20 year boat loan

[theBrownskull]

Re: 20 year boat loan

bruce58,

I thought you would find that interesting. I know many who think like that.

 

[WaterDR]

Re: 20 year boat loan

IF, the ONLY way someone can afford a boat is to take a 20 year loan, then I would agree with nearly all of these comments. However, you have to think like a wealthy person.....and understand what else is being done with the money....and how the indivdual might be looking for a tax deduction or a write-off. For example, the owner might be using the boat for "entertainment" and/or be making a lot more money elsewhere on their cash. But, even in these situations, I would think it would be best to put 50% down on it.

Some folks also earn a good portion of their income either in stock options or deferred stock payments. Depending how the assets are performing, can modify decisions. For example, cashing in an asset might be the same as taking a 30% loan on a depreciating asset, so taking a 4% boat loan seems liek a deal.

 

[tpenfield]

Re: 20 year boat loan

. . . However, you have to think like a wealthy person.....

Now, how does one think like a wealthy person??? :noidea:

 

[bruceb58]

Re: 20 year boat loan

Now, how does one think like a wealthy person??? :noidea:

A wealthy person became wealthy by not making stupid money decisions like buying a boat with a loan.

 

[smokeonthewater]

Re: 20 year boat loan

Ya know, the funniest part of this thread is all this talk about rich folks getting loans so as to not have to take money out of high yeild ...... blah blah blah....

RICH PEOPLE do NOT ask for financial advice on boating forums if they want to STAY RICH! LOL

 

[jkust]

Re: 20 year boat loan

A wealthy person became wealthy by not making stupid money decisions like buying a boat with a loan.

Actually it starts much earlier and simpler than that. As much as I'm against the mere thought of using credit for a vehicle I might encourage it so the used market exists. If people thought like I do, a single new vehicle of any kind would have never been purchased but then what would I buy three years old for half the price? There's not enough room for everyone to be wealthy or be a chief. Some need to be the indians and some need to make the decions that lead them to a path of not having wealth.

 

[WaterDR]

Re: 20 year boat loan

A wealthy person became wealthy by not making stupid money decisions like buying a boat with a loan.

Actually, buying a boat is really a stupid decision if you view it merely from a financial perspective. But what fun would that be?

 

[dvtran]

Re: 20 year boat loan

I have 2 rental homes I bought right out of highschool. I was so pissed at my dad for making me do that back in 97. Boy was I wrong. I use one of the rental incomes to pay for my boat, snowmobile and 4 wheeler loans. I financed 50k for 5 years. upside is that my wife works for the credit union I got the loan from. It's only costing me 4k in interest with her staff discount. My wife and I do pretty well for ourselves but not well enough to finance a boat over 100k. I would rather have my house paid off and be able to take 2 nice vacations a year than be stuck paying for a boat for 20 years. 7-10 years into the loan, I would probably want to trade it in for the newest thing on the market.

 

[bruceb58]

Re: 20 year boat loan

Actually, buying a boat is really a stupid decision if you view it merely from a financial perspective. But what fun would that be?

Its not a problem buying things if you can afford it. The issue is people buying things on credit when they can't. If you can't afford a $100K boat without getting a 20 year loan, go buy a $20K boat with cash. I think that's the point here.

 

[WIMUSKY]

Re: 20 year boat loan

There's been a ton of advice, I'd like to hear from the OP.................

 

[tpenfield]

Re: 20 year boat loan

I'm still not sure how to think like a wealthy person :noidea:

 

[jkust]

Re: 20 year boat loan

I have 2 rental homes I bought right out of highschool. I was so pissed at my dad for making me do that back in 97. Boy was I wrong. I use one of the rental incomes to pay for my boat, snowmobile and 4 wheeler loans. I financed 50k for 5 years. upside is that my wife works for the credit union I got the loan from. It's only costing me 4k in interest with her staff discount. My wife and I do pretty well for ourselves but not well enough to finance a boat over 100k. I would rather have my house paid off and be able to take 2 nice vacations a year than be stuck paying for a boat for 20 years. 7-10 years into the loan, I would probably want to trade it in for the newest thing on the market.

I know folks who take 5 or even 6 year loans out on cars...while I keep my cars for at least that long I would be sick of writing a monthly check even a year into it. Now the other side of that is that our boating season is so crazy short it's like getting a new toy every year when the lakes finally warm and that big 3 month season starts. 5 years into a boat loan I suppose you'd still just be breaking it in, in this climate. 20 years and I think it'd be a different story since even by slow moving marine tech standards, it would just be old by then.

 

[smokeonthewater]

Re: 20 year boat loan

Did I mention, that while I'm far from rich, I don't owe a penny to anyone? when things got thin for me, I tightened up on the spending, sold a few things I didn't really need anyhow, and made it through the lean times without a scratch.... Can't do that if "the man" owns you.

 

[bruceb58]

Re: 20 year boat loan

The OP should call Dave Ramsey and see what he thinks!

 

[airdvr1227]

Re: 20 year boat loan

Fortunately for the world economy most don't think or act like you do here. Can't even begin to imagine the ripple effect if no one financed large purchases over time, especially boats and RVs. Just because some on here claim to be able to make that purchase without a loan doesn't mean it's a terrible thing to do and will result in financial ruin.

 

[captain zac]

Re: 20 year boat loan

just because you take a loan on anything does not mean that you do not have the cash to purchase
What might be right for ones finances does not mean that it would be right for someone else

 

[tpenfield]

Re: 20 year boat loan

I am noticing that the OP has not returned to this thread . . . maybe they got their answer . . . or are blissfully watching opcorn:

 

[bruceb58]

Re: 20 year boat loan

Fortunately for the world economy most don't think or act like you do here.

I just love it when people come up with that excuse to go into debt.

In case you have not noticed the last few years of the world economy, credit was too easy to get and people went into too much debt. Now we are paying the piper. Its not only people but also countries.

 

[trendsetter240]

Re: 20 year boat loan

Maybe the OP can afford the payments and has his financial house in order. It's ridiculous to say that no one should ever buy a boat on credit.

What about people that have fixed, steady income stream like that which comes from investments or a retirement plan? They may have plenty of room to pay the monthly payment and still maintain their standard of living. I guess these folks need to save for 10 years before they are allowed to own their own boat?..lol

 

[bruceb58]

Re: 20 year boat loan

trendsetter240,

True, its not a hard or fast rule. There are exceptions and your examples are good ones.