Pay or Payments?

[Rockymtnsurfer]

Great points...Thank you

[JGordon210T]

I think most of us on here live the water lifestyle so a payment of some sort will always be normal. Ive had new boats since I was 20 but I have also drove older, paid for vehicles. I love upgrading every few years and could care less about a new truck now.

[scottb7]

I don't think there is right or wrong. I don't think you get to the pearly gates and they gonna say you don't get in cause you had a boat payment.

Although not rich, wifey and I believe in no payments. You save up until you can afford to buy what you want. Again, does not make you a good or bad person, either way. But that's how we roll.

[Evening Shade]

Honestly I can’t imagine not making payments. I make money for borrowing money, seems like a straightforward decision. And for those saying they can’t make payments on a depreciating asset, cash by definition is a depreciating asset. So that $500-$1000 payment today is 2-3% lower every year. There is a sense of safety that comes with not making payments and I totally get that but I have enough income diversity that I can absorb the risk.

Interesting point. I never really thought about cash being a depreciating asset, but I guess it is.

[nyryan2001]

I make nasty payments.

i was out enjoying my financed boat this weekend. Same as the 4 financed boats before this one. Never thought about the payment once.

i don’t sit around bragging about what’s payed off and what’s not. It doesn’t score me any credibility I care about. I don’t lay awake at night worried about doomsday.

i don’t drive by the $1Million waterfront houses and hate on the folks that pay cash...or those able to bankroll the monthly $6-7k monthly payment on $1.5M houses. Over the last 8yrs I’ve heard all the crap talking, folks justifying what they have, or what’s wrong with what other folks choose to do.

id tell folks that spend calories thinking about costs of a $60k boat vs a $160k boat. It all comes down to a yearly costs equaling your true cost of ownership. The $160k boat isn’t “$100k” more to own in 2-3yr increments. Especially coupled with the best boats, best dealers, great pricing and best financing. Just like there are risks to financing expensive toys, there are “loss of opportunity” risks associated with folks that have $60k sunk into boats paid off.

i’m exactly at where the sum total of my life decisions have landed me. Same as all of you.

cheers

[markj]

On my 3rd Nautique. Made payments on all. Don't owe anything now since we sold our last house at the perfect time and paid off almost all of our debt, kids' college etc. If I wanted a new boat right now, I wouldn't hesitate to sign up for new payments. Hard to beat my 230's surf wake with how I have it set up. Maybe if Nautique came out with some game-changing new surf-specific boat that was better than all others and was priced fairly... Nah, that's too good to be true.

[Rockymtnsurfer]

Thank you for all the insight.....nice to hear different people's thoughts and opinions. This was not intended to be a judgmental question at all. I was just very curious.....and I thought that was a fair curiosity to have. I have gone both ways......maybe that wasn't the right way to phrase it, but with campers...snow machines, cars, trucks, kids college.....I have done options that worked with my life at those times. I really do appreciate your all feedback, and hopefully others did as well! Happy Tubing!

[lucky7t]

I financed the crap out of mine . Payments suck but I wanted the boat . Didn’t have at the time 80k to free up . I don’t mind the payment

Plus I’m self employed and feel I make more on my money than 5.49 percent apr .




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[markj]

Forgot to say I financed my last two boats with home equity loans which made the interest tax deductible. That may be a risky plan for some.

[seachicken27]

I have done both. I really don’t think it matters it today’s economy. Boats are selling good and interest rates, while on the rise, are still somewhat low. You can always make more money but you can get back years of your youth while still able to enjoy water sports. My body takes a lot longer to recover now and even though I’ve lost a ton of money buying and selling a bunch of boats over the years id do it all over again! Had a ton of fun with family and friends! As my buddy says, it’s just money, they print it every day

[Kmayotte]

How's this for a depreciating assets:
'93 Ski Nautique
Bought in 1996 for $14K
Sold in 2009 for 9K
Used for 1500 hours

2004 Super Air Nautique
Bought in 2009 for 29K
Sold in 2016 for 28K
Used for 800 hours

2016 G23
Bought Fall of 2016 (used) for 108K
Financed 50%
Pretty sure I'll do alright on the return when sold seeing as how similar boats are still going for more than what I paid.

I own my truck and replaced that payment with a boat payment. When I'm due for a new truck the boat will be paid off. Interest rates are low, if your smart with how you manage debt it's no problem.

[Evening Shade]

Forgot to say I financed my last two boats with home equity loans which made the interest tax deductible. That may be a risky plan for some.

If I'm not mistaken, I believe I read that interest on home equity loans is no longer tax deductible, but I could be wrong.

[Infinity]

Forgot to say I financed my last two boats with home equity loans which made the interest tax deductible. That may be a risky plan for some.

According to my CPA, with the new tax laws, you can no longer deduct interest on HELOC loans unless the money from the equity line was used specifically for house upfits/remodeling it, etc. I had asked her about this cause I pulled an equity line against my current home which I planned to use to expand my business and make more money. She told me because of the new laws, I can only use those funds as a "capital contribution" to my company....but the business can no longer (as of 2018 which is when the new laws went into effect) write off the interest payments. Sucks.

Instead, I got a business loan for the company and personally guaranteed it to get the best rates since anything in the name of the company can be deducted.

[scottb7]

Yeah, trump is a genius, now with higher standard deduction, your extra interest expense from financing the boat via home equity is not gonna help you by lowering your tax payment.

[ironj32]

I make nasty payments.

i was out enjoying my financed boat this weekend. Same as the 4 financed boats before this one. Never thought about the payment once.

i don’t sit around bragging about what’s payed off and what’s not. It doesn’t score me any credibility I care about. I don’t lay awake at night worried about doomsday.

i don’t drive by the $1Million waterfront houses and hate on the folks that pay cash...or those able to bankroll the monthly $6-7k monthly payment on $1.5M houses. Over the last 8yrs I’ve heard all the crap talking, folks justifying what they have, or what’s wrong with what other folks choose to do.

id tell folks that spend calories thinking about costs of a $60k boat vs a $160k boat. It all comes down to a yearly costs equaling your true cost of ownership. The $160k boat isn’t “$100k” more to own in 2-3yr increments. Especially coupled with the best boats, best dealers, great pricing and best financing. Just like there are risks to financing expensive toys, there are “loss of opportunity” risks associated with folks that have $60k sunk into boats paid off.

i’m exactly at where the sum total of my life decisions have landed me. Same as all of you.

cheers

This^^^^^^ Like Gary Allan says, "I'm right where I need to be".