X23 Surf Wave- Worth it?

[Eric2010MCX2]

I was gonna say you'll still have 14 years of boat payments....

Is the general consensus that one has to finance these boats for 15 years to afford one? I asked our dealer this last year and he says about half pay cash around here (central NC).

[Mastercraftdave]

Is the general consensus that one has to finance these boats for 15 years to afford one? I asked our dealer this last year and he says about half pay cash around here (central NC).

I think its a pretty simple concept of why lock up all that cash in a depreciating asset. Mine is financed because I choose to lock up my cash else where. Everyone looks at thongs different ways and when you get low interest rates its a no brainer.

[DocPhil]

I think its a pretty simple concept of why lock up all that cash in a depreciating asset. Mine is financed because I choose to lock up my cash else where. Everyone looks at thongs different ways and when you get low interest rates its a no brainer.

I was able to get 2.9% interest on my X-30 loan PLUS my credit union has a rebate on that interest at the end of the year depending on how the credit union performs. Last year was 70% rebate.

So for me, 2.9% interest plus 70% back it is a no brainer to finance. I can take the cash I saved by not paying cash and invest that in pretty much anything and do better.

Sometimes financing will actually save you money

[Eric2010MCX2]

I was able to get 2.9% interest on my X-30 loan PLUS my credit union has a rebate on that interest at the end of the year depending on how the credit union performs. Last year was 70% rebate.

So for me, 2.9% interest plus 70% back it is a no brainer to finance. I can take the cash I saved by not paying cash and invest that in pretty much anything and do better.

Sometimes financing will actually save you money

If your scenario was widely available then 100% agree ( and who is your CU btw?!) .....and agree on not tying up too much cash.

We will do half cash, half home equity (for tax write off) and payoff in 2-3 years. I don't like payments and can still retain plenty of cash for a rainy day or emergency with this scenario. Unless you can write off the interest for a low fixed rate, it kills me to see the amount of interest you would pay over a long term loan.

Everyone's situation is different, I understand.

[DocPhil]

If your scenario was widely available then 100% agree ( and who is your CU btw?!) .....and agree on not tying up too much cash.

We will do half cash, half home equity (for tax write off) and payoff in 2-3 years. I don't like payments and can still retain plenty of cash for a rainy day or emergency with this scenario. Unless you can write off the interest for a low fixed rate, it kills me to see the amount of interest you would pay over a long term loan.

Everyone's situation is different, I understand.

Dow Chemical Employee Credit Union.

I got that rebate loan on my boat, both jet skis and my mortgage.

It's like a windfall at the end of the year. I be like "honey, we goin sizzla!!"

[Mastercraftdave]

I was able to get 2.9% interest on my X-30 loan PLUS my credit union has a rebate on that interest at the end of the year depending on how the credit union performs. Last year was 70% rebate.

So for me, 2.9% interest plus 70% back it is a no brainer to finance. I can take the cash I saved by not paying cash and invest that in pretty much anything and do better.

Sometimes financing will actually save you money

I was able to get 1.99% on my loan and put enough down to make it pretty reasonable. I was pretty happy doing it this way.

[scott023]

I think its a pretty simple concept of why lock up all that cash in a depreciating asset. Mine is financed because I choose to lock up my cash else where. Everyone looks at thongs different ways and when you get low interest rates its a no brainer.

I love looking at things....

[Tommy1005]

I wish the Texas Dow Credit Union would do that loan.....I would have everything financed with them in a heartbeat. I agree even at 2.9% without the rebate it's like playing with house money, since most of my investments average 7-10% return on a yearly basis. I'm still making 4-7% more on my money by financing than if I were to pull all that cash out to invest in an asset that will never make me more money than I put into it. I'd rather keep my cash growing for retirement than stop it short and pull out $100K.

Time value of money is a wonderful thing. If I leave that $100K in the bank earning 7% a year for the next 15 years, the life of most of these loans, it would be worth just shy of $285,000. On a 15 year loan, if you keep the boat to the end of it, you would've paid about $40,000 in interest. Alot of money, yes, but I would have made $185,000 on my money over the life of the loan.

Most of us won't keep these boats more than 5 years anyway, so it makes since to me atleast to put your 20% down upfront and roll the equity into your new boat every 3-5 years, and keep your money in the bank making more money.

As a comparison for retirements sake. I plan on retiring in 25 years.....that $100,000 would be worth $575,000 in 25 years at 7%. If I were to put that $800/month payment into something earning 7% per year, then at the end of 15 years let it ride for the next 10 until my retirment, the value would be $460,000.

Long term, with interest rates as low as they are, it just makes more sense to leave my money where it is. If interest rates were to jump back up to 8-10%, then it would make more sense to pay cash.

[DocPhil]

I wish the Texas Dow Credit Union would do that loan.....I would have everything financed with them in a heartbeat. I agree even at 2.9% without the rebate it's like playing with house money, since most of my investments average 7-10% return on a yearly basis. I'm still making 4-7% more on my money by financing than if I were to pull all that cash out to invest in an asset that will never make me more money than I put into it. I'd rather keep my cash growing for retirement than stop it short and pull out $100K.

Time value of money is a wonderful thing. If I leave that $100K in the bank earning 7% a year for the next 15 years, the life of most of these loans, it would be worth just shy of $285,000. On a 15 year loan, if you keep the boat to the end of it, you would've paid about $40,000 in interest. Alot of money, yes, but I would have made $185,000 on my money over the life of the loan.

Most of us won't keep these boats more than 5 years anyway, so it makes since to me atleast to put your 20% down upfront and roll the equity into your new boat every 3-5 years, and keep your money in the bank making more money.

As a comparison for retirements sake. I plan on retiring in 25 years.....that $100,000 would be worth $575,000 in 25 years at 7%. If I were to put that $800/month payment into something earning 7% per year, then at the end of 15 years let it ride for the next 10 until my retirment, the value would be $460,000.

Long term, with interest rates as low as they are, it just makes more sense to leave my money where it is. If interest rates were to jump back up to 8-10%, then it would make more sense to pay cash.

I LOVE THIS ANALYSIS

[Tommy1005]

By the way, even with payments we still put about 30% of our combined salaries into retirment and educational savings accounts on a yearly basis. So, to me at least, the key is to continue investing even though I'm making payments. If I were to have to cut my investments in order to make the payments, there's no way I would do that.

[Eric2010MCX2]

Dow Chemical Employee Credit Union.

I got that rebate loan on my boat, both jet skis and my mortgage.

It's like a windfall at the end of the year. I be like "honey, we goin sizzla!!"

Too bad their membership eligibility doesn't allow more folks... But then again, maybe that's how they can offer deals like this?

[Eric2010MCX2]

I was able to get 1.99% on my loan and put enough down to make it pretty reasonable. I was pretty happy doing it this way.

Who did you finance through?

[DocPhil]

Too bad their membership eligibility doesn't allow more folks... But then again, maybe that's how they can offer deals like this?

That is very possible. I'm not sure exactly HOW they can do this.

I am expecting about 10K back this year.

[Eric2010MCX2]

That is very possible. I'm not sure exactly HOW they can do this.

I am expecting about 10K back this year.

Ever consider adopting a 34 year old to make us eligibile ?

[DocPhil]

Ever consider adopting a 34 year old to make us eligibile ?

Yes, absolutely. As long as you are proficient with Mastercraft winterization and maintenance.

Also, I require my adoptees to be housebroken, do dishes once a week and make a mean sphaghetti sauce