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So you buying a new boat. You’ve been approved for 100% financing. Nothing down. No penalty for early payoff and all that.

Is it crazy to put money on it anyway? Would you be better off just financing the full amount? Other than resale, I say do nothing down.

Thoughts?
 

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boardfeet is right. this is the way to make money. 5% is a good return on your money depending on the borrower. if you put money down, that only decreases the amount of money they get from the interest.
pay in full if you can. it's a 5% return on your money no matter how you look at it. and they won't mind if you're late on your payment that gives them a fee for latepayment. just hope to god it's not compound interest. sheez.
jack
 

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Unless your boat is for your business, it's always questionable to buy a boat with borrowed money. Boats are like airplanes, the cost of ownership and use may be more than the purchase price.
 

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When someone fishes as much as Joey and Lisa, they will get their money's worth out of it. They love to fish, they are together, healthy outdoor activities, it's cheaper then bail........long list I could go on. Money well spent. 😜
 

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Borrowing money (with interest) on a depreciating asset is not real smart.
Stupidest shit thats been posted this month.
I suppose you think all these boats on the water are just paid for with cash that people pull out of their ass.

Please refrain from anymore stupidity.
 

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Unless your boat is for your business, it's always questionable to buy a boat with borrowed money. Boats are like airplanes, the cost of ownership and use may be more than the purchase price.
Lol. Not you too...
 

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Whats the difference in a payment on a boat vs truck?
 

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I've bought two boats new and believe in putting as much down as I'm comfortable with. Lender is going to want you to finance a larger amount. Assuming you are doing a simple interest loan, you can pull up the loan calculators online and figure our where your sweet spot is. Start with 100% financed and work your way down.

Another option to explore is borrowing against a retirement account like a 401K. I've done it a couple of times and while there are specific risks associated with this option, the great thing is you are paying yourself interest instead of the lender. Basically you are loaning yourself the money but if you fail to pay it back, the government will send you a notice congratulating you on your default and demanding you pay taxes and associated early withdrawal penalties.
 

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Generally the interest on a vehicle will be lower. If you are in a position to do so it would be a good idea to place the boat money in an interest bearing account of some kind and have the payment automatically deducted from the account on a monthly basis. Even if it is not all of the price of the boat. I would look into a brokerage account rather than a bank account. They tend to earn more. Our brokerage account averages around 10 to 12%. This will greatly reduce the amount of interest you pay them. I see nothing wrong with borrowing on a boat as long as you use it and enjoy it. No doubt Joey and his wife use their boat.
please post pics of the new sled and some more Flatheads..My Pappy loved to catch them flatheads as much as you guys do.
 

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I've bought two boats new and believe in putting as much down as I'm comfortable with. Lender is going to want you to finance a larger amount. Assuming you are doing a simple interest loan, you can pull up the loan calculators online and figure our where your sweet spot is. Start with 100% financed and work your way down
Yeah it’s all simple interest. I’m thinking put some down now and resale will be easier. Think your right about the lender.

Monthly payment really isnt a problem either Way.
 

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Whats the difference in a payment on a boat vs truck?
Depends. Assuming your truck is your primary form a transportation and assuming you live in a place that doesn't have comprehensive public transportation (that would be most of the country) so you have to have your own transportation and assuming you are employed or otherwise have commitments to meet THEN the truck is part of your basic living expenses. If, however, you have a better vehicle for your primary transportation or you have suitable public transportation available (not around here) and the truck is a secondary "vanity" purchase then the truck shouldn't be purchased with borrowed money even though the cost of ownership and usage for a truck is probably not as high (vs purchase price) as a boat.

In other words, only borrow money for necessities not for toys.
 
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