When it’s time to buy a new boat, there can be positive outcomes from making the first step to compare boat loans before comparing boats. Those outcomes may include getting a cheaper loan rate; avoiding over-committing on a boat priced beyond budget; knowing the loan amount approved; and being able to select the boat with a price tag that suits the approved loan amount.
Most buyers will tend to browse the boat market with a rough idea of their budget. But buyers that have not applied for finance in some time may not be complete across the marine finance lending market. They may not know how the price tags may convert into loan repayments.
They may not know what boat loans interest rates may be available or what lenders offer the best marine finance. So, it makes sense to do that research before committing to a major acquisition such as a boat.
New boat prices and interest rates are two other compelling reasons for adopting this strategy in the current environment. All Australians will be well aware of the effects of inflation in recent times. Prices on goods and services have soared, including increased prices for some boats.
Personal New Boat Loans
The boats being considered may have a higher price tag than expected, especially if they are on backorder. Where finance is required for the new boat, and the price ends up higher than was expected, it may result in a larger-than-expected loan commitment. A decision that may stretch the household budget.
The other reason is the boat loans interest rates. Most Australians also know that boat loans interest rates have increased significantly with the Reserve Bank (RBA) rate hikes over the last year. Understanding how these rate increases have impacted boat loans may give a clearer idea of what priced boats to consider.
Buyers that compare boat loans before comparing boats may benefit from more intel on lenders, rates, and repayments, which may help shape the buying decision. Jade Boat Loans makes comparing boat loans before, during, or after committing to a purchase easily accessible to all buyers.
Accessibility is provided through our self-service online loan tools and comprehensive specialist, broker-style marine finance lending services.
Compare Boat Finance Lenders
Start with swotting up on the marine finance lender market and the types of loans available for financing boats. Consumer marine finance is available through banks, finance companies, marine dealers, and finance brokers.
The types of loans offered may vary, the boat loan interest rate will vary, and the application criteria may also vary. Loans vary for new and used boats.
Finding the most suitable and cheapest loan for a buyer’s specific requirements may involve requesting a quote or submitting an application to obtain a confirmed offer. When this is done for multiple lenders to get reasonable offers to compare, it can negatively impact the applicant’s credit profile.
Note – dealer finance will usually be provided through a finance company. Check the details to ensure the rate is competitive. Deciding at the point of purchase to just go with the finance offered by the dealer may result in a higher rate and repayments than could have been achieved through another lender.
Using our services allows buyers access to more lenders without the impact on their credit profiles. Our consultants match buyer profiles with lenders to quickly source the most suitable lender. We do the work, and buyers can request quotes from us even before they commit to a boat.
Compare Boat Loans
There are two main types of consumer loans for boat purchases – Secured Boat Loans and Unsecured Personal Loans. The secured loan is widely used for new boats and used boats accepted as suitable loan security by lenders. The unsecured option can be considered when a used boat is not accepted as security.
Most lenders will offer a secured format loan, but the amounts approved, terms available, and rates will vary. Did you know that insurance is required with a secured loan? If not, that cost may need to be factored into the buying plans. We can assist with connections to specialist marine insurers.
Comparing Interest Rates
Boat loans may have fixed or variable interest rates, but fixed is more typical for secured boat loans. Rates vary because lenders set their rates based on their assessment of the market and forecasts for interest rates.
With consumer finance, a Comparison Rate will also be displayed by lenders. This is the rate on the specific loan example described when some fees from that lender have been included.
The best rates advertised will typically be offered for finance on new boats and for buyers with a good credit score. If you don’t know your current credit score, obtaining a copy of your credit report may be advisable, and considering ways to improve the rating.
Moneysmart has information on credit reports and scores. We make it easy for buyers to compare boat loans interest rates with our Boat Loan Rate Comparison. This shows the rates currently being offered by a selection of lenders. It’s free to refer to and use as a boat loan calculator.
Compare Boats Based on Estimated Loan Repayments
That brings us to one of the most invaluable pre-purchase resources – the Boat Finance Calculator. This easy-to-use tool allows buyers to calculate estimated repayments on as many boats as they want. Compare the estimated repayments based on the advertised price to see if buying that boat is within budget.
Getting Approved for a Boat Loan
To compare boat loans accurately before comparing boats, buyers can get approved before purchasing. Speak with us before buying to arrange a pre-approved boat loan. You’ll know exactly how much you are authorized to borrow and can confidently proceed to compare boats in your price range.
Buying a boat with finance is a considered decision. Utilizing the available resources and services to obtain as much information as possible regarding finance may assist in making a better-informed decision as to which boat to buy.
To compare boat loans quickly and easily, simply contact Jade Boat Loans at 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. THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED REGARDING ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.
