How many of us owe money on our boats?

[brockhals]

I paid cash for the Yammie when I bought it. When I sold it I put all that into the Crownie but needed a little extra...

 

[txav8r]

Years ago I left AT&T for a healthcare company and the promise of free lifetime benefits for my wife and I. When I asked my now former coworkers what they were going to do for benefits when they retire some said they would never retire/basically work until they die. I laughed, they didn't.

Most professional pilots for the top airlines in the country had good health care benefits and retirement until bankruptcy became vogue, where companies, some flush with cash, shed their contractual responsibility and promises they too made in bankruptcy. I have watched numerous friends over the years, in their retirement years, lose their "lifetime benefits" with the sweep of a pen. You are but one company bankruptcy away from not having them, or even the promised, earned, and contractual pension for that matter. The only secure pension and medical benefit that I know of is if you retired from the military...even that can be changed with the sweep of a pen, by congress. Can you imagine, you budget for your retirement, and find a few years into it, that your fixed income lifestyle that was once pretty good, just took a huge hit when you have to go out and secure benefits that you worked a lifetime to earn? It is really hard to shift gears and squeeze the huge health care costs into your budget late in life. I wouldn't trust them at all Ronnie, I would secure some long term care that they don't control. Most of us will depend on Medicare for the bulk of our health care in later years.

 

[Ronnie]

I hear you @txav8r , earlier this year, after 8 years in to a 15 commitment, my employer broke their promise and changed the plan, with the stroke of some pens of people who are not impacted by the change they made, Now their is a formula by which I can calculate how much credit I will have towards benefits but they can't tell me until I retire what my benefits will cost so considering the trends chances are my credit will be less than the cost. It's makes it a little easier to leave but as is I actually get a small amount of money every month because my benefit credits exceeds my benefit costs.

Ideally I'd like my wife to get a job where I work so that I could get on her Benefit plan and become a consultant. I'd get paid a lot more and would have to travel more as well but I could pay off the house in less than 5 years, just in time to put my kid through school, the cost of which seems to be doubling all the time.

 

[Geiger41]

Not sure the total but anything over 30k I put down towards the boat Financed 30k exactly at 1.99% for 15 years...pay 550 per month..should be paid off in like 5 years

 

[txav8r]

Paying the boat off early is a good plan in my book. I know it is cheap money, but it is still 2% interest. Chances are, most folks with a loan to term are not investing equivalent money and leveraging the loan. Most of them would be better off using extra money or bonuses they make to pay down the loan regularly. At least those with little money down on it, could insulate themselves from being upside down. In life, things happen. And those unexpected things can cause you to need to sell assets or liabilities to get back in control. Having a full term loan with nothing down will leave you very upside down for a long time. Paying extra every year at least erases the possibility of that.

 

[txav8r]

Well, regardless of having the boat paid for, I took on a little short term debt to get the motorhome. Put down 20% and financed the balance at 1.49% for 60 months. One month longer, and the rate would have been over 4%. I don't like debt, but this is on a plan to have it paid before retirement.

 

[smthng]

I'm in that "D.I.N.K." category...Dual Income No Kids...so we didn't borrow anything.

That's me too... paid cash for the "test boat", my LX210. After a year of regular use, we wanted bigger and something with the ability to get from one marina to the next on something less than an entire tank of gas, so bought the '08 212X for cash. When we sell the LX210, half it's funds will go into maintenance and mods for the X and the tow rig, the rest goes back into a 401K.

 

[Ronnie]

Funny that this got some new replies today because last night I burned the last payment coupons from the boat loan I paid off earlier this year. Payments were small but many, the last coupon was dated May 2022, originally 2027 (15 year term). WOW!

 

[txav8r]

Congrats @Ronnie !!!

 

[kthrash]

Paid mine off last week after an excellent week! Not bad paid off a 10 year boat loan in 8 months!

 

[GTBRMC]

Just changed my vote. Paid it off last month! Very good feeling, for sure.

 

[1rjclark]

Loan. It's cheaper then my cell phone bill and cable! But besides the mortgage it's my only other line of credit out

 

[Eurocat]

I took out the loan for the 15 year at 2.99%, but when comparing to my old boat which I fully owned and already sold, I technically make money at the end of the year.
I was paying over 3K in marina fees, winter storage, etc, now I keep it at home or at the campground next to the river. Even factoring in winterization and the services ( although I intend to do some myself) it's still cheaper than what I was paying before. I plan on keeping the loan for 5 years and then decide what to do. Either take advantage of Yamaha's guarantee that the boat is worth what i owe on it and therefore upsizing to the 212 (or equivalent at the time) or keep it a little longer and pay it off then.
The way I see it is I get the boat for free and my cash is free to invest on other things which make a bit more than 2.99%.

 

[Speedling]

Changed to own outright! Although it kinda got rolled into the sale/purchase of our new house. Either way, all mine!

 

[Ronnie]

Changed to own outright! Although it kinda got rolled into the sale/purchase of our new house. Either way, all mine!

How does it feel?

 

[Speedling]

How does it feel?

Makes me wanna get rid of other debt!
I think I got caught with the credit problem.
First the boat which of course is a justifiable family expense. But then we out grew our car and had to get something bigger, then my truck broke down, and then we needed a new dining set. All which ended on credit one way or another. Time to cut it because the bills for private school started for us this past year and it's gonna get scary!

 

[Knot Practical]

Paid our mortgage off last year and their wasn't much of a reason to get up and go to work. Traded in our I/O put some money down. Got 2.99% for fifteen years but we put extra toward the principal each month. I hope to pay it off in less than 5 years.

 

[jet set]

I waited a few years while saving money and researching what boat I wanted and what best fit my needs. Bought my 2016 Scarab 215 HO three days ago and dont owe a cent. Great feeling. I dont beleive in debt if at al possible to avoid.

 

[kthrash]

242 Limited S, paid for today! 5 day loan LOL..

 

[LTM1964]

I took Yamaha's financing in order to get the extended warranty promotion; otherwise, I would have put it on my home equity line of credit and paid it off quickly. When I bought the boat, the lowest advertised rate was 2.99%. The salesman told me that not everyone got that rate. I told him that the reason I contacted him was because of the extended warranty and 2.99% financing so I expected to get the low rate. I told him the length of the loan wasn't important to me. I don't know if it was easier for the dealer or bank but they set my loan up for 15 years with only $2,000 down. You can imagine how low the payments are on an SX192 for 15 years. On my existing home equity loan, I always pay a large amount of additional principal when I make my monthly payments online. The bank handling Yamaha financing doesn't have an online payment feature and I was told to send principal payments to another address to ensure proper posting. This is inconvenient but I will probably make substantial quarterly principal payments. I normally keep boats five years before upgrading. It would be a sad day if I only made regular payments and then wanted to trade after five years.