Boostable

There is some very good advice in this thread and being as I am finishing up my thirty somethings, have four kids with one a couple of years away from college it is very important for me to control my finances. We have no dept other then our home and the a loan on the boat. Cars are paid for, no CC's other then what we use for the business and pay off monthly, and college funds are in place.

It's my philosophy to make your money work for you. If it makes sense to pay cash, pay cash.. it makes sense to invest the cash and finance a portion, then go that route. Lets face it, especially in an economy like the one we have today its critical to get the best bang for you buck. That requires discipline, focus and long term goals.

I don't think there is a clear winner in either scenario, because arguments can be made for both paying cash and financing. It comes down to what makes your money work best for you without over extending yourself.

Jupiter Sunsation

Borrow the money at 6% and send the principle to Bernie Madoff to get 15% guaranteed, that way you will make 9% on your money! What are you people stupid or something?

Buy it right, yes that means lowball/ tire kicking/ whatever...
Paying MSRP for anything combined with 0% financing will still make you upside down for life.........

Don't get into variable rate financing/ intro rates like Formula offered for years (0% rate for 2 years then 8% or whatever so your payment goes from $599 to $1599), that is the equivalent of negative amortization financing on houses....

Buy what you like (like Reggie Jackson says, don't ever buy a car you don't love so if you have to keep it atleast you love it).
Buying a cruiser to make a spouse happy will make you miserable everytime you use it, spend money on it, etc....

Buy something you can afford to insure/maintain.....yeah a 40 Skater is awesome if you can afford the refreshes/ insurance whatever. The mechanics don't feel bad for you if you are broke trying to get your boat fixed.

Don't buy weird stuff...... Fountain with ice cream cones all over it, probably won't be hot on resale.....killer cat with weird italian engines and two speed trannies won't appeal to buyers.....

Cash vs. credit argument....... go 50/50 most can't get hurt, will have low rate due to high downpayment, will be right side up on loan and still have 50% left in cash to help in bad times.

LaughingCat

I'm liking the 50/50 idea. Or maybe 65% cash/35% financed.

If I buy something like this, I want to keep it for many years. Not interested in flipping in and out (seriosuly, no pun intended).

Refreshes and such are fine. But I'd look for a time tested design, paint scheme and power set-up. I want it to be faster than I am comfortable with. To me, nothingis worse than something that goes slower and slower each time you use it.

mmareno

[QUOTE=LaughingCat;2772675]I'm liking the 50/50 idea. Or maybe 65% cash/35% financed.

65/35%.. That is me too. I like to pay it off as fast as I can when I can.. I hate owing on anything. I am the type that likes to keep things too. I drive a 99 F-350 Dually... I love it.. I got 180k on it and there is nothing wrong with it. i put Nav in it... Still extremely comfortable to drive. Outside is still 98% Immaculate... I look all the time at new stuff and just can't break down to spend 60k on another truck that runs the same as mine.
Most will probably laugh but If it ain't broke... Don't fix it!!

Ed

[QUOTE=mmareno;2772680]X2!

Top Ven

I Have All My Money In Debt, This Way I Dont Worry About The S & P Down 38 % !!!!

Pete280

not saying stocks being down 38% is not bad but if you've been in the market the last 10 years your probably still up or close to even, 100K invested 10 years ago averaging 5% would be 160K less 38% is 100K, unless my math is off

buying a 100K boat with cash 10 years ago? worth maybe 50K?

btw, I finance with 20% down and keep it a level I can easily afford

Scotty Boy

Hey Laughing Cat,

Do not discount the advice on the "refreshes". Offshore Steve and the others are on the money here.

If you are going to truly jump into High Perf boating, in a big 100mph + boat, with the good stuff and really use the boat. $50-$100K in additonal repairs and upgrades will go away in a hurry.

If you like the rush of the speed and power your gonna use and abuse it.

The first time your baby rips a drive off or pops a rod can be a drag. The estimate and repair bill can make you gulp. If its real fast stuff it will happen more than once. Puts a lot of guys upside down and on back on the trailer. Budget accordingly.

offshoresteve

If you are going to save up 300-400K on a USED Big SKater, Mti, Fountain ect. You better save another 300-400k to keep it running. I bought my little 28 Skater 5 years ago for 85k and now have 165k in it(it has been re- rigged and re powered twice) this figure does Not include insurance, storage, gas, oil or maint.Hell I still need a new paint Job
Just a little food for thought

GARBAGEMAN

Everybodys circumstances are different. One thing that is very troubling to me is that ( not so easy in todays economic crises ) lenders give loans on go fast boats for up to 15 yrs. they lose 20% when they leave the dealer. All the partys involved except the uneducated 1st time buyer knows that the chance of having any equity in the boat at anytime is zero but the bank wants to lend the money only to sell the loan as fast as the wrote it. the buyer dosen't want to know anything except when can I pick up my new boat. it's financial insanity. And people wonder why there is so many insurance jobs on boats