I like buying older boat that I can pay cash for. I never wanted to be in the situation saying "we have to use the boat because we are still paying for it." With cash it sits there available when I want it and there is not ongoing expense other than slips/storage, fuel, and a little maintenance.
What was your first boat and how did you pay for it?
- Thread starter RutgersAl
- Start date
Pirate Lady
Well-Known Member
OMG Golf, so agree. As I said up thread, we know our limitation, if we don’t want go out, no prob, I love our boat, it’s really nice, but it’s cheap enough that if it’s hot as fk in early august and I’d rather sit in cold bar with cold beer I don’t feel guilty. It’s a toy not an obligation. And that prospective is what makes it fun.
Pirate Lady
Well-Known Member
Hell, I have more fun on a weekday morn in the zodiac on the river with the herons, peaceful and best memories.
Pirate Lady
Well-Known Member
Last august, going down river in zodiac early weekday morn just after sunrise, floating deer head, just the head, with fishing line and bobbers wrapped around antlers. Pulled up next to it WTF! Strange, ghostly, still can’t explain it, but memorable.
Pirate Lady
Well-Known Member
So back to original question, first boat was a nice authentic Canadian Indian canoe, sold my daughter to an Iroquois chief. The wife to a Huron warrior. And some beads. Hey! Don’t judge me, times were tough.
FootballFan
Well-Known Member
Irrespective of the financial consideration, world of difference between those choices.
I agree with others about examine what you want to do with a boat then start working the finances for your situation.
the 25-28’ is similar to the 21’ example, in which I can pay cash. Also considering that size.
the 25-28’ is similar to the 21’ example, in which I can pay cash. Also considering that size.
You may well have asked, which is better, an Orange or a pair of pliers. Start by deciding how you intend to use the boat. Then decide how big that boat needs to be to provide for that usage. Only then, start looking at the financial side of things.
Personally, I'm one of those "cash or I don't need it" guys, at least when it comes to recreational expenditures.
Personally, I'm one of those "cash or I don't need it" guys, at least when it comes to recreational expenditures.
northshore
Well-Known Member
- Jan 17, 2011
- 2,089
- Boat Info
- 1989 340 Sundancer
Raymarine E90W Radar/Chartplotter
- Engines
- Twin 454 Mercruiser 340's
whichever boat I get will be fully utilized to it’s potential, depending on its functionality.
I’m not so concerned about the boating payment or boat cost, which would be known and predictable. I’m more concerned about the maintenance expenses which crop up, which Are unknown, and trying to be prepared for those. Hopefully a good survey will minimize those, but I have to be prepared, nonetheless. So this is why I asked about others experience, so I could learn.
It’s sounding like cash to buy then be prepared to pay more for maintenance and upkeep for me.
Great advice.
To my thinking this is a pretty simplified view.
I have no home mortgage and no auto loans. I probably could have paid cash for my new 37' boat. But, I'd rather take a note on a boat and keep the money in the market. The returns on my investments are greater then the interest charged for the loan. And the interested paid on the boat loan is deductible from my taxes. I get to use someone else's money to get a greater return.
I also took a loan on the boat at a higher interest rate vs. taking a loan against my house. If things go sideways I'd rather have the boat at risk rather than my home.
Admittedly, we very carefully looked at a lot of options and had many discussions with our financial advisor about the boat and other goals. She's a boat owner too, so maybe a little biased.
Stee6043
Well-Known Member
It's just so random, the financing discussions. I personally think it comes off as a bit disingenuous to say "I only pay cash for my toys", even if/when you chose to do so. I generally default to interpreting those posts as meaning 1.) you want to make it quite clear that you have more money than I and 2.) You would also like me to know that you're better at managing your money than I. Neither of which is substantiated within these fun posts 
Financing "the things you want" and fiscal acuity are not mutually exclusive.
Financing "the things you want" and fiscal acuity are not mutually exclusive.
northshore
Well-Known Member
- Jan 17, 2011
- 2,089
- Boat Info
- 1989 340 Sundancer
Raymarine E90W Radar/Chartplotter
- Engines
- Twin 454 Mercruiser 340's
And with purpose (that works for me anyways).
I just don't have to worry about the boat having any form of payment requirement and for me personally, thats easier on my grey matter. I'm a non-degreed, white, mid 50's, male engineer that works in a very niche industry. If my company folded now, well, lets just say, Hitler would be more welcome at a bar mitzvah.
I certainly get the using other peoples money when available. This months victim - Bank of America. Make 10k worth of deposits in to a new checking account within 3 months and we will give you $500. 2 minutes to change a direct deposit form and..... 5/3 and Key bank have been very generous in this aspect as well. Between this and cash bonuses for opening credit cards - Wells Fargo is about to become a bit disappointed with me when they discover next month that they are not going to make a dime off me after they gave me $350 cash and 24 months no interest for opening a credit card to pick up a hot tub for the wife. The money I'm getting from / not giving to banks, goes toward investments. Fortunately, like you, there are no house or car payments left, so doing this stuff is all gravy.
All that being said, there are times I would consider taking on a bit of debt for a boat, but only if there cash reserves were adequate to instantly pay it off without dipping into investments and still having some cushion.
For me, it's what lets me sleep easier at night. Is that the solution for everyone? Doubtful.
This is a fair interpretation.It's just so random, the financing discussions. I personally think it comes off as a bit disingenuous to say "I only pay cash for my toys", even if/when you chose to do so. I generally default to interpreting those posts as meaning 1.) you want to make it quite clear that you have more money than I and 2.) You would also like me to know that you're better at managing your money than I. Neither of which is substantiated within these fun posts
Financing "the things you want" and fiscal acuity are not mutually exclusive.
The best-managed businesses in the world borrow money for investments AND operations all the time. They make an evaluation on the cost of money, ROI, and sales. I'd say most capital investments are NOT cash purchases. Individuals can do the same.
northshore
Well-Known Member
- Jan 17, 2011
- 2,089
- Boat Info
- 1989 340 Sundancer
Raymarine E90W Radar/Chartplotter
- Engines
- Twin 454 Mercruiser 340's
Damn! Really? Not trying to come off that way - not my style.
Not going in to debt for toys is just what I do. It's what works for me.
I have to ask, how does honestly saying what I do (answering the op's question) get defined as disingenuous?
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It's just so random, the financing discussions. I personally think it comes off as a bit disingenuous to say "I only pay cash for my toys", even if/when you chose to do so. I generally default to interpreting those posts as meaning 1.) you want to make it quite clear that you have more money than I and 2.) You would also like me to know that you're better at managing your money than I. Neither of which is substantiated within these fun posts
Financing "the things you want" and fiscal acuity are not mutually exclusive.
The OP clearly layed out the choice between cash and financing. Is any response contrary to financing a humble brag?
His question is really hard to answer by anyone but himself.
I interpreted the question as this:
- Option 1: should I buy a boat that may be too small for my likely needs because I can pay cash;
- or Option 2: buy a bigger boat that would be better suited to my boating goals, but have to finance it for $XX.
If you're in the "I only pay cash" camp, the likely answer is option 1. But that begs the question if one should purchase a sub-optimal product.
Option 2 seems better from a functional POV, but only the OP can answer if that cost fits his budget.
Directly to the OP's question, this is my boat buying experience.
- Boat 1: 22 ft sailboat. My dad and I had sailed it together and he it gave it to me. My wife hated sailing...at least on that boat.
- Boat 2: 14 year old Larson Hampton 22. Bought from a relative. Paid cash. Got a bit small for a newborn.
- Boat 3: 2006 Sea Ray 270 Amberjack. Bought new. Financed. Paid off early. Got small with a teen/preteen.
- Boat 4: 2018 Back Cove 34. Bought new. Financed. Sold. Wanted something bigger.
- Boat 4: 2019 Back Cove 37. Bought used. Financed. Picking it up soon!
Stee6043
Well-Known Member
Sorry, fellas, I was speaking more in general. I wasn't trying to ruffle feathers. The topic of financing seems to come up about once a quarter. Not just this thread, for sure.
My first post lamenting the impending yachtsmen "cash only" comment was based on my prior experience that 100% of the posts addressing financing are accompanied by one or more members suggesting cash is the only way to pay for toys. Nailed it!
And hey, for fear of being called a hypocrite I would like the record to show I did pay cash for a boat a few years back. She was a brand new, still smelled of the showroom floor, Zodiak Cadet 310. And a matching 3.5hp Tohatsu to really up the wow factor.
My first post lamenting the impending yachtsmen "cash only" comment was based on my prior experience that 100% of the posts addressing financing are accompanied by one or more members suggesting cash is the only way to pay for toys. Nailed it!
And hey, for fear of being called a hypocrite I would like the record to show I did pay cash for a boat a few years back. She was a brand new, still smelled of the showroom floor, Zodiak Cadet 310. And a matching 3.5hp Tohatsu to really up the wow factor.
