Boat Ownership - Ca$h Deal - or - Loaned $$$

[OldDan1943]

No one answer is correct. I agree it is better to use bank money at a low interest rate rather than take hard cash that can be better invested elsewhere.

Plus saving to get boat keeps you from having a boat. Look at it this way: Borrow money for boat. Use it 10 years sell boat and you've only tied up a small portion of your assets and gotten some back.

 

[Art]

Originally Posted by Blazys View Post
No one answer is correct. I agree it is better to use bank money at a low interest rate rather than take hard cash that can be better invested elsewhere.

Plus saving to get boat keeps you from having a boat. Look at it this way: Borrow money for boat. Use it 10 years sell boat and you've only tied up a small portion of your assets and gotten some back.

Or... use CA$H - to get the best $$$ deal possible; while making sure you purchase a great boat that's in great shape. Then, when ready, shine her up really well and sell for as much or more than the purchase price.

$$'s saved on correctly dickering to get the best [lowest] initial purchase cost as well as the loan % intere$t saved on prolonged payment schedule is a tangible, recognizable, real dollar amount. Unlike the hoped for dollar expansion of "playing with capital"... where much could be lost or gained. Not to mention the potential for $$$ increase of selling the boat for more than you paid for it.

And, on top of all that, as long as an affordable to maintain and use boat was purchased... During time of ownership... you have next to no costs above dock space and fuel to super enjoy your floating "beach house" / "swim platform" / fishing machine" / "family and friend enjoyment toy" / and, last but not least... Love Vessel!



That's the way I read the cards!! :lol:

 

[smitty477]

Or... use CA$H - to get the best $$$ deal possible; while making sure you purchase a great boat that's in great shape. Then, when ready, shine her up really well and sell for as much or more than the purchase price.

$$'s saved on correctly dickering to get the best [lowest] initial purchase cost as well as the loan % intere$t saved on prolonged payment schedule is a tangible, recognizable, real dollar amount. Unlike the hoped for dollar expansion of "playing with capital"... where much could be lost or gained. Not to mention the potential for $$$ increase of selling the boat for more than you paid for it.

And, on top of all that, as long as an affordable to maintain and use boat was purchased... During time of ownership... you have next to no costs above dock space and fuel to super enjoy your floating "beach house" / "swim platform" / fishing machine" / "family and friend enjoyment toy" / and, last but not least... Love Vessel!



That's the way I read the cards!! :lol:

"Unlike the hoped for dollar expansion of "playing with capital"... where much could be lost or gained. Not to mention the potential for $$$ increase of selling the boat for more than you paid for it.'

None of this is 'potential" when it's in your rear view mirror - always worked for us whether or not we paid 'cash'.

 

[Tom.B]

Meh... deleted. Y’all wouldn’t appreciate the humor

 

[psneeld]

All cash does is allow quick transactions...whether home or boat...no waiting on financing and it's requirements (possibly).

 

[Fletcher500]

Tom, I think a lot of people have said it’s a personal decision. So whatever works for you, great. For people who decided to save and not use debt; I think it’s safe to say your analogy of pushing Benjamin’s to buy a Donkey for a good deal is an over simplification for many of us who thought through the process and the pros and cons involved. Again, it’s a personal decision that has a lot of varying factors.

 

[Bigsfish]

Scott. I also sleep better knowing I have no debt. I know if I crap out right now my heirs will have no problems, actually they will be better off.

I’m lucky, I retired (became unemployed) at 50 with no debt.

 

[ksanders]

Two guys... both 50 years old. Both dream of having a boat. Both will be set to retire at 60, due to all the other things they have going on in life.

One guy dreams of buying a boat at 50. He saves hard, and reads boating magazines, and goes to forums talking about boats, then he buys his boat at 60 and retires.

The other guy actually buys his dream boat at 50 on a 10 year loan, enjoys the heck out of his boat while he is working and then retires at 60.

Both die at the same age.

The guy that bought his boat earlier, abet on a loan got to use his boat a whole decade longer.

I want to be that guy. I want to be the guy that actually went boating, instead of dreaming about it.

I hope that I live a long healthy life, but if luck is not on my side I will die with the memories of fulfilling my dreams.

How tragic it would be to be the guy that dreamed, and scrimped, and saved, and never lived his dream.

 

[MV La Costa]

Started saving for boat at age 35. Bought boat at 40 outright and immediately started using for long weekends, 2-3 week trips every few months etc - working toward full time cruising by 45 is our goal. Boat has also undergone a significant retrofit to our goals.
I was always afraid that planning forever would mean My wife and I would miss out on so much time in the planning stage where we could be enjoying ourselves while both still working that taking the risk with our savings "young-er" would ensure more of our time on the water, even if not full time.

 

[MV La Costa]

Two guys... both 50 years old. Both dream of having a boat. Both will be set to retire at 60, due to all the other things they have going on in life.

One guy dreams of buying a boat at 50. He saves hard, and reads boating magazines, and goes to forums talking about boats, then he buys his boat at 60 and retires.

The other guy actually buys his dream boat at 50 on a 10 year loan, enjoys the heck out of his boat while he is working and then retires at 60.

Both die at the same age.

The guy that bought his boat earlier, abet on a loan got to use his boat a whole decade longer.

I want to be that guy. I want to be the guy that actually went boating, instead of dreaming about it.

I hope that I live a long healthy life, but if luck is not on my side I will die with the memories of fulfilling my dreams.

How tragic it would be to be the guy that dreamed, and scrimped, and saved, and never lived his dream.

This scenario is my fear...

 

[Bigsfish]

ksanders

The other part of the story is the guy who financed the boat at 50 could not retire as planned as he had to work harder to pay for the boat, at 65 he still hadn’t been able to retire and he’s had to work quite hard on his boat. The other guy has enough money to retire at 60 and buys his boat. Travels around the coast and even does the loop in a fully paid boat, he’s happy with life. He calls his friend who financed his boat at an early age and speaks to his wife as his friend died before he could enjoy the boat.

Yeah we can make up the story to fit our narrative. You cast your cards and take your chance, hopefully you made the correct choice. I think I did.

 

[Art]

ksanders

The other part of the story is the guy who financed the boat at 50 could not retire as planned as he had to work harder to pay for the boat, at 65 he still hadn’t been able to retire and he’s had to work quite hard on his boat. The other guy has enough money to retire at 60 and buys his boat. Travels around the coast and even does the loop in a fully paid boat, he’s happy with life. He calls his friend who financed his boat at an early age and speaks to his wife as his friend died before he could enjoy the boat.

Yeah we can make up the story to fit our narrative. You cast your cards and take your chance, hopefully you made the correct choice. I think I did.

Everyone who owns a good boat and can afford it one way or another made the right choice!

 

[Action]

Both die at the same age.

WOW so many unanswered questions -

And what happened to the boats?
Were the boats well maintained?
Were the boat under 40 feet or over?
Was the galley up or down?
Single or twins?
Were they nice trawlers? Or a Chinese junks?
Was I named in the will to get the boats?


Man, too bad about the guys. Their timing was unbelievable.
Hope they had insurance.

 

[ksanders]

ksanders

The other part of the story is the guy who financed the boat at 50 could not retire as planned as he had to work harder to pay for the boat, at 65 he still hadn’t been able to retire and he’s had to work quite hard on his boat. The other guy has enough money to retire at 60 and buys his boat. Travels around the coast and even does the loop in a fully paid boat, he’s happy with life. He calls his friend who financed his boat at an early age and speaks to his wife as his friend died before he could enjoy the boat.

Yeah we can make up the story to fit our narrative. You cast your cards and take your chance, hopefully you made the correct choice. I think I did.

We all do what we think is best for our financial situation, and we often modify our dreams to fit our financial reality.

You for example indicate that you retired at 50, and it appears that you have a 54’ grand Banks. Assuming you have a home, then financially based on your ability to do and buy those things you have been more fortunate than many here. More fortunate than myself for sure.

I am really glad and humbled that I am able to do the things that I have done, and continue to do, and still retire before 60. For me that took either adjusting my dreams to require less dollars or borrow money to make those dreams come true.

For me borrowing money for a boat at 49 and having it fitted out, and paid off, and me having a decade of big boat sea time under my belt by my retirement age of 59 is best.

My biggest fear is waiting for retirement to come to fulfill my dreams and dropping dead never realizing those dreams.

Others have different fears, and dreams.

 

[SteveK]

One thing not clear in all these posts. Whether cash or finance, are we talking about the first boat or the last boat. I mean being on the cash side (since here we do not get tax deductions for boat ownership financing), I have boated since mid 70's on and off, for at least 30 years. Cash purchased with the two-footitest plan. I think moving up to well Trawlers over time versus first time buyers, I suppose financing is an end all solution for some (who do not get tax breaks)

 

[Bigsfish]

Kevin

Your correct, I am fortunate and lucky plus I worked hard and saved but more lucky. I appreciate that fact.

 

[ksanders]

Kevin

Your correct, I am fortunate and lucky plus I worked hard and saved but more lucky. I appreciate that fact.

I am sure you do. I have never met anyone that had done very well that was not very humble about it.

 

[Bigsfish]

Kevin

Thanks for the compliment but friends of mine have done far better than I . One guy I was in grad school with, dumb as a box of rocks, complained to me a couple of years ago that his bonus was only 30 million (hedge fund guy).

 

[BandB]

Wifey B: You are all outlining stories that fit the story you want to tell. Reasonable, but then all slanted to your situation. So, I can make up one.

Two brothers. Two years apart in age. The older brother was daddy's pride and joy, a great businessman. Harvard grad. He married a fine woman and they had two kids. They bought larger and larger homes and planned so for retirement. He worked 60 hours a week so they'd be debt free plus have the money for anything they wanted during retirement.

The younger brother was a bit of a family embarrassment. Dropped out of Yale. Went to a local community college. Dabbled in art. Supported himself as a bartender. Had a different girl friend every week, quite a lady's man. Never owned a condo. Went to Vegas at least once a month and got all the free perks there. Had no savings and no 401-K.

The older brother planned on retirement at 60 but he and his money hungry wife wanted more so he put it off for two more years. Two months short of 62, he had a fatal heart attack. His wife was left a multi-millionaire and she was only 55 at that time.

The younger brother, the gambler he was, played the lottery every week. At the age of 45, living paycheck to paycheck, he won $120 million after taxes and bought a huge house and yacht and cars and lots of wild women. He quickly went through the money.

The brothers had a conversation about a month before the older brother's heart attack. The older brother really chastised the younger one for having nothing left of all that money. The younger one said, "Omg, you still don't get it, I have memories you couldn't imagine." The younger brother did show up in the hospital as his older brother was dying and the final words were the older brother saying "Please take care of my wife, Bridget. I don't want her sad. She deserves to enjoy life." The younger brother said, "I promise, oh yes, I do promise."

Younger brother lived up to his promise as he immediately checked in on the wife daily. Soon he moved in to his brother's home and bed. Life for the wife was the best it had ever been but she only allowed her new boyfriend so much to spend per month. A very gracious amount but not everything. They would travel together, bought the yacht the older brother had dreamed of. When the father died, now with the older brother gone, the younger brother got all that too. They lived happily ever after.

So the moral of the story is to be as irresponsible as possible.

Now if that's the story you want to believe in, you're a fool. Both brothers had it wrong and for most of us the right way is somewhere in between. You can marry responsibility with freedom to enjoy life along the way. May each find their way to their dreams without depending on the death of a brother and the lottery along the way.

 

[Donna]

WOW so many unanswered questions -

And what happened to the boats?
Were the boats well maintained?
Were the boat under 40 feet or over?
Was the galley up or down?
Single or twins?
Were they nice trawlers? Or a Chinese junks?
Was I named in the will to get the boats?


Man, too bad about the guys. Their timing was unbelievable.
Hope they had insurance.

What kind of boat do you own?

 

[BruceK]

We all do what we think is best for our financial situation, and we often modify our dreams to fit our financial reality.....My biggest fear is waiting for retirement to come to fulfill my dreams and dropping dead never realizing those dreams.

So many things in life would be easier to plan if we knew the end date. We usually don`t, at least not well in advance. So within reason, live for the present. And if that means borrowing to buy a boat you want now with a loan you can afford to service, go for it.

 

[Bigsfish]

WifeyB

Great story and I can attest that your right because the teaching point is the wives always get the money. So I want to be the wive. That way I will get all the perks and know when I go to the bar if I will get laid or not before I walk in.

 

[Seevee]

I need to find a way around capital gains taxes and yet maintain my high rates odd return. I am all ears.

Gordon

Use a Roth IRA

 

[Seevee]

Two guys... both 50 years old. Both dream of having a boat. Both will be set to retire at 60, due to all the other things they have going on in life.

One guy dreams of buying a boat at 50. He saves hard, and reads boating magazines, and goes to forums talking about boats, then he buys his boat at 60 and retires.

The other guy actually buys his dream boat at 50 on a 10 year loan, enjoys the heck out of his boat while he is working and then retires at 60.

Both die at the same age.

The guy that bought his boat earlier, abet on a loan got to use his boat a whole decade longer.

I want to be that guy. I want to be the guy that actually went boating, instead of dreaming about it.

I hope that I live a long healthy life, but if luck is not on my side I will die with the memories of fulfilling my dreams.

How tragic it would be to be the guy that dreamed, and scrimped, and saved, and never lived his dream.

Kevin,


You make a good point, and that story can be twisted to make it sound any way you want.



They both loose their jobs when they are at 55, the guy with the debt goes broke because he cant sell the boat fast enough, and all the other expenses pile up because it hasn't a pot to piss in.


The other guy simply retires early and buys a smaller boat and lives happily after ever.






..... so there's lot of senarios.




How about just starting out with a smaller boat like I did, and buy it for cash when you're in your 20s. Occasionally sell it and get a bit nicer one every so often as savings provides. So, enjoy boating the most of your life. And the memories with smaller boats can often be better than the ones with bigger one. Kinda like remembering your first girlfriend. And, keep the boats free and clear. (yea, keep the girlfriend that way, too).

 

[Art]

Kevin,

How about just starting out with a smaller boat like I did, and buy it for cash when you're in your 20s. Occasionally sell it and get a bit nicer one every so often as savings provides. So, enjoy boating the most of your life. And the memories with smaller boats can often be better than the ones with bigger one. Kinda like remembering your first girlfriend. And, keep the boats free and clear. (yea, keep the girlfriend that way, too).

Talk bout memories on smaller boat! I got your drift ... pun intended.

Although for all my years of growing up dad always had a boat for us to play on... the 1948 23' Chris Craft Express was the one with the most super duper fun memories. When family finally outgrew it [I was in 6th grade] it was the only boat we all [five of us] shed tears over leaving. Next boat was 38' raised deck sport fisher that dad and I spent two years bring up to snuff [used it the whole time]. That sport fish was one hell of a cool boat - but - the little 23' Chris always held our hearts and minds for fun memories!

 

[OldDan1943]

Once I am dead, any loan I have outstanding is not my problem.
They can repossess the boat, clean it up and it will more than payoff the loan.
As someone once said, Once you die, you have no more problems.

 

[Art]

Once I am dead, any loan I have outstanding is not my problem.
They can repossess the boat, clean it up and it will more than payoff the loan.
As someone once said, Once you die, you have no more problems.

Dan - just mentioning: SPAM on a tacco? Pork favor.

And, you will have problems for eternity! - LOL

 

[Tom.B]

WOW so many unanswered questions -

And what happened to the boats?
Were the boats well maintained?
Were the boat under 40 feet or over?
Was the galley up or down?
Single or twins?
Were they nice trawlers? Or a Chinese junks?
Was I named in the will to get the boats?


Man, too bad about the guys. Their timing was unbelievable.
Hope they had insurance.

And for crying out loud... WHAT ANCHOR DO THEY USE?!?!?!?

 

[Tom.B]

I am certainly glad that we financed both of our boats so I could join this community and participate in such a heated and relatively pointless arguments such as this.
I think we have made our points clear... perhaps it is time for this thread to slide down to the land of the forum search.

 

[Action]

What kind of boat do you own?

A free and clear one.