Economy Hits Boat Owners Hard

Lots of good stuff on the web today. Here's a piece on how a boat repo man is busier than ever:

When a boat owner defaults on his loan, the bank hires Jeff Henderson to seize its property. The former Army detective tracks the boat down in a backyard or a marina or a garage and hauls it to his storage area and later auctions it off. After nearly 20 years in the repossession business, Mr. Henderson has never been busier.

“I used to take the weak ones,” he said. “Now I’m taking the whole herd.”

Boating was traditionally the pastime of the well-off, but the long housing boom and its gusher of easy credit changed that. People refinanced their homes and used the cash for down payments on a cruiser, miniyacht or sailboat. From 2000 to 2006, retail sales for the recreational boating industry rose by more than 40 percent, to $39.5 billion, while the average loan amount more than tripled to $141,000.

Last year, as real estate faltered, the gears went into reverse. The number of boats sold fell 8 percent. Many boats are fuel hogs, and rising gasoline and diesel prices meant a weekend jaunt could cost hundreds or even thousands of dollars. Owners found they could not sell a boat for what they owed and could not refinance either.

The solution for some is simply to stop paying on Jersey Dreamin’ or Just Do It or Bally Hoo. Then one day they come home and it is gone.

I'm not feeling sorry for any recreational boat owners losing their boats. They've always seemed way over-the-top to me in the needs/wants/desires list of things we all spend our money on.

Comments

[Kevin]

I agree, no sympathy here - boats are just big play toys and completely ridiculous for most people to own.

[Independent George]

I don't get it; what's the big deal? A boat is a vehicle; just sail away and begin a new life of piracy! When's the last time you heard of a pirate getting his boat repo'd?

[Chris]

I know boats are for recreations but still, I have always wanted to calculate the cost of owning a big boat in differently. First, you buy a big motor/boat to move you across the lake faster so you can fish more. How much money does it cost to go 3 miles in 10 min vs 20 min? How much does each pound of fish cost if you assume the boat lasts 10 years?

[rwh]

I own two canoes. The fewer motor boats on the water the better.

[Shane]

I own a motor boat...yes, I know it's a money pit. But it's so much fun, always a great social adventure and awesome way to relax.

I know there are cheaper hobbies...but I love wakeboarding and I want to get my riding years in before I get too old.

Anyway, it's because I've been saving and following advice like what FMF gives out that I feel it's ok for me to own it. I saved a lot, am paying more than what's needed, and knew all the risks going into it.

[Liz]

Shane -

They say the best boat to have is a friend with a boat. Do you happen to live in Northern Nevada and need any new friends? haha I love wakeboarding too. Cheers!

[Farmwife]

We have a boat ourselves. That said, we DON'T take vacations -- hard to with a working farm, ya know? We have 2 lakes within a 30 minute drive of us and try to get out a couple times a month during the summer....our own 6 hour mini-vacations if you will.

Then too, we paid $3500 cash for our boat last year. There are no payments, and no repo man :) It's in wonderful shape, and should last us for as long as we want.

It might seem a silly purchase, but it made my family extremely happy. Because we live in such a remote, isolated area, it gave us something to do that was still close to home. We don't even spend that much gas since the main objective is finding a secluded cove to anchor and swim and fish in.

[Rick]

I don't think boats are "over the top", but I definitely agree they fall squarely in the "want" category. That said, I want a boat, and I'm saving up for one. Hopefully next summer I'll be able to get myself one -- either that, or a jet ski. I do like Liz's advice: find a friend with a boat.

[MonkeyMonk]

I've never been a big powerboat fan but I think sailing is about one of the most fantastic pastimes there is. It can get pricey sometimes but I can't imagine a better way to spend a beautiful weekend. I guess it's all about allocating money for the things you love while being frugal on other perks of life you can life without.

[Jon]

As a long time boater myself, I've never thought that boats, in general, were some sort of over-the-top toy. They're about like anything else; motorcycles, 4-wheelers, RVs. If you can actually afford the toy, you might as well enjoy it. The rule is just the same as in buying a house - don't finance something bigger and fancier than you can really afford.

[Matt]

Anyone who makes a purchase needs to realize the impact it can have. I'm a boat owner myself and I have no sympathy for anyone who defaults and looses their toy. Luxury items are no different from our every day basic needs. If there is a chance you can't afford it why are you spending your money on it? I wouldn't buy a new boat right now; I can't afford it nor justify it even if the bank is willing to give me the loan.