How can you afford to Borrow money for a boat ?

DAKA

DAKA

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I couldnt afford to borrow to buy a boat, that must be for the mega rich or chavs who earn too much money too easily

£125k boat sold for cash £110 000

£125k borrowed over 10 years costs £147500


Why not buy a smaller boat and wait for savings to grow ?
It is easy to save, I have just shown you how to save £37 500 !

Do the same with the house and cars, clear the overdraft, chop the credit cards up and stop donating all the hard earned cash to the bank !

It is like another 8% tax on all your income only it is called APR and goes to Barclays .......
 
We are not talking about a lifetime though, only 10 years and if Gludy's predictions of falling prices is right it could be as little as 5 years savings.
 
I once bought an ex rep's cortina for £2,000. Girl who worked for me bought exactly the same car from a garage. £5,000. Plus HP 20%??

She said she could not afford to pay cash like me. /forums/images/graemlins/confused.gif
 
[ QUOTE ]
...could be as little as 5 years savings.

[/ QUOTE ]

I have no chance in an entire lifetime of ever saving £110K - and waiting 5 years for a boat that I could practically use is also not a good idea - granted that sealine S41 now at £150K would be less than £100K in 5 years - but i would have gone off the idea then ....

same I guess would apply to most things like you say - dont buy a house till you have the cash - most peaople then would be in cardboard boxes for 10's of years, dont buy a car on finance - so we would all be driving around in wrecks at £300 a pop lasting a year of too .......

whilst in an ideal world everyone everywhere would be able to pay cash for everything they wanted, in the real world I would hazzard a guess that most people are on such tight budgets that they buy the weekly food shop on the card .....

Or they are so filthy rich like yourself that they can afford to buy stuff cash /forums/images/graemlins/tongue.gif
 
[ QUOTE ]
I couldnt afford to borrow to buy a boat, that must be for the mega rich or chavs who earn too much money too easily

£125k boat sold for cash £110 000

£125k borrowed over 10 years costs £147500


Why not buy a smaller boat and wait for savings to grow ?
It is easy to save, I have just shown you how to save £37 500 !

Do the same with the house and cars, clear the overdraft, chop the credit cards up and stop donating all the hard earned cash to the bank !

It is like another 8% tax on all your income only it is called APR and goes to Barclays .......

[/ QUOTE ]


You plonker.
you even got your own argument wrong. /forums/images/graemlins/laugh.gif /forums/images/graemlins/laugh.gif

125K sold for cash 100k
so why have you borrowed 125K over 10 years?


if you dont have any cash you will still need to borrow something to get the smaller boat.

in 10 years the boat you want will have probably cost 180k (complete guess) so you saved 37.5k on your figures but then need to find another 42.5k to get the boat you want.


Barclays? who the effin ell are they....

I bank with Nat West (or RBS as they are also known) /forums/images/graemlins/laugh.gif /forums/images/graemlins/laugh.gif /forums/images/graemlins/laugh.gif


Doh! having a bad day?


you need to get out on the boat more often instead of this oooh its Mothers day cant go malarky /forums/images/graemlins/laugh.gif /forums/images/graemlins/laugh.gif
 
I think it all depends on how you value your boating or travelling around in a nice car. surley the cost of the money is the cost of enjoying what you want. Horses for courses really. Some save up some just say sod im buying it now. Might be dead in 10 years time. /forums/images/graemlins/laugh.gif /forums/images/graemlins/smirk.gif /forums/images/graemlins/smirk.gif /forums/images/graemlins/smirk.gif
 
Ok, well, times have changed and a 'deal for cash' no longer really exists. Why?

Well, for starters most dealers get intro comission from finance houses, so actually WANT you to take a bit of HP.

Secondly, it is actually illeagal to offer a different price for cash and finance customers. Useful to know.

FOr example, you know DFS do these 0% finance for 4 years, pay nothing for a year etc etc? Well, that costs them money to do. A friend of mine reasoned that since he pays only ever pays cash can he have an extra discount as the finance would be costing them 4% a year? Ok says the manager, have a few hundred quid off. How would sir like to pay? Oh, I'll take the 4 years 0% you have offered - but on the lower price!

You see, as a retailer, you can't differentiate between methods of payment.

As to why you would borrow the money? For me, I have the means to service the loan comfortably, but it would take me 9.6 years (116 months) to save the money I borrowed for my boat saving my current monthly payment.

Ok, in the long run it would be cheaper, but in 10 years the same age and size boat would have gone up in price, so I would never get there.

For me, I would rather have it now. Ok, I could sell a property, but I would rather keep that as it is appreciating.
 
Its called living beyond ones means
I stick to simple rules if I cant afford it I do without. Everthing I own is paid for, boat, car, properties, business, the lot.Lot of peeps I know are hocked up to the eyeballs live a flash lifestyle but actualy own very little. Fine if you want to live like that keeping up with the jones's ect but not for me.
 
idea - granted that sealine S41 now at £150K would be less than £100K in 5 years - but i would have gone off the idea then ....



[/ QUOTE ]

You would have saved £150 000 + 8% =£162 000 /forums/images/graemlins/smile.gif
I rest my case /forums/images/graemlins/wink.gif

I am not wealthy, far from it. I really couldnt afford to boat if I paid 8% of my income to Barclays.

It is not so long since I was in a £700 rover while I saved for a boat, 24000 miles a year and broke down once in 4 years.
 
I take it neither you or DAKA have a mortgage either?

I am working towards mortgage free living, but I would also resent paying money to a land lord while I rented.

To pay for my business we are living with her parents, but it is far from ideal. Fortunately they have a house big enough to take it.
 
[quoteDoh! having a bad day?




[/ QUOTE ]

No just trying to educate and save the country from huge debts, if you @@@@@@ havent any savings ready for Gordon I fear...........
 
cant see it works like that.
people may have £1k a month available, but they dont have £100k of capital.
You cant say the bank is charging you 8pct clean..lets just say the cost of 10 year STG is 5.50pct Thats the cost of money. The Bank may charge you 2.5pct on top of that... but even banks have to pay for money.
 
Im afraid I fall into the catagory that is of the opinion enjoy yourself while your young - or rather youngish /forums/images/graemlins/grin.gif if I had to save and pay for all I have cash then I would not be getting any of it till I retire - and then will have little time to enjoy it (or might even be dead as someone else pointed out) ..... I have what I have - car, house and boat all on Finance - whilst I do pay interest on them I have them now and can enhoy them.

Granted that If I had paid cash the interest would help towards the enjoyment - but ... at what other cost!!!

And its not as Jez points out living beyong your means if your means cover the cost (it is quite simply the cost of enjoyment ) - by the way the other term for not being able to cover the cost is insolvancy /forums/images/graemlins/grin.gif.

Im sure if you put a Poll on this it would be overwhelmingly weighted towards the i have my boat / car / house on a mortgage and not paid cash .... DAKA you are very lucky to be able to afford all of your stuff cash - you are would have to say in a very small minority.
 
Well,

The fact is most people can not fully afford their boat. It is a tightrope between lifestyle, affordability, long term investment, prudence and then actually living your life and having fun!

For me I like to have fun. I have a high pressure senior job which pays well. Unfortunately in 1998 I got divorced which wipped me out and since then I have never had much in the bank. By 2004 had saved up quite a lot but moved south for a job so put it all into a house costing 2.5 times as much as last one.

End result is that I could stay at home misserable all the time for the next 12 years whilst saving up for boat or actually enjoy life! I only spend my income, have a final salary pension, a few share investments and a nice wodge in the house. I have no other finance as SWMBOs car bought for cash and mine a company car. So we want to enjoy our lives with our children and families now...not when I am in my late 40's.

I have seen too many career people drop down dead having never lived life but they died with only a small mortgage and no debt!

Personnally I choose life, and spend my income after making provision for retirement. To be fair to get the next boat I will switch onto an Interest only mortgage to release extra cash.

It is a lifestyle choice. I will never have millions in the bank but I have a comfortable standard of living which is closely managed. I afford it because I want to, not because I have too!

BTW, I am only 34!

Cheers

Paul /forums/images/graemlins/smile.gif
 
Paid it off early by living with cheap furniture and running around in an old Mini . /forums/images/graemlins/cool.gif
 
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