Best finance options

[Gonefishing85]

I'm curious what the general consensus is on who is the best company to obtain financing through. I'm already approved through my credit union but recently decided it may not be my best option.

For those who suggest to avoid financing a new boat...

The boat is a brand new 2022 kinfisher fishing boat priced at $93k. I ordered it in April. I pulled the trigger due to the current state of inflation. I locked in the 2021 price when I ordered it and the 2022 price is over $10K more. I personally feel like it's now or never for me.

Thanks guys & gals!

 

[roscoe]

I'd use the proceeds from selling my 1st and 2nd born.
That way I'd only have to borrow $65,000.

You best $$ source is going to be local in my opinion, unless kingfisher can turn you on to someone that specializes in boat loans.

I am a member of 2 credit unions, and can usually beat their rates by shopping at one of the 3 banks in town.

 

[Gonefishing85]

I'd use the proceeds from selling my 1st and 2nd born.
That way I'd only have to borrow $65,000.

You best $$ source is going to be local in my opinion, unless kingfisher can turn you on to someone that specializes in boat loans.

I am a member of 2 credit unions, and can usually beat their rates by shopping at one of the 3 banks in town.

I hear you about the money. I've been saving for a long time and have a healthy down. Didn't have to sell the kids but considered it.

 

[ahicks]

2nd vote for shopping around. My credit union totally sucks when it comes to loans. The only reason I've been with them so long is that they are handy.

 

[Scott Danforth]

Depends on your local CU or bank. My credit union usually has lower rates than the local banks

 

[racerone]

Blunt statement.------If you have to borrow money for a boat like that , then where will the money for fuel and other expenses come from.-----If you only use it once a month it will be a bad investment I say.

 

[dingbat]

Blunt statement.------If you have to borrow money for a boat like that , then where will the money for fuel and other expenses come from.----

It takes money to make money.

Nobody in their right mind would pull money out of investment account(s) to buy a depreciating asset when you can barrow money for less than your making in investments.

Case in point….my primary investment account averaged 8% over the past 10 years. Currently up over 20% YTD.

New Car loan…3.9%

 

[roscoe]

Its a depreciating LIABILITY, not an asset in my opinion.

 

[ahicks]

Still a hole in the water, any way you look at it....

 

[dingbat]

Its a depreciating LIABILITY, not an asset in my opinion.

By definition an asset has value. You could sell the asset for money if you had too.

A liability has no intrinsic value. Worth nothing, a debt or loan.

How do you depreciate something with no value?

The value may be less than the loan, thus the “depreciating asset” moniker, but none the less the asset still has value until you sell it at which point it becomes a liability.

 

[roscoe]

From an investment view, it has liability risk and depreciates.

 

[briangcc]

My current boat is financed through a Credit Union the marina uses. I swear the CU is run by 3 yr olds.

I'm currently looking at rolling it into a refinanced HELOC at a much lower rate.

 

[Gonefishing85]

Blunt statement.------If you have to borrow money for a boat like that , then where will the money for fuel and other expenses come from.-----If you only use it once a month it will be a bad investment I say.

I totally understand your sentiment but this is a business asset and not an investment in and of itself. It will be used for profit at least 3 days a week for at least 6 months of the year. As stated by others, the returns on my investment accounts outweigh the interest I'll pay on the loan. In the long run I'd loose money if I purchased with cash.

Honestly, what I should of asked, what is the best option for extended term loans! 20+ years.

 

[Scott Danforth]

Honestly, what I should of asked, what is the best option for extended term loans! 20+ years.

turn it into your primary residence

power sports, water sports and RV toys are at a higher rate than automobile or residence loans and I believe for a max duration of 72 months

 

[Gonefishing85]

turn it into your primary residence

power sports, water sports and RV toys are at a higher rate than automobile or residence loans and I believe for a max duration of 72 months

My credit union does 15 years on boats . I have seen plenty of adds for companies that go out to 20 years. I'm just looking to see if anyone has experience with any of those companies.

 

[ahicks]

If married, there's a neat trick if you want to claim 2 places as a primary residence. You and the wife are both entitled to a primary residence if filling "married, filing seperately". One of you files with the house, the other a second house - or boat.

Popular move for those with winter and summer homes.....

 

[tpenfield]

What are the rates these days for boats? 4% +/-?
How much will that $93K boat actually cost?

I've always been a fan of paying cash for 'toys', but maybe buying new is a bit different.

 

[Gonefishing85]

What are the rates these days for boats? 4% +/-?
How much will that $93K boat actually cost?

I've always been a fan of paying cash for 'toys', but maybe buying new is a bit different.

To buy a $93k boat with cash would mean taking cash from my investment accounts. Considering the apr is between 4 -7% and my investment account is +152.79% ytd which is not typical but not unusual either... kind of a no Brainer.
If I took the full 15 years to pay it off, I would pay nearly $50k in interest. I plan to have it paid off in 5 years or less so I'm looking at $10-12k interest. I do want the longest term possible tho because unexpected things happen. In that same time, my $93k cash has the potential and with my investment strategy, the likelihood to turn into $750k or more.

 

[dingbat]

If I took the full 15 years to pay it off, I would pay nearly $50k in interest. I plan to have it paid off in 5 years or less so I'm looking at $10-12k interest. I do want the longest term possible tho because unexpected things happen.

I always go with the longest term they offer to get the lowest interest rate and minimum payments.

I then double up, or even triple payments to pay it off early. Just make sure there are is no prepayment clause in the contract.

 

[nola mike]

. In that same time, my $93k cash has the potential and with my investment strategy, the likelihood to turn into $750k or more.

Lol. Unless your investment strategy is bank robbery or pyramid schemes, that ain't gonna happen...