20 year boat loan

[jkust]

Re: 20 year boat loan

Check out this article on someone refinancing a home loan:
First person: I cut my monthly bills by $925 with a home refinance - Yahoo! Homes

Yeah she cut her monthly bill $900 but she also went to a 40 year loan. Amazing Yahoo list this as financial advice.

Can't fix stupid.

Just wait until the home mortgage interest deduction is eliminated for those not already in the amt or phased out. Here's my favorite quote from the linked article... "We have money to eat out more, stream movies online, and go on weekend trips. Our quality of life has risen without costing us anything out-of-pocket." No mention of saving for a rainy day.
This person embodies why so few people have wealth but went through the same system as the rest of us.

 

[smokeonthewater]

Re: 20 year boat loan

"For a hamburger today, I would gladly pay you on tuesday" and the next day and the next day and the next day.............

 

[bruceb58]

Re: 20 year boat loan

Using credit to support a life style they can't really afford!

Find it interesting the people that refinance their houses to pay off credit card bills. If they didn't have the will power before, what makes them have the will power now not to use credit cards?

 

[jkust]

Re: 20 year boat loan

Using credit to support a life style they can't really afford!

Find it interesting the people that refinance their houses to pay off credit card bills. If they didn't have the will power before, what makes them have the will power now not to use credit cards?

Sounds familiar as though I've heard something similar but on a slightly larger scale. What baffels me is how easy it is to just do it right and reap the rewards in this country. It is such a simple formula. Someone should write a book.

 

[airdvr1227]

Re: 20 year boat loan

You really should hear yourselves.

 

[agallant80]

Re: 20 year boat loan

I am amazed to see the diversity of financial mind on this board. But then again there are people here with 10ft John boats and 60 foot Searays. Quite a diverse crowd. I think if you don't really have any other debt and a boat is someting that you want then go ahead and get it as long as you live in a place with a good economy and have some money saved for the bad times and have marketable skills. There is the other issue of Taxes. If you still hit AMT after home mortgage and the $16,500 401 and some other write offs well then you are going to spend the rest on your self and write it off as a 2nd home or your going to give it to the fed. Lets face it, our tax law is set up around spending. Save and spend and you are fine. Keep it all to your self and the Fed will stick their hand in your pocket and take what they want. 1st world issues......

 

[jkust]

Re: 20 year boat loan

If you still hit AMT after home mortgage and the $16,500 401

$17,500 for 2013

 

[dingbat]

Re: 20 year boat loan

When I am buying something with a credit card, I am not really buying it with long term credit since I am paying it back at the end of the month. Am I assuming you don't pay your credit cards in full at the end of the month? If you are, then I agree with your statement for short term that doesn't have any credit cost associated with it, that makes sense to buy things that way.

We owe on the house and one of the vehicles. That's it. Credit card, mortgage and car payment are on auto pay.

 

[bruceb58]

Re: 20 year boat loan

We owe on the house and one of the vehicles. That's it. Credit card, mortgage and car payment are on auto pay.

That's what I figured.

 

[D1vemaster]

Re: 20 year boat loan

I don't like black and white answers. There is rarely a simple solution to a complex question.

I bought my last boat cash (new) by cashing in some investments, but all the other ones were financed 5 or 6 years.
I have no credit card balances.

If you treat it like a car loan no big deal. I now tons of guys very happy with a boat payment. It gets them out there and happy. As long as its treated like a car loan and your never upside down on the loan (have to have a down payment for that) there is nothing wrong with it.
Its not a stupid idea if your reasonable about how much you borrow. A $250k dollar boat for a guy pulling $300K a year is no big deal. A $250k dollar boat for a guy pulling $70k a year would be unreasonable. Then again it depends. If his house is paid off, then its do-able.

Anti-Credit followers would have you believe that all credit is evil and you should live on beans and rice all the time and save for 20 years and then buy the boat if your still alive cash. Wasting by the way 20 years on the boat of your dreams.
I know Doctors and Lawyers that only pay the interest on the loan, they make more money in the market than they pay in interest. Eventually they pull their investment, which made a heck of allot more where it was, and pay off the loan. Smart use of their cash. Its how rich people (not me) get richer. Playing the percentages. The government like people with no write-offs. 1040EZ's pay our way.

 

[pecheux]

Re: 20 year boat loan

In Canada it's called a "marine mortgage". My son has already bought 3 Wake boats using that method and has not lost any cash. He keeps the boat for 3 years, then turns it back in on trade for a new one. So far his boats have gained value in the 3 years period of time of ownership and it turns out the small monthly payments have been the only expense for 3 seasons of boating and fun. For him it's been less costly than buying the boats and put up with depreciation. Having walked away from big expensive boats I have not tried that mortgage system.
Cheers

 

[QC]

Re: 20 year boat loan

I am not disputing the above post, but I need clarification. Are you saying that your son has bought three new wakeboard boats over the last 9 years, and that each of them has gained in value over the three year period he owned them?

If that is true I am in the wrong business!!

 

[pecheux]

Re: 20 year boat loan

I am not disputing the above post, but I need clarification. Are you saying that your son has bought three new wakeboard boats over the last 9 years, and that each of them has gained in value over the three year period he owned them?

If that is true I am in the wrong business!!

Sorry, I phrased wrong. excuse my french ..lol What I meant is this, cost of buying each of these boats went up during the 3 years of ownership, therefore the used price market went up also which turned out in a higher trade-in value than forecasted depreciated amount. First boat was 15 years ago when inflation rate was high. I have spoken to Corvette owners that had benefits. I know that at least one of his boat was traded in for same amount than the original purchase price. This probably does not apply in today's economie and was probably more of a Canadian thing since inflation back then was high due to the Canadian dollard value in relation to the US dollar. I would not count on getting the same results now a days. Also at that time the interest rate on a marine mortgage was much lower than a shorter loan rate. Hope this clarifies.

 

[southkogs]

Re: 20 year boat loan

Sorry, I phrased wrong. excuse my french ..lol What I meant is this, cost of buying each of these boats went up during the 3 years of ownership, therefore the used price market went up also which turned out in a higher trade-in value than forecasted depreciated amount. First boat was 15 years ago when inflation rate was high. I have spoken to Corvette owners that had benefits. I know that at least one of his boat was traded in for same amount than the original purchase price. This probably does not apply in today's economie and was probably more of a Canadian thing since inflation back then was high due to the Canadian dollard value in relation to the US dollar. I would not count on getting the same results now a days. Also at that time the interest rate on a marine mortgage was much lower than a shorter loan rate. Hope this clarifies.

Wow ... wish I coulda' timed something like that!

A 5 or 6 year loan on a boat is something that's pretty debatable. I would prefer not to buy one that way, but a 5 year note doesn't seem that bad to me. A 20 year note is completely different. I can't imagine the value holding up that long.

 

[QC]

Re: 20 year boat loan

Sorry, I phrased wrong. excuse my french ..lol

Funny, I saw the QC, and almost posted "is this in French" Lol

All good. But that is so cool when timing like that works. Scary when it doesn't

 

[pecheux]

Re: 20 year boat loan

Wow ... wish I coulda' timed something like that!

A 5 or 6 year loan on a boat is something that's pretty debatable. I would prefer not to buy one that way, but a 5 year note doesn't seem that bad to me. A 20 year note is completely different. I can't imagine the value holding up that long.

The "mortgage" approach was firt introduced for the purchase of big expensive boats that may be kept by owner for a long period of time. With smaller boats the purpose was to own a boat at the lowest monthy cost, not with purpose of keeping the boat for the lenght of the marine mortgage. monthly cost vs fun. lol Another thing to note is that in Canada boats season is short and well taken care boats can be like new for longer than lets say, used in Florida all year round. Cheers

 

[lncoop]

Re: 20 year boat loan

This has been a very interesting conversation. Everyone has been such a good boy.

 

[pecheux]

Re: 20 year boat loan

Funny, I saw the QC, and almost posted "is this in French" Lol

All good. But that is so cool when timing like that works. Scary when it doesn't

I thought the saying "excuse my french" was a commonly used expression. No problemo, and Y'Awl take care now d'y'ear ! LOL

 

[79Formula]

Re: 20 year boat loan

Me and my girlfriend are debating a new boat now. I can trade my 79 Formula for $5000, I would put $2000 cash on top of that. I found a 2013 Chaparral 196. The boat would be $35,397. Monthly payments would be $287 a month for 12 yrs. I make 45k and she makes 42k. Our vehicles are paid for, we have an $850 mortgage on our house in Buffalo and a $1050 Mortgage on a Condo in Jax FL. We dont have student loans or credit cards. I rent my condo for $850, So after rent our total fixed payments are $1290. We are 24 and 28 yrs old so our savings has gone into our house leaving us without the cash to just buy a 35k boat. We are torn.

 

[bruceb58]

Re: 20 year boat loan

Are you putting 15% of your gross towards retirement?