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1
Posted on 5/4/19 at 1:37 pm to slackster
quote:
It's the engine(s) that really depreciate. A well taken care of 10 year old fiberglass boat won't be much cheaper than a new one if they've both got brand new outboards on them
That is what I was under the impression of.
Posted on 5/4/19 at 1:38 pm to Tiguar
quote:
You're fricking stupid if you think 4% on a loan for Amazon stock and 4% on a boat loan are financially equivalent
, says the guy that doesn't understand financing. Riddle me this - I've got $200k to spend, and I can also get $200k @ 6.5% for 20 years.
If I pay cash for the boat and finance Amazon stock, I'm smart, but if I finance the boat and pay cash for the stock, I'm dumb?
Posted on 5/4/19 at 1:40 pm to tigercraig
Yeah boats don’t deprecate like they used to, a 5 year old bay boat isn’t much different than a new one. Only difference is the 5 year old boat already has 10k worth of electronics and power poles.
Posted on 5/4/19 at 1:41 pm to Tiguar
quote:
It fricking matters because 4% on a house with land translates to less of a true cost because unless you live in BR, you'll sell it for more than you bought it for 10 years later.
None of that matters. People are routinely wrong about financing on this board. The underlying asset is a miniscule part of the decision.
Opportunity cost is all that matters.
This post was edited on 5/4/19 at 1:53 pm
Posted on 5/4/19 at 1:50 pm to slackster
quote:thats a very nice way of putting it
People are routinely wrong about financing on this board.
Posted on 5/4/19 at 2:00 pm to yellowfin
Exactly.
The value of a boat has nothing really to do with the hull.
It more about the engine hours, electronics and other bells and whistles.
The value of a boat has nothing really to do with the hull.
It more about the engine hours, electronics and other bells and whistles.
Posted on 5/4/19 at 2:02 pm to slackster
If you’re getting all of the stock at one time, that would be a much better deal than the latter though lol
Posted on 5/4/19 at 2:05 pm to GreatLakesTiger24
quote:
People are routinely wrong about everything on this board.
Posted on 5/4/19 at 2:10 pm to samson73103
quote:
The two happiest days in a boat owner’s life is the day he buys it and the day he sells it.
I still don't agree with that.
Owning a boat puts a huge smile on my face.
Eta....owning 2 boats that give me every kind of access possible makes me hard
This post was edited on 5/4/19 at 2:14 pm
Posted on 5/4/19 at 2:12 pm to samson73103
quote:
The two happiest days in a boat owner’s life is the day he buys it and the day he sells it.
That’s what poor people say
Posted on 5/4/19 at 2:13 pm to LSUintheNW
quote:
Owning a boat puts a huge smile on my face.
Yep, opens up a lot of places I otherwise couldn't go.
Posted on 5/4/19 at 2:15 pm to slackster
quote:
Can we please, for once, stop acting like being a depreciating asset actually matters? Financing or not financing is about opportunity costs and that's that. It's about what else you can do with the money. What you're actually buying doesn't really impact the decision of financing or not. Put it this way - if you have the ability to pay cash or finance $230k over 20 years @ 6.5%, whether you're buying a boat or Amazon stock doesn't really matter.
Holy shite man. Of course it matters. This is a gross oversimplification which relies on static returns and expected returns being correct (and also ignores investment horizon of the alternate opportunity).
This offer could potentially bankrupt someone if it turns out they need to get rid of it. The cash that you could have otherwise used to pay for it might not be able to cover the note if your assumptions going into the deal were incorrect.
You are only looking at this on the front end of the deal and ignoring actual performance deviating from what is expected, particularly if a situation were to occur changing the investment duration you initially assumed.
Financing something well beyond its depreciable life is rarely a wise investment decision, which is why you would find it very difficult to even find these types of financing offers.
Good grief.
Posted on 5/4/19 at 2:15 pm to GEAUXT
What if...and bear with me here...that boat was NEVER worth anything close to $230,000.
I can’t think of any scenario that a boat like that wouod achieve that actual value (and yes I realize that the value of something is whatever you can get people to pay for it) but come on.
It’s not even that big or nice a boat. Inflation is OOC
I can’t think of any scenario that a boat like that wouod achieve that actual value (and yes I realize that the value of something is whatever you can get people to pay for it) but come on.
It’s not even that big or nice a boat. Inflation is OOC
Posted on 5/4/19 at 2:16 pm to RogerTheShrubber
quote:
Yep, opens up a lot of places I otherwise couldn't go.
I feel like if you don't own, or have regular access to a boat, in SE AK you just aren't living a full life
I will own a boat wherever I live. I have to have a boat.
Posted on 5/4/19 at 2:17 pm to GEAUXT
Those blackfins are pretty sweet. I know a guy who just bought one but it’s on backorder. He didn’t finance it.
32 ft. center console even has a small bathroom, and of course built in yeti coolers.
32 ft. center console even has a small bathroom, and of course built in yeti coolers.
Posted on 5/4/19 at 2:22 pm to tigerpimpbot
quote:
32 ft. center console even has a small bathroom, and of course built in yeti coolers.
shite, replace those coolers with Igloos and the boat only costs $130k.
Posted on 5/4/19 at 2:23 pm to tigerpimpbot
quote:
32 ft. center console even has a small bathroom,
frick that, bathrooms on a small boat that are a fricking pain in the arse. You don’t have a MSD system, so someone has to manually/physically empty that holding tank.
Much easier to just shite in a bucket and dump it overboard.
Or just hang your arse off the stern
Posted on 5/4/19 at 3:15 pm to OceanMan
quote:
You are only looking at this on the front end of the deal and ignoring actual performance deviating from what is expected, particularly if a situation were to occur changing the investment duration you initially assumed.
I'm aware of sequence of return risk. That's part of the opportunity cost calculation.
But once again, the underlying asset simply doesn't matter.
The decision is this - is $230k at 6.5% for 20 years a good deal or not. What you're spending the money on does. Not. Matter.
ETA - fwiw, I don't think it's a good deal, and I'd suggest paying cash if possible in this case. However, if the rate was 4%, I'd probably say finance it.
This post was edited on 5/4/19 at 3:20 pm
Posted on 5/4/19 at 3:24 pm to slackster
20 years on a toy is just plain stupid.
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