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 Financing Motors? 
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Post Financing Motors?
Is it best to get a loan from a bank, or do the MM companies do financing like the outboard companies?

I can pay the notes but just don't have $4k+ sitting in my pocket.

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Copperhead 12Hp SD on 1442 Alweld


Wed Apr 14, 2010 10:12 am
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Post Re: Financing Motors?
u can actually take loans from your 401k . set up your own payment plan and pay yourself back with intrest.. check into dat

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Wed Apr 14, 2010 10:15 am
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Post Re: Financing Motors?
Not a bad idea. Even the interest rate is lower. Might have to see how much I have in my 401k.

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Copperhead 12Hp SD on 1442 Alweld


Wed Apr 14, 2010 10:19 am
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Post Re: Financing Motors?
APR is 4.25%, can't get that from a bank. Now I just need to convince myself to take the loan out for a MM boat and not a 2nd hand bay boat. :?:

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Copperhead 12Hp SD on 1442 Alweld


Wed Apr 14, 2010 10:29 am
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Post Re: Financing Motors?
dats how i got ma motor . u borrow your own money and make money off of it

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Wed Apr 14, 2010 10:32 am
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Copperhead 12Hp SD on 1442 Alweld


Wed Apr 14, 2010 10:47 am
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Post Re: Financing Motors?
Borrowing from your 401K = bad move.

On the surface, it sounds like borrowing from yourself and paying yourself back interest, along with paying a lower rate than you would get on a bank loan, makes sense. But it does not.

When you are borrowing from your 401K you are taking that money out of play. If you are like most 401K account holders (myself included) you took a shellacking in 2009 and the value of your 401K dropped up to 40 or 50% (depending on how you have it invested). If you look at your 401K statement you are making a good chunk of that back in 2010. If you pull your money out of play you will be "locking in" the losses you took in 2009. Now, if most of your 401K funds were invested in safe, low return vehicles your account wouldn't have taken a dump in 2009, but neither will it keep up with inflation as you go through life. Over the LONG HAUL, money left in mutual fund markets which make up most of the 401K money invested in America will go up in value unless you try to time the market.

If you lost a ton on your 401K value last year and take out a loan against your account this year you are sitting on the sidelines while others make hay...

I will step off my soapbox while you guys carry on...


Wed Apr 14, 2010 11:36 am
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Post Re: Financing Motors?

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Wed Apr 14, 2010 12:32 pm
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Post Re: Financing Motors?
"How we gonna come up with ten thousand dollars?"
"We could sell blood and semen."
"Ewwww"
"Not mixed together"

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Wed Apr 14, 2010 12:43 pm
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Post Re: Financing Motors?

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Wed Apr 14, 2010 12:45 pm
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Post Re: Financing Motors?
cmiller73,
I want to show you something that should open your eyes. Currently the IRS allows you to put $16,500 into your 401K. History has shown over the life of the S&P 500 it has average a 10% return. So, I'll be conservative. If you put $16,500 into your 401K starting this year (2010) and it averages 8% which is very conservative, you'll have 1.3 million yes I said MILLION dollars in 2035. I have no idea of your age, but I doubt you will retire in 2035. If you invest the money for 30 years (2045), you'll have 2 million in your 401K. Most employers will match 1/2 or more up to about 8%, so as soon as you put money into your 401K you are making 4% right off the bat. I didn't take that into account with the spreadsheet below:



Let's say you average 10% on your 401K, you'll have 3 million at the end of 2045. If you invest wisely and make 15%, you are looking at 8 MILLION in 2045. I'm sure I'm waisting my time here, but I hope this opens at least one of you young guys EYES!! :shock: :shock: :shock:

Moral of the story, don't screw with your 401K and MAX it out.

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Wed Apr 14, 2010 1:01 pm
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Post Re: Financing Motors?
idabilly, I understand what you are saying.

The way the loans are setup to be paid back(here anyway), every check it's drafted. Minimum is 1 year and max is 5 years. Basically the same terms you can get at a bank.

I don't have a whole lot in my 401k. Something like 26k and can only borrow 1/2 of the balance.

It's just another option.

Edit: Just saw your new reply.

I put 6% and the company "WAS" matching 100% up-to 6%. So that made 12% total. Well, when the oilfield tanked last year, my employer stop matching all together.

BTW, I'm 36, and really don't plan to retire. Most likely will be dead before retirement age anyway. :)

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Wed Apr 14, 2010 1:05 pm
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Post Re: Financing Motors?
Here's the number on 15% putting in 16,500 each year. I don't have enough room on my monitor to show you all 30 years, but this should give you an idea.


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Wed Apr 14, 2010 1:06 pm
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Post Re: Financing Motors?
Fellers ~ SandyMans Rite-On on this !!!! Pay attention closely !!!

Don't be a Brooks ... :o ... Plan fo Yore Future !!!! I have allways been poor and strugled to git thangs ..... never have had a good plan .... still ain't gots nothin' and still ain't gots no plan .... :lol: !!!!

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Wed Apr 14, 2010 1:09 pm
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Wed Apr 14, 2010 1:11 pm
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Post Re: Financing Motors?


Wed Apr 14, 2010 3:29 pm
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Post Re: Financing Motors?
Check and see if ya place of business has a credit union i got a 6.5% intrest rate on a motor I just bought last month. they will just require full coverage insurance and it is a beeyotch trying to get on a homemade hull, but Markel American is writting policies now.

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Wed Apr 14, 2010 6:48 pm
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Post Re: Financing Motors?
All the replies were educating and all, but no one really answer my initial question. But maybe that is because MM companies don't do financing. :roll:

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Wed Apr 14, 2010 7:48 pm
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Post Re: Financing Motors?
cmiller, the two that I have dealt with don't finance, other than taking credit cards. Much as we'd all hate to admit it, mud motors are still a small and specialized market and they pale in comparison to the numbers of motors that Evinrude, Yammy, Suzuki et all sell. Does not surprise me that they haven't gotten to the point of having to finance them to sell them.


Wed Apr 14, 2010 9:34 pm
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Post Re: Financing Motors?
No, GT does not have financing. A dealer probably does but check the banks out, especially the credit unions. You can take a loan out on a boat for well over 5 yrs., unlike a car.

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