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CASH or FINANCE ???


CASH or FINANCE?  

42 members have voted

  1. 1. Who buys outright versus financing? Tell me why everyone else is wrong!

    • I only pay cash because I'm prudent and wise!
      19
    • Why would you tie up that much cash in a boat? Finance!
      23


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With these crazy boat prices, I wonder if anyone still buys with cash, or if everyone finances.. would love to see some personal finance thoughts!

Cards on the table, we are fiscally conservative and pay cash for everything except our house. I know I could invest the difference and the math can work better, but with a business, employees, family, etc. the peace of mind I have now is worth more than the money I'm leaving on the table if I financed and invested.

Anyone else like me? Or do most finance? 

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11 minutes ago, hunter77ah said:

Any bets on how long it takes for this thread to be closed?  

This thread comes around like the leaves in the fall.  Must be the season end for most of the country. 

  • Like 3
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I bet its locked by the end of the day...lol I would guess 99.9 % finance.

 

Buy what you can afford, pay with cash, finance, its none of my business or anyone else's on how you or anyone else spends their money.  But there is no way I am liquidating my cash or assets to pay for a boat. We afford our boat because we don't have any car payments.  A nice boat is more important to use then brand new fancy cars.  

   

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There is probably a lot of opinions that can be found by using the search function.  

It often devolves into 'You're stupid if you finance a boat!' and 'You can't tell me how to manage my money!'   Or something along those lines, and the thread can even get nasty.  

Since you are asking for opinions...I think when TSHTF, I would rather owe as little as possible on the boat.  It is tempting to invest it all, but it seems awfully stressful when hard times hit, my invested money is tanking and I have a big boat payment lurking AND my boat is worth less than I owe.  

  • Like 2
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It has been a long time since 2008-09, but back then when the shtf, there were lots of "deals" out there from folks who were underwater on their toys.

Not saying that that happens again soon, but it is a thing that happened within recent memory.

Me personally -- no work, no income.  So I like the idea of not being levered up in case I break a leg or fall ill, even if the economy keeps chugging along.  

By the same token, if you have $100k sunk in a boat vs no equity and making payments, that $100k in cash can be deployed a lot of other ways if things go wrong, whereas getting your equity out of your boat on short notice could be harder than you think.  I see both sides ...

Ultimately, do what's right for you.  

 

  • Like 1
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I don’t like payments now that I am retired.  Easy decision for a retirement gift to ourselves.

  • Like 2
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I ALWAYS pay cash for my boats entirely in rolls of quarters only, unless I don't have enough rolls on hand and if that is the case then I finance it.

  • Haha 2
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I didn't vote because I could probably pay cash for a new boat but choose to enjoy my antique one instead.  That kind of thinking is what got be able to pay cash for a boat.

I paid cash for the F-150.  Just a lowly XLT, but it works for me.  I'd rather keep the money invested and go on a good vacation with the earnings.

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I voted finance , but the caveat is a decent chunk of the purchase price is a down payment 40-50% then make accelerated payments to pay it off early our 2017 purchase with a 15yr loan was paid off in 3yrs. 

 

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With interest rates where they are, double digit % increases in new boat prices, and demand at an extremely high level (that I don’t see changing anytime soon) I say finance (with a significant down payment). 
 

All the above has lead to boats not really being a depreciating asset. I’m sure it won’t stay that way forever, but my 2014 is still worth pretty much what I paid for it when I bought it new. My crystal ball says that’s likely to stay the case for the next several years. 

  • Like 2
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I financed a boat once.   Low interest around 3.5 % for 20 years.  However the way these loan work is much like a home loan and they are amortized where for the the first 7 years you are mainly paying the interest. Thus since I upgrade every 3 years or so it makes zero sense to finance.  Cash every time now. 

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Five Cent Worth
13 hours ago, hethj7 said:

Personally for us, finance, but with enough down we aren’t upside down.  

This.  Almost a blend of both.  We subscribe to this philosophy.  

  • Like 3
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18 hours ago, ROFF said:

Finance the boat.

Invest boat cash  in something that will double your money in the next few months.  
Pay off boat with said investment. 
Enjoy your free boat.   
 

Easy!! 

BRILLIANT!

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19 hours ago, ROFF said:

Finance the boat.

Invest boat cash  in something that will double your money in the next few months.  
Pay off boat with said investment. 
Enjoy your free boat.   
 

Easy!! 

Oh man you got it figured out, can you be my broker? Do you have a book for sale? :lol:

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I bought my second and last boat in 2003. First in 1970. Still have both. My first boat even survived a "It's that boat or me" threat. Still have my wife too.

  • Like 2
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I voted cash because I have to date only bought used boats and paid less than $30k.

if I bought new I’d finance and probably upgrade every few years. Once the payment is in your run rate, you’re good.

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1 hour ago, electricjohn said:

I bought my second and last boat in 2003. First in 1970. Still have both. My first boat even survived a "It's that boat or me" threat. Still have my wife too.

Pretty sure that ultimatum is in a county song around fishing, fishing won.  Glad you had a better outcome!!!!

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On 10/13/2021 at 7:27 AM, RCorsa said:

I financed a boat once.   Low interest around 3.5 % for 20 years.  However the way these loan work is much like a home loan and they are amortized where for the the first 7 years you are mainly paying the interest. Thus since I upgrade every 3 years or so it makes zero sense to finance.  Cash every time now. 

Probably a Rule of 78 Loan. They were a common but evil loan term years ago. Well, maybe they are just as common but I have better credit now than when I was 20 and have moved up enough that I get offered Simple interest loans. 

 

 

 

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