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Old 10-09-2019, 02:47 PM   #91
Chrisjs
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Join Date: Oct 2007
Posts: 895
This seems like an idle curiosity question rather than one seeking advice. Given that there are no interest-free loans for boats as often available for automobiles, the answer should be "depends on an individual's personal financial circumstances". Only logical reason to get a boat loan is if you can not afford to buy outright. Even assuming the tax deduction for high tax rate individuals, the net cost will exceed current pitifully low savings interest rates - not to mention better investment options. Using a home loan may benefit from a better loan rate than a straight boat loan but is capped by the IRS at $100K.
Plus, boats depreciate just like cars, but are not usually tradeable like cars, and the broker takes 10%, so it can easy to get "upside down" on the loan come time to sell.
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