Where Did Your Paycheque Go?

I did a quick calculation in a store that from its name one could conclude it caters to people who professionally fish for bass. There were some boats for sale, complete with trailers, engines, electronics, trolling motors, etc. pretty much set up for instant use. As far as boats go they were quite modest. What was even better were the credit terms offered to purchase one. For less than $400 per month, one could own this package. The EZ payment terms were over 180 months, or 15 years. A quick calculation meant that over 15 years one would actually pay more than double the list price for the boat. This brought the total cost to just under $60,000.

Now, add a few more things, insurance, maintenance and repair and storage, lets say $3000 per year. Over 15 years the boat has now cost over $100k. That does not include the actual operating costs, nor the travel expenses incurred in using it. In order to justify its purchase, it will have to be used quite frequently. It will most likely have to be kept for the 15 years, as boats tend to depreciate very rapidly ie. very poor resale value. Sell it before the loan is paid off, there will still be money left owing. If somebody has to assume the loan, why would they not want to purchase a brand new one for the same monthly payments?

A two week stay at the best fly-inn fishing lodge will probably cost $3,000 tops for two weeks if one is inclined to stay that long.. Do that once a year and you are still ahead of the game.

If somebody wants to pay that kind of money for their hobby, its fine with me. I do not care, BUT I certainly hope it is not the same people who demand the government fund their kids education, their retirement or health care since they have no money!
Older1962 Older1962
51-55, M
Jan 7, 2013