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

[EmEight]

Damn my spelling!!! Edit time.

 

[btcowboy]

Cash Only for me!!!! Cant justify financing a toy

 

[Chrisco]

Cash for me.

 

[Dazzler]

finance for me. no way in hell would I be able to buy a $15000 machine cash. hasnt failed me yet credit score is mighty awesome for a 25 year old kid lol

I have some bad news for ya!!! By the age "25", you are no longer a kid!!! as you can drink, vote, fight for your country, you even get a reduction on vehicle insurance (depending on driving habits) I do agree with most things financed at that age though, been there, done that!! Side note, at that age my sledding career was put on hold as "this kid", had three little ones, which are now my sledding partners!!

 

[dezmitchell]

Cash only!! My thought is that if i cant afford it flat out i shouldnt by it, obviously there is more important things if i cant save up and buy flat out.

 

[deaner]

Cash for this guy. Something about paying cash really helps you filter what you "need" and dont need. Too easy to finance things these days.

 

[KawisakiRider]

your thinking too hard...

so if you have cash and someone offers you the extra cash at zero percent or no cost to you why is it a bad thing? if its true zero percent its free borrowing so now you take your real cash and invest at 5% and you are ahead and still have piece of mind as at any time you take your investment to pay off your zero percent loan ya see....

now a car at zero percent is not real zero percent as they will give you a cash discount,, the discount equals the interest paid

Its called usuing your money to make money,, all depends how you make money but its best to take the money you earn and leverage from it now dont go buying ooodles of stocks but for example a tax free saving account will pay you 2.5% with absolutely NO risk and your earnings are tax free for up to $5000 deposited per year,,, what ya think?? thats piece of mind for me....

2.5% sounds good until you factor in inflation which this years was around 3%, than you realize you are actually losing .5% this year.
Put your 5000G a year in a tax free than use it to invest and all your profit is tax free, pretty good deal, IMO. You can also pull it at anytime without penalty.

 

[JoHNI_T]

2.5% sounds good until you factor in inflation which this years was around 3%, than you realize you are actually losing .5% this year.
Put your 5000G a year in a tax free than use it to invest and all your profit is tax free, pretty good deal, IMO. You can also pull it at anytime without penalty.

very true 2.5% will not let you retire its just better then nothing at all lol

but you hit the best part..... take the tax free money and invest tax free is the way to go....

 

[barleyfarmer]

You have the cash you might as well spend it!The bank gives you absolutely nothing on a savings account!!!Our family friend who sold his farm and bought and sold a house and probably has a couple hundred grand in the bank says they only pay him like 1% on his money!He came out of Europe during the war and doesn't trust banks to begin with said he used to be able live off the interest!He's a widower who lives in a old folks home!Now the old folks home says he's a rich pensioner so they charge him more for his room than other people there!The banks and finance companies are only in it for themselves that is why when you get your first pay check right out of school suddenly a credit card app will show up in the mail and no problem getting a card!!!Then it starts!You have to borrow money now a days you just have to prioritize how bad you need it!It's way easier to get onto debt than to get out of it!!Most times if you have to sell any 'toys' that are financed to cut back you will take a sh.. kicking!I financed my first sled and paid it off early and then traded or sold them every year or two while they were still worth something and got back into new!That way you were still running a new sled that you actually owned with warranty!

 

[JoHNI_T]

You have the cash you might as well spend it!The bank gives you absolutely nothing on a savings account!!!Our family friend who sold his farm and bought and sold a house and probably has a couple hundred grand in the bank says they only pay him like 1% on his money!He came out of Europe during the war and doesn't trust banks to begin with said he used to be able live off the interest!He's a widower who lives in a old folks home!Now the old folks home says he's a rich pensioner so they charge him more for his room than other people there!The banks and finance companies are only in it for themselves that is why when you get your first pay check right out of school suddenly a credit card app will show up in the mail and no problem getting a card!!!Then it starts!You have to borrow money now a days you just have to prioritize how bad you need it!It's way easier to get onto debt than to get out of it!!Most times if you have to sell any 'toys' that are financed to cut back you will take a sh.. kicking!I financed my first sled and paid it off early and then traded or sold them every year or two while they were still worth something and got back into new!That way you were still running a new sled that you actually owned with warranty!

huh??? lol.... thats kinda like saying to your farm kids dont worry about learning how to deal with the city??

sorry about your widowed friend but dont blame the banks... he accepted 1% return now that is silly on his part.... and yes credit cards are a business like barleyfarming they want the best return they can get ya see,,,,,

so the solution is to educate your kids so when the credit card comes in the mail they realize what it is and how to use it... problem is most parents dont understand money and schools teach nothing on this subject so there lies the problem, how do you learn its hard to trust people when it comes to money???

its like saying avy conditions are high dont ride,, thats plain stupid.. I rode yesterday and I am typing about money today....

such a weird world we live in

 

[JoHNI_T]

FYI people.... A financed sled, truck or boat is worth the same as a cash paid boat sled car etc...


its the owner of said sled that paid a bit of interest thats all,,, it doesnt take away any value???

why does everyone keep saying they loose their shirt when financed? is it because you forget what you really paid??

 

[i ford i]

I have to disagree...

At 22 years old I have basically no credit, doesn't do me any harm but certainly doesn't do me any good. I tried to finance my outlander, even with 7K down they wouldn't give me the money(don't think they liked the fact that I just bought a new truck...) I told them "well, let your bank know they just lost out on $1400" and paid cash for the quad.

For $1400, I would much rather have some kind of credit rating. As it is, it will be a couple more years before I have anything to my name. Tough when you are looking at buying a house soon-ish.

I'm in the same boat, i just bought a 2012 can am xmr off the floor. Im 21, I paid 7500 cash and got a line of credit from the bank, and truthfully I had the money tucked away to buy it cash if i really wanted to, but don't wanna tap myself out so to speak. You guys say its a bad thing, but i'll have that paid off in half a year for sure, without rocking my finances, Interest? Yes, but for the couple hundred in interest. Its worth it for me simply for the credit history, showing that they lent me a sum of money and i paid it back accordingly, no missed payments or any of that fine stuff. Thats the young person aspect of it anyways. As your older and have assets and a long history, being in those shoes I probably would have bought in cash.

 

[enis750]

Don't need to finance a sled for credit, I bought a house last year at 21 and credit was no issue. At 18 I financed a $30k truck loan with a co-signer a mere week after turning 18. Also got a credit card, year later 2 more. Credit cards used properly make credit go up a LOT, plus they cost zero interest if used right.

You must have something negative? At 18 they were willing to give me $20k loan without a co-signer.

I mean if you have any credit they will throw a $80k truck loan to you no questions asked.....

credit is an issue at 18....becuase this is the LEGAL age to start borrowing...and you dont have credit at 18
your first point about a cosigner....you obviously didnt have a credit score, hense the co signer
a year or 2 later you got a credit card BECAUSE your cosigner helped you earn a good credit score w ur truck loan
loan applications for cars/trucks sleds etc... are approved MOSTLY on your credit score and time at a job ALONE
if you show stability, a decnt income, and debt ratio below 35% and a credit score above 680, your file is usually auto approved

credit cards will only HELP you build your score
the biggest determining factor is builing a good score is TIME, REPAYMENT HISTORY and the balance in relation to your available credit
and of course not missing payments

not all credit cards will cpst you zero interest if used right.....this COMPLETELY depends on the type of card
some cards, of the balance paid before the SCHEDULED BILLING DATE, will not cost you interest
some cards will cost you interest from the second you make the purchase

I have been in the financial industry 10+ years...its all i know ( self employed Mortgage Broker the past 5+ years)

my answer to the topic......this sled is cash purchased, but this was AFTER I purchased my investments for the year
if i didnt have enough for both, investments first, then id have no problem financing the sled
i could pay it off WELL BEFORE i was suppose to, but if the $160-200 pymnt/mnth was affordable and the rate was good....id be ok financing it

 

[Smokey1]

Self employed, so cash only for toys. If I have a bad month(s) I don't want to have to worry about any more payments than i have to. And you've got an asset you can unload for cash if you're in a bind.