View Poll Results: is ypour boat paid off or on a loan ?
totally paid off
200
51.55%
I have a loan somewhere that helps me have it.
188
48.45%
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is your boat paid off or on a loan ?

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Old 01-07-2007, 01:46 AM
  #91
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Default Re: is your boat paid off or on a loan ?

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Originally Posted by outriggers View Post
I have never really understood the write off thing. If you can write it off the interest,and your in the 30% bracket your spending a dollar to save 30 cents. This is also how I feel about my mortgage. Doug
My point is the what would be smarter(assuming the same interest rates)-buying a 90,000$ boat and paying cash to be able to say "I only pay cash for my toys" then owing 90,000 on a couple of high end cars,trucks and credit cards (no interest writeoff on your taxes unless their business related) or paying cash for the things that can't be wrote off and having a 6300$ write off (on a 7% loan)-If you were in a 30% federal tax bracket that would be 1890$ in federal,at 5% state-315$-I'd take the extra 2200$ . And again,if you want to drive a old 15,000 or 20,000$ boat or have worked hard enough to have a giant surplus in discretionary income that you wouldn't prefer to invest elswhere to where you can write a check for everything you ever buy,thats even better, you are truly successful (or are content to have a old boat ),Smitty
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Old 01-07-2007, 09:03 PM
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Default Re: is your boat paid off or on a loan ?

Personally my feeling is payments are fine as long as you arent financing the purchase till the end of time!! 5 years max! I also will not purchase a new boat because of how much they depreciate (just like everything else that is new).

I owned a boat which was 15 years old and held off on buying a new one for a few years because I liked having my toy free and clear. After a few years though I wanted bigger and faster and sold that boat, put the money down on my "new boat"--1994 Powerquest 257 Legend with only 196 hours and a tandem manning trailer. I owe $13k and financed that on 5 years. To me, thats reasonable--my toy doesnt own me and I will probably pay it off in less than 3 years.
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Old 01-08-2007, 07:26 AM
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Default Re: is your boat paid off or on a loan ?

My brother in law works for GE financial who is a major player in the marine market. I asked him why 20 year boat loans are so cheap relative to other loans. The answer is really that although the term is 20 years rarely does anyone keep a boat that long. I believe the average is 4-5 years. The banks know that people in this market use these loans like a line of credit really. They will trade up or get out in this time frame most of the time.
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Old 01-08-2007, 08:45 AM
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Default Re: is your boat paid off or on a loan ?

smitty, my wife and I dont have any write off's, so we just plod along and keep saving for retirement. Sorry if anyone misunderstood what i was trying to say. If youve ever had everything taken away as i did you look at things differently than alot of people do. As for an old boat i like old equipment that works well. mine isnt the fastest around but its respectable. Ive spent enough on it to have a new boat. Im just a poor old truck driver that likes the water.
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Old 01-08-2007, 05:38 PM
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Default Re: is your boat paid off or on a loan ?

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J/K-
LOL. I see we have a fellow RV owner.

Buck
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Old 01-08-2007, 05:41 PM
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Default Re: is your boat paid off or on a loan ?

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This topic amuses me everytime it comes up. Two things that I find most amusing are 1) The fact that it has been disussed at length about once a year since this board was started and 2) The "matter of fact' replies that the majority of people feel the need to voice. Or should I say the "my way is the only way" of thinking.

I too have a rule when it comes to purchasing toys at are house. I let you know what it is when I finish my reply.

We have to remember that everyone's financial situations are different. A person with the ability to pay cash for a boat or toy will never understand why everyone can't do the same thing. This thinking goes the other way too.

Unfortunately I can almost assure you that I will never in my lifetime have 50, 100, or even 200k in accessible cash to buy a boat with. NEVER.

Now, IF I did however come into a situation where I had that kind of liquid cash I wouldn't even consider spending it on a depreciating asset. I would invest the money in something else like Real Estate or something that will have a decent return. I would consider paying my house off, adding on to it, investing more in my business or somelike that. But I would never put it into a depreciating asset like a boat. Call it stupid if you want, but my investment broker tends to agree.

I can buy a boat "right" and own it for 2-3 years, write the interest off, and sell it for what I owe on it when I am done. If you amortize a boat loan over a 10-15 yr period and figure returns on 100k worth of investment over the same amount of time it's a no brainer for me which one I am taking....a payment.

For those of you that think the write off is a joke...fine. I wrote off $3,600 a year in interest on the last boat I owned. Were it not for that I couldn't have justified buying it.

Now, I could elect to start a goal for myself and put back a set amount of money to pay cash for a boat. It would take me a minumum of ten years to do it. By then my kids would be 19 and 16. They would care less about the time they spend with me by then and they wouldn't have any memories that we would have shared because I elected to go ahead and make a payment.

Now for my household "toy rule"......

Why wait until your 60+ to pay cash for something when I make payments on one and enjoy it now?

I'll be damned if I'm gonna sit by and watch everyone else enjoy life until I manage to put back 100k to pay cash for a boat.

We all have different scenerios to live with financially. Don't try and thrust your way on someone else just because their's is different.

I have a set amount of disposable income a month. If that amount allows me to make a payment and enjoy a boat now then I will do it. Don't belittle someone for going this route.

I'm going back to my trailer house now.....



Buck
Right on Buck,now that makes sense! That's how i feel also, you are not going to be around forever and you could die tomorrow enjoy it now.

Don't take life so serious because it's not permandent... I just read that on a beer huggie

Last edited by Ike; 01-08-2007 at 06:00 PM.
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Old 01-08-2007, 07:03 PM
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Default Re: is your boat paid off or on a loan ?

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Right on Buck,now that makes sense! That's how i feel also, you are not going to be around forever and you could die tomorrow enjoy it now.

Don't take life so serious because it's not permandent... I just read that on a beer huggie
That's right man! Shake and Bake!!!!

Buck
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Old 01-08-2007, 10:10 PM
  #98
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Default Re: is your boat paid off or on a loan ?

Quote:
Originally Posted by buck183 View Post
This topic amuses me everytime it comes up. Two things that I find most amusing are 1) The fact that it has been disussed at length about once a year since this board was started and 2) The "matter of fact' replies that the majority of people feel the need to voice. Or should I say the "my way is the only way" of thinking.

I too have a rule when it comes to purchasing toys at are house. I let you know what it is when I finish my reply.

We have to remember that everyone's financial situations are different. A person with the ability to pay cash for a boat or toy will never understand why everyone can't do the same thing. This thinking goes the other way too.

Unfortunately I can almost assure you that I will never in my lifetime have 50, 100, or even 200k in accessible cash to buy a boat with. NEVER.

Now, IF I did however come into a situation where I had that kind of liquid cash I wouldn't even consider spending it on a depreciating asset. I would invest the money in something else like Real Estate or something that will have a decent return. I would consider paying my house off, adding on to it, investing more in my business or somelike that. But I would never put it into a depreciating asset like a boat. Call it stupid if you want, but my investment broker tends to agree.

I can buy a boat "right" and own it for 2-3 years, write the interest off, and sell it for what I owe on it when I am done. If you amortize a boat loan over a 10-15 yr period and figure returns on 100k worth of investment over the same amount of time it's a no brainer for me which one I am taking....a payment.

For those of you that think the write off is a joke...fine. I wrote off $3,600 a year in interest on the last boat I owned. Were it not for that I couldn't have justified buying it.

Now, I could elect to start a goal for myself and put back a set amount of money to pay cash for a boat. It would take me a minumum of ten years to do it. By then my kids would be 19 and 16. They would care less about the time they spend with me by then and they wouldn't have any memories that we would have shared because I elected to go ahead and make a payment.

Now for my household "toy rule"......

Why wait until your 60+ to pay cash for something when I make payments on one and enjoy it now?

I'll be damned if I'm gonna sit by and watch everyone else enjoy life until I manage to put back 100k to pay cash for a boat.

We all have different scenerios to live with financially. Don't try and thrust your way on someone else just because their's is different.

I have a set amount of disposable income a month. If that amount allows me to make a payment and enjoy a boat now then I will do it. Don't belittle someone for going this route.

I'm going back to my trailer house now.....



Buck
I totally agree, I have friends and family that can pay cash for these type of toys. I feel more comfortable, buying the boat right, financing way less than the boat is worth, making payments at a good interest rate, writing off the interest, and enjoying it with my family-- without any worry of my financial security, than waiting 5 to 10yrs to pay cash for one.. I'm sure that one point, 5-10yrs, I will be able to pay cash for one, but even then- I will still buy right, get a loan way below value and write it off.. Just like I did this week!!!
Different strokes for different folks!!
ya- I'm from Oklahoma

Last edited by FASTTIMES; 01-08-2007 at 11:00 PM.
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Old 01-08-2007, 10:51 PM
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Default Re: is your boat paid off or on a loan ?

It is easier when you can at least write off the interest by your house mortgage. Unfortunatly, we can't do this here. You have a good point in that way!
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Old 01-09-2007, 01:36 AM
  #100
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Default Re: is your boat paid off or on a loan ?

I would never think of buying something on a loan just to have a write off but I am paying all my extra income (that doesn't get poured into going faster on my boat ) into paying off my 06 duramax and improving my 40X100 shop that I use to make money with. There is barely enough interest to even write off anymore on my boat as the loan is paid 2/3rds of the way off but when added to my mgt and home equity loan it still takes me into the itemizing territory on my taxes,every little bit helps,Smitty
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