Von Bongo

does anyone know the details past the first 12 months?

"The newest addition to our dealer program was unveiled during our annual two-day dealer meeting. Working closely with E-Trade and Bank of America, we will now offer our dealers a retail financing purchase program that provides zero percent financing for the first 12 months. We believe this innovative approach to financing will assist our dealers in expanding their businesses through increased sales of Fountain Powerboats."

Von Bongo

Never mind I found it...6.25% for the remaining term.

FYI you can get 5.75% fixed for 20 from most brokers..lets see say a 300K boat for 20 years
0% for 12 months means $1250 payments, $15K off the principal in the first year so 228 months on $285K at 6.25 =$2127.55/mo pmts or = $200K in interest over the term

$300K for 240 mo at 5.75 = $1991.40/mo or = $178K in interest.

Guess it all matters how they do the 1st 12 mo. If it is figured like a 240 mo loan at 6.25% but no interest that makes payments $2072.35 x 12-$300K = $275,131 remaining to amortize over 228 mo ~ $168K in interest over the term.

Hmmm...looks to be about a wash with what you can get at regular rates today.

h2owarrior

I just got quoted 5.25% on a boat loan. Is your bank offering 5.75% or can you do better ?

Ron P was quoting 4.99% just before Christmas.

Von Bongo

Hi,

Best I can do right now, and it depends on loan size is 5.50% for 20 years and that is on loans in excess of $100K. We had 4.99% up until november but rates are up a bit since then. If someone has 4.99% right now that is a heck of a rate! Prime is 5.25% and we all know that is going to increase next year so to be able to get a below prime fixed rate for 15-20 is a deal!

Mike

SinkorSwim

Von Bongo....

Keep on talking numbers..... I luv it when you bank guys start talking about interest, prinicpal, and payments.. Makes me happy to have what I got!

By the way... still got your forms.. just haven't pulled the trigger yet.. but the wife is starting to look for that LOTO condo...

Von Bongo

No problem, let me know when you are ready!

BTW you just keep depositing and we will keep loaning it out..we gotta have both kinds of customers!

Jonas

i think as in the mortgage industry people are not looking at the long term they know wont have for more than 2-5 yrs,, that is whn this 0 interst program is interesting

Von Bongo

Especially for people that have the cash and can finance it for the first 12 months interest free then pay it off. Lets see in a real world test...

You buy a 42Ex with 525's for $240K, put 15% down and borrower $204. Now not knowing for sure the payments for the 1st 12 months but assuming it is $204/240=$850/month for the 1st 12 months then payments of $1,454.27 for the remaing 228 months.

If you do the same thing at 5.50% for 240 from day one you have payments of $1403.29.

Looks like between year 10 & 11 the loans turn around and the principal is lower on the 5.5% loan. For example at the end of 5 years your balance is $170,177.66 on the Fountain plan and $172,357.09 on the regular plan so as Jonas says it does hold some benifit up through about half the loan, of which most of us will still have our boats because Reggie (or by then Brunswick) will lower the price of the new boats and we will be upside down in our old boats

Just kidding, there is some benifit to the fountain plan though, but I think the best deal right now would be probably the rebate and get a loan from outside. I can't find the rebate amounts however. I know a 42 EX lists just over $300K and the disclaimer says something about 2005 pricing so I wonder aloud, do you have to pay full retail on a boat to get either program.

I was hoping a dealer would jump in and give some more information on the program.

sellsman11

The dealer sets the sales price regardless of the rate or rebate program that you choose. I think that the length of time the average person keeps a boat is a VERY important issue to consider when talking about the validity of the 0%

Frankie
Pier 57

Jonas

that is true but, tell me people always think they are going to keep it ( last boat will ever need to buy and all the other lines i am sure u hear etc...
but in reality;
would u say 2 yrs average if u take all in consideration? maybe 3 yrs,5 yrs ?,

i would take the 0% if i kept it more than yr refi. if rates higher do eq line pay it off or hang tough untill u can refi or sell or take it in the and trade it in.
example; 02 fountain 35 with all the bells and whistles 575 etc . new 230-240k
now with 60hrs per season u will have 180hrs,,, can u even get 160?
u prob still owe 200k if u put 15% down.

what i see is, alot of people i know are upside down,.. they cant even sell is the problem.
these things hold value about as well as i can fly to the moon..

wise man told me if u have to mortgage a boat for more than 75% of the value u will have problems down the road.. and u are to broke to own it.. or buy it,, ouch that hurts to hear...
i see where he is in regards to financially, boats, cars, homes, income, etc!!! i would and do listen..

he is where i want to be,,, one of those that can do what he wants, when he wants, where he wants..