Boat Financing Tip: Why Financing Pays
February 9, 2015
Why finance a boat when you could pay cash or borrow against your portfolio? According to the team at Sterling Associates, one of the nation’s leading boat-financing companies, it simply makes economic sense when you consider current stock market values versus loan interest rates.
Take the following example: If you secured a fixed rate of 3.65% for 20 years on a boat loan of $100,000, the monthly payment would be $587.70.* The interest paid on the loan over an anticipated life of 60 months would be $16,877.25.
This allows you to invest the same $100,000 in the stock market, where you could receive a conservative rate of 4%. Compounded yearly, your investment would grow to $119,631.77. This would provide an interest income of $19,631,77, which well exceeds the cost of the boat loan interest.
* Not based on current rates.
For more information on financing your boat or to get the latest rates, contact Sterling Associates by CLICKING HERE or calling (508) 234-1550.