Who pays cash for sleds and toys and who finances??

[pfi572]

Thats what i am saying also. Its like the Ford add or any other ( $9000 off or 0%) There is know such thing as %0 as you stated. If no rebate the 0% is in the price, that is alot higher.

Sure there is! There is 0% to. People are just to dumb to know the interest rate is bought down, and inturn the price is jacked up. There is a reason why it's cheaper buying with cash a lot of the times. Realisticly your looking at about 6-8%.

 

[Cyle]

Thats what i am saying also. Its like the Ford add or any other ( $9000 off or 0%) There is know such thing as %0 as you stated. If no rebate the 0% is in the price, that is alot higher.

Yep exactly, and they win again when people go with the lower interest and pay it off early.

 

[Bogger]

Depending on your investment plan it sometimes is better to borrow and invest the cash you would have used to purchase....finance companies will make money regardless, but if you have access to a line of credit at say 2.5% then you can buy at cash price while only paying 2.5% interest. If your investment portfolio is averaging 7-10% annual return then you are better to invest the cash you have and use your credit line for your purchase. I know people who draw cash from their credit line to invest and then pay off the line with monthly payments, if the interest earned surpasses the interest paid out than you come out in the black....

But I'm cheap...all my chit is used and cash deals, I can't afford a portfolio

 

[rsaint]

Cash for the poo

 

[goodngrubby]

I just buy old worn out junk...or steal it....way cheaper that way.

 

[GYMBRAT]

line of cred normally, keeps the cred rating high and the banks happy and the rates are normally better than great.

 

[QuintinG]

i coulda waited another year to buy my sled but i wanted to get into the sport last year and wasnt willing to wait another year to save the cash. i got a loan from my bank and at the end of the loan im only paying $2k interest. thats only $500 a year and i get to have fun right now instead of waiting another year. thats worth it to me. BUT i just finished paying off an $80k truck loan that was taken out for 5 years in 3 years. so im pretty sure i wont even be paying the full $2k interest on the sled loan.

 

[hbar218]

i pay cash or atleast 70-80% down and pay the rest off within 6 months.

 

[FatGuy]

Iam a bum that works at the airport with 3 day weekends. So I financed. 3 years warranty from skidoo + 2 years extended warranty. On a 5 year loan and I have no worries of having a blown up sled ever. Already blew up the stock motor now I still have warranty on this fresh motor that I paid nothing to replace.

Plus I need every penny I have to my name to go to the mountains every weekend. Sure I could get a better paying job. But then I actually have to do REAL work. And not have so much time off. Lol

Cash is only good for buying drugs anyways. Lol

 

[Brojoe]

It would be interesting to see what a dealer has to say about this topic.

 

[0neoldfart]

I normally pay cash for toys, but my Visa takes a beating during sledding season. If you have to finance it, put as much cash as possible down.

 

[LennyR]

Another view for u guys, lets say you have the cash but you keep it and finance the sled-toy whatever for your fun fix, u r gonna pay 2 or 3 grand over say 3 years, with warranty, say $400 bucks a month.
In Western Canada right now for 250.000 ish you can find a decent property , may need some minor TLC and you;ll need about 40 grand down, so 25 ish more, look for Line of credit from equity on existing properties, cash reserves or save it up , you guys all find that easy as i'm reading.
The timing is perfect as Almost all property is gonna appreciate in the next 5 to 10 years I suggest quite steadily, the payments will be about $1200 a month tax in, the rent will steadily increase but will net about $4 to 500 ish a month, about the same as your toy payment.
Assuming the appreciation is 5 to 10 % per year, very probable for the next 5 for sure, you're gonna realize about 15 to 25000 in equity gain per year , minus the $3 or 4000 u r paying interest on toy loan. Could be a few bucks more or less in all aspects.

This wouldn't have worked the last 4 or 5 years but timing is everything. My point, If you;re trying to build assetts or net worth, sometimes its very possible to use leverage and credit to your advantage. I know your ego feels good to say cash only for this cowboy, but that single minded thinking might be holding you back, and none could dislike banks and they're methods more than me.
Not saying right or wrong, just another viewpoint.

 

[team dirt]

I put down what I can and finance the rest. I am poor as sh!t and that is what team dirt stands for. Low as dirt and would do anything to ride.

 

[SLEDBUNNYRACING]

Cash all the way....I've never financed a toy.

 

[blastoff]

Tell me where youre getting 7-10% on your investments cause I sure dont see that. I wish the interest rate would be 18-20% agaign like it was in 1979, barley even making inflation right now.

Depending on your investment plan it sometimes is better to borrow and invest the cash you would have used to purchase....finance companies will make money regardless, but if you have access to a line of credit at say 2.5% then you can buy at cash price while only paying 2.5% interest. If your investment portfolio is averaging 7-10% annual return then you are better to invest the cash you have and use your credit line for your purchase. I know people who draw cash from their credit line to invest and then pay off the line with monthly payments, if the interest earned surpasses the interest paid out than you come out in the black....

But I'm cheap...all my chit is used and cash deals, I can't afford a portfolio

 

[KawisakiRider]

With some of the low interest rates out there today 3-3.5% and you are paying cash. You guys seriously need to find a new investment banker cause you are losing your A$$. Just sayin.

If ur pulling from ur investment cash to buy a toy you shouldn't be buying a toy and toys shouldn't be financed, IMO.

 

[Bogger]

Most investment brokers will all but guarentee a 7% rate of return, even in the downturn there were quarters that took major hits but if you look at portfolio values over the long term most are already back too if not exceeding pre-2008 values. If you are not averaging 7% on your investments you need to shop around. Investments outside of GIC's always carry risk however a good broker will have a proven track record of mitigating those risks and even find growth markets in an economic downturn.

Tell me where youre getting 7-10% on your investments cause I sure dont see that. I wish the interest rate would be 18-20% agaign like it was in 1979, barley even making inflation right now.

 

[KawisakiRider]

Another view for u guys, lets say you have the cash but you keep it and finance the sled-toy whatever for your fun fix, u r gonna pay 2 or 3 grand over say 3 years, with warranty, say $400 bucks a month.
In Western Canada right now for 250.000 ish you can find a decent property , may need some minor TLC and you;ll need about 40 grand down, so 25 ish more, look for Line of credit from equity on existing properties, cash reserves or save it up , you guys all find that easy as i'm reading.
The timing is perfect as Almost all property is gonna appreciate in the next 5 to 10 years I suggest quite steadily, the payments will be about $1200 a month tax in, the rent will steadily increase but will net about $4 to 500 ish a month, about the same as your toy payment.
Assuming the appreciation is 5 to 10 % per year, very probable for the next 5 for sure, you're gonna realize about 15 to 25000 in equity gain per year , minus the $3 or 4000 u r paying interest on toy loan. Could be a few bucks more or less in all aspects.

This wouldn't have worked the last 4 or 5 years but timing is everything. My point, If you;re trying to build assetts or net worth, sometimes its very possible to use leverage and credit to your advantage. I know your ego feels good to say cash only for this cowboy, but that single minded thinking might be holding you back, and none could dislike banks and they're methods more than me.
Not saying right or wrong, just another viewpoint.

Ur talking investment property, we are talking toys to very different things and alot more capital.
I understand where your going with this but not everyone wants the headache of all that entails.

 

[moyiesledhead]

I just steal my toys when you guys leave them laying around unsecure!

No.....wait.....Awww crap, that's how somebody else got theirs from me!

Never financed a toy yet. Too old to start now. Trying to reduce debt, not increase it!

 

[eclipse1966]

I think a lot of people have the false sense of security of low interest rates for buying things. This is all good when things are going good but sometimes life throws you a hick up or two and you are SOL if you owe money to the bank. If you lost your job, health goes south, family tragedy etc etc all can put you behind the eight ball if you cant work which = not paying your loans. Hence cash is always king unless you have cash to back up your finances.