pvb
Well-known member
That’s quite offensive and judgmental so I simply asked if you had a chip on your shoulder
Which some people would consider quite offensive and judgemental. But apparently it's OK for you to make such a comment.
Do many owners borrow to buy a boat?
- Thread starter Irish Rover
- Start date
Which some people would consider quite offensive and judgemental. But apparently it's OK for you to make such a comment.
pvb
Well-known member
Dealerships make a lot of money from finance, so it can be a starting point for deciding which customers get special favours!
Irish Rover
Well-known member
I can see the sense in that but I’m amazed you can get a personal loan at around 1.5% pa.
steveej
Member
Those figures are based on 2.9%
Irish Rover
Well-known member
My bad.
pvb
Well-known member
Yes, I thought it looked cheap, but a number of lenders will make similar offers. As steveej said, it could make a lot of sense.
Frogmogman
Well-known member
My bank has just made me a substantial personal loan fixed at 0,9% interest pa over 9 years.
Resolution
Well-known member
Irish Rover
Well-known member
Sweet. I wish I could get access to that kind of finance.
Frogmogman
Well-known member
So what kind of boat are you looking to buy?
ha ha. I wish. If it were down to me I'd spend it on a Pogo 36.
Sadly the missus has insisted that we waste it on building an extension and fitting a new kitchen.
RichardS
N/A
Which raises an interesting point about whether you would have been offered a 0.9% interest rate if, rather than investing in bricks and mortar, you'd told the loan provider that you were investing in a boat?
I've no idea as I've never taken out a loan other than for bricks and mortar.
Richard
Uricanejack
Well-known member
It’s a personal choice isn’t it. The BMW won’t be worth much in 5 years. Who knows what the boat will be worth in 5 years. Quite possibly round about the same as it is now or a bit less.
The questions are
can you really afford the 550 plus the cost of somewhere to keep the boat.
Will you be happy without a fancy new car for 4 years.
Do you really want a boat.
If the answer is yes yes and yes. Why not?
Good financial advice would be don’t by a boat. Pay down your mortgage or invest in something.
The only thing I regret about buying a boat. Not doing it sooner. I did other stuff. I bought a smaller boat when I could,
Life goes on and you can’t get it back. Best to enjoy it while you can and if you have family. While they are still young.
Is it worthwhile to borrow money to enjoy life.
Hell yeah. So long as you can afford it.
What ever you do. Don’t take financial advice from me.
I’m an idiot.
I went on a Distillary tour last year. Other people bought a bottle of whiskey.
I bought a cask.
Frogmogman
Well-known member
What ever you do. Don’t take financial advice from me.
I’m an idiot.
I went on a Distillary tour last year. Other people bought a bottle of whiskey.
I bought a cask.
Excellent !!
A man after my own heart.
Heckler
Active member
Bit of Fred now, I am curious as to when the market will be full of 3 year old vehicles and then this affects residuals so much that the market collapses causing another run on banks
pvb
Well-known member
PCP deals have been running for so long now that this potential problem would have raised its ugly head years ago.
Frogmogman
Well-known member
I agree that PCP type deals can be unsuitable for some buyers, but if you know what you're doing, some of the finance deals out there can represent stunning value for money.
A mate of mine was after a Mercedes AMG E63 estate, a 90 grand car at the time. Mercedes were then having a big push to increase their market share, and had some heavily subsidized deals on offer.
Instead of just buying a new one, my mate took out a contract hire deal with M-B. The deal was 3 monthly payments up-front and £540 a month for 23 months; so £14040 to run an E63 for two years, which would be an out of the showroom loss if he'd bought it. Mercedes owned the whole thing.
At the end of the 2 years my pal offered to buy it; Mercedes wanted £60K for it, which was £20K above it's market value at the time, so he walked away and it was Mercedes who lost their shirt.
A mate of mine was after a Mercedes AMG E63 estate, a 90 grand car at the time. Mercedes were then having a big push to increase their market share, and had some heavily subsidized deals on offer.
Instead of just buying a new one, my mate took out a contract hire deal with M-B. The deal was 3 monthly payments up-front and £540 a month for 23 months; so £14040 to run an E63 for two years, which would be an out of the showroom loss if he'd bought it. Mercedes owned the whole thing.
At the end of the 2 years my pal offered to buy it; Mercedes wanted £60K for it, which was £20K above it's market value at the time, so he walked away and it was Mercedes who lost their shirt.
Garold
Well-known member
I agree. If you hunt around for the good value PCP and PCH deals they can be a much cheaper option than buying the car outright.
I think that some of the posters who objected to these deals are really objecting to the significant loss of value in the first few years of ownership of cars rather than the cost of the acquisition by any type of finance deal. Diminishing this by having a very low finance rate, huge discount on the new vehicle, and artificially high residuals is sometimes a good solution.
Then again, if you just aren’t the sort of person to ever buy a new car, then none of the above is relevant.
The same applies to new boats especially when the opportunity cost of not being able to use the money elsewhere, is taken in to account.
Garold
RichardS
N/A
So your pal spent over £14k on a nice car and at the end of 2 years he had nothing to show for the money except the memory?
That's the kind of scenario that causes a Yorkshireman like me to wake up in a cold sweat in the middle of the night. :ambivalence:
Richard
Lightwave395
Well-known member
This of course is peer to peer lending and not a 'normal savings account'. I've been investing in this arena for a while and been earning 10%-12%. There are several relatively sound operators but I'd counsel a lot of research before jumping in - there is no FSCS protection so your capital is certainly at risk. The business is mature enough now where you can also use your ISA
A good source of information is: https://www.4thway.co.uk/ - Assetz Capital come out well in their comparisons
Daydream believer
Well-known member
In all fairness that is better than first having to find £90K then being told that his asset was only worth £60K after 2 years- (assuming he could sell it) & his garage/marina was not stinging him £4k PA for the pleasure of storing it whilst it went rusty/weedy