With the current rate of inflation, higher prices are being seen across many sectors and that can include boat prices. Over the past few years boat manufacturers have had to deal with shortages in computer chips and rising costs of many components and materials due to global and domestic effects. For those in the market to purchase a new boat, a ‘higher than expected’ price may be cause for pause and consider the options available to make that dream boat more affordable. A solution to offsetting increases in new boat prices may be to source a cheaper boat loan through specialist marine finance experts, Jade Boat Loans.
Considering the price of a new boat in terms of the monthly finance repayments, presents a different perspective. A perspective which may present a more affordable prospect. We’re coming into the prime time for buying new boats with boat shows and outdoor lifestyle expos already kicking off for 2023 and the iconic Sanctuary Cove Boat Show cruising in from the horizon. So now could be the ideal time to narrow down the wish list and start considering the finance options to make the purchase.
Impacts on Cost of a Boat Loan
The overall cost of a boat loan is determined by a number of factors. The interest rate is of course the number one contributor to the overall cost of the loan and to the repayments. Interest rates across the markets have been increasing as a result of the RBA cash rate decisions.
Interest rates on loans for boats do vary across the market and the choice of lender can be a significant factor in achieving a cheaper boat loan. We’ll detail more on interest rates below.
Lender fees and charges also impact the cost and some of these are included in calculating the Comparison Rate. We’ve prepared a table which shows the current rates offered on loans for boats from a selection of lenders. The table shows the advertised rate and the comparison rate, as required by Australian Consumer Finance Laws.
The credit score of the applicant impacts the interest rate offered and hence the overall cost of the loan. Interest rates advertised are for new goods and for those that have a good credit rating. Having a poor rating can attract a higher rate and more interest payable.
The total loan amount is an obvious factor in how much a boat loan will cost in terms of repayments. Borrow less and repayments and total interest are both less. That can mean considering a lower priced model or reducing the loan amount by increasing the deposit.
Deposit or No Deposit Decision?
Reducing the amount required for the loan brings up the question of paying a deposit on the purchase or requesting no deposit finance? Subject to lender approval, we offer no deposit boat finance. The decision can be based on a number of factors which may include achieving a monthly repayment amount that works with the individual’s budget and other regular expenses.
Making a larger deposit by using existing funds will be a decision based on an individual’s personal financial position. Those requiring counsel on their personal finances are advised to refer to a financial adviser. Their role differs from ours as a finance broker.
Securing Cheaper Boat Loan Interest Rates
As mentioned above, the choice of lender can make a big difference in the interest rate offered. Variations exist across the market with specialists in marine finance often far more competitive than lenders operating across general consumer finance.
By using a finance broker such as Jade, buyers can have access to many lenders and have the cheapest interest rate offer and most suitable boat loan sourced and delivered directly to them. Our professional, industry resources provide us with intel on which lenders are currently offering the cheapest rates. Due to our bargaining power accrued over many years in the industry, our consultants can negotiate with our lenders to ensure the cheapest rates and cheaper loans for our customers.
Achieving Affordable Boat Loan Repayments
A cheaper loan for many buyers will mean the lowest possible monthly repayments. The interest rate, term of the loan and the loan amount all come into play when calculating the monthly repayment figure. Varying these can change the repayments.
Some lenders will have strict guidelines on the loan amount and the loan terms that they will approved. By using our services, buyers have more options when it comes to achieving the loan structure to deliver the most affordable repayment figure.
Using a Boat Loan Calculator
Using a boat loan calculator is a great way for buyers to immediately obtain rough loan repayment estimates to use as guides for purchasing. Vary the data to see if the different results on different boat prices and what combination of loan amount, term and rate results in the target repayment.
With our cheaper interest rates, that boat may be more affordable than you imagine.
Contact Jade Boat Loans on 1300 000 003 to discuss how we can assist you with a cheaper boat loan.
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.