Cash or Debt
#13
Gold Member
Gold Member
Paying cash also keeps you from living beyond your means. Like the good old days...save up then buy it.
#15
That's a reasonable strategy in a decent market...but saving 6% is like a guaranteed, tax free return. The S&P was down 38% last year. Right now I'm glad I paid cash for mine; if not I would have lost 38% in the market and the depreciation on top of it. The way I look at it I'm now 44% ahead by paying cash.
Paying cash also keeps you from living beyond your means. Like the good old days...save up then buy it.
Paying cash also keeps you from living beyond your means. Like the good old days...save up then buy it.
In 2009, we will hear about teh plight of credit card companies (read: banks again). This time, no one will feel sympathetic about giving tax dollars to the bozo's that have been raping consumers with 20%+ rates.
#16
Platinum Member
Platinum Member
My philosophy is to buy used, big hit on cost is already taken.
Never finance more than you can afford, not just monthly payments but also if you ever need to unload the boat in a fire sale. Don't get upside down in the financing. Even in this market, I could unload my boat and cover the loan and put money in my pocket.
Never finance more than you can afford, not just monthly payments but also if you ever need to unload the boat in a fire sale. Don't get upside down in the financing. Even in this market, I could unload my boat and cover the loan and put money in my pocket.
#17
Charter Member # 55
Charter Member
I would guess that 90% of boats are financed. I have financed every boat I have ever owned. I, like most people, don't have the cash to pay.
Finance smart, use a decent down payment, and never get upside down.
Finance smart, use a decent down payment, and never get upside down.
#18
Platinum Member
Platinum Member
I don’t buy anything unless I can pay cash for it. With that said, that doesn’t mean I pay cash for it. I believe in keeping strong cash position in my businesses and personal life. For example, there is NO resale market for boats right now. The ~300K looks a lot better in my bank right now then in my boat. If it was in the boat and I need access to the cash right away for an investment opportunity or an emergency how could I get it out of the boat today? Go ask Lehman of Bear….
This philosophy goes for my house too. It allows you to stay within your means and also use the system for it true use.
This philosophy goes for my house too. It allows you to stay within your means and also use the system for it true use.
Last edited by crb76; 01-06-2009 at 10:09 PM.