The issue of rising prices for some types of boats has attracted a lot of attention lately. A number of factors, some global some local, are placing upward pressure on prices of many goods. There are reports of price hikes in some car models and in the boating market, increased prices in the PWC has especially been noted. We address this issue from the angle of how we can offer solutions to boat buyers to make boats and watercraft more affordable. How cheap boat loans can assist buyers to offset, at least to some degree, a rise in the purchase price of their preferred watercraft.
A cheaper boat loan can also work to bring that higher priced craft you have your eye into your affordability zone. From another angle, buyers may consider an alternative type of boat. For example, the price of some jet ski and other PWC models have seen price increases which may bring in the question of value and compared with other craft.
PWC buyers may be presented with the quandary of whether to go with the PWC or get better value for money with a boat? Don’t get us wrong. At Jade Boat Loans we appreciate what PWCs deliver in boating enjoyment and we provide finance for all types of boats and watercraft. So we are certainly not biased towards any particular type of boat. We don’t show favouritism. We simply point out the options.
We present potential buyers with ideas and options that they may not have considered especially when purchasing a boat with finance. In this piece we work through the options and solutions we can offer to offset price rises and make the boat of your dreams affordable.
Buying Option: PWC or Boat?
The demand for all makes of PWCs has been huge over the past two years as more buyers than ever turned to this fun and exhilarating form of boating during the pandemic. Based on recent reports, the price of many new PWCs has increased significantly, no doubt for a number of reasons. Global manufacturing issues is likely to be one.
For buyers the question could be if they should opt for a boat rather than a PWC due to the pricing. This will be a personal decision and take in such considerations as:-
- Features and benefits and SWOT analysis of each based on personal preferences and purpose.
- Keep in mind that boating preferences can change with changing circumstances. For many that can include age, lifestyle changes and family developments. Adding to the family can be a big deciding factor when it comes to what type of boat to buy. PWCs can take several riders, but most models are not suited as family-friendly and well-suited for say a day on the water as a boat.
- Reasons behind the buy will obviously influence the decision. Fishing or general recreation probably being the most significant.
- Both small boats and PWCs need a trailer and need to be launched. So the appropriate towing vehicle is needed.
- Boats can offer more space for more mates and better protection from weather.
- Boats allow you to venture further than PWCs and for longer periods.
- If excitement and exhilaration is motivating the buy, weigh up the PWC against say a wake boat. Wake boats and ski boats can offer much of the same fun as PWCs but with added space, cover and facilities.
- Prices for PWCs are usually for vessel only while many boat dealers offer great value packages on trailer boats which include the trailer.
Bringing Prices into the Affordability Zone
For buyers seeking finance to purchase their vessel, the boat loan may be the deciding factor. While focusing on the purchase price of the boat is clearly important, considering the repayments on the boat loan can also makes a lot of sense. This can be seen as the affordability gauge.
Achieving a cheaper boat loan can bring a price-increased boat within a buyer’s affordability zone. That means sourcing the cheapest interest rate boat loans. Compare what the market is currently offering on our Interest Rate Comparison calculator.
Use the calculator to work up estimated repayments on different craft at different prices to see what the higher priced boat might cost you each month in boat loan repayments. This can be a valuable tool for framing your for/against arguments and arriving at a final decision.
If the price of the PWC or boat you have your eye on is going up, then it becomes even more important to get the cheapest loan possible and possibly move quickly on that purchase prior to any price increase.
Boat Availability and Interest Rate Moves
With demand still riding high for PWCs, actually sourcing a craft to purchase can be the challenge for many buyers. When undertaking this process keep in mind that there is a very strong possibility that the RBA will move on interest rates at some point in 2022.
An increase in the official cash rate typically flows through lending markets so a loan secured prior to an increase may represent a lower repayment and overall cheaper loan and cheaper boat cost in total.
The consideration – buy say a boat now with a cheap interest rate boat loan could result in lower repayments than waiting for the time when the PWC you want is available which could be when rates have increased.
While we’ve used the example of price rises in PWC market, securing a cheap boat loan can also apply to other boat buying decisions. Decisions such as whether or not to upgrade to a bigger, better, higher-priced boat.
For assistance in sourcing the cheapest interest rate boat loan, contact Jade Boat Loans on 1300 000 003
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 MIS-PRESENTED DATA AND DETAILS HEREIN.