Luxury cruisers are highly aspirational, coveted and feature significantly on many boating enthusiasts’ ‘most wanted’ lists. But wish lists and bucket lists can very often end up as just pipe dreams. Items on the never never or never ever. But with the extended historic low interest rate situation which is having a positive impact on marine finance, it may be possible and realistic to turn those ‘never evers’ into ‘always forever’ purchases. Move that luxury cruiser off the wish list and onto today’s shopping list with a strategic and smart approach to sourcing and achieving the cheapest boat loan.
Boat Loan Interest Rates
The interest rate is the most significant component of a boat loan. So sourcing the cheapest rated loan, while taking into consideration loan conditions and charges, is a high priority for those seeking an affordable outcome. The price tag is one thing, but loan repayments are more relatable for many buyers of luxury cruisers.
It’s no secret that lending interest rates across most sectors are at historic low levels. The Reserve Bank of Australia (RBA) has kept the official cash rate on hold since November 2020 and that has flowed through to lenders such as Jade Boat Loans, being in a position to offer even cheaper rates on our boat loans. The RBA has signalled 2024 as the possible timing for any moves to increase the cash rates. The impact of extended COVID-19 lockdowns in our two most populous states on the national economic situation is highly likely to quieten any calls for an earlier rise.
But all rates are not equal. Lenders will set their interest rates in various markets based on their assessment of that sector and, in simple terms, their interest in being active in that area of lending. Some banks and lenders do not offers specific marine finance loans but more general loan categories which can apply to multiple consumer goods.
Lenders that specialise in marine finance, such as ourselves, tend to offer more specialised boat loans and can be far more competitive on rates. This comes from our deep understanding of the marine market and long-term experience in lending to the sector. So the first step to achieving the cheapest rates is selection of a lender. To make it easy to preview a number of banks and lenders, we’ve provided an Interest Rate Comparison Calculator. Users can instantly see what interest rates on boat loans are being offered by a range of lenders.
An important point to appreciate is that boat loan interest rates are primarily determined by the loan applicant not the boat being purchased. Our boat loan interest rates apply across a vast sector of the market from budget tinnies through to luxury cruisers.
Loan applicants are assessed based on risk. Maintaining a good credit profile is key to achieving the cheapest interest rates. Checking and addressing any issues on your credit rating prior to applying for a loan can be beneficial to the outcome.
Structuring Finance to Achieve Affordability
How a loan is structured can contribute significantly to achieving affordability. Varying the term of the loan changes the monthly repayment figure. A longer loan term results in a lower monthly payment but will attract more interest in total. A shorter loan term means less interest payable but a higher monthly repayment. Using our Boat Loan Calculator can greatly assist buyers to get a good idea of the loan structure that would deliver them the ideal repayments and affordability.
The deposit is another factor to consider. While we offer No deposit Finance for many customers this does mean 100% of the purchase price is included in the loan. This can be appealing for many buyers in that it conserves existing cash resources for other purposes. But it does mean a larger loan amount. If seeking affordability for a high-end cruiser purchase, reducing the overall loan amount may be an option to consider.
Fortunately, our customers don’t have to address all these issues on their own. Your Jade consultant handles sourcing the cheapest interest rate loan and negotiating the loan term and other conditions that best suit our individual customer requirements.
New Releases for Your Short-list
The Australian market is rich with an amazing collection of luxury cruiser manufacturers. Riviera and Maritimo are two of the most popular brands but US names such as Valhalla are also in the highly sought after category.
Riviera launched a number of new models at the Sanctuary Cove Boating Festival earlier in the year and according to reports, their new 78 Motor Yacht is taking shape at their Gold Coast facility. Maritimo offers a mouth-watering selection of sedans, sports coupe, flybridge and offshore motor yachts to consider.
For those seeking a luxury fishing boat, check out the latest release from Valhalla, the V-37. Powered with not one but three 400 HP outboards.
Plenty to see across the luxury cruiser market and plenty of buyers may benefit from our cheap interest rate loans to make their wish list a reality. To see how affordable we can make your boat purchase, speak with us about a pre-approved boat loan.
For a quote on low interest rate finance for a luxury cruiser, 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 MISPRESENTED DATA AND DETAILS HEREIN.