Marine dealer finance are loans for boats offered by sellers through their finance partner while finance brokers secure the best offer from many lenders. An exception can be if the boat seller has a finance broker as their financing partner. Many sellers of both new and used boats in the marine market partner with a finance company to provide buyers with loans at the point of purchase. While this may be a convenience for some buyers, consideration should be given as to whether or not it is the best loan they may be eligible to be offered.
Many aspects of a loan offer can vary depending on both the application and the lender. In some cases, the vessel being financed can also impact the loan. Boat buyers can have a number of options to finance their purchase including using a finance broker such as Jade. Yes, individuals can use a broker to source their finance, even loans for small boats can be secured through a broker. Broker services are not the exclusive privilege of businesses or buyers of highly priced luxury vessels.
To assist buyers to make the right decision around their boat finance, we provide a comparison of dealer and broker finance.
Marine Dealer Finance: Explainer
Marine dealer finance can be a boat loan offered by the dealer or financing offered by the boat manufacturer. Manufacturers may set up a finance arm of their business through an arrangement with a credit provider. This arrangement then allows their dealers to offer these loans to their buyers.
Individual dealers may also set up an arrangement or partnership with either a credit provider or a finance broker. When a buyer requires financing, they are connected with the respective company. Dealers often use finance offers in advertising campaigns with ‘$XXX per week’ promotions, usually with an asterisk denoting subject to terms and conditions.
Where the partnership is with a broker – Jade Boat Loans has such partnerships, the broker will then find the buyer the best offer from their lender selection. If the partnership is with a finance company only the one lender would be available.
In line with Australian Consumer Credit requirements, the credit provider must be licensed and their credit licence number displayed.
Comparing Marine Dealer Finance Credit with Broker Loans
The same credit products may be available through both brokers and dealers, but the specifics of those loan types can vary due to differences with lenders. Buyers of boats for recreational and private use should have the choice of a Secured Boat Loan and an Unsecured Personal Loan. Some lenders offer a Personal Loan which is a general loan for goods such as boats. Commercial marine operators should be able to select the commercial credit facility to suit their business set-up from Leasing, Chattel Mortgage, Rent-to-Own and Commercial Hire Purchase.
With loans for private boats – consumer credit, all credit providers must follow the ASIC Responsible Lender Guidelines and laws and request the same details and documents for the loan application.
Not all loans are the same. Lender variations may include maximum and minimum loan amounts, the repayment terms, collateral requirements, applicant profiles for approval, and of course interest rates. Ensuring the most suitable loan type from the most suitable lender can be critical to the most affordable and workable outcome. By sourcing loans from many lenders rather than offering just the one, brokers can provide buyers with more options for securing a loan that works best for them.
Compare Broker Rates with Marine Dealer Finance Rates
Interest rates are critical to affordable boat loans. Rates can vary considerably in both the consumer and commercial marine finance markets with lenders setting their own rates and their own criteria for rate offers to applicants. Rates may also be fixed or variable.
With usually only one lender option, dealers may not provide buyers with the best rate. Brokers can quickly source the best rates from across a large lender market. If offered finance from a dealer, buyers can quickly compare that offer with what may be achieved with Jade’s low rates. Simply refer to our current rates as a guide and using our Boat Finance Calculator to work up repayment estimates to compare or request a quick quote.
One issue to keep an eye out for is ads for 0% interest rate loans. These are usually promotions where the 0% is only applicable for an initial short period after which a much higher interest rate would apply. Higher fees and charges may also apply with this type of loan.
Save Time and Potentially Money with Jade Loans
Convenience and speed may appear some of the more common reasons that buyers opt for dealer boat loans. Saves them the trouble and time of finding and applying to a bank or finance company. The reality is that we save you time by quickly covering off on our 80+ lender market and ensure you secure your best rate. Saving you time and potentially achieving better rates and more workable terms. We handle all the lender negotiations and explain the fine print.
Buying a boat with finance can be a major move. Ensure your move is the most affordable by considering your loan options carefully.
For affordable and more competitive boat loans than marine dealer finance, contact Jade Boat Loans 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 MISPRESENTED DATA AND DETAILS HEREIN.
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