Thread: Cash?? Finance?
03-04-2008, 07:52 PM #1
For those of you who purchase new skis...Do you usually pay cash or finance it? Or a little of each? Are there any advantages to either?
03-04-2008, 07:56 PM #2
it depends... some people dont like the burden of a payment
some people are millionaires so a jetski is chump change
sometimes if the interest rate for finance is really really low, then you finance it and leave your money in the bank bc the interest u gain in the bank is more than the interest u pay on the loan... more money for you, but not so much money that u'll get rich or poor from it
if u finance... u pay interest.. so naturally u are paying more for the machine in the end than the agreed purchase price. additionally, lets say you decide to sell it after 1 or 2 years... well alot of people then get stuck in a situation where the used value of the ski is less than what you owe on it, so even after u sell it, you'll still have a note to pay off
u gotta decide what is feasible and best for you financially... it's all subjective... BUT the numbers dont lie
03-04-2008, 08:38 PM #3
yeah...it was probably a stupid question considering I already knew the answer, but I was just looking for other opinions...I would like the new X but don't feel like forkin out 12+K while the real estate market is in the toilet. no checks=no toys Thanks for your input though...
03-04-2008, 10:43 PM #4
i would say if i had the cash i would use it, but i had to finance.
03-04-2008, 10:48 PM #5
never financed a ski or bike, but if I had to, I would put it on a credit card with a low fixed rate. Like 5% or less. Then I would pay it asap. I'd stay away from dealer financing. The rates always seem to change, ect.
03-04-2008, 10:51 PM #6
- Join Date
- Nov 2007
- Odessa, TX
03-04-2008, 11:49 PM #7
i paid cash so i dont have to worry about late payments
03-04-2008, 11:58 PM #8
I agree with Shibby that determining what is best for a particular individual is going to depend on their circumstances. The "old school" philosophy is, if you cant pay cash for a depreciating luxury asset, you cant afford it. But I think this philosophy ignores the reality that many base buying decisions on monthly payments and cash flow not just total purchase price or interest rate. Thats why some auto sales reps start by asking what monthly payment you can afford rather than your max purchase price.
Remember that the APR is critical info in addition to quoted interest rate. Some lenders quote a low interest rate but have loan fees that affect actual cost of borrowing. The APR is supposed to be disclosed on all consumer finance contracts as it allows the borrower to compare apples to apples, ie the real cost of the loan.
Borrowing on a low rate home equity line or credit card may make economic sense depending on the circumstances. You must remember though that these credit companies have a dozen different ways to change rates on you mid stream. One late payment or change in credit score may allow the original low rate to get jacked to 30%. Thats one of the problems with a floatable as opposed to fixed finance rate on consumer purchases.
Last edited by Blue 182; 03-05-2008 at 02:35 AM. Reason: APR Clarification
03-05-2008, 01:13 AM #9
I paid cash for the rxp and gtx. But also bought them used last year with both below 25 hours for 65% of a new one. It took me 3 months to find them though. Now i have traded the gtx in for the T-X and paid the difference in cash.
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
By NCHeel in forum Sea Doo Open DiscussionReplies: 5Last Post: 04-09-2007, 08:34 AM
By Lvnspeed in forum Open DiscussionReplies: 6Last Post: 01-11-2007, 05:32 PM
By Lvnspeed in forum Yamaha PWC Performance (2-stroke)Replies: 4Last Post: 01-11-2007, 12:51 PM
By Lvnspeed in forum Open DiscussionReplies: 2Last Post: 01-11-2007, 12:50 PM
By TxPro1200 in forum Polaris PWC PerformanceReplies: 1Last Post: 09-09-2006, 05:06 PM