Finance

[Landscaper2009]

I agree about the boat and kids. And hopefully they find friends that like to go out with you on the boat. We were lucky with that happening. But I don't understand why anyone would want to buy a boat that puts you in debt under water financially. Bennington makes boats that can fit just about any budget. Or you just buy a used Bennington, because the last a long time! Just my 2 cents.

I never said the boat put me under water financially. I am more than comfortable with the payment. I set it up to make $100 minimum  extra every month as I do with any credit accounts I have.  I also bought the boat thru my business on the recommendation from my accountant that we needed to have it for a write off. We take customers as well as vendors and subcontractors out for lake trips which helps build stronger relationships with them.

 

[1Blderbob]

Sorry Landscaper if you took my post wrong. I quoted your post to compliment you on the reason for the pontoon. Your kids are very lucky that you and your wife feel strongly about doing things with them. The comment on underwater situations are because of the way the thread was heading on other posts. I don't make judgement on anyones situation. But i just don't understand why anyone would want to buy a boat,car ,Rv or anything that drops in value the moment you buy it.And ends up financing it for terms up to 20 years. By the way, like you. I also own a business and we make decisions on equipment like this all the time. And the best way to classify the purchase. Best of luck to your family and business.

Trust me I didn't buy the biggest or most expensive. If I wanted to keep up with the Jones I would have bought the $130K Wakeboard boat. I bought a boat that would be reliable with a warranty that would be comfortable for my wife and I and our 7 kids. Yes I financed for 15 years and plan to pay-off in 10 or less. I guess by the majority here I should have waited till I was 55+ and my kids were grown and gone. Well it's hard enough to keep them around as teens with their busy social lives but it's easier with the boat.

I never said the boat put me under water financially. I am more than comfortable with the payment. I set it up to make $100 minimum  extra every month as I do with any credit accounts I have.  I also bought the boat thru my business on the recommendation from my accountant that we needed to have it for a write off. We take customers as well as vendors and subcontractors out for lake trips which helps build stronger relationships with them.

 

[1Blderbob]

Since were talking loan terms. And boats keep getting more expensive Has anyone run across the possibility of leasing a boat? It works for other large ticket items.This way, some people can always have the newest and greatest without worrying about.long term finance and devaluation. 

 

[Landscaper2009]

Sorry Landscaper if you took my post wrong. I quoted your post to compliment you on the reason for the pontoon. Your kids are very lucky that you and your wife feel strongly about doing things with them. The comment on underwater situations are because of the way the thread was heading on other posts. I don't make judgement on anyones situation. But i just don't understand why anyone would want to buy a boat,car ,Rv or anything that drops in value the moment you buy it.And ends up financing it for terms up to 20 years. By the way, like you. I also own a business and we make decisions on equipment like this all the time. And the best way to classify the purchase. Best of luck to your family and business.

No Problem... I just see so many parents in their 40's trying to act like there in their 20's. They go out with their friends and leave the kids to do what they want. Although we like adult time we are all about family time first. I will be my kids friend when the time is appropriate but I am a parent first. We don't have a lot of debt. The boat was a decision we discussed prayed and waited 10 years to buy. We wanted most of our debt paid off. We will for sure pay this one off as soon as possible. Its always scary owning your own business. Not only does our family count on our success but so do our employees and their families. I think this is generally a good group with some members who are not afraid to speak their mind. Seems weird to discuss financial decisions on a forum but everyone on here is like one big family and trust me I get the same positive and negative feedback from my family as well. It's good to hear opinions and other perspectives. Lord knows I don't always make the right decisions but its how you handle it when you don't that makes you a better/smarter person.

 

[Landscaper2009]

Since were talking loan terms. And boats keep getting more expensive Has anyone run across the possibility of leasing a boat? It works for other large ticket items.This way, some people can always have the newest and greatest without worrying about.long term finance and devaluation. 

Good idea... sometimes we lease equipment vs. buying. I do plan on keeping my boat for some time though.

 

[1Blderbob]

No Problem... I just see so many parents in their 40's trying to act like there in their 20's. They go out with their friends and leave the kids to do what they want. Although we like adult time we are all about family time first. I will be my kids friend when the time is appropriate but I am a parent first. We don't have a lot of debt. The boat was a decision we discussed prayed and waited 10 years to buy. We wanted most of our debt paid off. We will for sure pay this one off as soon as possible. Its always scary owning your own business. Not only does our family count on our success but so do our employees and their families. I think this is generally a good group with some members who are not afraid to speak their mind. Seems weird to discuss financial decisions on a forum but everyone on here is like one big family and trust me I get the same positive and negative feedback from my family as well. It's good to hear opinions and other perspectives. Lord knows I don't always make the right decisions but its how you handle it when you don't that makes you a better/smarter person.

Amen, brother from another mother!

 

[BigKahuna]

Buy what you can afford......don't live above your means. Advice from my late father that I've always remembered.

 

[Spoiledrotten]

I hope i didn't offend anyone, I was sharing my life experience and hopefully passing along some wisdom what little I have to give. I did get debt free other than the home but it freed me up enough I could finally afford some thing enjoyable instead of a credit card. I have less than a year left at a low interest rate.  

That's what I like about owing no one except the monthly utilities. It's just a great feeling knowing that if I lost my job, the bank couldn't come in a load away our possessions. What we have, we own. Low interest, or no interest.... the property is still owned by someone else, and unless you can come up with the cash when they say, then it's theirs.

 

[Spoiledrotten]

Since were talking loan terms. And boats keep getting more expensive Has anyone run across the possibility of leasing a boat? It works for other large ticket items.This way, some people can always have the newest and greatest without worrying about.long term finance and devaluation. 

I wouldn't lease a car and I wouldn't lease a boat. Talk about NEVER getting through paying for something. It would be like a car where you pay all of the interest up front, so they are going to get their money, then you pay for months for something that you're going to just give them back. You get to maintain it through the term (take care of their car) Then, if you put too many miles or in the case of a boat, too many hours on said property, then you get to pay them even more for the privilege of using their car or boat in excess. Leasing doesn't make sense to me, but it's a huge money maker for dealerships. I see why.

 

[Jack M]

You can avoid the interest on a ( car/truck )   lease ,IF you pay the entire lease up front .

 

[lakeliving]

But if the car gets totaled you just lost all your lease payments.

 

[Jack M]

Not true ,If you have Gap coverage .

 

[lakeliving]

Gap insurance covers the difference in what is owed and the actual cash value (ACV). If you already paid that "gap" and the amount due is less than the actual cash value at the time of loss, there is no gap to cover. With a lease you are paying for the depreciation so paying that amount up front eliminates the gap. If you only made 2 payments and got totaled, the gap coverage would kick in and cover the remaining due. You don't get your money back for those pre-lease payments.


There is an example mirroring this here....http://www.leaseguide.com/articles/prepaid-lease/

 

[Jack M]

I have specifically asked my agent ,they tell me I am covered .


I have to go there any way in the next week or so I'll ask again .

 

[lakeliving]

You are covered providing you owe more than the insurance company will pay you in the event of a total loss. By prepaying you are paying the depreciation up front and retaining risk of loss.The fine print is in your lease agreement with the dealer. Sure you can prepay, but if there is a loss you are out the cash.


We never pre pay for that reason. I'll make the monthly payment and spend the $5 a year on gap coverage and pass the risk to the insurer. And if you are paying for it in the lease you are double paying for coverage you will not need. 


Take it from someone who is in insurance and has worked with agents....some really don't "know" insurance aside from how to sell it. 

 

[Landscaper2009]

^^^Correct, I opted not to get gap coverage on my truck because I put so much down. My agent told me it wouldn't cover because I owed less than what the vehicle is worth. I basically paid that depreciation up front with my down payment.

 

[lakeliving]

Bingo! Smart agent.

 

[Spoiledrotten]

You can avoid the interest on a ( car/truck )   lease ,IF you pay the entire lease up front .

Isn't that a lot like paying cash for the car, truck, boat? If you have the money to do that, pay cash and forget the payments and a lease, altogether.  

 

[goldnrod24]

Take it from someone who is in insurance and has worked with agents....some really don't "know" insurance aside from how to sell it. 

I have been with the same State Farm agency since 1979. 3 different owner/agents during those 37 years.


Not once did one of them question my liability limits.


Our retirement planner was appalled at the amount of risk we were assuming by taking the minimum coverages (car/home/boat/umbrella), given that we own rentals and have accumulated a fair number of assets over time.


He did the comparisons and we are getting a huge increase in our liability limits (enough to reduce the risk of losing our assets in a lawsuit/incident) AND the premiums went down.


BOOM. Let that be a lesson in customer service.

 

[Jack M]

Isn't that a lot like paying cash for the car, truck, boat? If you have the money to do that, pay cash and forget the payments and a lease, altogether.  

Then I have an old car .This way they 2-3 yrs old at the most