How do you afford them?

[KnoxMojo]

Way to bring back a 9 year old thread, lol

[MJHSupra]

Way to bring back a 9 year old thread, lol

Bringing threads back from the dead and Halloween is over.

[sandm]

Bringing threads back from the dead

apparently this thread was not dead, just sleeping.... for many years....

[Turbinesurgeon]

30 more years til this thread is paid off


Sent from my iPhone using Tapatalk

[Matt0520]

Take out a 15-30 year loan. I’ve read this same question on the FB groups and there are people commenting they took a 30 year loan. That’s wild. But the banks are lending it. Seems like a bubble will form and burst eventually.

How will it burst? These are fixed-rate loans.


Sent from my iPhone using Tapatalk

[Matt0520]

I think a lot of people just have a lot of debt. Me, I like to pay cash for things. My 98 Mobius was rough when I bought it last year for $3k. I'm putting money into it and will sell it in a few years for a profit and buy a nicer boat.

I see it all the time and just shake my head. I live just off a highway going into the mountains. I see folks with a $60k diesel truck pulling a $60k trailer. Some may have paid cash for their toys, but I bet a lot of people are in debt up to their eyeballs. I'm not one to judge, but that is not the way for me.

I'd like to see their retirement account balances. I am pretty comfortable with my 401k balance. My only debt is my mortgage. The goal is to retire in my late 50's, maybe 60, with $2 Mil in the bank/retirement account. Both my wife and I work.

Good thing, none of us have any idea what's going on in someone else's finances. Debt isn't a bad thing if you can afford it, especially currently when money is virtually free.

I subscribe to the 'cash is king' mentality, but I keep the cash in the bank. So when I can mortgage a house at 3%, get a car loan for 0%, or a boat loan for 5%...I do it, that interest rate is the small price to pay for the service...and it's what allows me to keep a large chunk in the bank. Earning interest (above the rates I pay) and as a 'just in case' fund.

I'd much rather have the cash if something bad happens. IDK what that would be since we own a company that's been around since the 1930s but who knows. Owning assets is great, until you have to unload them to sell for unforeseen medical expenses, job hardship, etc.

[jmb]

Well I'm going on 62 years old. I believe my new boat buying days are over and I don't have to pay those prices. I still ski and wakeboard but my runs are shorter and few less. I have been happy with what I have. I'm semi-retired (work when I want to) and plan on keeping it this way.

[mgswake]

How will it burst? These are fixed-rate loans.


Sent from my iPhone using Tapatalk

I like your comment after mine. I really don’t know others finances. I just assume some people make enough to pay for these boats outright, others are like you mentioned and finance because they can use the cash in other investments, and those who put a little down and finance for 15-30 years. My assumption is a lot of those who are financing that long probably shouldn’t and if we have another recession, many of those people may not be able to afford their payments. So I guess not really a bubble, just a lot of risk. But I don’t have any firm data to back that up just threads I’ve read on here and the fb groups. But to each their own. It’s not my business or place to judge. Just an observation. It’s good for Wakeboat
manufacturers sales, and allows individuals to get on the water.

[Matt0520]

I like your comment after mine. I really don’t know others finances. I just assume some people make enough to pay for these boats outright, others are like you mentioned and finance because they can use the cash in other investments, and those who put a little down and finance for 15-30 years. My assumption is a lot of those who are financing that long probably shouldn’t and if we have another recession, many of those people may not be able to afford their payments. So I guess not really a bubble, just a lot of risk. But I don’t have any firm data to back that up just threads I’ve read on here and the fb groups. But to each their own. It’s not my business or place to judge. Just an observation. It’s good for Wakeboat
manufacturers sales, and allows individuals to get on the water.

Oh ok now I get what you mean! Right if they don’t have savings and secure employment you’re right.

From my experience in my area it seems like wakeboat owners are much more buttoned down in terms of careers and finances than other boat owners. But that’s just a guess.


Sent from my iPhone using Tapatalk

[NewbFam5]

I think there are some other factors to consider as well. To me it seems many younger couples are establishing themselves in their careers and waiting to have kids until they are a little older, late 20's. So 2 working adults with lower expenses have more disposable income and not as much at risk. On the other side of that are families like mine, I'm 48. My wife and I have been in our current jobs for 15 years and are both fairly successful. We pay our mortgage, max out retirement, save extra, contribute to 3 college 529's, etc. etc. We put down a larger downpayment and plan to pay off early. We also cancelled a few creature comforts so instead of increasing monthly expense with a large boat payment we are increasing monthly expenses but a smaller amount overall. If at any time you wonder if this is the right decision because there is concern about making payments if something goes wrong with your financial security then you would probably be better to not buy the boat. Good luck with what ever you decide.