How do I finance a Cat?

[WantoSail]

Hello all. My lady and I are just starting out and have much to learn and decide on when it comes to sailing. One question comes to mind as the most important. How do folks finance their boats? I am an average Joe making average money but I read stories all the time of people saving up and heading out. I want to be one of these people but I'm wondering how to acquire the main piece of the puzzle which is the boat. I know there is much to learn and consider but the question I would like answered is how does one finance a 60ft catamaran??? 60 may be too much boat but if I can figure out how to finance one of those than a 45ft boat should be a little easier. Thanks all, Cheers!

[senormechanico]

Before you run, you need to learn how to walk.
Starting with a 60 foot cat is like saying,
'I'm thinking of learning how to fly a plane and I'm going to start with a rocket ship to the moon."

[nimblemotors]

You finance your 1.5 million dollar boat by selling your 2.5 million dollar house.
In San Francisco, that would be an average joe home.

Borrowing money to buy a depreciating asset is just financial foolishness.

[sailorboy1]

Originally Posted by WantoSail

how does one finance a 60ft

with Gold Fish


seriously I'm just a "average" guy and we financed both of our boats the normal way though a boat finance company, but you can do though your local bank or credit union

they do look for you to be "more qualified" than some other stuff you would finance

[boatman61]

Same way you financed your house... get someone to lend your the cash...

[Teknav]

Eons ago, before the housing bubble burst, banks/lenders were eager to lend you as much as 2.5-3.5 times your household's gross income for the purchase of your first home; with 5%-10% as a down payment. Bankruptcies...errr...reality set in, and this is no longer the case. Nowadays, you need to save up and shell out 30% or more, as a down payment, to even be considered for a major loan. But, before considering buying a dinghy, learn seamanship...then practice, practice, practice hands-on sailing...then, try a few charters on different size boats...then, see if you still like all this madness. If you get that far, you'd have found the answer to your question...on your own! Good luck! Mauritz

[vientoman]

work, save and pay cash. That's the best way.

[colemj]

Average Joe's making average money rarely have 60' catamarans. It is a fool's game to set out cruising with an unpaid for boat unless you have appropriate steady income to handle it. So however you finance it, figure out how to pay for it.

Mark

[Tim R.]

Originally Posted by vientoman

work, save and pay cash. That's the best way.

+1. Best way to go in today's economy.

[WantoSail]

I have asked some other questions on this forum and I can tell you are a bunch of hard core sailors. I don't mean to be stupid or ask stupid questions but I really am just trying to learn how I might leave the rat race behind and "live the dream". A 60ft cat may have been a stretch but a 45ish ft may not be so much. In doing some research I have found that there are 20 year loans much like a house loan. Not ideal but doable if I can find a way to make the wage I make now on the water. Dividends, Day trades, smart investing. There are options..........I just need to figure one out for myself.

[s/v Jedi]

16 hour days for 15 years or so did the trick for me. That still only got me half the cat but it also only cost half so am happy

[WantoSail]

I'm no stranger to work and not above it once at sea. Just gotta figure out how to procure a boat and a livable wage once I get one.

[Teknav]

Ultra big tunas are worth tens of thousands of dollars to Japanese restaurants...did you forget your fishing gear, again? Mauritz

[daddle]

Originally Posted by nimblemotors

Borrowing money to buy a depreciating asset is just financial foolishness.

Huh? That's your opinion. It is not even close to a fact or rule. Most of the loans in the world are for depreciating assets. That's how it works.

For the OP: simply go to the bank and demonstrate that you do not need the loan but want it anyway. If you cannot do that then buckle down at work and make enough money that you don't need the loan. Or do it the easy way and inherit the money.

The even better way is to get a nice inexpensive boat. My first cruiser was only US$25,000 and I had more fun, guaranteed, than everybody with 60 foot cats ever did or will.

[thinwater]

Originally Posted by daddle

Huh? That's your opinion. It is not even close to a fact or rule. Most of the loans in the world are for depreciating assets. That's how it works.

For personal loans (business is different in many ways) I agree. Invest in thing that may gain. Car loans, TV loans, furniture... just because they are so common is not proof they are not foolish. We're talking about human behavior.

If you were the bank, how would you evaluate a customer looking to borrow money on a mobile, hard-to-trace asset, with no fixed address and a mobile source of income? That would need to be quite a pitch, since you would strugle with any one of those factors.

TANSTAFL