Are people Crazy!!!! these interest rates on a toy!

[Shuck Water]

For what it's worth, if your are trying to time the market for a good deal on a boat, then you might want to make sure you really want one. The difference in payment between 1.99% and 2.99% is diminimus comparative to the investment you are making in a toy. Personally I like new and am willing to pay for it. I researched, found the model I liked and then made a deal. Was it a good deal, yes, was it a great kick ass better than anyone could ever hope to achieve deal, definitely not. I wanted the boat and had my walk away position. My point is that this purchase is a hole that will never make a return, but it's ok if you are doing it for the right reasons. Also, unlike most folks here I financed every red cent I could over the longest period I could. Why? Because it's cheap money and the $55k I left in the bank is worth over $72k today. I manage to cash flow not debt levels, and while I recognize the risks associated with it, if I could get a bank to loan me more I would. I have great credit and have always paid my debts, but the concept of leverage pays great dividends if you can stomach the risks. I'm not trying to put down the folks that paid cash, quite the opposite, I just wanted to illustrate the benefits of the other side of the equation.

 

[BigN8]

I could have paid cash for the used jet ski I just bought, but instead I used a credit card balance transfer check. I get these things all the time in the mail and I file them in my cabinet until they expire. The one I used for the jet ski is 0% interest for 15 months. The icing on the cake was the fee to use the check. Typically the fees range from 3-5%. This check happened to be 2%.

After I use the check I create another file and on the inside of the file I write the date of the check, the date the interest runs out, and the monthly payment amount to pay the total off within the terms.

I'm almost OCD with money management. But I love using other people's money while mine works for me! At any given time I will have 2-3 of these balance transfer check deals running with various ending dates. The diligence in my routine is why I don't worry about the balances out there. I've never missed a deadline therefore I've never paid interest or a late penalty.

 

[Chris Roberson]

Or the alternative is to finance and pay for boat on Home Equity line of credit - Just paid for my 2010 AR240 with a 4.5% home equity line... so my interest will be tax deductible... $36K loan...