How do cruisers pay for boats?

[Paulihno]

Originally Posted by Stu Jackson

1983 - lightly used 1981 Catalina 22 maybe $7,500 cash


1987 - used well conditioned Catalina 25, maybe $10,000 cash; kept this boat til 1998


1998 - 12 year old superb condition Catalina 34, $54,000 ($102,000 for a new one at that time!), 10% cash down, rest in boat loan eventually folded into house refinance so we got the title instead of the loaner/bank; still have the boat


Was working full time at all those purchase dates.


WADR, if you're looking to spend $1M on a boat and you have to ask that question, I believe you're in the wrong place.


Good luck.

Well, you financed your boats, so I'm not sure I follow your last point. And I didn't say I don't have the money to buy this boat, I'm just curious about whether people finance or buy outright. But I do appreciate your examples, so thank you.

[smj]

On our 11th catamaran and paid cash for all, but none were anywhere close to $1m!

[Paulihno]

Originally Posted by smj

On our 11th catamaran and paid cash for all, but none were anywhere close to $1m!

Wow - what's the average amount of time you've had each, what's the longest you've owned one, and how long have you had your current?

[smj]

Originally Posted by Paulihno

Wow - what's the average amount of time you've had each, what's the longest you've owned one, and how long have you had your current?

Average close to 3 years, longest owned 8 years and the current one almost 3 years. We have on occasion owned 2 at the same time.

[Paulihno]

Originally Posted by smj

Average close to 3 years, longest owned 8 years and the current one almost 3 years. We have on occasion owned 2 at the same time.

You must have learned a great deal.

[Nahbrown]

Financed 80% of $325k
Allocated 50% of my monthly income to loan, insurance & maintenance.

50 yrs old, left work with an open invitation to return in a few years when we are done sailing. I will probably take them up on that offer in a few years because our savings is slowly dwindling down....

In short we are being financially irresponsible.

Best. Decision. Ever.


We are 3 years into this And my wife and I have grown closer and I have gained more respect for her. The last 3 years we have lived!


You can always make money but Im glad we have done this while we are physically able to do it. We have woke up in the Bahamas for the last month and a half and as we travel down the Exumas I have zero regrets.

[Paulihno]

Originally Posted by Nahbrown

Financed 80% of $325k
Allocated 50% of my monthly income to loan, insurance & maintenance.

50 yrs old, left work with an open invitation to return in a few years when we are done sailing. I will probably take them up on that offer in a few years because our savings is slowly dwindling down....

In short we are being financially irresponsible.

Best. Decision. Ever.


We are 3 years into this And my wife and I have grown closer and I have gained more respect for her. The last 3 years we have lived!


You can always make money but Im glad we have done this while we are physically able to do it. We have woke up in the Bahamas for the last month and a half and as we travel down the Exumas I have zero regrets.

Que bonito. Very inspiring. Thank you for sharing.

[MicHughV]

I couldn't afford to " buy" my first boat.....so I had to build it.....an option to consider....

The sale of that boat was plowed into another boat...cash is king.

You have to remember..when you buy a boat, there is also " sales tax" to be considered....typically 6-7%....plus "insurance"...."maintenance"..."dockage"....et c...

Purchasing a boat is only the beginning of the suction sound on your wallet...

If I had to make a "mortgage" payment on top of all the things I just listed above...I probably could not afford to own a boat.....

At a rough guess, I would wager that yearly dockage, insurance, maintenance for your typical 40' boat would be $15,000/annum....

A 1M boat would likely be 10 times that amount.......

While there are folks that can plunk down $1M on a boat.....they are far and few between........re-think your needs.....

[Fore and Aft]

Purchased a 30 foot yacht wreck for $2500 when I was 19. Then owned another three yachts always paying cash for them. Our current 32 foot yacht we built ourselves over 18 months. My secret has been marrying a great woman when I was young so we can then funnel both incomes into whatever project interests us.
As for the million dollar boat, the last one I surveyed the owner proudly showed me his $40,000 slipping bill! No doubt it's only pocket change for him.
Cheers

[Paulihno]

Thanks everyone. Really appreciate all the replies. CF is a great resource.

I tried to edit my initial post but missed the window to do so... I'm afraid the "$1M" price tag isn't super relevant, so hopefully it can be ignored in future replies. What I'm really interested in is, especially for full time liveaboard cruisers:

1. Did you buy outright or finance?
2. If bought outright, roughly what % of net worth was purchase price?
3. If financed, how much down?

I do appreciate all the cool stories -- 11 cats! DIYers! -- but the price tag of my target boat isn't super important.

Thanks to all who've shared!

[S/V Illusion]

If you cant afford to pay cash and all routine expenses after purchase as well as cruising costs, you can't afford a boat.


Why people buy toys they can't afford is curious.

[ohdrinkboy]

I'm a mid 50's working stiff. Own 2 boats, both paid for in cash. I've got the money set aside for a cruising boat when I retire. Boat will never exceed 10% of my investment portfolio, and I will not be selling my house. Good luck.

[Paulihno]

Originally Posted by ohdrinkboy

I'm a mid 50's working stiff. Own 2 boats, both paid for in cash. I've got the money set aside for a cruising boat when I retire. Boat will never exceed 10% of my investment portfolio, and I will not be selling my house. Good luck.

Excellent. Thank you!

[Paulihno]

Originally Posted by S/V Illusion

If you cant afford to pay cash and all routine expenses after purchase as well as cruising costs, you can't afford a boat.


Why people buy toys they can't afford is curious.

This is my instinct and orientation. But I wonder if people who *could* buy outright are choosing to finance. instead. (is it me or is leasing cars more popular today than ever before? Seems like using leverage to finance depreciating assets is more common now)

I dislike monthly payments and would prefer to take a hit up front than make that payment every month. But maybe having those assets invested and earning in the markets is smarter (vs. gone upfront into a boat), as dividends from those investments might even cover the monthly finance payments.

Maybe it's just different folks. I'm not sure I'd really feel "free" with a monthly boat payment to make.

[lyl]

Hey man,

I don't have a sailboat yet, but I've been in the market for one for a while. After talking to many experienced folks here, I decided that I would need at least a season of dinghy sailing first. What I'm saying is, consider my experience level before 'considering' my advice.

Sailboats depreciate like watermelons. The minute they touch the ocean, they lose a great deal of their value. Which is good and bad. It's bad, because this fact makes sailboats horrible investments, especially production monohulls; it's very good news, because this means that you can buy a used one for a very reasonable price.

If you think that a million dollar is a huge amount of money, then it means you shouldn't buy a million dollar sailboat. This doesn't mean that your dreams won't come true; they will come true, just not in a million dollar sailboat. Just take a look at what kind of monohulls you can buy with 50 grand; I bet you'll find something that will put a big smile on your face.

Cats are expensive, even as used. I want one, but the more I investigate, the more I see a monohull in my future.

You tell me how much my new plan will cost - A used Sunfish to a used Catalina 22 to a used Catalina 375...

If I had 10 millions in my account and some money coming in every month; losing a million wouldn't hurt. My plan up there is a ten year plan for a little fraction of a million.

I might be terribly wrong, and someone here on CF will correct me with pleasure, possibly using a series of mean words, and we will both learn.

Have fun, life is short,

Full.