Welcome to the Downeast Boat Forum, the premier website dedicated to the Downeast Boat enthusiast! Sign up today and talk with other Downeast Boat enthusiasts about everything from Lobster Boats, Downeast Cruisers, Lobster Skiffs,Long-lining Boats, Sword Fishing Boats, Downeast Boat Projects/ Repairs,Downeast Boats for Sale,and Downeast Boat Design. And of course what would a Downeast boat forum be without chatting it up with other members about Tuna Fishing, Lobstering, Striped Bass, Live Bait (Pogies,Herring,Mackerel), Fishing Reports, Lobsterboat Races, Fishing Gear, Downeast Boat Pictures, Charter Boats, ETC
Home Register Pictures FAQ Members List Search Today's Posts Mark Forums Read


Go Back   Downeast Boat Forum > Downeast Boat Forum > Downeast Boat General Discussion

Reply
 
Thread Tools Display Modes
Old 02-07-2013   #1
WoundUpMarine
1000 Post Senior Member
 
WoundUpMarine's Avatar
 
Join Date: Jan 2012
Location: Boothbay Harbor, Maine
Posts: 1,628
Likes (Given): 236
Likes (Received): 382
Default How to pay for a repower/refit

For you guys that have gone through big re-powers or refits, how have you paid for them? Bank loans, credit cards, home equity loans, lots of cash in hand...? I am going to start putting some money aside for some big projects id like to do to the boat next winter and am curious how everyone has paid for the big expenditures.
__________________
36 Crowley Beal w/ a 450 Scania

14' Holland w/ a 25 Yamaha
WoundUpMarine is offline   Reply With Quote
Old 02-07-2013   #2
Estimator
200 Post Senior Member
 
Join Date: Sep 2011
Location: Montauk NY
Posts: 262
Likes (Given): 423
Likes (Received): 117
Default

In 2005 when I did my repower I was able to refinance my boat and with the upgrades believe it or not had equity in my boat and the bank was able to lend me the money for the job. It worked out for me because my original loan had a much higher rate and with the rate adjustment my payment was lower after the repower.
Not sure if this is possible now with tighter lending rules. I would try to use a banks money rather than cash on hand. Just my opinion.
Estimator is offline   Reply With Quote
Old 02-07-2013   #3
BillD
Captain
 
BillD's Avatar
 
Join Date: Sep 2011
Location: Haverhill MA., boating out of the mighty Merrimack River
Posts: 4,165
Likes (Given): 1305
Likes (Received): 717
Default

Quote:
Originally Posted by WoundUpMarine View Post
For you guys that have gone through big re-powers or refits, how have you paid for them? Bank loans, credit cards, home equity loans, lots of cash in hand...? I am going to start putting some money aside for some big projects id like to do to the boat next winter and am curious how everyone has paid for the big expenditures.
IMO:

if you are using the boat "commercially" then consider financing with a lending institution or if you have one a home equity line of credit.
Why? You have a "partner" in the interest expense and the ability to "write the interest off......Who is the partner? .......good old Uncle Sam.

NEVER use a credit card for borrowing AND carrying balances. Credit card companies get legal "loan shark rates" @ 14%-19%.

If the boat is used for "pleasure"...put off any major costs until you have the cash. Why?? NEVER be a "slave" to a lending institution unless the borrowing is for a home to live in.

FWIW,

Bill D
BillD is offline   Reply With Quote
Post Thanks / Like - 4 Likes
Old 02-07-2013   #4
tunaorlater
Captain
 
Join Date: Sep 2011
Posts: 2,445
Likes (Given): 225
Likes (Received): 822
Default

Cash for 90% of it. When that ran out I begged my daddy! Pathetic but true.
tunaorlater is offline   Reply With Quote
Old 02-07-2013   #5
MBILL
100 Post Senior Member
 
MBILL's Avatar
 
Join Date: Sep 2011
Location: Long Island, NY
Posts: 146
Likes (Given): 1
Likes (Received): 18
Default

Gotta agree with BILLD. If you're recreational use cash. No loans for this type of expense IMO.
MBILL is offline   Reply With Quote
Sponsor Advertising • Downeast Boat Forum is enhanced with content-revelevant advertisings.
Old 02-07-2013   #6
powderpro
1000 Post Senior Member
 
powderpro's Avatar
 
Join Date: Dec 2011
Location: Kenai, Alaska
Posts: 1,370
Likes (Given): 61
Likes (Received): 580
Default

Quote:
Originally Posted by tunaorlater View Post
Cash for 90% of it. When that ran out I begged my daddy! Pathetic but true.
That's not pathetic, 90% cash is better than most and the interest daddy could get from you is better than what the bank would pay him. I agree with some of the others, if it's a pleasure boat, I would be real careful bringing on more debt, although rates are low. I guess it depends on what your priorities are, but for something recreational/pleasure, I would not go in debt; if it's a business opportunity and how you make your living, then I would cautiously go in debt while still using as much cash as possible.
powderpro is offline   Reply With Quote
Old 02-07-2013   #7
tunaorlater
Captain
 
Join Date: Sep 2011
Posts: 2,445
Likes (Given): 225
Likes (Received): 822
Default

Interest? He's my father! Lol. He was paid back quickly.

I think it all depends on your situation. I see no problem with borrowing money to buy a boat if it's not putting you in a situation where it's a burden. Most people finance a new car when they could go out and buy a good used one for cash. If you can get a nice big boat for say $500 a month or buy a smaller one for cash and not be as happy I say go for it as long as the $500 isn't going to break the bank. Like I said it depends on your situation, if it's going to be tight on the wallet think before you act. My next build will most likely have a small note.
tunaorlater is offline   Reply With Quote
Old 02-07-2013   #8
powderpro
1000 Post Senior Member
 
powderpro's Avatar
 
Join Date: Dec 2011
Location: Kenai, Alaska
Posts: 1,370
Likes (Given): 61
Likes (Received): 580
Default

Interest at the bank is what, 0.05%? So if you paid him 0.5% interest, he's money ahead .
powderpro is offline   Reply With Quote
Old 02-07-2013   #9
MouseTrap
1000 Post Senior Member
 
MouseTrap's Avatar
 
Join Date: Sep 2011
Location: Way to far from the water, West of Nashua, NH.
Posts: 1,116
Likes (Given): 117
Likes (Received): 209
Default

True, buy him a beer, he's still ahead.

Unfortunately, in today's day and age, if a child repays their parents AT ALL, they are ahead .

I remember when my sister was a teenager, she asked my dad... "dad, can I borrow $20?". This went on for a couple of months. At one of those requests, my father pulled a $20 out of his wallet and said "borrowing implies that you will pay me back, do you want to borrow $20, or do you want me to give you $20?". My sister immediately snatched the $20 out of his had and said "give me the $20".

Lesson learned
__________________
-Ian
21' pocket downeaster
MouseTrap is offline   Reply With Quote
Old 02-07-2013   #10
MASTERENEGADE
1000 Post Senior Member
 
MASTERENEGADE's Avatar
 
Join Date: Sep 2012
Location: NORTHPORT
Posts: 1,586
Likes (Given): 954
Likes (Received): 435
Default

Budgeting....
Went to college for accounting got my degree, now i sell fishing tackle and charter the boat

knew a refit was coming, so i planned and put it into the budget.

If the engine or tranny blew up, i may not have been able to plan accordingly.
MASTERENEGADE is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 06:17 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2015, vBulletin Solutions, Inc.
vBulletin Skins: WebSkinsPlus.com
Feedback Buttons provided by Advanced Post Thanks / Like (Lite) - vBulletin Mods & Addons Copyright © 2015 DragonByte Technologies Ltd. Runs best on HiVelocity Hosting.