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  #11  
Old 10-17-2017, 06:47 PM
ohiojmj ohiojmj is offline
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Originally Posted by Marble Eye 62 View Post
True, but unlike you and Warren Buffet, a loan of some sorts will be the way I will get the next boat I want.
I bought a new truck on a 5 yr 1.99% loan and a motorcycle on a credit card deal at 0% at 18 months with 3% up front fee during this year. Would I be smarter like some suggest to take it out of my accounts? They're earning way more than 3 or 1.99%. Those with hard fast rules of paying cash for toys etc are narrowly considering that budgets are being stretched, the risk is high, better to save for years, but this one size (yours) doesn't fit all. Heck, at my age, I may have no use for a motorcycle in a few years. Leverage is a great thing if kept manageable..... "Gladly pay you you Tuesday for a hamburger today" was a good idea. It's sometimes worth a few ‰ to buy the wars and needs sooner rather than later.

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  #12  
Old 10-22-2017, 05:35 PM
Custom Eyes Custom Eyes is offline
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Originally Posted by ohiojmj View Post
I bought a new truck on a 5 yr 1.99% loan and a motorcycle on a credit card deal at 0% at 18 months with 3% up front fee during this year. Would I be smarter like some suggest to take it out of my accounts? They're earning way more than 3 or 1.99%. Those with hard fast rules of paying cash for toys etc are narrowly considering that budgets are being stretched, the risk is high, better to save for years, but this one size (yours) doesn't fit all. Heck, at my age, I may have no use for a motorcycle in a few years. Leverage is a great thing if kept manageable..... "Gladly pay you you Tuesday for a hamburger today" was a good idea. It's sometimes worth a few ‰ to buy the wars and needs sooner rather than later.

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I'm with you!!! I'd much rather finance something at a low rate than pay cash in most cases. Having good credit and using can save you allot of money. If you don't use it, you're score will be low and won't qualify for those good deals. Case in point, I went to buy a quad with cash. If I bought it with cash, it came with a 6-month factory warranty. If I financed it, which I qualified for at a 0% special, I got a 2-year extended warranty for free. It think the loan application fee was $81 in return for a $400 extended warranty, which I probably would have bought anyways. I took the cash I had for that and did some property improvements which is going to net me allot more in return than that 0% interest rate is going to hurt. lol Same kind of deals to be had with new vehicles. Someone taking advantage of a 0% financing and rebate special can drive away with the vehicle for cheaper than someone walking in with cash.
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  #13  
Old 01-30-2018, 06:51 AM
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CMesserschmidt CMesserschmidt is offline
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Not gonna lie, I got a 20 year. To reduce my payment if something were to come up.

Will it take me 20 years to pay it off? Not with quadrupling my payments it won't.

But I have a daughter with a genetic disorder and she is in the ER a lot. So once in awhile I have to pay some medical bills.

So that month I won't be able to send a pile but still have a comfortable payment.

Be diligent on paying is all I would say. I hate when people say its stupid to do this long of a rate. Great! Mind your own business and just answer the OP's question. He didn't ask if it was a good idea or not. Life's to short, have fun, enjoy life. And if its the only way a person can make that fun happen so be it.
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  #14  
Old 01-30-2018, 07:05 AM
brad34 brad34 is online now
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Originally Posted by MACH View Post
Not gonna lie, I got a 20 year. To reduce my payment if something were to come up.

Will it take me 20 years to pay it off? Not with quadrupling my payments it won't.

But I have a daughter with a genetic disorder and she is in the ER a lot. So once in awhile I have to pay some medical bills.

So that month I won't be able to send a pile but still have a comfortable payment.

Be diligent on paying is all I would say. I hate when people say its stupid to do this long of a rate. Great! Mind your own business and just answer the OP's question. He didn't ask if it was a good idea or not. Life's to short, have fun, enjoy life. And if its the only way a person can make that fun happen so be it.
Well said. To each his own.
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  #15  
Old 01-30-2018, 07:11 AM
clawman clawman is offline
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Quote:
Originally Posted by MACH View Post
Not gonna lie, I got a 20 year. To reduce my payment if something were to come up.

Will it take me 20 years to pay it off? Not with quadrupling my payments it won't.

But I have a daughter with a genetic disorder and she is in the ER a lot. So once in awhile I have to pay some medical bills.

So that month I won't be able to send a pile but still have a comfortable payment.

Be diligent on paying is all I would say. I hate when people say its stupid to do this long of a rate. Great! Mind your own business and just answer the OP's question. He didn't ask if it was a good idea or not. Life's to short, have fun, enjoy life. And if its the only way a person can make that fun happen so be it.
It is VERY important to know how interest is calculated and loan is structured. Many loans pay the interest up front and principal later in the loan so you could end up way in the hole even if you pay it off early.
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  #16  
Old 01-30-2018, 07:55 PM
fishsammich fishsammich is offline
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  #17  
Old 02-12-2018, 07:52 AM
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Most recreation loans in today's market are "simple interest". That means interest is charged on the unpaid balance. Anything additional over your minimum payment amount comes off the principle. You are then charged daily interest until the next payment. The interest may seem like it is front loaded but that is because the balance is higher. As the balance goes down, the percentage of how the payment is split changes. There is naturally more of the payment going to principle each time.
This is how simple interest works - NOT ALL LOANS ARE SIMPLE INTEREST. Be sure you know what you have.
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  #18  
Old 06-05-2018, 04:02 PM
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Quote:
Originally Posted by Marble Eye 62 View Post
20 and 30 year loans for a boat doesn't seem like a financially smart thing to do.IMO

I agree totally! I found the absolutely best finance program...PAY CASH, which is what I did. A boat is a want, not a need.
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  #19  
Old 06-30-2018, 12:16 PM
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Originally Posted by terrapin View Post
That's funny, I always get the longest loan the banker will let me take... then I pay it off in a quarter the length of the loan. I suppose it's a just in case theory, they'll always let you pay more, but they get growly if you try and pay less. I got my last boat loan for 15 years, negotiated until I got a stupid low rate... then paid it off over six good months of work. I think it kind of pissed off my banker.
Your banker wasn’t pissed. He was laughing at you. He made a lot more money off you than if you would have had a 3 year loans and paid it off in the same time.
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  #20  
Old 06-30-2018, 12:51 PM
Esoxchaser Esoxchaser is offline
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I never even took a loan longer than 15 years on real estate. 20 years on a boat? Seriously? Unless your investments are making a return considerably greater than the interest on the boat, you need to rethink your priorities.
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