Big Toys: How to Finance for Your Biggest Expenses
Wednesday, April 9, 2014, 1:00 AM | Leave Comment
Purchasing a boat, ATV, jet ski, or other big toy can be a great way to reward yourself, and simply enjoy the outdoors more with your family. While these items can provide a lot of fun, they are also quite expensive, and could cost thousands of dollars.
Fortunately, there are several ways you can finance a portion of the purchase price on these big toys.
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Bank Loan
One of the ways you can potentially finance the purchase of a big expense would be to take out a bank loan. Banks are often willing to provide Primeway Federal credit union loans, which can be used to purchase any piece of major recreational equipment, such as a boat.
These loans are normally secured by a lien on the underlying asset, similar to what takes place with a car loan. These loans normally have manageable repayment terms, which can vary to meet your needs.
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Loan from Retirement Account
Another way that you could finance for your next big toy would be to take out a loan from one of your retirement accounts. Most 401k plans, and even many IRA plans, allow you to take out a loan against your retirement savings.
If these loans are paid back on time and as agreed, you will not experience any tax implications. Normally, you will be able to borrow up to $50,000 out of your account, and will receive a favorable interest rate compared to other types of debt.
The loan proceeds that you receive can then be used for any purpose, including purchasing a boat, ATV, or other big toy.
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Home Equity Loan
Taking out a home equity loan is a third way you could potentially finance the acquisition of your biggest expenses. A home equity loan is a line of credit that will be secured by the equity that you have in your primary residence.
Once you have the line of credit established, the money can be used to pay for ultimately anything, including any big toy or expense that you want to cover with it.
An additional benefit is that you will have a flexible repayment option and that you can deduct the interest that you pay on your federal tax return.
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Financing from Seller
For many people, the best option of financing your biggest toys is to finance the purchase through the seller.
If you are buying a boat, ATV, or other major purchase through a major dealer, there is a good chance that they have their own financing division.
The financing division of one of these dealers will be likely to offer you attractive financing options in an effort to close on the sale of the item.
In conclusion, purchasing a boat, ATV, jet ski, or other personal item could be very exciting, and lead to a lot of fun, these items can be pretty expensive and most buyers may not have the cash to purchase them.
Fortunately, there are several ways that a person could receive the financing that they need to acquire their biggest expenses.
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