thing the best that is within your budget otherwise you need to think about the larger picture. My wake boat friends love their boats but my yamaha becomes the envy everytime we anchor up in a cove to float and have fun...

 

[Bill D]

Nobody bought a boat to make money on investment. If you want a new boat, spend it like it's someone else's!

 

[Williamsone46]

Come on you know you want it!

 

[Evil Sports]

Going that big in the hole loan wise on a depreciating asset is a bad move any way you look at it. Step back, take some breaths and locate reality. Sell your boat, find some way to come up with some extra down payment $$ and go from there.