Should we sell the boat? Boat loan?

We have a boat that we are upside down with. Someone offered us $50k for it when we owe $80k left on the loan. Should we hold on to it and deal with the yearly depreciation or sell it now and pay the difference? It's costing us monthly maintance, insurance, and storage fees.

2 Answers

Relevance
  • 9 years ago
    Favorite Answer

    That depends on whether you want the boat and can afford to keep it or would you rather just get rid of the boat and still owe $30,000.

    A boat and car are depreciating assets. You're guaranteed to lose money when you buy them. But, if they provide you with enjoyment, then that's your choice to do so. The fact that you're losing money on the deal shouldn't come as a surprise.

    Even if someone gives you $85,000 now for your boat, you still lost money on the deal. You just wouldn't have to continue to pay for the loss after the boat is gone. Talk to your financial advisor and also determine whether you want the boat and can afford to keep it.

  • 9 years ago

    If you sell - You will most likely have to get a loan for the remaining $30K to remove the lien off the title of the boat. First you need to figure up how much interest you will be paying on this (if you will be getting a loan). If the interest is less than the insurance, monthly maintenance fee, and storage fees than go for it. If the interest is more, than don't do it.

Still have questions? Get your answers by asking now.