How are people affording thse 80-110k boats?

[basscat21]

So you have the boat....... now you have to fill it with JDM Tackle, JDM rods, JDM Reels.......

[DTI0384]

I just don’t think most realize how many households out there making 250k plus. It’s staggering.

What's more staggering is how much taxes are withheld.

And then having to pay on top of that, writing a 100k+ check to the IRS every year is bad enough when over 125,000 was withheld.

Working to keep most of the money you work for is annoying, there are only so many writeoffs and charities you can use to keep what you honestly earn.

[StretcherJockey]

Financing anything at a tiny interest rate with good credit score is smart because you’re taking a few thousand upfront for a down-payment and with the difference you would of put all in on said purchase, you invested and in the stock market, such as a Index,Mutual or ETF, ETH/BTC.

Only poor people save and pay cash for everything, well off people invest.

My two vehicles I purchased with a .9% and 0% Interest rate, I had more than enough cash to pay for them up front, but why that's just stupid.

Instead I used it to buy Bitcoin when it was around $16000 in late 2022.

If we’re going by that logic why not just go to every bank you can find and borrow as much money as humanly possible and subsequently investing that borrowed money and collect interest off it?

[BMCD]

I just don’t think most realize how many households out there making 250k plus. It’s staggering.

Agree, many places this is very common. And now with m ore remote work options these people are moving around the country.

[Meadows]

If we’re going by that logic why not just go to every bank you can find and borrow as much money as humanly possible and subsequently investing that borrowed money and collect interest off it?

I think there are laws that prevent that to a certain extent. But I do know a guy who took out a loan to buy a single Bitcoin, worked out for him too!

[DTI0384]

If we’re going by that logic why not just go to every bank you can find and borrow as much money as humanly possible and subsequently investing that borrowed money and collect interest off it?

Well now your just being unreasonable, I do detect some bitterness also.

[ProVle]

If we’re going by that logic why not just go to every bank you can find and borrow as much money as humanly possible and subsequently investing that borrowed money and collect interest off it?

Who say's that is a bad idea and does not happen?

[davidsa]

Financing anything at a tiny interest rate with good credit score is smart because you’re taking a few thousand upfront for a down-payment and with the difference you would of put all in on said purchase, you invested and in the stock market, such as a Index,Mutual or ETF, ETH/BTC.

Only poor people save and pay cash for everything, well off people invest.

My two vehicles I purchased with a .9% and 0% Interest rate, I had more than enough cash to pay for them up front, but why that's just stupid.

Instead I used it to buy Bitcoin when it was around $16000 in late 2022.

This is wonderful! Until it is not. For every story like yours, several guys go bust. totally wrong that only poor people pay cash. One reason people pay cash is that they are ready to storm a down turn in the market. The markets in the last 10 years are not normal. Look at the stock market from 1999 to 2009. If you want something really ugly to look at, look at the market through the 70's.

I have payed cash for everything since I was 32. The reason is it makes me realize what I'm really spending. Payments mask it mentally at least for me. Oh, and before you conclude I'm mindless on time value of money, etc, I have a graduate degree in Finance.

[Rangerdeepv]

Did a 12 year loan on last boat a few years ago and paid it off in many years before 12. It wasn't a top of the line by any means but is more than I deserve and need.

[StretcherJockey]

Well now your just being unreasonable, I do detect some bitterness also.

I’m not bitter I promise. Genuinely curious. What’s unreasonable? It’s just expanding off your own logic.

[StretcherJockey]

Who say's that is a bad idea and does not happen?

Because leveraging debt is an atrocious idea for the overwhelming majority of the population. Not doing so is much safer and more likely to lead to financial success long term for most people. Managing finances is like driving, most people suck at it but have no idea they suck at it.

[StretcherJockey]

This is wonderful! Until it is not. For every story like yours, several guys go bust. totally wrong that only poor people pay cash. One reason people pay cash is that they are ready to storm a down turn in the market. The markets in the last 10 years are not normal. Look at the stock market from 1999 to 2009. If you want something really ugly to look at, look at the market through the 70's.

I have payed cash for everything since I was 32. The reason is it makes me realize what I'm really spending. Payments mask it mentally at least for me. Oh, and before you conclude I'm mindless on time value of money, etc, I have a graduate degree in Finance.

Couldn’t agree more. Sure a select number of people are able to leverage debt long term but it’s far and away the exception and not the rule. It’s a recipe for disaster and despair more times than not.

[Delta Bass Fool]

When my last boat was paid off I still had full coverage on it why wouldn’t you?

I've never had a nice boat like that where I could not just buy another used boat after a few years saved from the cost of full coverage insurance. What is the deductible on a claim for a $100k+ boat policy?

You have to remember I'm in California, Lot's of places won't even write new policies out here any more :/

[bassfisher444]

Financing anything at a tiny interest rate with good credit score is smart because you’re taking a few thousand upfront for a down-payment and with the difference you would of put all in on said purchase, you invested and in the stock market, such as a Index,Mutual or ETF, ETH/BTC.

Only poor people save and pay cash for everything, well off people invest.

My two vehicles I purchased with a .9% and 0% Interest rate, I had more than enough cash to pay for them up front, but why that's just stupid.

Instead I used it to buy Bitcoin when it was around $16000 in late 2022.

No that's not even close to being true. Financing depreciating assets has never made anyone rich. Paying cash for something doesn't mean you can't invest.

[BMCD]

What's more staggering is how much taxes are withheld.

And then having to pay on top of that, writing a 100k+ check to the IRS every year is bad enough when over 125,000 was withheld.

Working to keep most of the money you work for is annoying, there are only so many writeoffs and charities you can use to keep what you honestly earn.

if your paying in 225k a year to fed to taxes & state taxes, well your making at least 2.5 times that. I think that illustrates the point many are making. Course people in CA do make a good bit more than the average working person in other states.

[DTI0384]

No that's not even close to being true. Financing depreciating assets has never made anyone rich. Paying cash for something doesn't mean you can't invest.

You would rather pay cash in full for a vehicle than to finance it for a under 1 percent to 0 percent interest rate?

Instead use that money to buy more money.

[Quillback]

I’m not bitter I promise. Genuinely curious. What’s unreasonable? It’s just expanding off your own logic.

Buying stocks with borrowed money is a common investment strategy. It's called margin buying. Do a search on it if you are interested.

[Craigjc00]

Great question! Nobody ever brings this topic up. I’m glad we can finally hash this out!

[NitroZ7]

Out of curiosity does anyone know what the average rate is on a new boat loan? I can't imagine it is low enough to actually provide an arbitrage opportunity by financing it and investing what you would have spent paying cash.

[BMCD]

No that's not even close to being true. Financing depreciating assets has never made anyone rich. Paying cash for something doesn't mean you can't invest.

Buying any depreciating asset, no matter how does not make money. Lots of variable, there is no one way.

I agree buying depreciating assets in cash requires some scrutiny.... but there is a point that financing does not make sense either.

I don't judge anyone, you only live once, have fun. Do what makes sense for you and your family. If you desire that 42 ft with quad 500s, you gotta change how you think. Figure out how to make more with what you got. It ain't easy that's for sure. Financing is not evil, paying cash sometimes makes sense, IMO. But I can tell u buying a normal car\truck or boat is not going to make you rich.

Someone message me when we all figure out how to afford all these new expensive toys.