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Old 01-06-2009, 09:44 PM
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Pay cash if you can and it is paid for.You will enjoy it that much more, not worrying about next payment.
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Old 01-06-2009, 10:05 PM
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X2!!!!
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Old 01-06-2009, 10:21 PM
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Originally Posted by scottw View Post
Why pay cash for a big ticket item. Invest that money and let it work for you. Use the banks money. Just my 2cents worth.
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.
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Old 01-06-2009, 10:35 PM
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Originally Posted by boating37 View Post
Pay cash if you can and it is paid for.You will enjoy it that much more, not worrying about next payment.
Agree 100 %. Pay cash for toys.
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Old 01-06-2009, 10:42 PM
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Quote:
Originally Posted by omerta one View Post
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.
In fact, we're seeing the ressurgenc of "lay away." peopl eused to use that before credit cards became the mainstream rage. Now that credit dried up, people have to wait for the impulse item.

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.
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Old 01-06-2009, 10:53 PM
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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.
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Old 01-06-2009, 11:02 PM
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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.
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Old 01-06-2009, 11:07 PM
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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.

Last edited by crb76; 01-06-2009 at 11:09 PM.
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Old 01-06-2009, 11:18 PM
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Cash on the incremental road to h*ll plan for me. The only thing worse than blowing 80 cents on the dollar would be owing 80 cents on the dollar .
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Old 01-06-2009, 11:26 PM
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Cash for toys, period. No truck payments, no boat payments. I sure dont have the trickest shi+ on the pond, but I can sure relax when I decide not to use it one weekend.
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