240 month boat and rv loans ?

[HeavyAssault]

People who make LOTS of money know it's better to spend all "the other guy's" money. It's cheaper.
Isn't that what banks are doing?? Why shouldn't YOU think the same way??

 

[BurtG]

People who make LOTS of money know it's better to spend all "the other guy's" money. It's cheaper.
Isn't that what banks are doing?? Why shouldn't YOU think the same way??

What are you going on about ?


This isn’t a low interest loan on an appreciating asset. This is highest interest rates on rapidly depreciating

 

[The D]

A former coworker lives in his camper. It's a 42' toyhauler with all the amenities.

He took out a mortgage on it.
However, he travels with his wife, their dog, and 2 dirtbikes. Job to job as a temp, making stupid money. He owns a house but it's rented. He does have a barn the renter can't access so if he takes a break he'll "go home" and pull it inside to do upkeep.

So far he pays them down quick enough to trade every few years and stay in something that doesn't have RV problems. Once they're out of warranty, it's time to trade.

It probably helps that he is usually $500+/week in perdium that he dumps on the payment. He does a mortgage with a $300 payment just in case he wants to take a few month vacation without a $2k payment.

Having a boat ain't all that bad at all. Especially when you can live on it. Literally. From 'launch' in the Spring until "dock-out" in the Fall. It's a different kind of life. And if you're wanting, you can 'drive your house' and anchor wherever you want.

And it ain't all for 'stupid-money' either, if you know what you're doing. If you need the 'latest and greatest and biggest and shinyest with the most buttons' then this is what BOAT stands for:

Break
Out
Another
Thousand.

If you’re legit living on a boat or in a camper that’s one thing. But to take out another mortgage on something that only gets used a few times a year is silly.

My wife and I bought a small camper last summer but we used it 3 times in the two remaining months of the season. We’ve also at least tossed the idea around of buying a huge camper & truck and touring the country with the kids.

I don’t think the idea of a big boat/camper is dumb. Going into that much debt, not using the things very often, & especially not understanding the financial situation is what’s dumb

 

[jbuck88]

I owned boats from the time I was 19 til I was 46. I spent more time paying for boats and their upkeep, than I did fishing.
I spend more time fishing now than I ever did, and I dont have to make payments or pay for upkeep.
I plan to own another boat, but I already know the score, and know I won't spend any more time fishing than I do now.
YMMV
Some of the best fishing I've ever done, was done on charters and headboats.

If you have the means, help thyself. As a once and future boat owner fish caught on your own boat is some expensive sport.

Sometimes just for fun I'll tell the wife what her shrimp cocktail actually cost. And she never believes me. I'd spend the money over and over again though. Zero regrets.

 

[Hobo Hilton]

I’ve been waiting since January 2020 for the bottom to fall out, lol.

 

[Hobo Hilton]

Sometimes just for fun I'll tell the wife what her shrimp cocktail actually cost. And she never believes me. I'd spend the money over and over again though. Zero regrets.

View attachment 8111395View attachment 8111401View attachment 8111402

Priceless....... Thanks for sharing......... Kodak moments.

 

[Sean the Nailer]

It's a lot of fun, and it is a LOT bigger inside that she seems, outside. It ain't perfect, it ain't the latest and fanciest, but it's our 'home away from home' that travels.
Doing such without mortgage/loan/debt and being HAPPY with what you have as opposed to 'always yearning for what someone else has' is a HUGE thing.

 

[JJMoody]

Don’t knock the RV warranty situation. We paid an extra 5k when we bought ours in 2015. Freaking chewed a camshaft in the motor at 29,700 miles and 4years, 9 months after purchase. Ford screwed around and cost us an extra month of paperwork before admitting they needed to pay for it. Extended warranty was ready to go and paid 16k in 3 days.

 

[HeavyAssault]

What are you going on about ?


This isn’t a low interest loan on an appreciating asset. This is highest interest rates on rapidly depreciating

It's called perspective. But you do you.

 

[BurtG]

^ Justifying 20 year loans on frivolous depreciating toys with < 20 year life spans.

Literal lol

 

[jbuck88]

The 20yr mark for a boat is the same as the 800yd line for the 308win. They magically sink.

In all seriousness I know almost zero about RV's so I'll stick to talking about boats.

Depends on the boat you are talking about. My buddy is into surf boats and they are absolutely nuts and will be obsolete in short order. The technology in them is constantly evolving to produce better waves with more power to push you. His 23' $100k boat in 2017 is obsolete and it's current replacement is $180k.

On the other hand I have fishing boats and they seem to stick around for a long time. My 29' Dyer is 66 years old and better then new, granted I've replaced the original motor 5 years ago and replaced the wood cab 3 years ago. There are lots of boats that are older then 20yrs that get along just fine.

All that said I keep waiting for the other shoe to drop. No idea how the boat and RV prices are going to be sustainable for very long, but I've been saying that for years.

 

[HeavyAssault]

^ Justifying 20 year loans on frivolous depreciating toys with < 20 year life spans.

Literal lol

Thinking like a consumer again. It seems that you are looking at the picture thru a very narrow field of view. That's why you can't see that each person has a different situation and perspective as how to make it work best for them.

Would you turn down a $250k a year job "just cause" you have to live out of an RV? Most people would not.
Now how do you make it work? Do you spend ALL your cash up front on the RV or do you let your earnings make more money than the amount of interest you pay out in a loan?? Maybe for you it's spend your cash up front to earn the $250k. I see a possible way to have the best of both worlds : keep my own cash, spend the least month-to-month, and use the power of my investments to earn back the paid out interest.
Do not jump into the "GOT YA !" pool. Everything would need to be in real time numbers in front of me to know what is the best decision.

IF you have some dedication you can earn more on YOUR investments over what you pay the bank in interest. So even with some 240 mo loan it's VERY possible to make more money in investments than you spend in interest. BONUS : You have "money in the bank" (or your investment mechanism) which you can use at any time. Sort of how a bank works. Sure the "investment vessel" might not gain in value....not all will...a RV or Boat when used for work are not intended to gain in value. Ever heard of a fishing charter, or a fishing guide?? Why are those guys dropping $1.5 MIL on a twin motor 34' Freeman? It's an investment of which the return outweighs the initial cost whether cash up front or a loan. They will make 5x their yearly payments on the loan, keep flipping the earnings in the investments. At any point in time it's cheaper to dump a boat 1-5 years into a 20yr loan than to dump your savings "cause you don't want a loan".

Banks are not using "their" money. They are using YOUR money, under their control, to make money without risk. At least they hope so. Hence the recent banking issues we saw pop up on the radar. Why can't people think like banks? Cause they don't want you to.

Everyone has their own situation. Let them decide what's best for them.

 

[Jgunner]

Heh, neighbor took a loan out on a 5th wheel that he does use, but neglets the shit out of it. Been paying 5 years of the 15 year loan and its worth 1/10 what he paid. Roof needs replaced because he didnt upkeep, hit a few things with it so the sides are splitting and let water in, they treat it like a rental so the inside has issues, but hey, his money.....

 

[TxWelder35]

^ Justifying 20 year loans on frivolous depreciating toys with < 20 year life spans.

Literal lol

Shit, rvs and boat have been solid investments over the past 5 years. You could have bought a boat or rv from 2016-2020 and sold it today for more of the same that you paid for it back then. Who woulda thunk COVID would have made boats a solid investment strategy

 

[Redmanss]

Consumer debt for anything other than land/home is foolish. Taking out a loan for something with pure recreational benefit is downright fucking stupid.

Fool, money, something something...

 

[BurtG]

Why can't people think like banks? C

Because were not a bunch of Jews who get money for 0% and lend it out for 3-20%???

 

[dustingaunder]

I bought a boat with 180 month loan. That was by far the lowest interest rate I could get. I just figured up what the 3 year payment works out to be and set up my auto pay for that amount. I don’t know why anyone would get a 15 year loan on a boat and pay it off over 15 years. Interest would almost double the cost of the boat if I did that.

 

[RUTGERS95]

a lot of stupid people out there sign up for this $hit. It's monthly view of income that hurts them.

 

[vinniedelpino]

Y'all are losing me. No idea what the boat's worth, but the financing terms aren't that bad.

We're talking 8.185% over 20 years on a rapidly depreciating asset. Now consider inflation. At an annual rate of 6%, the value of a dollar after 10 years is about $.56. Do the math. It's sure as hell not a deal I'd be interested in, but it beats the crap peddled by outfits like Marlin, Pawnee Leasing, Direct Capital, On Deck Capital, etc.

 

[SouthFork]

John Deere was doing 0% for 84 months on tractors. Keep my money in the bank and pay the principal. Yes please. I always have enough money to purchase the item outright but if someone wants to give me 0% or even less than 2% I will normally take them up on it because I can get a better rate on keeping the money invested then taking it out.

 

[Huskydriver]

View attachment 8111510
It's a lot of fun, and it is a LOT bigger inside that she seems, outside. It ain't perfect, it ain't the latest and fanciest, but it's our 'home away from home' that travels.
Doing such without mortgage/loan/debt and being HAPPY with what you have as opposed to 'always yearning for what someone else has' is a HUGE thing.

30 footer?

 

[jpjulian]

Either you get a loan or you don't. Either you pay cash or you don't. People need to think beyond month-to-month payments.

Pretty much the first question a car salesman asks you is how much of a monthly payment are you looking for. If you answer that question with any kind of number you have screwed yourself out of a good deal and the dealer wins and gets more money out of your pocket than you ever dreamed possible.

 

[jpjulian]

View attachment 8111510
It's a lot of fun, and it is a LOT bigger inside that she seems, outside. It ain't perfect, it ain't the latest and fanciest, but it's our 'home away from home' that travels.
Doing such without mortgage/loan/debt and being HAPPY with what you have as opposed to 'always yearning for what someone else has' is a HUGE thing.

where do you keep your "toys"??

 

[theLBC]

with global warming and ice caps melting, sea levels will rise like 195 ft in a few years, so boats will be cool to have and nobody will be around to collect those stupid ass loan payments anyway.

 

[Sean the Nailer]

30 footer?

I had to laugh, because the accurate answer is "it depends on how you measure it". HA. Here's the thing. It was built in '84 and its model is an EC260. Which would imply that it is a 26 footer, right? Well, it IS. But ya see, back then they measured the LIVING SPACE length. In the late 80's/early 90's, they changed that and now measure "from the tip of the pulpit to the rear of the swim deck."

This is because marina's and storage facilities charge by the lineal footage of space it takes up on the slip or the storage yard.

I don't need to show-off or brag, so I just honestly answer that it's a 26 footer.

 

[The D]

with global warming and ice caps melting, sea levels will rise like 195 ft in a few years, so boats will be cool to have and nobody will be around to collect those stupid ass loan payments anyway.

Big brane thinking right here

 

[jbuck88]

There is good debt and bad. If I can put my money to work for me and spend yours it's makes sense to take a loan and keep my cash.

It's hard for a bigger corporation to get into small business. They just don't have the flexibility to side hustle.