View Poll Results: Do you own your boat
I paid cash or paid off my boat loan
152
58.24%
The bank owns my boat
109
41.76%
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Do you own your boat

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Old 01-27-2005, 08:03 AM
  #61
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Default Re: Do you own your boat

I owned my last boat.....But the bank is gonna own my next one

I'll just borrow it on weekends
 
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Old 01-27-2005, 08:38 AM
  #62
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Default Re: Do you own your boat

Quote:
Originally Posted by MILD THUNDER
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.
What kind of math is that???
First, you are presuming that you've gotten a 100% loan on the Outlaw. Okay, I'll go with that...

A $50k loan at 6% is gonna give you a 15 year term with $422/month payments.
Keep it 2 years, payment total is $10,126. Payoff balance is $45,627 (not $40k).
Sell it for $45k. So it cost you more like $10,500. Sounds like a 50% increase in net outlay to me (7000 + 3500 = 10500). Maybe that sounds the same to you.

The simple fact is that paying cash for things and owning them helps you keep control over where your money is going. If you have $150k in the "bank" and you are trying to decide whether to cash it out on a boat or get a loan for the boat, then you're using some pretty weird logic in the first place. Why's it in the frickin bank? At 1.2%? Why isn't it being shoveled as fast as you can into a tax-sheltered retirement plan or into something stable like real estate? It's just sitting in the bank? Why isn't it going to pay down the house (unless you got one of those 4.7% 30 year fixed loans)?

People who hoard cash and finance things like cars and boats ? I don't get it. Call me weird.


It's one thing to talk about financing something you don't have the resources to pay for. That's what credit is for. But to finance something that you have cash sitting in the BANK for? I don't get it.
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Old 01-27-2005, 08:45 AM
  #63
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Default Re: Do you own your boat

mcollinstn, If your bank is paying 1.2%, that's about twice what mine is paying. The last time I figured the interest being paid on my account, I had to move the decimal point on my calculator to show three digits to the right!
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Old 01-27-2005, 08:53 AM
  #64
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Default Re: Do you own your boat

I own mine, THANK GOD !
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Old 01-27-2005, 01:40 PM
  #65
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Default Re: Do you own your boat

What are boat rates right now ..Assuming 750 or higher score ..Maybe 25K down and borrow 50K ??
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Old 01-27-2005, 06:40 PM
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Default Re: Do you own your boat

I have enjoyed all the different views on this thread. But as I said before, I never pay a dime out of my pocket down on a boat. I borrow the full amount (which is a great deal) and finance the rest. I currently have a 5 1/8% finance rate and a 20 year term. I make the payments and write off the entire interest amount. I also keep my money in the market making anywhere from 9% to 20% in any given quarter. I am no accountant, but I have a very good one that says this is the smart way to buy the big toys. I agree. If all hell brakes loose, I let the boat go back and I still have my money and my houses. I can borrow money from any bank any time with money in the bank even with a boat that has gone back. Sound advice I guarantee.
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Old 01-27-2005, 08:34 PM
  #67
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Default Re: Do you own your boat

Quote:
Originally Posted by Steet
I have enjoyed all the different views on this thread. But as I said before, I never pay a dime out of my pocket down on a boat. I borrow the full amount (which is a great deal) and finance the rest. I currently have a 5 1/8% finance rate and a 20 year term. I make the payments and write off the entire interest amount. I also keep my money in the market making anywhere from 9% to 20% in any given quarter. I am no accountant, but I have a very good one that says this is the smart way to buy the big toys. I agree. If all hell brakes loose, I let the boat go back and I still have my money and my houses. I can borrow money from any bank any time with money in the bank even with a boat that has gone back. Sound advice I guarantee.
pm me were you have money market ill take some of that 9%
best i can find is 6.75 % on bonds 5 yr
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Old 01-27-2005, 09:07 PM
  #68
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Default Re: Do you own your boat

We have had discussions like this on several occasions in the past. I always enjoy the views and opinions that come from it. That's what we're here for....give out opinions on a common interest. As always, when it comes to money our opinions can be very strong depending on our financial situation, upbringing, and values in life.

Whenever we discuss this topic someone almost always brings up the rule that ALL must live by or we are fools. "No payments on toys at all"!! For those that are fortunate enough in life to be in these situations this is great. I commend you. You deserve everything you have earned in life. Keep up the good work.

Now for the real world where most of us live......I'll be damned if I'm going to work 60 hrs a week while the rest of the fortunate people in the world go to the lake every weekend. I'm not going to spend the next 10-15 yrs of my life saving up enough money to pay cash for something I can make payments on and enjoy now. My kids will not have the opportunity to enjoy the lake life like I did when growing up. My priorities may change by then. My needs may also change. My spouse and I don't earn 100k a year. We will enjoy the money we make on the things that we enjoy. If we can afford a reasonable boat payment for a few years while we use it...so be it. I get to write the interest off and I'm out the depreciation and upkeep. Everyone is out upkeep regardless. After depreciation I lost 2k in three yrs on my last boat. Oh well!

Let's be nice and remember that we all have different financial situations. Just because one earns more than the next person shouldn't give them the right to tell the less fortunate they are wrong for making payments on toys to enjoy with the family.

My rule....Make payments on it now while I can afford to enjoy it. Just my rule, doesn't have to apply to everyone.

Buck
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Old 01-27-2005, 10:27 PM
  #69
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Default Re: Do you own your boat

Quote:
Originally Posted by Steet
I have enjoyed all the different views on this thread. But as I said before, I never pay a dime out of my pocket down on a boat. I borrow the full amount (which is a great deal) and finance the rest. I currently have a 5 1/8% finance rate and a 20 year term. I make the payments and write off the entire interest amount. I also keep my money in the market making anywhere from 9% to 20% in any given quarter. I am no accountant, but I have a very good one that says this is the smart way to buy the big toys. I agree. If all hell brakes loose, I let the boat go back and I still have my money and my houses. I can borrow money from any bank any time with money in the bank even with a boat that has gone back. Sound advice I guarantee.
Thank you someone with some common sense.
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Old 01-27-2005, 10:30 PM
  #70
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Default Re: Do you own your boat

Quote:
Originally Posted by MildThunder
pm me were you have money market ill take some of that 9%
best i can find is 6.75 % on bonds 5 yr
Money markets are to safe try Legg Masion,haven't been below 13% average in 2
years!!!!!!!!!!
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