Cash vs Finance deals?

[caphilli]

Put a deposit on a 2021 AR 190 last month and looking at paying cash for it.
The invoice that I have shows:
Boat + trailer = $33,149
Dealer Prep & Rigging = $500
Freight = $2000
Sales Tax = $2108.94
Other Tax = $249

Has anyone been able to talk their dealer down on the freight or dealer prep by paying cash?
My dealer said they won't be throwing in any extras or giving any deals on accessories. Thought I could at least get a starter kit with bumpers/ropes and a few life jackets.

 

[Dean P]

Due to the high demand, it's pretty much a dealers market. But, If paying cash bumpers and ropes should be tossed in. Life jackets, maybe not. Good luck!

 

[HangOutdoors]

Unfortunately in this market there is always another buyer. Also the dealership may get some incentive from banks or other lenders, so in all actuality by paying cash they are most likely making less on the deal somewhere. When people finance the dealer is getting all their money anyhow from the lender.

Some here have gotten some deals on their boats with the freight or prep and some accessories, but that is hit or miss.

Perhaps talk to the dealer about financing and that you want to review all options, and then see if he will move on the discounts or throw things in. Then when the loan gets register in the banks system just call them up and pay it off. Of course if the numbers make sense and it benefits you.

 

[14SX190]

Congratulation on new boat.

Pretty straight forward deal.
You'll be lucky to get a hat.

Why dump all that cash?
I would get terms and keep cash.
But I understand, I hate payments

 

[Canuckjetboater]

Put a deposit on a 2021 AR 190 last month and looking at paying cash for it.
The invoice that I have shows:
Boat + trailer = $33,149
Dealer Prep & Rigging = $500
Freight = $2000
Sales Tax = $2108.94
Other Tax = $249

Has anyone been able to talk their dealer down on the freight or dealer prep by paying cash?
My dealer said they won't be throwing in any extras or giving any deals on accessories. Thought I could at least get a starter kit with bumpers/ropes and a few life jackets.

@caphilli ..... I always ask dealer to give me his wholesale price on items I may want - for example an up-grade to radial tires, bow and cockpit covers. It should be a win-win because you should get a substantial discount and it doesn't really cost the dealer anything.

 

[Brad460]

Dealers prefer to have you finance as they get a kickback...They dont care if you have cash..

 

[F.M.]

If you finance, ask to see the approval, so they can't mark the rate up on you.

 

[Ronnie]

All of the auto and boat dealers I have spoken with say that it doesn’t matter if you pay cash or finance the deal, they get their money up front either way. My wife and I bought a new Waverunner last October, the dealer gave us a 25% discount on accessories, nothing was free and they would not negotiate there dealer prep fee. A fire extinguisher was included and installed but I think it’s cost was buried in the dealer prep fee.

 

[fatboyroy]

I just bought 2021 with cash, they are convincing me to finance cause its more money for them but I refused. Not sure if they would give you a break paying cash, it only works for private purchase cause its easier for the seller.

 

[Brad460]

If you finance, ask to see the approval, so they can't mark the rate up on you.

I called around to a few places to check their best rates and the told the dealer what rate they needed to give me (which was the lowest I could find). I prefer to dictate what I get...

They matched that low rate and to be honest if they got a kickback on that I am ok..

 

[Canuckjetboater]

Put a deposit on a 2021 AR 190 last month and looking at paying cash for it.
The invoice that I have shows:
Boat + trailer = $33,149
Dealer Prep & Rigging = $500
Freight = $2000
Sales Tax = $2108.94
Other Tax = $249

Has anyone been able to talk their dealer down on the freight or dealer prep by paying cash?
My dealer said they won't be throwing in any extras or giving any deals on accessories. Thought I could at least get a starter kit with bumpers/ropes and a few life jackets.

@caphilli ..... sorry, in my last post I did not answer the "cash" question. What worked best for us was to finance it ourselves. We used a standing agreement with our bank to use a loan secured by our home which is prime + 1%. We can make more money in the stock market than that so paying actual cash was not worth it and dealer/3rd party financing was not close to prime + 1%.

 

[swatski]

@caphilli ..... sorry, in my last post I did not answer the "cash" question. What worked best for us was to finance it ourselves. We used a standing agreement with our bank to use a loan secured by our home which is prime + 1%. We can make more money in the stock market than that so paying actual cash was not worth it and dealer/3rd party financing was not close to prime + 1%.

Right now, financing a boat purchase makes more sense than perhaps ever in the past. However, I find statements about making (more) money in stocks, blah blah and somehow that makes taking a loan more financially sound than paying cash, blah blah, just flawed.

For starters, with a loan, monthly payments effectively destroy any wealth accumulation/compounding effects regular investments of money generate; that alone makes any profit making talk a moot point; with proper accounting one would be lucky to break even outside of only a handful of real world conditions. It is difficult to play the system using borrowed money to borrower's advantage.

The other issue, of course, is that the prime rate changes, and so does stock market; in fact, there is a substantial risk involved because no one can reliably predict those trends. On the other hand, buying a boat with cash can never leave one upside down, it just becomes a (slowly depreciating) asset.

Granted, right now financing a boat purchase makes more sense than ever.

No matter how it's paid for it is never a good financial investment. But who cares - we can go boating!


--

 

[zipper]

Put a deposit on a 2021 AR 190 last month and looking at paying cash for it.
The invoice that I have shows:
Boat + trailer = $33,149
Dealer Prep & Rigging = $500
Freight = $2000
Sales Tax = $2108.94
Other Tax = $249

Has anyone been able to talk their dealer down on the freight or dealer prep by paying cash?
My dealer said they won't be throwing in any extras or giving any deals on accessories. Thought I could at least get a starter kit with bumpers/ropes and a few life jackets.

Well, if the dealer, salesperson came right out and said THAT...no deals on accessories, I can almost understand, not throwing gear in for free. I would take the boat as is and buy everything else you need from somewhere else. And I would let them know that. There are plenty of boat gear sellers out there that are going to be cheaper, with more options than the dealer anyway. When they realize they will be losing a few hundred $$ in gear sales minimum, they may smarten up and offer a discount at the very least. PFD's, a real anchor, chain and rode, dock lines, fenders, boat hook, tubes, tow ropes, registration stickers, maintenance items they add up. Just my $.02

 

[Bluewater272]

Dealers don't care if cash or financed (so long as you're qualified) - all the same to them, and if you finance through them they actually make a little more.

 

[2kwik4u]

No matter how it's paid for it is never a good financial investment. But who cares - we can go boating!

This is the big takeaway here. A boat is NOT an asset. Ever. Period. It's a cost center.

 

[HangOutdoors]

This is the big takeaway here. A boat is NOT an asset. Ever. Period. It's a cost center.

Shhhh. I keep telling the admiral if we upgrade to a bigger boat and I build a nice garage that it will virtually pay for itself in a few years by allowing us to take more people so we don't have to travel as much as well as all the storage fees it will save if I store it in the back yard. Plus all the features it would save us money that come standard on the boat

 

[F.M.]

Shhhh. I keep telling the admiral if we upgrade to a bigger boat and I build a nice garage that it will virtually pay for itself in a few years by allowing us to take more people so we don't have to travel as much as well as all the storage fees it will save if I store it in the back yard. Plus all the features it would save us money that come standard on the boat

Don't forget the possibility of passengers chipping in on fuel.

 

[2kwik4u]

Shhhh. I keep telling the admiral if we upgrade to a bigger boat and I build a nice garage that it will virtually pay for itself in a few years by allowing us to take more people so we don't have to travel as much as well as all the storage fees it will save if I store it in the back yard. Plus all the features it would save us money that come standard on the boat

Found you a nice book

 

[Adrian @ JB Solutions]

Is anyone getting any discounts on new boats?

 

[I_squared_r]

Going in and saying "I want to buy with cash" is going to entice them NOT to give you a deal. This is better:

You can go in the dealer and tell them that you're bringing your own financing. And steer the conversation into, "but we can see your financing". Run the credit. Tell them "its ok I prefer to use my financing". At this point they're going to want to do something to sell their own financing because they will get a bonus for that. The salesman is going to push hard and start pushing for reduced rates and stuff. Ask for extras and discount on the price. When you take the loan, wait until the account opens and then send the pay off.