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Just wondering...


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With the economy being what it is and who knows where it's going I'm wondering what others would do in this situation.

If you will be paying cash for a boat and you can get the boat you wanted for a good price...would you buy it given the state of the economy or would you put the money under a mattress "just in case".

Also, your job is stable (whatever that means. Seems like every industry is affected in some way), you don't live check by check, if you lost your job today your savings can sustain your current lifestyle for 6 months without liquidating any investments, right now you are living off of 65% of monthly income and the other 35% goes towards savings/investments.

Go ahead and buy boat or chill out to see what happens to economy?

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Sounds like you're in a good state financially/job wise.

I'd buy the boat and have some fun.

Worst case scenario is things get tough and you sell the boat, no big deal.

Now, have your wife read this post.

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lol...you hit the nail on the head. It really doesn't matter what I think...it all depends on what upper management thinks and is comfortable doing. My biggest job is to sell, I mean reassure, my wife that it's ok to buy right now.

In all seriousness, what concerns me is how intertwined our economy is. One industry in trouble will affect so many other (unrelated) industries.

I thought about selling in a "worst case scenario" but if it got so bad where I'd have to sell...who would buy?

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lol...you hit the nail on the head. It really doesn't matter what I think...it all depends on what upper management thinks and is comfortable doing. My biggest job is to sell, I mean reassure, my wife that it's ok to buy right now.

In all seriousness, what concerns me is how intertwined our economy is. One industry in trouble will affect so many other (unrelated) industries.

I thought about selling in a "worst case scenario" but if it got so bad where I'd have to sell...who would buy?

We're close to that point already. But yeah, that's a very real possibility. If you need that money in 6 months & you can't get the boat sold, what do you do?

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Pistol (and Mcbean): dont forget that if things got "bad enough" the likelihood of him selling the boat he just bought for anything reasonably close to what he paid for it is probably very low.

IMHO you have two options.

One: say screw it, life's a gamble, lets buy now and enjoy the thing.

Two: say, nah, I am gonna wait a few more months and see if all this media propaganda is correct. When we get to that point I can re-asses. Personally if you access to boats through friends pretty easily I would wait. Then you could be the guy on the other end potentially purchasing a boat for FAR less than what someone paid for it.

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This is a perfect example of my comment in an earlier thread. If you can afford it, then you should go do it. By spending your hard earned cash, you are allowing the guy who sells it to put some cash in his pocket. He in turn will be in a better position to keep the spending ball rolling.

If you decide not to spend your money, you are not doing anything to help turn this situation around. (now mind you..it is not necessarily your job to make this economy better single-handed)

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With the economy being what it is and who knows where it's going I'm wondering what others would do in this situation.

If you will be paying cash for a boat and you can get the boat you wanted for a good price...would you buy it given the state of the economy or would you put the money under a mattress "just in case".

Also, your job is stable (whatever that means. Seems like every industry is affected in some way), you don't live check by check, if you lost your job today your savings can sustain your current lifestyle for 6 months without liquidating any investments, right now you are living off of 65% of monthly income and the other 35% goes towards savings/investments.

Go ahead and buy boat or chill out to see what happens to economy?

Buy the boat. The only thing that is going to keep this economy from recovering on its own is if the "greater misguided" keep trying to throw "stimulus plans" at it.

But they know SOOOOOOOOO........ much more than us!!!!!!!!!!!!!

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Given your situation, it sounds like buying the boat at this point would be a reasonable thing to do and not in the least irresponsible. If it is something you can afford, and it is something you and your family would enjoy, then why shouldn't you? We all make choices of how to use our resources. Most of us on this site have made a choice to buy and use a boat for the same reasons. This is certainly not a time to be going beyond one's means, and in my opinion, there never should be a time of spending irresponsibly.

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With the economy being what it is and who knows where it's going I'm wondering what others would do in this situation.

If you will be paying cash for a boat and you can get the boat you wanted for a good price...would you buy it given the state of the economy or would you put the money under a mattress "just in case".

Also, your job is stable (whatever that means. Seems like every industry is affected in some way), you don't live check by check, if you lost your job today your savings can sustain your current lifestyle for 6 months without liquidating any investments, right now you are living off of 65% of monthly income and the other 35% goes towards savings/investments.

Go ahead and buy boat or chill out to see what happens to economy?

Hi Mcbean,

Realistically you should be able to find a smokin deal on a used boat right now and if not now definetely in the spring. Buying new hard to say, depends how desperate the dealers in your area are. Try find a low hours demo if possible .There are always people with cash to buy toys even if you did have to sell it. If your worried about cashflow you could always do the unthinkable and finance it. If the economy continues down you still have your cash cushion and can service the loan or if things are still good in six months pay it out. Best of both worlds. For me this is a no brainer go for it and have fun. You only live once. Besides its a Malibu!!!! :werule:

W.L. Cheers.gif

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Go for it. It sounds like you are doing it very responsibly. Not to be rude or nosy, but are you buying a used boat or are you sitting on a pile of cash??? Biggrin.gif If your sitting on a pile of cash you could always go used and sit on a slightly smaller pile of cash. Biggrin.gif

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I believe this rally in the stock market over the last 6 trading sessions is a head fake. Stocks rallied on the passage of more bailout money and a scenario where the banks would sell their bad assets to the government. When they did this over 20 years ago stocks rallied initially but then gave up all their gains as time went on. I sold all my stocks today and will buy them back cheaper within a week or so. These little stretches of euforia in the media will not last through 2009 in my opinion.

It looks to me like there are plenty of low time boats out there for sale. Model year 2000 with 128 hours, that kind of thing. For instance there are 3 Response LX non tower boats for sale Model Year 2000-2002 with 128 to 528 hours for $18,500 to $19,500 close by. Around Labor Day these were $22,500 to $24,000. So I think the prudent thing to do is lower your expectations on the boat you want and make a screaming hot deal or just don't do it.

Do not consider a boat that you have to finance. If you get in a pinch and have debt on top of it you will make a stupid decision at resale time. So just don't put yourself in that position. Sixty-two years on the planet have shown me this.

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I believe this rally in the stock market over the last 6 trading sessions is a head fake. Stocks rallied on the passage of more bailout money and a scenario where the banks would sell their bad assets to the government. When they did this over 20 years ago stocks rallied initially but then gave up all their gains as time went on. I sold all my stocks today and will buy them back cheaper within a week or so. These little stretches of euforia in the media will not last through 2009 in my opinion.

It looks to me like there are plenty of low time boats out there for sale. Model year 2000 with 128 hours, that kind of thing. For instance there are 3 Response LX non tower boats for sale Model Year 2000-2002 with 128 to 528 hours for $18,500 to $19,500 close by. Around Labor Day these were $22,500 to $24,000. So I think the prudent thing to do is lower your expectations on the boat you want and make a screaming hot deal or just don't do it.

Do not consider a boat that you have to finance. If you get in a pinch and have debt on top of it you will make a stupid decision at resale time. So just don't put yourself in that position. Sixty-two years on the planet have shown me this.

Cash is king, now more than ever. So that makes an argument for financing the boat and hoarding your cash, even though that will increase your cash flow out. If you drop all that cash now, that is x months of cash reserve gone, if you finance now, then you have maintained a larger cash reserve, and can pay it off when the confidence level is higher, since you said you can pay cash now anyhow.

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Given your situation, it sounds like buying the boat at this point would be a reasonable thing to do and not in the least irresponsible. If it is something you can afford, and it is something you and your family would enjoy, then why shouldn't you? We all make choices of how to use our resources. Most of us on this site have made a choice to buy and use a boat for the same reasons. This is certainly not a time to be going beyond one's means, and in my opinion, there never should be a time of spending irresponsibly.

Ditto what both OB and GT said. If your financial situation is stable and you can afford the boat without stressing your situation, why not? People with stable job and economic situations spending reasonably and within their means are what will bring our economy back the fastest. Too many people in a positive situation are freaking at the media gloom-and-doom rather than using their heads and taking advantage of the economic opportunities that currently exist to those who have the means. Stimulate the economy and take advantage of the opportunity to make some good deals at the same time while those opportunities are still available!

Ed

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I know of 2 people that recently bought homes in the Portland area because of everything that has been said here, thinking that their jobs were secure & that the time was right to buy, that they were being financially responsible, etc. They both just got laid off last week. This kind of thing is more common than anyone wants to believe right now. And that's the part that is so scary, you don't know what's going to happen.

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I know of 2 people that recently bought homes in the Portland area because of everything that has been said here, thinking that their jobs were secure & that the time was right to buy, that they were being financially responsible, etc. They both just got laid off last week. This kind of thing is more common than anyone wants to believe right now. And that's the part that is so scary, you don't know what's going to happen.

Exactly, these current economic times are unprecedented. Day to day we don't know what is going to happen, many forecasters predict the worse is yet to come. The most important thing in the end is to provide for your family, short of that, we are only here only so long and the ability to enjoy this sport only lasts so long....

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This is a perfect example of my comment in an earlier thread. If you can afford it, then you should go do it. By spending your hard earned cash, you are allowing the guy who sells it to put some cash in his pocket. He in turn will be in a better position to keep the spending ball rolling.

If you decide not to spend your money, you are not doing anything to help turn this situation around. (now mind you..it is not necessarily your job to make this economy better single-handed)

Plus1.gif

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Go for it. It sounds like you are doing it very responsibly. Not to be rude or nosy, but are you buying a used boat or are you sitting on a pile of cash??? Biggrin.gif If your sitting on a pile of cash you could always go used and sit on a slightly smaller pile of cash. Biggrin.gif

Thanks for your reply. I am looking at buying a used boat (06 VLX, 200hrs, $36K).

Edited by mcbean7
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It all depends on how important boating is to you. How much time are you going to have to spend on the boat? If you're going to put 100+ hours/year on it, I'd say 'go for it'. If you're only going to be able to get out 'here and there', I'm not sure if I'd do it. If you are going to buy, I think it's a lot less risky to finance. It will allow you much more flexibility if things did get bad. (especially if you have enough saved up to pay cash now) It would also give you a lot more time to figure things out if you had 'cash in hand' as opposed to a boat to sell. Also, keep in mind that if this 'unnecessary/misguided' stimulus plan doesn't pass.......the market will just 'fix itself', right!? How bad could things really get using that method? Whistling.gif

Anyway, good luck with the decision! We'll expect pictures if you do get it!

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I have to say that in general, I am losing confidence. We were considering upgrading our tow vehicle. Now we are going to wait to see what happen. My job is somewhat secure, but not invincible. Sounds like you have a lot of cash at your disposal, financing might be a good way to play it safe. If things get better you could always pay it off. I have kids that want to go to college someday and that is part of the reason for playing it safe. It weights my decision a bit different than yours perhaps.

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