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Would you have put for ex. $40K into the stock market KNOWING it would be worth only $20K in 5 years ?? That is what happens when you pay cash for a boat, car, truck, etc. As long as you can earn more on your $ than you pay in finance charges , why would you want to pay cash for something that is guaranteed to depreciate and lose $ ? Better option , take the $ you are going to use to pay cash ( or put into a large down payment ) and pay yourself thru your home mortgage company by taking that $ and applying it to the principal you owe on your home.
Example : Original loan is $ 250 K ( 30yrs. @4% ) = Monthly payment of $1193.54 . The payoff on that loan after 60mos. is $226,118. Cash price of boat, truck, etc. is $40K Instead of paying cash, take that $40K and apply it to the principal on your home and now your payoff is approx. $186,118 ( $226118- $40K ) This new payoff = approx. the 139th payment of your amortization schedule. You have already paid 60 payments . This means you just saved yourself 79 house payments of $1193.54 or a total of $ 94,290 in paying for your house instead of paying cash for that truck or boat !
 

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Discussion Starter #62 (Edited)
Is the new boat bigger than the one you currently have?

What will the new boat do that the old one will not?
The new one is a open deck design. No elevated deck in the back and console pushed forward. Moving up from a 2170 hull to a 2400.
 

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Discussion Starter #63 (Edited)
Would you have put for ex. $40K into the stock market KNOWING it would be worth only $20K in 5 years ?? That is what happens when you pay cash for a boat, car, truck, etc. As long as you can earn more on your $ than you pay in finance charges , why would you want to pay cash for something that is guaranteed to depreciate and lose $ ? Better option , take the $ you are going to use to pay cash ( or put into a large down payment ) and pay yourself thru your home mortgage company by taking that $ and applying it to the principal you owe on your home.
Example : Original loan is $ 250 K ( 30yrs. @4% ) = Monthly payment of $1193.54 . The payoff on that loan after 60mos. is $226,118. Cash price of boat, truck, etc. is $40K Instead of paying cash, take that $40K and apply it to the principal on your home and now your payoff is approx. $186,118 ( $226118- $40K ) This new payoff = approx. the 139th payment of your amortization schedule. You have already paid 60 payments . This means you just saved yourself 79 house payments of $1193.54 or a total of $ 94,290 in paying for your house instead of paying cash for that truck or boat !
My house is paid for. But that is smart.
 

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Joey, if you do start a catfishing charter just make sure to stay off Craigslist.

He'd need to get a Walleye boat fer that!
 
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credit score wise ... if you have the money to put down and aren't required to, then finance the whole thing and THEN make a payment ...... this gives the impression that the loan has then been paid down

Example:
100000k Boat

Scenario #1:
pay 20k down .. loan is 80k..... loan is at 0% paid
Scenario #2:
loan for 100k.. make a ballon payment of 20k immediately.... and your loan is 20% paid.


In BOTH of the scenarios above the balances would be the same.... however the monthly payment would be a tad bit lower on the 20k down scenario
 

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Alumacrafty
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If borrowing money for purchasing boats, vehicles and other recreational toys was a good deal why would manufacturers offer the service? It’s like going to a casino, if you walked into a casino and knew you would lose would you keep going back? Borrowing money is the same. If you borrow and know your losing money why would you keep doing it? Why are the banks and financial investment buildings are so much larger than our homes?
 

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maybe banks and financial investment buildings are bigger than our homes because they borrow at a lower rate than they invest at...and live on the difference?

nah probably something else...
 
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