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Old     (rznhales)      Join Date: May 2012       04-18-2014, 8:25 PM Reply   
My wife and I are thinking of selling our 2002 VLX and moving up a few years in boats. My question is this: we currently own our boat outright and have had no issues. It is scheduled to go into the upholstery shop for a complete new interior on Tuesday since the desert heat has killed it. So our options in about a month are to:

A. Sell it while the value is strong, pay off about 6k in credit card debit and use the rest for down payment on newer boat and savings.

Or

B. Keep it, gamble on the value and any issues due to aging, and continue paying off the cc debit.

My feeling is to get rid of the revolving credit debt and even though we'll have a payment on the newer boat it's a non-revolving credit item. Yes the value may go down but we're looking at 2006-2009 region so most of the value hit has happened.

Thoughts?
Old     (shawndoggy)      Join Date: Nov 2009       04-18-2014, 8:45 PM Reply   
If you only have $6K in CC debt, that's paid off by this time next year and you still own a boat outright. Keep what you have. Be debt free.
Old     (beleza)      Join Date: Mar 2010       04-18-2014, 10:03 PM Reply   
Depends what your priorities are. If you are concerned about getting outta debt then just keep the boat and payoff the 6k as quick as you can. It also depends on what kind of newer boat you are talking about. If you don't have 6k in cash to payoff a credit card the last thing you should be worried about is buying a new boat. Use this time to get that CC debt paid off, save some cash for a newer boat in the future and enjoy the boat you have now. Your 02 vlx won't lose much value in the next couple years so enjoy it a bit longer. Just my .02

Last edited by beleza; 04-18-2014 at 10:12 PM.
Old     (rznhales)      Join Date: May 2012       04-19-2014, 8:47 AM Reply   
Paying the debt can be done now or with the boat sale. It's business debt so it does give some amount of tax write off. Our issue was if it's worth it to change boats. We hit Powell a few times each year and would love a better deep water ride. None of the family boards except me and the older I get the more it hurts so I find myself surfing more. The consideration was to move into a newer Enzo due to the better ride and surf capabilities. Also, that's the only dealer near us so easier parts/service.
Old     (jdhart73)      Join Date: Mar 2010       04-19-2014, 11:45 AM Reply   
You can't take it with you, do what you want.
Old     (Jmorlan)      Join Date: May 2013       04-19-2014, 12:20 PM Reply   
What is the infatuation on wakeworld with the whole dealer thing?
Do you guys receive all your parts/maintenance for your vehicles from dealers also?
Old     (boardman74)      Join Date: Jul 2012       04-19-2014, 3:07 PM Reply   
Some might. For the most part the infatuation with the dealer is that is about the only place to get reliable service for the boat unless you do it yourself. There aren't a ton of independent marine repair shops around. 95% of the ones that you can find are not knowledgable enough on inboard tow boats and their systems to trust them with 50K+ boats. They are more places to take your outboard fishing rig or pontoon boat. Also with so many on here owning newer boats the draw can be a little thing called "warranty"!! LOL

Where do you receive your parts and maintenance for your vehicle and boat?? If your answer is an independent, thats not an option for many with newer wake boats. They are getting to be like cars if you don't have the right software or diagnostic tools its pretty tough to work on them.
Old     (Jmorlan)      Join Date: May 2013       04-19-2014, 3:10 PM Reply   
I personally buy my parts online, the cost is much lower.
The regular maintenance, I do myself, ie- oil change, impeller, spark plugs etc.

I may be finding it weird because I live in an area abundant on boats and shops, where wakeboats/inboard are very common. I forget that it's not always a similar situation for most of you.
Old     (phathom)      Join Date: Jun 2013       04-20-2014, 4:06 PM Reply   
Looking at onlyinboards.com nation wide yours goes for 25k-35k depending on condition, hours, and standard features.
Looking at a 2006-2009 puts you in the 35k-60k ballpark, once again depending on the specifics of the boat.

Here is what I see as the most likely scenario.
You sell for 30k (mid range) you pay off credit card of 6k, leaving you with 24k.
You spend about 1k on other stuff (I know my wife would be poking at me for some stuff she's been wanting) and the costs of probably driving a little bit picking up a new boat.
You pay the credit card off.
You pay 15-20k down for a boat around the 40-45k mark.
You then use the remaining cash to spend on maintenance, upgrades, new boards, stereo, upgraded ballast, etc. and have a stash of cash to fill it up every weekend and some savings if something goes bad.
Your credit potentially looks a little better because there is no more revolving debt, but you have a newer boat and boat payment at what is probably a lower interest rate than your credit card anyway.
Your monthly payment jumps up from what your credit card was, but you have a new boat and less unsecured debt.

You can get something newer and nice right now, perhaps a little better for surfing and have a higher monthly expense than you currently do.

or

Just pay off the credit card and enjoy what you have.
There is nothing wrong with owning your boat outright even if it's not the latest and greatest.
Old     (boardman74)      Join Date: Jul 2012       04-20-2014, 4:42 PM Reply   
You just forgot one thing with your example….you run the balance back up on your credit card and your back where you were, but now with a boat payment. Thats what most end up doing. Back in the day it was take a home equity loan to pay off all the unsecured debt. Then run the debt back up. So then you have the credit card debt and a home equity loan to go with it. Unless your going to pay off the credit card and close the account, never to reopen them…keep the paid for asset(boat) and work the balances down.
Old     (cadunkle)      Join Date: Jul 2009 Location: NJ       04-21-2014, 12:28 PM Reply   
I don't like the idea of selling a paid for boat to pay off a measly $6k of debt, then take on potentially several times that $6k in debt to replace the paid for boat with a not paid for boat. $6k shouldn't take a tremendous amount of time to pay off and unless the interest rate is insane shouldn't be costing you a fortune either. If you want it gone, pay it off as quickly as possible, cut back on other things for a couple months if need be and just be done with it.

If you would prefer a different boat, consider something else. You said you're more into surfing now and family doesn't ride... So look at boats that may be better for surfing... But limit your budget to whatever you can pay cash for. If your current boat is good enough for another year or two (or 10!), then pay off any unsecured debt or anything with a higher interest rate and save for a replacement boat better suited to how you use it.

I'm of the school of though that all debt is bad, unsecured debt being the worst. I don't borrow money for toys. There are plenty of guys making killer wakes behind $10k or less boats with some time and money invested into good ballast systems and finding what works for the hull. It doesn't matter that part of your interest on that $6k CC balance is tax deductible, you're still paying more money then if you paid in full each month and less potential savings to buy a boat that may suit your use better. So my vote is whatever course of action results in a reduction in debt, probably keep your boat a while longer if it has been good to you.

Also, I wouldn't worry about dealers. Like J.mo I think the obsession with dealers here is a little nuts. IMO, if you pay a dealer to work on your boat you're just setting stacks of money on fire. Nobody will do as nice work to your boat or be as thorough and meticulous as you, they have no vested interest. Even if you think your salesman or service writer has a vested interest, the poor schmuck crawling around in your bilge doesn't and if he did yesterday, maybe today is a bad day, or he's sick of working for free on comebacks or warranty work if he was pressured to bang out the job quick the first time and cut corners, etc... I'll fix all my own vehicles thanks. Much cheaper and better results. I'll buy from a dealer if I can't find the car/truck/boat/bike/whatever I'm looking for private party, but I treat them with more suspicion than a typical Craigslist ad. Too many horror stories from customers and employees.
Old     (rznhales)      Join Date: May 2012       04-21-2014, 12:58 PM Reply   
I hear ya. I saved to pay cash so I didn't have more debt load. I love not having a payment but the thought of a new boat is inticing. The debt is not the purpose of selling the boat it is just what I know some of the money is going to be used for. I just wasn't sure if I would be loosing more equity in our current boat by holding on to it or move up a few years and always stay in a "sweet " spot of years that I can get a good deal and really not loose too much money on. I hope that all makes sense! I appreciate all your opinions.
Old     (fouroheight68)      Join Date: May 2006       04-21-2014, 1:50 PM Reply   
I'm in the same boat as you, pun intended. I have an 02 centurion paid for. Also needs interior work. We'd like something newer and some better features like more ballast, more room, pp, and cleaner overall. We decided to fix the spots on the interior that need to be fixed, and sell this time next year for the highest price we can. Then, hold our money and buy lowest we can on something newer. Ideally, we'd like to sell high at the beginning of season for 20k, and buy low like an 04-06 wakesetter at the end of season for the 25-30k range (cash).
Old     (ottog1979)      Join Date: Apr 2007       04-21-2014, 2:00 PM Reply   
^The newer the boat the more money you generally will be "losing" in depreciation. On top of that, you will be "losing" the extra interest on a larger boat loan.

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