Sunday, March 2, 2008
Boat rental vs. buying
When comparing renting to buying a boat money becomes the biggest deciding factor. Here is a look at the specific costs associated with purchasing a competition wakeboard boat. Let’s take a 2008, Tige RZ2, manufactures suggested retailed price is $80,308.00. Let’s assume you are an excellent negotiator, and talk the sales rep. down $8,000, for a new purchase price of $72,308.00. Now, add in state sales tax (6.6% Utah) =$4772.32, property tax of Est. $320, and additional boat dealer processing fees $200.00: for a final purchasing price of $77,600.32 Assuming you have excellent credit and you secure a loan for 20 years, @ 7% interest, your payment will be $602.00 per month.
Next, let’s break the cost down yearly.
Monthly payments $602 x 12 months = $7224
Insurance = $450
Property tax = $320
Maintenance (winterization, oil changes, boat care products, etc.) =$500
Storage $100 per month x 12 months = $1200
For a grand yearly total of $9694.00
The average American uses their boat 14 days per year, so let’s divide $9694.00 by 14 to find our cost per day of $692.42 sound expensive yet? We have just started.
Now look at a three year window. Let’s assume you want a new boat in three years because, most of your warrantee has expired. Because your term is 20 years, very little of the $21,672 you paid has been applied to the loan. In-fact, only $3,997.18.has been paid towards principal.. You will still owe $73,603.14 after three years! Because boats depreciate an average of 30% or in our example $23,280, in the first three years your boat is now worth $54,320.00. Now get out of your upside down boat, you will have to come up with $19,283 cash.
Let’s look at your new cost per day with depreciation factored in. We previously figured your yearly cost at $9694.00, so we will times that by 3 years to get $29,082.00. Next, add in the amount your boat depreciated: $19,283 for a grand 3 year total of $48,365.00. Assuming you use your boat the average of 14 days each year, we will times that by 3 to get 42 days of total use for three years. Next divide $48,365.00 by 42 days to get your daily cost of $1,151.54.
Finally, we will look at your cost per day over 20 years, or the term of your boat. We determined your yearly cost to be $9694.00, so we will times that by 20 years for a total paid of $193,880.00 with $66,791.20 going to interest! Next, 14 days per year times 20 years = 280 days of use. So, we will divide $193,880.00 by 280 days of use for $692.42 per day! Sounds better than the $1152 per day that I showed you would have paid after three years, right? But remember your boat is now 20 years old and is not the sleek cutting edge boat you once had. Also we factored no maintenance cost into the equation (outside of the winterization and oil changes) you should plan on a big ticket item(and engine or tyranny) wearing out on ya over the 20 year term of the loan, remember we did not factor any of those costs! Ok, ok, so you told yourself you can store the boat at your house and you would not have to pay the $1200 annual storage fees, fine. But I did not include any money for toys that you will need to purchase to go along with your new boat. Figure on a minimum of $3000.00 dollars to get your boat set up with wakeboards, tubes, wake surfboards, water-skis, ropes, anchor, life jackets, wetsuits, etc. Remember that stuff becomes out-dated and wears out quickly, so you can factor that in annually or however you would like.
Still thinking of buying a boat? We currently rent a 2007 Tige RZ2 for as low as $490 per day! We store it, we registered, we maintain it, and we teach you how to use it. Give us a try.
This article may be reproduced without permission of the author with a valid link to website http://freedomrecreationrentals.com thanks for your interest.
Next, let’s break the cost down yearly.
Monthly payments $602 x 12 months = $7224
Insurance = $450
Property tax = $320
Maintenance (winterization, oil changes, boat care products, etc.) =$500
Storage $100 per month x 12 months = $1200
For a grand yearly total of $9694.00
The average American uses their boat 14 days per year, so let’s divide $9694.00 by 14 to find our cost per day of $692.42 sound expensive yet? We have just started.
Now look at a three year window. Let’s assume you want a new boat in three years because, most of your warrantee has expired. Because your term is 20 years, very little of the $21,672 you paid has been applied to the loan. In-fact, only $3,997.18.has been paid towards principal.. You will still owe $73,603.14 after three years! Because boats depreciate an average of 30% or in our example $23,280, in the first three years your boat is now worth $54,320.00. Now get out of your upside down boat, you will have to come up with $19,283 cash.
Let’s look at your new cost per day with depreciation factored in. We previously figured your yearly cost at $9694.00, so we will times that by 3 years to get $29,082.00. Next, add in the amount your boat depreciated: $19,283 for a grand 3 year total of $48,365.00. Assuming you use your boat the average of 14 days each year, we will times that by 3 to get 42 days of total use for three years. Next divide $48,365.00 by 42 days to get your daily cost of $1,151.54.
Finally, we will look at your cost per day over 20 years, or the term of your boat. We determined your yearly cost to be $9694.00, so we will times that by 20 years for a total paid of $193,880.00 with $66,791.20 going to interest! Next, 14 days per year times 20 years = 280 days of use. So, we will divide $193,880.00 by 280 days of use for $692.42 per day! Sounds better than the $1152 per day that I showed you would have paid after three years, right? But remember your boat is now 20 years old and is not the sleek cutting edge boat you once had. Also we factored no maintenance cost into the equation (outside of the winterization and oil changes) you should plan on a big ticket item(and engine or tyranny) wearing out on ya over the 20 year term of the loan, remember we did not factor any of those costs! Ok, ok, so you told yourself you can store the boat at your house and you would not have to pay the $1200 annual storage fees, fine. But I did not include any money for toys that you will need to purchase to go along with your new boat. Figure on a minimum of $3000.00 dollars to get your boat set up with wakeboards, tubes, wake surfboards, water-skis, ropes, anchor, life jackets, wetsuits, etc. Remember that stuff becomes out-dated and wears out quickly, so you can factor that in annually or however you would like.
Still thinking of buying a boat? We currently rent a 2007 Tige RZ2 for as low as $490 per day! We store it, we registered, we maintain it, and we teach you how to use it. Give us a try.
This article may be reproduced without permission of the author with a valid link to website http://freedomrecreationrentals.com thanks for your interest.
Monday, January 28, 2008
lake powell boat rental
Thinking of traveling to Lake Powell this summer? We would love to help make this the most memorable vacation of your life!
Ever wanted to try wake surfing but cringed at the cost of a good wakeboard boat? Let us help.
Do you have a houseboat vacation reserved on lake powell and would like a nice wakeboard boat to explore the lake on? Let us help.
We currently have a 7 day special running. For seven days you will get a 2005 Tige 22v Competition wakeboard boat, with all the accessories, wakeboard, wake skate, wake surfboard, kneeboard, 3 person tube, 12 life jackets and all the ropes required! All for $2899.00!!!! We dare you to compare, you will not find anything that even comes close to our rates!.
Split the cost with a few family's and now your really talking.
If your reading this your are likley in the process of looking for boat rentals in lake powell or Utah. As you will find there are very few competition wakeboard boats available for rent. We currently offer Tige wakeboard boats for rent and will be expanding further this spring. Freedom Recreation Rentals llc. is a "tow away" utah boat rental business located in northern Utah, we specialize in Lake powell and bear lake boat rental. The only catch is you will get a high quality competition wakeboard boat for the price of a worn out on site outboard fishing boat. Check out our website at http://freedomrecreationrentals.com to get more details and reserve your boat.
We have already taken reservations for August 2008 and plan on booking out fast.
Ever wanted to try wake surfing but cringed at the cost of a good wakeboard boat? Let us help.
Do you have a houseboat vacation reserved on lake powell and would like a nice wakeboard boat to explore the lake on? Let us help.
We currently have a 7 day special running. For seven days you will get a 2005 Tige 22v Competition wakeboard boat, with all the accessories, wakeboard, wake skate, wake surfboard, kneeboard, 3 person tube, 12 life jackets and all the ropes required! All for $2899.00!!!! We dare you to compare, you will not find anything that even comes close to our rates!.
Split the cost with a few family's and now your really talking.
If your reading this your are likley in the process of looking for boat rentals in lake powell or Utah. As you will find there are very few competition wakeboard boats available for rent. We currently offer Tige wakeboard boats for rent and will be expanding further this spring. Freedom Recreation Rentals llc. is a "tow away" utah boat rental business located in northern Utah, we specialize in Lake powell and bear lake boat rental. The only catch is you will get a high quality competition wakeboard boat for the price of a worn out on site outboard fishing boat. Check out our website at http://freedomrecreationrentals.com to get more details and reserve your boat.
We have already taken reservations for August 2008 and plan on booking out fast.
Saturday, December 22, 2007
Why buy a boat when you can rent?
I got a call from a buddy of mine asking if i was interested in going together on a wakeboard boat.
Growing up in Utah I have come to love the outdoors, especially snowboarding, and wakeboarding, and now having graduated from Utah State University and becoming a pilot for the airlines it looked like owning my own boat could soon be a reality.
After discussing the proposition with my wife we determined that due to the distance between friends it would not be in our best interest to partner on a boat.
My interest however had grown and I continued to search classifieds for a good wakeboard boat. I came across several, but all were fairly expensive. Fifty thousand dollars would buy you a nice boat, but I could not justify spending that kind of money on a boat we would only be able to use 4 months out of the year. As much as I wanted a nice boat it just did not make sense financially to own a boat. I also figured in the insurance, maintenance, storage, regestration, taxes, wakeboards, life vests, etc. and the costs sky rocked. Why would anyone in there right mind by a boat? I asked myself.
With a trip planned to lake powell in early June I began looking for a boat to rent. In the process I ended up buying a business and very nice Tige 22v competition wakeboard boat. My wife and I had a very busy and sucessfull summer, and are excited to grow our business in 2008. Currently we are looking at a additional lines of boats, namely Malibu and Epic.
Again with the costs of storage, registration, taxes, maintenance, accessories, and the short season I'm sure you see the benefits of renting vs. owning a boat. We would like to invite you to our website at http://freedomrecreationrentals.com and give us the opportunity to earn your loyal business this summer.
Thanks for your interest and hope to see you on the lake!
Growing up in Utah I have come to love the outdoors, especially snowboarding, and wakeboarding, and now having graduated from Utah State University and becoming a pilot for the airlines it looked like owning my own boat could soon be a reality.
After discussing the proposition with my wife we determined that due to the distance between friends it would not be in our best interest to partner on a boat.
My interest however had grown and I continued to search classifieds for a good wakeboard boat. I came across several, but all were fairly expensive. Fifty thousand dollars would buy you a nice boat, but I could not justify spending that kind of money on a boat we would only be able to use 4 months out of the year. As much as I wanted a nice boat it just did not make sense financially to own a boat. I also figured in the insurance, maintenance, storage, regestration, taxes, wakeboards, life vests, etc. and the costs sky rocked. Why would anyone in there right mind by a boat? I asked myself.
With a trip planned to lake powell in early June I began looking for a boat to rent. In the process I ended up buying a business and very nice Tige 22v competition wakeboard boat. My wife and I had a very busy and sucessfull summer, and are excited to grow our business in 2008. Currently we are looking at a additional lines of boats, namely Malibu and Epic.
Again with the costs of storage, registration, taxes, maintenance, accessories, and the short season I'm sure you see the benefits of renting vs. owning a boat. We would like to invite you to our website at http://freedomrecreationrentals.com and give us the opportunity to earn your loyal business this summer.
Thanks for your interest and hope to see you on the lake!
Subscribe to:
Posts (Atom)
