Would it be worth it to move up?

[tkgrady]

I bought my Tournament 275 new in 2008. Almost everything is original, including the 150s, but everything is in beautiful condition, except for some cracks in the cushions. I found a mint condition Freedom 285 that I really like. Advantages of the 285 would be:
Much newer boat with almost new engines.
Hull side door with boarding ladder.
New electronics with autopilot.
Yamaha 300s vs 150s.
Sunshade for the stern.

My boat does everything I need but I really like the options and features on the 285.

I have enough financial knowledge to know it's not too smart to take out a boat loan in retirement, but I don't want to take a lump sum out of my tax deferred accounts.

What do you think? Is it worth it?

Thanks, Tom

 

[Mustang65fbk]

I think a few things need to be answered here to start, first of which would be what are the differences in the two prices? If your current boat does everything that you need it to, I'd think that would be more than satisfactory for you at this point. That being said, if you're considering upgrading to something bigger and newer, maybe your current boat isn't the perfect boat for you. If the Grady White website is accurate, the 285 Freedom has a 9'6" beam whereas your 275 Tournament is only an 8'6" beam? Between that and being a foot longer, the 285 Freedom will feel like a considerably bigger boat, as well as have some better amenities that it sounds like your old one doesn't have. I think it's going to come down to what you really want, what kind of boating/fishing you do and what sort of comforts you'd like to have. The only down sides that I could see from a larger boat would be the possibility of trailering, potentially needing a larger tow vehicle or even a bigger slip to store the boat if you go that route. The age in your profile says 64, so I imagine getting somewhat older is going to make you want to have more comfortability when boating/boarding/off loading, which I imagine must be part of the reason here for upgrading boats, and likely worth the additional cost in doing so. It's very much an apples to oranges comparison, but my old boat was a 21' Arima, of which it did everything that I needed it to do, but it was a very lightweight boat that sat low in the water, it was a modified vee hull as opposed to a deep vee, you'd take spray over the windshield and it would pound horribly in the 1'-2' chop. I decided to upgrade to my current boat which is a 2004 Grady White 228 Seafarer and I'm so glad that I did. As mentioned above, my previous boat did everything that I needed it to but it was just horribly uncomfortable. My Grady is the complete opposite, of which I guess the moral of the story is that if you think your next boat is going to be better and more comfortable, or that you'll just enjoy it more, I think it's worth the cost of upgrading or even just looking into the possibility of upgrading. Just my thoughts on the matter, of course, good luck either way.

 

[OceanSun]

Short answer YES! If you'll be happier, bigger grin, enjoy!! Having lost my wife to cancer this past winter, it has been reinforced to really enjoy the journey - no guarantee of reaching the finish line (whatever that is). Enjoy while you have the health and energy to do so!

 

[Fishermanbb]

VERY different boats. The 286 is just bigger, heavier, rides much better, etc. The beam makes all the difference. Newer and with the bulletproof F300’s (Although the 150’s are great motors as well). IF you really use the boat and will benefit from any of that - Do it!…… If you only put 30 hours a year on it then you will have to weigh the benefit vs. the cost more heavily. However, the 285 will feel and run MUCH bigger than a 275.

 

[Hookup1]

Do it while you can. Some day it will change.

Boat loans usually carry a much higher interest rate. Depending on your financial situation you may be able to borrow on an asset. Home equity loan, personal credit line or stock or retirement portfolio credit line.

 

[seasick]

I think you need to think about the financial repercussions and not so much the differences in the two models and whether it's 'worth it' as you mention. Without knowing your financials and I don't want to know, the thing that concerns me is a potentially large loan and your statement that your current boat does everything you need. So why a newish boat?
Remember that boats are typically not assets that appreciate in value and can incur significant ongoing expenses. Make sure you don't concentrate on the emotional/impulsive aspect and think about your long term financial plan in retirement.

 

[g0tagrip]

Ahhhh....."foot-itus"! I would do it. It would be a "merry Christmas to me" purchase!

 

[Ekea]

since you are asking for opinions, i will give mine. not meant to be rude

i dont believe in taking out loans for anything other than a home. if you cant buy it upfront, you cant afford it. i know this is a rare "old school" point of view (and no, im not an "old guy")

not knowing the price difference, we cant speculate whether the upgrades are worth it. how would the upgrades make a day on the water better for you? do you have issues with low power now? do you have trouble getting in/out of the current boat without a side entry door? if you dont have issues with either of those, then the difference is really electronics and a sunshade which you can easily add to your current boat. have you compared the cost of those additions to the difference in boat prices?

 

[loubeer]

I AM an old guy and will focus on the financial side of the decision. If your retirement portfolio is now or will be TWICE as much as you expect to need for retirement, your house payment is comfortable or near being paid off and a boat payment (agree that you should shop rates) is not a financial strain - then go for it. What are your hobbies? If you have a second home/cabin, golf club membership, the travel bug, etc. probably should decide which diversion is most important to you. Last, how much enjoyment will a next level boat give you and your loved ones? If it is high and affordable my advice is to go for it. You only live once and your physical ability to enjoy your boat has a limited shelf life. Boating memories with family and friends are priceless!

 

[JJF]

This one is simple: if you can WELL afford it, then do it. Per your profile, you are 64 years old. The next 10 years will be your last best 10 years, so enjoy it. Again, it has to not impact your finances in any negative way.

 

[Mustang65fbk]

since you are asking for opinions, i will give mine. not meant to be rude

i dont believe in taking out loans for anything other than a home. if you cant buy it upfront, you cant afford it. i know this is a rare "old school" point of view (and no, im not an "old guy")

Considering that the cheapest used Grady White 285 Freedom on Boat Trader is $114k and the most expensive one is over $325k, I’d say that’s very much comparable to the price of a home, depending on where you live throughout the country. On top of that, I imagine most people probably don’t have an extra $150k-$250k in cash just laying around to put down on a boat to buy it outright. I imagine most, if they even did have that kind of extra money to begin with, likely aren’t going to spend it all on a boat, but maybe that’s just me…

 

[Ekea]

Considering that the cheapest used Grady White 285 Freedom on Boat Trader is $114k and the most expensive one is over $325k, I’d say that’s very much comparable to the price of a home, depending on where you live throughout the country. On top of that, I imagine most people probably don’t have an extra $150k-$250k in cash just laying around to put down on a boat to buy it outright. I imagine most, if they even did have that kind of extra money to begin with, likely aren’t going to spend it all on a boat, but maybe that’s just me…

so, you are just saying that most people cant afford that boat.

this is why prices are stupidly high. "if you cant afford it, just have the bank buy it for you" is what put the market where it is

 

[tkgrady]

Thank you to everyone for your replies. I knew I would get great advice on the Grady forum. I already knew what the responses would be if I posted on THT: "If you can't pay cash for an 70 foot Bayliss, you shouldn't have a boat"
The difference between what I can sell mine for and buy the nearly new one is about $140,000. I keep almost all my funds in tax deferred accounts, mainly in equities, and don't want to take the tax hit by taking lump sum out. I earn about 10% a year on the investments and the boat loan would be 6.49%. If I didn't have such nice boat already, this would be an easy decision. Once again, thank you all for your insight, there are really great people on here.

 

[Punchline Cap]

My wife would kill me in my sleep if I bought a bigger boat.

 

[Mustang65fbk]

so, you are just saying that most people cant afford that boat.

this is why prices are stupidly high. "if you cant afford it, just have the bank buy it for you" is what put the market where it is

I’m saying that most people probably can’t afford to buy a brand new Grady White outright with cash on hand. I mean a brand new 218 Adventure, 232 Gulfstream or 235 Freedom is $165k-$185k, if not more. A good deal of these boats used are even still in the $115k-$140k range. My comment was more aimed at the fact that you said you wouldn’t take out a loan for anything other than a home, which to me doesn’t make sense, as it seems like a good majority of these boats are selling for what some homes are selling for. And boats are likely going to be at a lower interest rate compared to a 30 year mortgage. Bowing out now…

 

[PointedRose]

Would the larger boat make you use the boat more often? Would the larger boat make it more comfortable for you and your passengers and make them happier to spend more time on the water with you?
Also are you confident you can sell your boat easily enough?

If you have grandkids id say keep your own boat and get them a 529 plan, and rent a larger boat when you want it a couple times a year.

 

[Fishtales]

You didn't state you're age, IRA size, income requirements etc so tough to say. I would be inclined to keep what I have.
- You know the boat and I'm assuming you've taken care of it.
- Your only getting older, bigger boat usually means bigger bills and more work.
- Are you really going to have more fun on it. Personally, I doubt it.
- Your taking on more financial risk - not only the loan payment but the additional risk of depreciation and ability to sell at a reasonable price should you need to.

Just my 2 cents.

 

[Ekea]

if you have the cash on hand and COULD buy it outright without hurting your overall financial situation but are CHOOSING not to due to the advantage of your return on investments vs loan interest coupled with the effect of taxes, then you are good to go in the $$ side. taking a loan that you can cover and making money at the same time is a different animal.

having double the power would be nice as well as the side door. i would ask though, if you are going to spend an additional $140k, do you want something so similar? personally, id want a more of a size or style upgrade

 

[Ekea]

I’m saying that most people probably can’t afford to buy a brand new Grady White outright with cash on hand. I mean a brand new 218 Adventure, 232 Gulfstream or 235 Freedom is $165k-$185k, if not more. A good deal of these boats used are even still in the $115k-$140k range. My comment was more aimed at the fact that you said you wouldn’t take out a loan for anything other than a home, which to me doesn’t make sense, as it seems like a good majority of these boats are selling for what some homes are selling for. And boats are likely going to be at a lower interest rate compared to a 30 year mortgage. Bowing out now…

im not saying that due to price, im saying that due to a home being a requirement and appreciating asset vs a boat being a luxury item and a depreciating asset. also, where are you finding homes for $115k? im not sure that would buy a single wide trailer most places

 

[trapper]

tkgrady, I am 78 and I am doing most things I did at your age of 64, however maybe a tad slower. The great thing about boating is one can continue enjoying the fishing prawning touring etc. that you have been doing, as physically it is not difficult once the launch and retrieval's been figured out. My wife holds the lines for both when not in the marina for the summer months. I look for ways to make things that need doing easier or this ageing mind will look for excuses not to do it.If I can repeat what some of the others have said. If you can afford it....go for it!!! Yes there are somethings we may not do quite as well with the ageing process, but one thing is for certain we can still have fun and my retirement has been all that and more. Enjoy my friend, there will be no regrets! Enjoyment is the staff of life!!!