Is it wise to upgrade or get into boating at this time?

As many here know due to my recent posts I am trying to find a 225 Weekender. I am looking for 2002-2007 and my budget is 29K down. I thought I had one today for about an hour and then found out the seller apparently was not reading my emails because he told me to "come get it" after I gave him my top offer and when I confirmed, I found out he was talking about his "bottom dollar" price which was 2k in difference. Basically on NADA alone I was offering him about $500 less than current Average RETAIL for the boat just because it was in great condition with maint records. This is not to mention than in about 10 weeks when it turns a model year older it will depreciate another 2K. Anyway, I thought my offer was too high to begin with and I will have to admit I was a little nervous when I thought he had accepted my offer with the market conditions and a little relieved when I found out he was not accepting my offer. I have to say he has to be insane for not taking my offer and I know he really does want to sell the boat so he can buy a Sundancer. Anyway, my point is that in my search for a 225WE most I have seen are priced way over book value and I have found they have been sitting for over a year in some cases. Most people I have made offers to have acted like I am CRAZY for suggesting any offer below high NADA retail value and said they would rather sit on it and let it drop in value. I do have two others I am am talking to who seem to be more in touch with reality so we'll see!! Bottom line is in my experience over the last 90 days, most sellers seem to be caught in a time warp and think the current time is May 2007. The dealers are an exception- I have gotten some very good pricing just not on any boats I have wanted. I want a boat so the search continues........:grin:
 
wish2fish said:
I'm a little suprised about the people here talking about buying a boat or upgrading. I don't think I would take on any more expenses at this time. What do you think?
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Everybody has their own comfort level. During the good times, rather than buying new I look to buy deals. While we don't have the newest boat at the marina, we are better prepared to weather the bad times. I've been working a few trade deals recently that have hit a snag with owners who are upside-down on their trades. I would suggest find a deal and put yourself in a position that you can load-shed the boat if you really need to down the road.
 
Follow these 3 rules and you/we will all be fine. They have always & will always work...

1.) Pay cash for anything costing over $300. (Gary's fuel bill is the only exception)

2.) NEVER invest in financial institutions. (Think about it..they are in the business of skimming money) they just not got caught taking too much.

3.) Avoid rude, ignorant, hateful or negative people.
 
mwph said:
Follow these 3 rules and you/we will all be fine. They have always & will always work...

1.) Pay cash for anything costing over $300. (Gary's fuel bill is the only exception)

2.) NEVER invest in financial institutions. (Think about it..they are in the business of skimming money) they just not got caught taking too much.

3.) Avoid rude, ignorant, hateful or negative people.
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This is the best advice I have seen in a long time. :thumbsup::thumbsup::thumbsup:
 
mwph said:
Follow these 3 rules and you/we will all be fine. They have always & will always work...

1.) Pay cash for anything costing over $300. (Gary's fuel bill is the only exception)
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Ill be a thorn in the side, and say this is a 3/4 truth, and not an absolute.

In some circumstances, it is better to use/leverage credit for larger purchases and take the "cash" and invest it in something that yields a much larger return that not only covers the amount of interest on a loan, but profits greatly.

I am a total cash guy, we never use credit cards (proud to have 2 or 3 cards, total balance on all 3 is around maybe $1000) and we use our atm card linked to checking for everything.
 
billandamy said:
In some circumstances, it is better to use/leverage credit for larger purchases and take the "cash" and invest it in something that yields a much larger return that not only covers the amount of interest on a loan, but profits greatly.
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Please let me know which investments you recommend, as my stocks are down a bunch right now, and my outstanding loan amounts are the same as they used to be.
 
billandamy said:
Ill be a thorn in the side, and say this is a 3/4 truth, and not an absolute.

In some circumstances, it is better to use/leverage credit for larger purchases and take the "cash" and invest it in something that yields a much larger return that not only covers the amount of interest on a loan, but profits greatly.

I am a total cash guy, we never use credit cards (proud to have 2 or 3 cards, total balance on all 3 is around maybe $1000) and we use our atm card linked to checking for everything.
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I use a credit card for everything. We average 4 to 6 free airline tickets per year from points. BUT, we pay it off every month.

I never understood debit cards. If I pay with a credit card, the cash doesn't leave my account until the credit card payment is due - sometimes as long as 45 days later. If I use a debit card, the cash leaves my account NOW.

I understand that some people don't have the discipline to limit their spending to what they can pay off monthly when using a credit card. We do, and get the benefits that come with it.
 
I suppose if you are carrying a balance and paying interest then putting things like "groceries" on that credit card would be crazy.

Personally, I would think the use of debit cards would create chaos in the checking account: Unless you keep a huge balance, it would be hard to not having the account go negative all the time. At least with a credit card it comes out in one nice shot.
 
Kameroo said:
Please let me know which investments you recommend, as my stocks are down a bunch right now, and my outstanding loan amounts are the same as they used to be.
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Right now? I have no idea what I would invest in the current market. Real estate will come back at some point as usual, if you have enough to carry something.

I am not making any investments for a while. Only stocking away cash, and keeping almost no debt.
 
highslice said:
I use a credit card for everything. We average 4 to 6 free airline tickets per year from points. BUT, we pay it off every month.

I never understood debit cards. If I pay with a credit card, the cash doesn't leave my account until the credit card payment is due - sometimes as long as 45 days later. If I use a debit card, the cash leaves my account NOW.

I understand that some people don't have the discipline to limit their spending to what they can pay off monthly when using a credit card. We do, and get the benefits that come with it.
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We pay our cards off every month too, what little is on there at any given time. We dont use them much as we dont fly anywhere (I wouldnt get on an airplane if you paid me) so miles are useless to us.

Debit cards...I like that the cash leaves now. No interest, no wondering what the balance is after a month. However, we use our online banking constantly. I could tell you to within a few dollars how much is in there at any given time. We are very automated with bills, pretty much every single one we have is auto paid on certain dates, and the few that arent I pay online.

I trust us to pay credit cards off, however, I like to save them for that one emergency that we may need the credit line. To me, they are a backup emergency line instead of tapping savings.

I dont think there is any one way to manage finances. Whatever works for each family is fine.
 
comsnark said:
Personally, I would think the use of debit cards would create chaos in the checking account: Unless you keep a huge balance, it would be hard to not having the account go negative all the time. At least with a credit card it comes out in one nice shot.
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It is organization. It is planning what bills get paid on what dates automatically. Been doing it for so long, I can run down the date each and every bill gets paid every month. Today is Amy's student loan payment :smt001

Never been in negative, and the balance isnt huge, as every extra few bucks is transferred out into savings or under my mattress.

Oh (edit) there is an overdraft fund of $2k just in case, but we have never used it.
 
I charge *everything*.

Boat fuel. Boat downpayment. Bubble gum. Vacations. Nice thing about my card is 1% cash back, credited monthly. I run $3-$6K per month because there is always an emergency or an unexpected expense.

Best thing to come around in the last few years is automatic bill paying -> Pay what I want when I want. Just came back from a few weeks away to find that I don't have to put any bills in the mail this week. Really cuts down on those stupid $0.42 stamps.
 
comsnark said:
I charge *everything*.

Boat fuel. Boat downpayment. Bubble gum. Vacations. Nice thing about my card is 1% cash back, credited monthly. I run $3-$6K per month because there is always an emergency or an unexpected expense.

Best thing to come around in the last few years is automatic bill paying -> Pay what I want when I want. Just came back from a few weeks away to find that I don't have to put any bills in the mail this week. Really cuts down on those stupid $0.42 stamps.
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The only scary thing is, and I have seen it happen: someone has a financial emergency. Credit cards are at "x". Cant afford to pay it off that month. Next month comes, and they havent caught up yet. Interest accrues. Pay a bit more off. Another emergency comes, or something happens to the market/investments/career.

Now they have a $Xk cc that will not get paid off while now interest accrues. Recipe for disaster, as you can easily search many an example by googling.

I just dont like to have anything extended out that can get cut off. I have seen it, read about it, and almost lived it 12 years ago in my first marriage with an xwife who liked to charge things.

To each their own, if it works for some of you, thats cool. Too scary for me.
 
billandamy said:
The only scary thing is, and I have seen it happen: someone has a financial emergency. Credit cards are at "x". Cant afford to pay it off that month. Next month comes, and they havent caught up yet. Interest accrues. Pay a bit more off. Another emergency comes, or something happens to the market/investments/career.

Now they have a $Xk cc that will not get paid off while now interest accrues. Recipe for disaster, as you can easily search many an example by googling.

I just dont like to have anything extended out that can get cut off. I have seen it, read about it, and almost lived it 12 years ago in my first marriage with an xwife who liked to charge things.

To each their own, if it works for some of you, thats cool. Too scary for me.
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That's where living within your means comes in to play. I have never put anything on a credit card that I didn't have the cash to pay for. Not one "I should get a bonus next month that will cover the cost of this big screen..." moment. But to each his own - You put cash in your matress, I put cash in coffee cans and bury it in the back yard - defferent, but both are solid investment techniques.:grin:

As for airplanes - I am claustiphobic as a mofo. Much self-medication is necessary to climb in that little tube. Vodka being the medicine of choice. But, it sure is nice to cut the 22 hour drive to Sanibel down to a 3.5 hour trip. I love flying, I just hate the tube they cram you in to do it...
 
highslice said:
But to each his own - You put cash in your matress, I put cash in coffee cans and bury it in the back yard - defferent, but both are solid investment techniques.:grin:
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I am beginning to see the merits of this investment strategy. :smt101.

Later this week, I am going to run the math and see if, over the last 10 years, if I have actually made money or lost money in the investment system.
 
highslice said:
That's where living within your means comes in to play. I have never put anything on a credit card that I didn't have the cash to pay for. Not one "I should get a bonus next month that will cover the cost of this big screen..." moment. But to each his own - You put cash in your matress, I put cash in coffee cans and bury it in the back yard - defferent, but both are solid investment techniques.:grin:

As for airplanes - I am claustiphobic as a mofo. Much self-medication is necessary to climb in that little tube. Vodka being the medicine of choice. But, it sure is nice to cut the 22 hour drive to Sanibel down to a 3.5 hour trip. I love flying, I just hate the tube they cram you in to do it...
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Absolutely, I agree with living within your means. And I am quite sure you are responsible, at least you definitely sound like someone who understands the use of credit, so I would exclude you from my post.

Living within a means, to me, anyway, means that you dont put the new flat screen on a credit card. If I cant pay cash for it (I am speaking of course on minor expenditures) then I probably shouldnt buy it on a card.

I know I know...had a very bad experience on an airplane when I was 12 into JFK. That was it for me. We drive EVERYWHERE. For our honeymoon, we drove to Aspen and back over 2 and half weeks. My wife as well doesnt much care for flying, and we both love to drive and be tourists ( I got to see 2nd largest ball of string!!!)
 
highslice said:
That's where living within your means comes in to play. I have neve You put cash in your matress, I put cash in coffee cans and bury it in the back yard - defferent, but both are solid investment techniques.:grin:
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Dont laugh, and I hope you are serious about the coffee cans. You'll like this.

My grandfather on my mom's side...total Sicilian guinea from the old country would do this.

When he died, he told his 5 children where the 5 cans in his backyard are to dig up and get their inheritance. :wow:

Bastage didnt leave anything for the grandchildren :smt013
 
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