What makes better financial sense? 60 months or less or 72 thru 120 months? For sake of conversation, should you go 120 months but need to sell the boat after month 24 - how hard is it going to be to sell it with all the interest involved? Aren't only able to sell it for "blue book" value, but does book value cover the interest on a 120 month loan?
<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by davisxx »</td></tr><tr><td class="quote">What makes better financial sense? 60 months or less or 72 thru 120 months? For sake of conversation, should you go 120 months but need to sell the boat after month 24 - how hard is it going to be to sell it with all the interest involved? Aren't only able to sell it for "blue book" value, but does book value cover the interest on a 120 month loan?</td></tr></table>
Good question. What we promote is to take the longer term and make the higher payment. If you can handle the 60 - 72 month payment, take the longer term, often the rate is lower, and send that it. With simple interest, extra money comes right off the principle and blows up the interest schedual. Interest is charged on the unpaid balance, not charged up front. Then, if a month or two come up when you don't have the extra, you can make the lower payment and stay current. What a boat sells for as compaired to "book value" does depend some on the buy you get to start. Let us know if you are ready and we can walk you through the options. We can also help find a value for you.
Ken, Todd & Chris
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