Financing for used boats

[smp005]

I think we're agreeing..basically depeleting an emergency fund or using cash from a brokerage/retirement fund isn't really "having the cash to pay for something". Those types of funds have a definitive purpose, and its not generally large purchases, excess cash in addtion to those would be really mean being able to "afford" an item. Anyway...who really cares! Life is short...if you can handle something and its important to you...go for it!

Yep!! I think we are :-)

All the years I was in the service I remember guys saying "when I retire I'm gonna do......" and they keeled over within a year of retiring - and we all retired young!! Man that really hit home with me!!!!

Life is short and can be VERY short. I count my pennies but I count my memories much closer!!!

[PowerFish]

US Bank has had good rates and terms on used boats over the years.

[Capt Ray]

I believe the differentiation is between "make the payment" and "could pay cash now". I could have easily written a check from my savings account for the full amount but that would have dropped it below my comfort margin of having two years salary in savings or I could have sold stock from my brokerage account and done the same thing. Neither made sense to me - my savings is for emergencies (sickness, etc - I'm self employed) and my stocks are turning huge dividends this year - way more than the interest on a boat loan and I would NEVER touch my retirement funds..

At 55 I want to go fishing with my son and my grandsons in a NEW boat before something happens and I can't - I've lost alot of friends too early in life to wait any longer.

I can remember being younger and wanting a new boat when I could afford the monthly payment - as long as I was working. Fortunately that is no longer the case.

My accountant (who manages both my company and personal financials) would tell you in a minute - never use your own money when you can use someone elses money - whether it's a bank or private investor!

It is good to see someone that understands paying cash is not always the best choice. I have been saying this for a long time. If your money is making higher returns than the interest on the loan why in the world would you use your own money?

[FishinSkinny]

Because your paying more than the cost of the item when interest is added in. Plus your losing on depreciation. That's why true self made wealthy ppl buy used, buy cheap stay wealthy.

[Hickory Legend]

Exactly!!! That plus you should always have at least a years salary in savings. So I guess if you have and extra 50k - 70k above a year's salary it might make sense.. No way I would consider pulling from my investments that are returning better that 10% when I can use someone else's money for less that 6%... Just because I have 144 months to pay it back does not mean I have to take that long.. Mine will paid off in 5 years or less...

Or... don't buy a new boat.....

Wonder how many finance a boat while they have a truck, car, house and other payments with little or no money in saving or retirement!!

living check to check but I’ll buy a boat because I can afford the note!!

This is another story!!

[Hammmerhead]

When you can borrow money at 2%, it makes no sense to spend cash on anything unless said toy or boat is two weeks or a months pay.

[Hammmerhead]

Wonder how many finance a boat while they have a truck, car, house and other payments with little or no money in saving or retirement!!

living check to check but I’ll buy a boat because I can afford the note!!

This is another story!!

Thats the American way for the masses.