Boat Purchasing Poll

[AZDANSX230HO]

We all had to make a choice when buying a boat, paying cash or financing. With interest rates at all time lows as well as returns on having your cash in the bank, what made you choose how to purchase your boat?

 

[McMark]

Why lay out a bunch of cash? Finance the boat. Put the 50k in something that'll make you money.

 

[swatski]

Why lay out a bunch of cash? Finance the boat. Put the 50k in something that'll make you money.

I think that is a tough one. At least watching my investment portfolio, not always making money... there are significant windows where that strategy ends up costing more, sometimes a lot more.
Of course you could make that foolproof with sufficient discipline and resources, but I would bet most of YJB owners lack either (key word "sufficient").

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[sx998]

I put down a chunk large enough to cover what I thought would be the depreciation of the new boat. That way if I sell it, I won't have to fork over money to get rid of the boat. It's just a play on money but that's what I did.

 

[BlackandTan]

There was 0% interest when I bought my boat. That's hard to pass up!

 

[swatski]

There was 0% interest when I bought my boat. That's hard to pass up!

That's only for one year though, right? I was wondering about it. But I think it jumps to something obscene if you slip...

 

[Ronnie]

I put a large down payment on it from the sale of my previous Yamaha jet boat and paid off the difference less than two years later. This was on a used (2 years old when I got it) 242 ls coming from an '06 SX 230 HO. So the interest rate was higher but the principle amount borrowed so much lower as well.

I have a degree in finance and understand time value of money principles but still hate debt especially on luxury items like boats. One thing I've noticed now that my boat is paid off is that I don't baby it as much as I used to and I don't feel the need to use it as much either whereas when I was making monthly payments I felt terrible when it went unused.

 

[Zarrella]

Zero interest loan from our retirement. Paid it back in 2 years!

 

[AZDANSX230HO]

Option 4? Large down payment & financing....50/50, 40/60, 30/70....etc

Just added that option to the poll, you can change your original vote if needed.

 

[AZDANSX230HO]

We pay cash for most everything in life including toys such as boats, motorcycles, side x sides, etc. Nothing worse than if the economy takes a shit, go through a layoff, etc. and you are stuck with stuff that's hard to sell or potentially upside down on them. I do not mind having a mortgage or car payments, we always put a large down payment and our interest rates are extremely low, fortunately my Wife works for a Credit Union and we get discounted rates for her being an employee.

 

[robert843]

I agree with above statement I never believed in financing toys only a mortgage was really exceptable in my mind and even then I'm a firm believer in 15 years or less on that. As mentioned in this post though I have financed a few thing in the past few years one car, the boat and a jet ski but all I went in intending to pay cash but all were financed at 1.9% or lower at those rates I didn't see any point in tying up the money. Now not that I'm doing anything else with the money really at the time to make it grow but atleast it there in an emergency.

 

[AZDANSX230HO]

I agree with above statement I never believed in financing toys only a mortgage was really exceptable in my mind and even then I'm a firm believer in 15 years or less on that. As mentioned in this post though I have financed a few thing in the past few years one car, the boat and a jet ski but all I went in intending to pay cash but all were financed at 1.9% or lower at those rates I didn't see any point in tying up the money. Now not that I'm doing anything else with the money really at the time to make it grow but atleast it there in an emergency.

I agree, we like to keep liquid cash available for an emergency, our goal is to keep at minimum 12 months worth of cash on hand that pays all of the bills if needed, that is never touched. It's hard to pull cash out of a 401K unless you quit or take a loan against it, it's hard to pull equity out of your home unless you sell it or do a home equity line of credit, etc.

 

[AZDANSX230HO]

If I can recall anything from my major in college, I've always have been amazed and terrified at the concept of fiat money...especially the deeper I think about it

I am with you, when we had our money backed by the gold standard - that was good. Now we just have paper and we are told it's worth something, but in the end it's paper. I have been buying a fair amount of silver lately to hedge an uncertain future of our dollar.

 

[Zarrella]

@AZDANSX230HO
I have done Silver in the past. Maybe, I need to look into it again. I also live by the year of cash rule.

 

[MattFX4]

Lot's of different schools of thought on this one. I put down a small down payment. Maybe 10% of the purchase price. However, I did buy a 1 year old used boat for significantly less than it cost new. I am right-side up and have equity from day 1, so don't mind having a payment. I pay extra each month so it doesn't flip the other way, and become upside down on down the road. I see no problem with financing a boat if your debt to income ratio is very low with the boat loan, and you are still able to save for retirement and other general savings each month. If we really wanted to, we could pay $3,000-$4,000 a month towards our boat and have it paid off in a year. That doesn't sound appealing though as it would cut in to our lifestyle. My wife and I work our tails off. We may get hit by a bus tomorrow...never know. I'm going to enjoy this life while I am here.

 

[swatski]

Lot's of different schools of thought on this one. I put down a small down payment. Maybe 10% of the purchase price. However, I did buy a 1 year old used boat for significantly less than it cost new. I am right-side up and have equity from day 1, so don't mind having a payment. I pay extra each month so it doesn't flip the other way, and become upside down on down the road. I see no problem with financing a boat if your debt to income ratio is very low with the boat loan, and you are still able to save for retirement and other general savings each month. If we really wanted to, we could pay $3,000-$4,000 a month towards our boat and have it paid off in a year. That doesn't sound appealing though as it would cut in to our lifestyle. My wife and I work our tails off. We may get hit by a bus tomorrow...never know. I'm going to enjoy this life while I am here.

For me, the difficulty with loan calculations here is figuring out when exactly you are/are not right-side-up in a boat...
You can probably figure it out, and Yamahas tend to keep their value, but still - it's one thing to get an appraisal, it's another to see the money.

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[AZDANSX230HO]

@AZDANSX230HO
I have done Silver in the past. Maybe, I need to look into it again. I also live by the year of cash rule.

Sounds like we are cut from the same cloth!! Prices are decent right now, spot today is $ 20.27, of course you pay more buying it, I like buying the 1oz American Eagle Coins. And I have a very nice safe to keep it mine LOL.

http://www.silver.com/2016-1-oz-silver-american-eagles/

 

[robert843]

For me, the difficulty with loan calculations here is figuring out when exactly you are/are not right-side-up in a boat...
You can probably figure it out, and Yamahas tend to keep their value, but still - it's one thing to get an appraisal, it's another to see the money.

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Unfortunately you are correct the only time you are not upended in anything financed is when you have physically sold it for more then you owe until then its all negative debt even though some banks and other financial institutions look at them as assets with equity. The equity train of thought has gotten many Americans and banks into a lot of financial hard ship during this last decade when the housing market collapsed and banks were hold notes for items they had evaluated being worth a lot more then they were.

 

[Zarrella]

Sounds like we are cut from the same cloth!! Prices are decent right now, spot today is $ 20.27, of course you pay more buying it, I like buying the 1oz American Eagle Coins. And I have a very nice safe to keep it mine LOL.

http://www.silver.com/2016-1-oz-silver-american-eagles/

lol.....I wonder if we have the same safes???

 

[Zarrella]

@AZDANSX230HO
How are you paying for the silver and how many at a time are you buying?