When you buy a family boat, you are a hero of world economics.
You probably think you are doing something to make your family’s life more enjoyable, but you also are setting off an economic event that impacts the life of a lot of workers.rs.
From the dealer that sells you the boat to the finance company that lends you the money to the folks at EdgeWater Power Boats that make the boat, you have contributed to the livelihood of people the world over.
The Federal Reserve has been keeping rates low to encourage businesses to borrow and expand, and consumers to borrow and buy. With those low rates, buying a family boat is more affordable right now than it was a few years ago. A loan at 4 percent interest means you would pay half what you would for a loan at 8 percent interest. In other words, if you borrowed $15,000 to buy your boat, at 8 percent interest over five years, you’d pay $304.15 a month. At 4 percent interest over five years, you’d pay $276.25 a month. That means over the life of the loan, you’ll be paying $1,474 less.
If you looked at buying a boat four or five years ago and couldn’t afford it, you might want to revisit the idea while interest rates are so low.
So how do you create those jobs?
At the dealership, a salesman probably works with you to help decide which boat you want. He may consult with his manager as they create a sales proposal for you. Once you agree to it, then the salesman will hand you off to a finance manager while a service worker prepares your boat for you to take with you. Yes, that’s four jobs you are helping to support already. At a small dealership, the manager, salesman and finance manager may all be the same person, but hopefully he will have a service worker to help, so it’s two jobs.
At the finance company, you have one person who processes your loan and another person who services the loan (makes sure you’re making payments), and a manager for both. That’s three more jobs.
At the boat manufacturing plant, you’re really an economic engine. Anywhere from 10 to 15 people could be involved in assembling your boat. That spreads out to the workers assembling or building your trailer, engine and all the parts that go into the boat, so you’ve multiplied it up to another 30 to 45.
Add all those workers up and on the conservative side you are helping maintain 45 jobs. On the long side it could be as many as 67 jobs.
So by taking on the risk of buying that family boat, and putting your own work into paying for it, you could be helping more than 60 other people. So, you are an economic hero to them.
Florida-based EdgeWater Power Boats makes top quality family boats for cruising, fishing and skiing.