MILD THUNDER

iTrader: (3)

I guess it depends on the person financial situation as to whether its better to pay cash or finance, plus the type of boat.

Lets suppose a guy has a home, wife and kids. He has saved up 150k in cash. He decides he wants a one year old fountain for lets say, 100k. He now has his savings down to 50k. Then he goes and spends another 20k for a truck to pull his fountain. Now, his savings is down to 30k. He finds out he is going to be laid off from his job, and his wife is pregnant again. Now, he doesnt have much money to fall back on. He panics, and has to sell the fountain soon. He lets the boat go for 85k because he needs to move it. He loses 15k in cash, plus the boat he saved for. If he had a 750 dollar boat payment, 350 dollar truck payment, and 150k in his savings, he would not have to panic, and rush to dump the boat right away, and he could concentrate on finding work and his family having a roof and food.

We see it all the time, guys having to dump their toy's dirt cheap because they desperatly need CASH. They take a huge beating on their boats.

I suppose if you can afford to spend the cash for the big money boats, and still have plenty left over, than yes, I would buy cash too.

I think the way some of us look at it is, lets say you buy a 2000 25ft outlaw for 50k. Its a great boat with low hours. You finance it, pay 400-500 a month, and lets say you keep it two years and you sell it for 45k. You made 12k in payments, and you owe 40k. So it cost you 7k two own it for two years, had fun with it, and you didnt have to liquidate your assets to have a nice boat.

Whether you finance it, own it, lease it, or borrow it, does it really matter when your shooting across the Lake doin 70mph with a few drunk hotties in the boat?

MILD THUNDER

iTrader: (3)

"Finance a boat = the fastest way to throw your money away other than the dog track .. ?% for 10-15 years plus depreciation.. No THANKS"

Finance a 100k boat for 15 years @ 6%. 844 a month. Total paid after 15 years=151,290.

100k in a 2%apy money market for 15 years, you will just about have 150k in the account. There are tons of investments you can make with that 100k to make more, but it was just to give an idea. I say, let the money work for you, and its there in case of emergency. As long as you can afford the note, and still save money, why not. Like hotpursuit says, money is cheap now(well not for me) but for the guys who can get a 5% apr.

Shane

Cash for all toys!

MovinOn

Paid Cash for mine the day it was delivered. believe I have paid for it about 6 or 7 more time's with rebuilding blown engines. & drive's. but what can you say except you gotta love Power Performance Boating.

Dangerous Dave

There are some very interesting points of view here. I financed my boat but I pay cash for all my construction equipment. This way if worst comes to worst let the bank take the toy but they can't take my money makers, therefore worst should never meet worst. I could pay off the boat easily but for some reason I feel more comfortable with cash on hand.

Pantera1

Anytime you finance anything you are paying too much for it .. Although the way our economy works you have to carry some debt to establish credit .. I am far from rich but the only thing I make payments on are my house and two credit cards which I try and keep a small amount on .. As far buying a boat to show off or impress the chicks ..then maybe you need to work on other issues..
Although I might be borrowing twoards a boat because " I gots to have a Cig "

DonziChick

I own mine (just bought it and brought it home last week) - but it isn't worth a whole lot. I would rather pay cash for toys. The only payments I have are my condo and my car. My car will be paid off early this March (which I am looking forward to). I don't like financing things because, as others have stated, you end up losing twice - once because of depreciation and once because of the interest they charge. The only way I would finance a toy would be if I got a bigger or equal tax break to what I would be paying in interest.

Pantera1

Good point ..In NH you can take boat loan interest as a deduction if the boat has a toilet , as its considered a second /third home..

berns29scarab

i finance mine...would never tie up an appreciating asset like my house with a depreciating asset like my boat

Pantera1

I lost you ?