Its your money but ...

[whichway]

Its your money, but I see an ad in one of the fishing mags offering punters a loan to buy a boat with a list price of #$36,995, with repayments of $69/week for 25 years. My understanding of this, if my maths are right, is that in 25 years time, when you've finally paid the boat off, you will have paid $69/week x 52weeks/year x 25years, about $89,700 give or take a little.

If I have misunderstood the deal, then I apologise in advance, and would be happy to be corrected.

Hmmmm

Whichway

[HOOKLINEnSINKER]

i would do that deal if i knew i only had 10yrs to live. otherwords total repayment is aprox 36000. ;D

[DNO40]

Surely its a misprint ! Have to check next months mag or you should ring and make enquiries

[DR]

i saw that ad. it is like using one of those setups where you can redraw against your mortgage, i have known people to buy a car using this system, car would be crap in 15 years time & still paying for another 10 years. in all seriousness you would be desperate to use it. why would you buy a boat & pay it off over 25 years, have you ever known anyone to have a boat for 25 years.
if you want to upgrade in 5-10 years time you will probably still owe what the boat was worth brand new, so there would be no chance to upgrade, your stuck with it.
better off getting one you can afford to pay off in a lot less time.
just my 2 cents worth..

[NQCairns]

and after interest and depreciation in 25 years the loaner would have got to keep about $6 of the repayment each week :o ....thats only if they spent not one other cent on the boat ::)

That's what the market in the US is like ATM those deals are commonplace suckering people into a long and costly trap. Although it can be a great tool if you are 100% certain you could pay it off in 5 years (no selling because of a new baby, broken leg etc).

[scuttlebutt]

I agree with DR, these schemes prey upon the vulnerable. The only thing you should go into hock for more than 5 years for is a house.

OK, getting off the soap box now,

Steve.

[billfisher]

Thats why they say never borrow money to buy something which depreciates.

[NQCairns]

"Thats why they say never borrow money to buy something which depreciates."

Like a house in Australia, anytime in the next 3-5 years!

[billfisher]

Nqcairns,

You are right there, but in Sydney it will probably be 10 years before property goes up again. Plus with all the debt out there there is a real risk it will stuff up the whole economy. NSW is already lagging behind other states and the property boom/ slump is to blame.

[chuss]

CASH is KING :o

[Billfin]

CASH is KING :o

Im with chuss on this one CAAAAAAAAAAAAAAASSSSSHHHHHH!!!

[ba229]

Its because I pay with cash that I have very few toys. But then again I have very little debt too. ;)

[basserman]

yep i wouldn't be where i am today if i was to borrow on car boats and all my toys
if i can't afford what i want now i will wait till i can
plus you can get heaps better deals when buying with cash than if you want finance
lucky for me and the misses at under 30 we don't own anyone not even on our house
so for all the young one out their work hard get payed lots spend little so you can afford to pay cash and never have anyone over your head ;)

[QldKev]

Agreed, only one loan type you should ever have, a house mortgage. And never get in over your head. I've paid my house of by age 32, and I'm still having fun with <$10,000 cars and <$5,000 boats. I tried spending more but human nature means you get board of it within 5 years (cars/boats/etc) regardless of the $$$ you spent upfront.

[empty]

some dummy will fall for it