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Old 03-15-2010
wind_magic wind_magic is offline
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Originally Posted by blackjenner View Post

Same boat.

Using my loan calculator...

100k boat

20% down

80K finanaced

6% financing (yes I was just quoted that rate)

20 years at $573.14 a month

100K boat

10% down

90K financed

8% financing (I was tempted to put 7 but, what the hey)

20 years at 752.80 (7% was 697)

I think that anyone with a good credit score shouldn't lose the loan for 179.00 a month. If they would, they are playing it too close anyway.

For some folks, that might work better if the initial outlay is tight.

I'm planing on 20% down myself, but was looking for options.

In my case, I'll be shedding a nice Seattle condo and all it's costs (mortgage, HOA, taxes, utilities) so that makes the boat costs (payment, the moorage, insurance and $6,000 a year planned money in a maintenance savings account) much easier to afford.
My point was that being able to buy something isn't the same thing as being able to afford it.

Look at it this way ...

If you pay cash (100% down) you can buy a 100k$us boat for 100k$us.

If you pay 20% down at 6% for 10 years you can buy a 90k$us boat for 100k$us.

If you pay 10% down at 8% for 10 years you can buy a 76.5k$us boat for 100k$us.

In any case you're paying 100k$us for the boat, but the lower the down payment (and higher the interest), the less boat you're getting for your money. Cash buys more boat.

Being able to buy something is about lowering your down payment, stretching payments out over a huge amount of time, etc, to lower your monthly payment to the lowest level possible and thus have the least impact on your monthly budget.

Being able to afford something is a totally different concept.

Like I said, the lower the down payment, the higher the interest, and the less boat you can afford.
What are you pretending not to know ?

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