Financial boat questions...

[neil.anderson63]

Easy way to save BIG MONEY on long term notes. Make at least one extra payment each year. Divide payment by 12 and apply to principle each month. Obviously the more you throw at principle will knock down the amount of interest paid. Even just one extra payment each year will make a big difference on long term notes.

[BudmanV24]

Easy way to save BIG MONEY on long term notes. Make at least one extra payment each year. Divide payment by 12 and apply to principle each month. Obviously the more you throw at principle will knock down the amount of interest paid. Even just one extra payment each year will make a big difference on long term notes.

Agreed. If my memory serves me correctly, small extra payments make big differences. As you pay additional extra, the returns are diminishing. For example, the amount you save in interest by making one extra payment per year is not doubled by making two.

But, this only matters if you plan on riding out the full term of the boat/house/car and not selling or trading before the end of the loan/mortgage. If you sell something with a 30 year note after 1 year, extra payments won't have made much of a difference in interest.

Play around with amortization charts and you can compare benefits of different financial plays.

[JohnE]

I've said this before. Probably many times. Financing a boat makes no sense, financially. But the good times I've had on my newer, financed boats, are irreplaceable. I've always put a good chunk down, never been upside down, and don't mind "wasting" the money on interest. Really the depreciation hurts more than the interest. I've had 8 MC's. 4 have had loans, 4 have been bought for cash. I've seen too many people around me fall sick over the past few years to worry about wasting a little money. Life is too short, and too often it is cut shorter unexpectedly. I'll pay to play a little.

[Slide]

I've said this before. Probably many times. Financing a boat makes no sense, financially. But the good times I've had on my newer, financed boats, are irreplaceable. I've always put a good chunk down, never been upside down, and don't mind "wasting" the money on interest. Really the depreciation hurts more than the interest. I've had 8 MC's. 4 have had loans, 4 have been bought for cash. I've seen too many people around me fall sick over the past few years to worry about wasting a little money. Life is too short, and too often it is cut shorter unexpectedly. I'll pay to play a little.

Amen to that. My MC is paid for but I've never balked at financing boats in the past, and I'll certainly finance the next one. I consider it an entertainment expense. As long as the note and the operating expenses are within your means, don't sweat it.

[LostDriver669]

Amen to that. My MC is paid for but I've never balked at financing boats in the past, and I'll certainly finance the next one. I consider it an entertainment expense. As long as the note and the operating expenses are within your means, don't sweat it.

Key on those operating expenses. I spend far more on fuel than the loan.