General run down on a new boat and payment..

[CarZin]

There are a lot of people speaking out of their ass in this thread.

In my situation, there was nothing stupid about a 15 year loan. I have absolutely no desire to keep my boat more than 3 years before I get a newer one. In this situation, the amout of difference in interest for my loan amount at the end of three years is $800 more for the 15 year loan as opposed to the 5 year loan.

So why on earth do I want to pay down a boat, be forced to add an additional $300 a month to the payment, to save $800 over three years? To protect the bank from risk? I looked long and hard for a bargain, and got an 09 21V with 90 hours. I will owe 30k when it is 5 years old. How much risk do you think I have at being underwater? Not much. And if I want to pay the loan down sooner, I am free to do so.

Since the interest rates for a 5 year and 15 year are practically identical, I could say its foolish for not financing at 15 years, and paying it down in 5. Why? Flexibility. If something happens that prevents you from being able to make a large loan payment, you have flexibility to significantly reduce your payment (giving you time to sell the boat if you'll no longer be able to afford it). However, if you financed for 5 years, you are stuck.

The bottom line is that every situation is different. I would say that as long as you can put down a hefty down payment to make sure you'll never be underwater during the term of the loan, and if there is doubt to how low you'll be boating, a long term loan makes sense. It will give you flexiblity.

My financial situation is far from bleak, I analyze with great detail every financial decision that I make. You're not getting this advice from someone who can barely pay his bills every month.