As key lenders in marine finance, we are fully aware of how keen our boating customers are to get out on the water at any time and in many cases, all the time. With the launch of the spring-summer boating season imminent, that enthusiasm is amplified. But it comes at a time when much of the population is living under COVID-19 restrictions of some form. Restrictions which are impacting boating activities in many jurisdictions.
We provide a way forward to navigate the murky and rough waters of boating and buying a boat during COVID.
Lockdown Restrictions
The restrictions vary from state to state and even within each state. In Victoria, regional areas have been under different health orders to Melbourne. But in NSW, the regions have, for at least some time, been included in the same restrictions as Greater Sydney. Greater Sydney itself is under a range of health orders depending on the LGA in which you reside.
Even the top end barra enthusiasts have had health orders imposed as have the lake and riverine boat owners of the ACT.
The health orders are constantly changing and boat owners are strongly advised to refer, sometimes on a daily basis, to the current rulings in your state. Some differentiate between sport and recreational boating and essential boating which may include commercial fishers.
In NSW particularly, look out for the differentiation between what is permitted within a 5klms and 10klms radius of your home and within/outside your LGA. Penalties have been increased and a $5,000 fine could seriously impact your bait money this summer or your capacity to upgrade to a new boat.
In border areas, you will need to know which state rules the waterways. For example, if boating on the mighty Murray River, that waterway is owned by NSW.
The NSW restrictions in Greater Sydney have been extended to the end of September and a decision on regional areas beyond 28 August is TBA. Other jurisdictions are assessing and amending deadlines based on case numbers.
Boat Stocks
COVID is currently having an impact on movement in Australia but it has also had and is continuing to have an impact on the supply of new boats. Global supply chain issues are impacting a wide range of manufacturing sectors and this may flow through to components for local boat builders. A global shortage of computer chips is affecting many markets.
In 2020, the pandemic effect was more of a positive one on boating, at least from a seller perspective. Sales of boats soared as new boaters entered the market. This has left many manufacturers, both local and international, rushing to re-supply the local market.
We may be able to assist those in the market for a low-in-stock boat get that boat faster with our fast loan service and/or our pre-approved boat loans. When stocks are limited, buyers in a position to commit on the spot and place that order may have a much better chance of getting the make and model they want ahead of those that still need to arrange their finance.
That’s where a pre-approved boat loan comes into its own. We proceed with all the usual initial stages of the boat loan application process up to the ‘approved’ step. Our customers then know they have been approved for a loan to that amount and can confidently proceed to sign the sales contract.
In most instances the exact amount of the purchase and hence the amount of the loan would not be known until the dealer prepares the invoice. A loan amount can include many options, extras and accessories that our customers may not decide on until attending the dealership. That is not a problem. We process pre-approved loans based on an estimated loan amount and then finalise that amount when the exact amount of the dealer invoice is received.
So if seeking a boat in short supply, get a pre-approved loan first is a hot tip.
Boat Loan Implications and Outcomes
While restrictions dominate many areas of boating, both during a pandemic and at other times for safety and regulation, we have no upper limit on our boat loans. We provide marine finance for a wide price range of craft including luxury motor yachts by such revered brands as Riviera and Maritimo, Fairline and others. All craft from jet skis and PWCs can be financed through Jade Boat Loans.
In a positive side of the pandemic, the effects of the RBA’s monetary policy as a stimulus measure has kept the official cash rate at historic low levels. This has meant extremely low interest rates on lending across many sectors including marine finance. For our current rates, refer to our Lender Interest Rate Comparison Calculator for details.
So the bottom line – check on restrictions before you head out on the water and before you head out (or stay in) to buy a boat, secure your finance first with us.
Contact Jade Boat Loans on 1300 000 003 for a finance quote on the boat of your choice
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.
