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49 Posts
Ok maybe this has already been answered, but I searched and didn't find a definitive answer.
In the buying and selling process (any used big ticket item) a buyer paying cash is more appealing to a private seller than a buyer that has to secure/finalize financing. My question is, what is the point of diminishing returns on that appeal?
For example, you have a $5k daysailer you're trying to offload. A guy showing up wanting a break because he's paying cash isn't likely to get one, because most every potential buyer would be paying cash.
Same as above, but the boat is now a $300k cruising cat. I would assume that a guy who can stroke a check for the purchase has leverage over someone who must secure financing.
So along that line of thought (correct me if that's not accurate), what about a cash buyer in the $50k market? The $75k market? The $100k market? In those ranges does a cash buyer have a leg up over most other buyers, or are all the serious buyers paying cash?
If it makes any difference, say the boat is a 70's or early 80's "classic plastic" monohull in the 38-42' range and priced reasonably for condition/amenities. I realize no ones getting a loan with that old of a boat securing the debt, so thinking second mortgage, HELOC, etc would be a borrower's main options.
In the buying and selling process (any used big ticket item) a buyer paying cash is more appealing to a private seller than a buyer that has to secure/finalize financing. My question is, what is the point of diminishing returns on that appeal?
For example, you have a $5k daysailer you're trying to offload. A guy showing up wanting a break because he's paying cash isn't likely to get one, because most every potential buyer would be paying cash.
Same as above, but the boat is now a $300k cruising cat. I would assume that a guy who can stroke a check for the purchase has leverage over someone who must secure financing.
So along that line of thought (correct me if that's not accurate), what about a cash buyer in the $50k market? The $75k market? The $100k market? In those ranges does a cash buyer have a leg up over most other buyers, or are all the serious buyers paying cash?
If it makes any difference, say the boat is a 70's or early 80's "classic plastic" monohull in the 38-42' range and priced reasonably for condition/amenities. I realize no ones getting a loan with that old of a boat securing the debt, so thinking second mortgage, HELOC, etc would be a borrower's main options.