"Short Wave Sportfishing" wrote in message
...
On Wed, 10 Jan 2007 19:46:35 GMT, "NOYB" wrote:


"Short Wave Sportfishing" wrote in message
. ..
On 10 Jan 2007 08:31:36 -0800, "Chuck Gould"
wrote:


Short Wave Sportfishing wrote:


Is that over a year?

Couldn't be...

I don't think that $2000 is an unusual monthly expense for a guy who
lives where he can go offshore fishing every weekend *and* is including
his boat loan in the total. It doesn't take all that much boat to
require a monthly boat payment of 4 figures these days.

I have never paid for a boat with a loan.


If you own a $100,000 boat without a loan, then that boat is still costing
you $6000-8000/year in lost opportunity cost...which is the amount you'd
have earned if you had invested the money in something else.

So there's $500-650/month.

Your talking about a boat - it inherently is a losing proposition and
adding interest on top of it just makes it worse. You can't win on a
loan in which the principle is losing money every day. Any interest
or money you might make is offset by the losses.


The depreciation is there whether you pay cash or finance it.

I'm paying 6.25% on my loan. I don't have $100,000 laying around to plunk
down on a boat. If I did, and I paid cash, then I'd miss out on the
interest or gains that I could make by investing that money.

Don't forget that the interest on my boat loan qualifies for a second home
mortgage deduction too.

If you borrow at 6.25%, and invest your cash at 5%...you're even once you
consider the tax dedution. If you invest the cash at a an 8% return, you're
way ahead by financing.


Your insurance has to run another $200/month

$685 dollars a year for three boats. Full liability up to 2.5
million. Full replacement value on all three. I can show you the
bill. Traveler's Insurance.

Oh. My. God.

I'm near four thousand for two boats with insured values of $130,000
combined.



And your gas probably runs $300-500/month (and that's with just 20 hours
of
usage per month).

Half that per month on my E-TEC at 20 hours of usage. I think the
highest monthly gas bill I had last year on the Ranger was $200 and
that was over 40 hours in the fall. I might spend $600 all summer and
maybe another $60 on XD-100 oil.

Apples to oranges. You're comparing a twin-engine offshore boat with a
displacement of near 12,000 lbs to a bass boat.



It was even better on the Contender because that was a break even
operation.

And bait, ice, fishing gear and tackle.

I don't use live bait, I build most of my tackle and rods.

You're in the $1200-1500/mo. range too...and you didn't even realize it.

Not even close my good friend - not even close.


When you had the Contender, I guarantee it was costing you at least
$2000/mo. to own and operate (that's figure includes the opportunity cost of
not investing the cash in something with a decent return).

You can say it "was a break even operation" because you chartered the boat
out. If you didn't have charter revenue coming in, and you ran it just as
much, but for purely recreational purposes like I do, what were the monthly
expenses? (ice, fuel, depreciation, etc).