Cash is king. Finance. Hate when people say only pay cash. Extra cash, pay more on note. Run into financial problem, you still have cash to make it till things get better. Spend all your cash then you have tosell or refinance anyway. Easier to pay little at a time. Not for financing, no one would be rich.

Agree w/ Kreed, with rates that low use the banks money and invest your cash. If you tie up all your cash in a depreciating asset its single thread but by taking out a loan you have options whether that be in the market or buying a rental property that someone else makes your payments for, most likely will appreciate and may actually result in a monthly positive cash flow. If you are buying a used boat & score just a decent deal the likelihood it would tank is slim. I would not apply this to a new boat b/c the drive off the lot depreciation will have you upside down almost immediately.

I don't think there's a right or wrong when asking the opinions of others hypothetically b/c none of us walk in your shoes from an annual income, current income to debt ratio and or your retirement goals standpoint.

Just one mans $.02

+ 1 great point! Financing offers one options, once the cash is gone no options other than selling the boat w/ the hopes of recouping the cash. Couple OffshoreDrillin's prepayment w/ some return on your cash investing and you could be enjoying your boat for next to nada.

I think it depends on a few things:

1. Rate of depreciation: if the boat depreciates faster than the loan can get paid, I'd say stay away from that scenario.

2. If loan int rate is comparable to mortgage rate, I say finance. Often one can invest to cover the interest and still make money. Unfortunatly a lot of toy loans will be substantially higher than 2.9-3.9. Keep in mind it's going to take a sizable amount of money invested to make money. Also keep in mind that if that investment tanks, you are out that money and the boat payments don't go away.

3. Peace of mind...for me personally I pay cash. It's nice knowing a boat bill isn't coming every month. Planning around a scheduled payment gets annoying. Sometimes I say if you don't have the cash now then you never will. Perfect world save enough cash to buy the boat and have leftover emergency money. Remember it's a luxury item. Not a necessity...I think :)

You can sleep on your boat but you can't drive your house so I say prioritize accordingly.

Another thing to consider is that boat interest can be tax deductible if it has sleeping, cooking and bathroom.

Nice...

To me it depends on what type of boat your buying. Is it a boat desired on the used market or a one off you just really want. I've financed my last 8 boats and put a minimum of 40% down Why you ask about the 40% + down, so if something goes sideways and you got to sell the money you get from the buyer and on the percentage of down payment your not paying the bank to un load it.

Research the boat your buying and ask yourself are they a popular mover on the used market? 90% of boaters think about or do usually sell within 3 to 5 years. Like Nascat and my boat the used market is unbelievably great and if I were to sell mine today in boat depreciation terms I wouldn't lose much. Something to think about.

IMO I would never pay cash on a boat unless its one of those one off boats you got to have and under 75K, or if you have F you money which I don't.

Lets all face it, boats are not a great thing to own total luxury but dam are they fun. Unless something goes sideways I will have one till I die.

I know we love boats but stop!People get rich give financing to malls&multible dwellings!Banks&Insurance companys lend :eek!Rifinance your house or building for a boat not smart!Ego trip!Now if it breaks a few times boat yard fees fuel insurance mandated because of the loan etc etc!:daz:Put a good chunk down or cash only way!

Really?

Yes