Do many owners borrow to buy a boat?

[JumbleDuck]

I was posing a question to posters who are prepared to borrow to finance their boating - would you borrow to finance horse ownership which, at least, has the potential to offer a return.

I have zero interest in horse racing, but in principal yes I would borrow to participate, no problem. Subject to some basic questions like "How do I get out if my finances change for the worse?" and "What unexpected bills might there be?" but these apply to a boat as well.

I borrowed money to buy my glider. After 15 years I sold it for 1/6 of what i paid (wooden glider prices had collapsed) but it was still worthwhile.

 

[Resolution]

I also fitted a new kitten to the 4th house with a bank loan,.

OldBoots, your typo conjures up a wonderful image of your discussions with your bank manager (in the days when banks had managers)!

 

[JumbleDuck]

OldBoots, your typo conjures up a wonderful image of your discussions with your bank manager (in the days when banks had managers)!

I expect the loan contract had a penalty claws.

 

[Irish Rover]

I have zero interest in horse racing, but in principal yes I would borrow to participate, no problem. Subject to some basic questions like "How do I get out if my finances change for the worse?" and "What unexpected bills might there be?" but these apply to a boat as well.

I borrowed money to buy my glider. After 15 years I sold it for 1/6 of what i paid (wooden glider prices had collapsed) but it was still worthwhile.

Thanks for sharing - I’m genuinely interested to hear opinions from posters who take a different approach to mine.

 

[SiteSurfer]

As the age of the boat owner decreases so does the emphatic desire to pay cash because 'never a lender nor borrower be' is not so firmly ingrained into the psyche by years of parents who have some moral high ground issue with debt. Personal opinion of course. No supporting data.

 

[pvb]

I wouldn’t dream of making such a personal, unprovoked attack on someone’s lifestyle.

But you were happy to make a personal unprovoked attack on me...

So who's the hypocrite?

 

[Luffe44]

Of course not. Motorboaters just like the noise and the smell of diesel fumes. Same with my interest in horse racing. I just like the smell of horse shit. Perish the thought that anyone could match your passion for sailing.

I appologize for the offence. Not what I intended. The point I was trying to make was that if you want something bad enough, time is of essence. I did not have the funds, so I upped the mortage.

 

[lw395]

I have zero interest in horse racing, but in principal yes I would borrow to participate, no problem. Subject to some basic questions like "How do I get out if my finances change for the worse?" and "What unexpected bills might there be?" but these apply to a boat as well.

I borrowed money to buy my glider. After 15 years I sold it for 1/6 of what i paid (wooden glider prices had collapsed) but it was still worthwhile.

Fair comment.
It seems to me that for many boats, the interest on the capital might be well down the list of bills.
I find the ways different people think about money quite interesting.
Some strongly held views.
Sometimes not based on analysis.
But as someone who came quite close to proving that you can go very badly wrong by buying your own home, I try not to criticise people with different attitudes, so long as they're not scrounging from me.

 

[Simon__]

I prefer not to borrow as it always plays on my mind how much I’m “really” paying and what I could buy if I wait instead when I factor in the interest, but I was impatient, turning 30, and taking a small loan allowed me to get into sailing a season earlier. I took out an unsecured loan through Zopa for 2.9%Apr over 4 years with no arrangement or early repayment fees, which seemed quite reasonable. I was fortunate as I’ve been able to settle the loan after 9 months and even received cashback for the application, so payed ~£120 interest.

I think financing can be positive and enabling but I wouldn’t ever see myself taking a “mortgage sized” loan on a boat. For me, it has been a great relief to know I now own the boat outright and there’s a psychological value to that.

The wider issue with this question, which I feel is demonstrated across this thread (and in my post), is that everybody likes to think they get a good deal..

 

[Deleted member 36384]

OldBoots, your typo conjures up a wonderful image of your discussions with your bank manager (in the days when banks had managers)!

I expect the loan contract had a penalty claws.

Ha ha!

 

[moomba]

Apparently boat mortgages are quite common in the States, maybe a better financial pathway to getting a mortgage on a boat
http://www.boatus.com/magazine/2014/october/financing-your-dream-boat.asp

 

[rotrax]

Just to put all this into context, my first new boat was shared with a neighbour and cost £17.00 from Pride and Clark in Stockwell Road, Brixton.

We put £5.00 down and paid £1.00 each month by postal order, sent with the little brown payment book which came back with the amount still owing after taking the payment off.

It was a new 16 foot unpainted ply rowing dinghy with hardwood trim. IIRC, the marine paint and varnish cost as much as the boat.

If we had not taken the modest finance package, exploring the local waterways would not have happened until much later. Wages at the time were about £1200.00 per annum.

 

[moomba]

Just to put all this into context, my first new boat was shared with a neighbour and cost £17.00 from Pride and Clark in Stockwell Road, Brixton.

We put £5.00 down and paid £1.00 each month by postal order, sent with the little brown payment book which came back with the amount still owing after taking the payment off.

It was a new 16 foot unpainted ply rowing dinghy with hardwood trim. IIRC, the marine paint and varnish cost as much as the boat.

If we had not taken the modest finance package, exploring the local waterways would not have happened until much later. Wages at the time were about £1200.00 per annum.

Was that before the referendum or after
It seems that due to the popular U Tubers getting great air time people are wanting to follow on on that dream , and boats are very expensive, especially if people are looking at the Cats on the market, so how do they get the money t buy the boat.
I was lucky for my boat in that my compensation and my inheritance from my Mums death on a moderate estate allowed me t buy cash , but would never have had the chance until much older to get a boat , family always comes first, but am thankful that moderalty young I can go sailing with my Family as my fathers side going back generations always worked on the sea , so Im following my dream
firts

 

[Birdseye]

Interesting. Boats are often leased in France. Leading probably to more French sailors. Because it probable makes it more affordable for more people.

Cars are often leased. Although I have never leased one myself. It obviously works for some people.
The advantage. For a clearly defined monthly cost for a clearly defined period of time. You have the use of a nice reliable car.
The end of which you go lease another.

I wonder why a “lease” option is not readily available for most new boats?

Cars are a necessity - you have to have one whether you have the capital or have to borrow. Boats arent a necessity except to commercial fishermen. They are toys. Whats more they dont have a clear second hand market price on which a lease can be based.

 

[Birdseye]

Of course not. Motorboaters just like the noise and the smell of diesel fumes. Same with my interest in horse racing. I just like the smell of horse shit. Perish the thought that anyone could match your passion for sailing.

That goes for biking too. There really is nothing like the smell of horse shit on a hot exhaust!

 

[rotrax]

That goes for biking too. There really is nothing like the smell of horse shit on a hot exhaust!

As a long time motorcycle Grass Track racer I always found the most evocative smell was the combination of the Methanol fuel, Castor Oil, newly cut grass and cow shit on a hot exhaust.

 

[steveej]

Interesting thread.

As someone who is in my mid thirties having significantly upsized the house back in October, I am currently capital poor.

The week before Christmas and the Boss pulls me into the office to tell me about a completely unexpected and substantial payrise.

So I am now Capital Poor but Cashflow Rich.

So running the numbers on say a £30k boat, with £5k deposit and £25k personal loan over 4 years, repayments are around £550 per month, total repayments £26,400.

It has cost me £1,400 to have the boat now, rather than wait 4 years time and the loan will be repaid before my 5 year fixed mortgage deal is due for renewal. Must admit it is making a lot of sense to me.

I could do broadly the same with a brand new BMW which are ten a penny these days on a PCP finance deal and at the end of the 4 years have nothing to show for it.

 

[savageseadog]

There's a glut of second hand boats on the market so resale prices are low. Something to bear in mind if you are considering buying a new boat.

 

[Skylark]

But you were happy to make a personal unprovoked attack on me...

So who's the hypocrite?

I guess it’s still Pantomime season so I’ll play along.

“Oh no it wasn’t (me)”

You stated that people who do not buy using credit but have a mortgage are hypocrites. Take a look at post number 2.

That’s quite offensive and judgmental so I simply asked if you had a chip on your shoulder

If I read it correctly, the OP is genuinely interested in how people chose to finance their hobby/recreational activity. I can’t imagine for a second that he’d pass judgement on those not in accord with his views.

 

[WF36]

I bought myself a Ferrari for my 70th - daft idea but I did. I got into just this conversation with the staff at Maranello who confirmed, to my amazement, that 90% of the cars they sold ( even up to the million £ ones) were on credit.

xyachtdave seems to sum up the logic well.

When I bought mine I was told I was more likely to get the list for limited edition ones if I financed (which I didn't).