Toddler

Brunswick selling SeaRay

91 posts in this topic

13 minutes ago, Richard W said:

Having this kind of money upfront opens opportunities and options. Loan or cash, whatever, not a challenge at all.

Not having this kind of operating capital upfront and planning to purchase a $100k boat is a challenge where the approach will have a lasting and more pronounce impact on one's life. This is the situation when one needs to be careful and mindful of the consequences ... as already said, the 2007/2008 subprime crisis aka living beyond one's means should be a lesson we all learned from.

+1.  Having the cash, but choosing to not use it is a very different situation.  At the very least you need to have the difference between the loan amount and the resell value of the boat on hand for a rainy day situation.  

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43 minutes ago, Richard W said:

as already said, the 2007/2008 subprime crisis aka living beyond one's means should be a lesson we all learned from.

People are already doing these loans again and unfortunately with plenty of takers. No matter how many mistakes the human race makes its capable of making the same mistakes over and over and over. 

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I agree what you guys are saying.... if @#$%@# hits the fan I have the money to take care of it.....I would not be happy but that is the change I am willing to take to have happiness and fun with family and friends......come on spring.... 

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To each his own.  For me, I will buy the 100k boat when its 12 years old for $25k cash and make just as great memories with my family all the while investing the difference over the next 20 years.  :) 

 

 

 

 

 

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3 hours ago, Dennis A said:

To each his own.  For me, I will buy the 100k boat when its 12 years old for $25k cash and make just as great memories with my family all the while investing the difference over the next 20 years.  :) 

 

 

 

 

 

I hear you, Dennis. Sure, you may need to make some repairs/upgrades to an older boat, but I don't see it adding up to the cost of a new one. Besides, upgrades are fun!!  :rolleyes:

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6 hours ago, sweetlou said:

I agree what you guys are saying.... if @#$%@# hits the fan I have the money to take care of it.....I would not be happy but that is the change I am willing to take to have happiness and fun with family and friends......come on spring.... 

I'm just stating what happens to some people. We bought this and every other boat we've had used. Our situation may be different though because we really can't afford a new boat but we can afford a used one. And getting out and having fun with friends and family is what it's all about and this was the best summer I've ever had on the water and look forward to a whole lot more of them

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18 hours ago, Dennis A said:

To each his own.  For me, I will buy the 100k boat when its 12 years old for $25k cash and make just as great memories with my family all the while investing the difference over the next 20 years.  :) 

 

 

 

 

 

This is the path I’ve chosen.  I’ve never bought a new boat or car. 

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ive gone to 10 on a boat heres why.  It allowed me the flexibility to have lower payments when needed, but I was also able to bump up payments when I wanted and typically interest rates were the same at 10 as they were at 5 or 6 or very close.  But I was disciplined I never let them get past 5 years,  think I paid off one in 3 years and the other in 5.  You are right, past 10 years people are out of their mind, they will try to justify it all they can, but like you said past 10 years probably time to scale back.

I have no problem with 20 years.

I keep my money at work and have a low interest rate and tax deduction

The boat will be sold and the loan paid off way before than.

People need to do what makes them comfortable is 100% correct.

One also has to look at their financial picture as a whole...not single out 1 particular part.

Buying a boat is not an investment, it is a cost.

How you handle that cost is an individual decision.

I work with a lot of real estate developers, every once in a while an opportunity comes up for me to invest in one of their projects.

I would rather have that money invest-able, rather than having a boat paid off.

Some people feel comfortable making monthly payments and holding on their money rather than buying for cash.

To each his own.

To those that find finance attractive, I would recommend a down payment large enough so you dont find yourself upside down on the loan.

Even better is to finance and know you have the means to pay it off at any given time.

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11 minutes ago, jeffk said:

ive gone to 10 on a boat heres why.  It allowed me the flexibility to have lower payments when needed, but I was also able to bump up payments when I wanted and typically interest rates were the same at 10 as they were at 5 or 6 or very close.  But I was disciplined I never let them get past 5 years,  think I paid off one in 3 years and the other in 5.  You are right, past 10 years people are out of their mind, they will try to justify it all they can, but like you said past 10 years probably time to scale back.

I have no problem with 20 years.

I keep my money at work and have a low interest rate and tax deduction

The boat will be sold and the loan paid off way before than.

People need to do what makes them comfortable is 100% correct.

One also has to look at their financial picture as a whole...not single out 1 particular part.

Buying a boat is not an investment, it is a cost.

How you handle that cost is an individual decision.

I work with a lot of real estate developers, every once in a while an opportunity comes up for me to invest in one of their projects.

I would rather have that money invest-able, rather than having a boat paid off.

Some people feel comfortable making monthly payments and holding on their money rather than buying for cash.

To each his own.

To those that find finance attractive, I would recommend a down payment large enough so you dont find yourself upside down on the loan.

Even better is to finance and know you have the means to pay it off at any given time.

Like I said to each their own and a lot of smart people out there but even more dumb people.  A lot of smart people finance a lot of things and a lot of those people have lots of money.  I don't know your situation in terms of income, amount lended, down payment etc.  But I still go back to a 20 year note on 6 figures or more and you let it ride for the full term, you would be out of your mind, no amount of tax deduction will make up that interest.  I deduct my trailer as well as a second home but its laughable on the actual deduction.  Don't get me wrong here I'm not flaming you as I don't know what exactly you are doing nor want to.  If your smart and disciplined, keep ahead of depreciation curve, had a nice down payment, don't plan on going full term, there probably is some smart options out there, with that said 9 out of 10 aren't doing the aforementioned they just aren't.  You still run the risk of the bottom falling out on a high dollar liability that's not easily liquidable if you lose your job or other unforeseen circumstance prevents you from paying on the note. 

Like you said boating is a cost not an investment, I also get a chuckle out of guys here making things nice for the next owner like its investment its not.  Long run with all invested toys are a loss 99% of the time and like you said again its about managing that cost that fits you.  With that said some like yourself may have the means and smarts to make long term notes  work without burning yourself, I believe that.  Now it being logical in a financial sense, not so much.  But you only live once and caskets don't have pockets.

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3 hours ago, Toolboat said:

 I’ve never bought a new boat or car. 

I'd never buy a new boat because I step up in size about every 5-6 years. I have purchased a new truck because I drive my vehicles until the wheels fall off. Current truck was bought new in '06 and since it's a diesel it's just getting broken in with 150k miles on it. I'll drive it for another 8 years at least. Wife's car is an '01 Accord that will last at least another 10 years. Buy in August when they are pushing last years models and NEVER pay interest on a car loan. 

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Soldier, for someone not flaming me you are taking a pretty good shot.

The tax deduction is only one part, liquidity and use of money are others.

I have 2 advanced degrees in Financial Planning and recently retired from Regional Sales manager from a major insurer.

Individuals make choices based on their needs and desires.

What makes sense for one does not for another.

What is right for me may not be right for you.

A cost that makes sense to me may not make sense to you.

No matter what you do boating is a cost,  how you approach that cost and the value for that cost can only be determined  by the individual.

If financing gets you to your goal go for it.

How about we move on and lets just say opinions are like (_i_)s everbody has on.

Lou , thank you do you boat North Shore or South shore?

 

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12 minutes ago, jeffk said:

 

If financing gets you to your goal go for it.

How about we move on and lets just say opinions are like (_i_)s everbody has on.

Lou , thank you do you boat North Shore or South shore?

 

Agreed we can agree to disagree.  But not sure I would follow the advice from somebody whatever their credentials, to go long term on a toy and pay thousands in interest just so I can have something.  Financing is not evil I do it all the time.  Theres line but that line is different for you and I,  just don't find it logical if we go back to your example of 100k of paying 60-90k in interest just so I can have something that I want, even if I can write off half of that interest off which  is pipe dreaming.  I worked for 8-9 figure people back in college  they usually buy toys cash and use others money to buy business' and real estate for what its worth.   Again two each his own.  Good luck

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Jeffk I boat on the south shore...... go to fire island a lot ....hang out in the connetquot river.......I have the summers off life is great....and can't wait to finance my new boat......it's snowing now....can't wait for spring.....

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That is your version of letting it go..I guess you just need the last word.

I will refrain from keeping this thread going.

Lou,

i was on the north shore out of New Rochelle for many years.

Once a year I would go down the east river out into the ocean, and go up to fire island.

Great boating.

One reason for moving down here is to use my financed boat 12 months a year.

I do miss some of the anchorages on the sound.

you will be back in the water before you know it

 

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It's easy being well off, all these options and opportunities the most do not have ... but that was not a context for, at least, the last few pages of this discussion. If one has enough, or more than enough, and wants to keep a fireplace going with $100 bills, so be it, nobody says they could not do it. The point was to opine on how to navigate the financial waters if one does not have the cash to buy a $100k boat outright.

Looks like my part is done. I appreciate the range of shared opinions, as well as the occasional self promotion sideshow. Good job everybody ... :D 

 

 

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