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  #101  
Old 06-20-2013, 11:50 PM
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It's just how you use capital - however a 20 year leverage on a depreciating asset not such a great idea at that rate. A 0 - 20% rate not such a bad idea. $5K a year for interest - that a lot of $$$ being wasted.

Anyway - this type of purchase can't be justified by most of us. I only paid $10K for mine and there's so many nice rides out there for a 1/4 or 1/3 that price.

Would be sweet to have a new one.
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  #102  
Old 06-21-2013, 07:16 AM
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Totally mike. But if people are going to pay that much for a boat. Their kids college better be paid for. And I mean in full before you do it. Otherwise you just are a selfish fool.

Family first.

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  #103  
Old 06-21-2013, 08:21 AM
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You guys are failing to apply "opportunity cost" to this scenario, that is, applying a monetary value to your leisure time and the quality of it and factoring that against actual costs. I could not buy a boat because I don't have cash and save the $$$, though then I lose the benefit of having a boat.


I justify a 100K boat because I am still young enough to enjoy it, young enough to weather several bankrupcies and still be able to retire comfortably, and because I put a monetary value of my leisure time and the memories made in my children and our friends and their children. Some of my best childhood memories are of boating and I won't deprive my kids of that for a small monthly payment.

Also, agree with previous statements: my money works for me to the extent where it is better to make a payment every month and keep my 100K in my pocket.
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  #104  
Old 06-21-2013, 09:46 AM
chevyluv chevyluv is offline
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Quote:
Originally Posted by Tommy1005 View Post
I'd rather let my money continue to earn 8-10% a year or more and finance a boat for 3%. In the end I pocket 5+% more doing it that way. If interest rates go up and make it a wash, then I'd have to rethink, but I will finance, just like I do my vehicles. At 0-2%, again, to me it's not worth it to loose that extra cash in the long term.
O no I totally get that. The part I was getting at is they make it so people who shouldnt be spending 150 k on a boat can stretch there limits to where they can realy not afford it but find a way to because they can purchase a toy on a 240 month term.
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  #105  
Old 06-21-2013, 10:08 AM
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I'm glad I am not the only one who thought the price of new boats was insane. Wife and I decided we could redo the engine this year, the interior next year and the stereo the year after that and the outside the year after that and STILL not spend as much as a payment on a new one.

I paid less for my lakehouse than the new X-Star sitting at Rambo. $171,000 on a 23 foot boat is flat out nuts.
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  #106  
Old 06-21-2013, 10:30 AM
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Quote:
Originally Posted by stuartmcnair View Post
I paid less for my lakehouse than the new X-Star sitting at Rambo. $171,000 on a 23 foot boat is flat out nuts.
Here's some perspective. For that kind of money, you can buy this http://www.boattrader.com/listing/19...r-Yacht-355923

And still have plenty of money left over to buy a decent used ski boat. Plus you can deduct the interest on the loan. But some people demand new and if they can afford it, good for them.
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  #107  
Old 06-21-2013, 10:35 AM
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Quote:
Originally Posted by Nick911 View Post
You guys are failing to apply "opportunity cost" to this scenario, that is, applying a monetary value to your leisure time and the quality of it and factoring that against actual costs. I could not buy a boat because I don't have cash and save the $$$, though then I lose the benefit of having a boat.


I justify a 100K boat because I am still young enough to enjoy it, young enough to weather several bankrupcies and still be able to retire comfortably, and because I put a monetary value of my leisure time and the memories made in my children and our friends and their children. Some of my best childhood memories are of boating and I won't deprive my kids of that for a small monthly payment.

Also, agree with previous statements: my money works for me to the extent where it is better to make a payment every month and keep my 100K in my pocket.
Yes the you are correct about the opportunity cost - avoiding the initial depreciation whack by buying used will preserve your leisure activity and enjoyment.... unless of course you choose to compete..
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  #108  
Old 06-21-2013, 10:45 AM
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JMLVMI JMLVMI is offline
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Nice to see a diverse and civil discussion on this stuff. I'll say to all of you new boat owners: please keep up with the service and "MCOCD" so when your boat eventually makes its way to my price range, I can get one in pristine shape
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  #109  
Old 06-21-2013, 11:15 AM
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JMLVMI... I agree thanks to the new boat guys.
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  #110  
Old 06-21-2013, 11:42 AM
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Note that most inboard boat dealer sites have a button next to Inventory that says Credit Application. Does anyone remember the year loan terms for boats were relaxed? I'm thinking it was '06. Boat prices shot up immediately because consumers had 'access'.
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