Cost of living pressures especially with rising fuel prices and inflation are the top topics of conversations. Many will be looking to the annual Federal Budget to be brought down by the Treasurer on 29 March for what relief may be on offer through Government fiscal levers. While individuals scramble for ways to cut their outgoings, those in the market for a new boat can look to securing a cheap boat loan to deal with cost of living rises on many of their other expenses. The ones they can’t control such as fuel which is driven by global issues and food prices which may rise as a result of flood impacts on producers, processors and the agricultural sector in general.
While most of the rises in the price of necessities are not possible to control, those considering applying for a new boat loan can take some control over how much they pay on their loan. As specialists in marine finance, our goal is to assist our customers to always achieve the cheapest boat loan possible for their requirements.
We share our tips, hints and action plan for what prospective boat loan applicants can do in their quest for a cheap boat loan.
Understand the Marine Finance Lender Market
Loans for private, recreational boats come under the category of consumer finance as regulated by ASIC. This is a vast lending area and while not all lenders will clearly state a ‘boat loan’, most will have a personal loan that can be used for a boat purchase. But the terms, conditions, loan term, interest rate and many other factors can vary in the loans offered by different lenders.
The market includes banks, finance companies, marine brokers, some boat dealers and broker-style lenders such as Jade Boat Loans. We have accreditation with multiple banks and with non-bank lenders so we are always in a position to source the cheapest offer from across the market. These accreditations include specialist marine finance lenders. Having that speciality can make a big difference. Specialist lenders tend to have a better grasp on their market and this can lead to cheaper loans.
One of the key differences across the marine lending market will be see in the interest rates on boat loans. These will vary as each lender prices their loans according to their individual guidelines. Comparing boat loans across the market, accounting for interest rates and variations in details and terms can be a timely exercise. We cut the time required by our customers by handling the entire process on their behalf.
Focus on the Interest Rate
If you want a cheaper boat loan then you need to look for the cheapest interest rate loan.
With any type of loan, credit or finance, the interest rate is the element that is key to what the loan or credit actually costs. The interest rate also impacts the amount of the loan repayments. Those monthly repayments may be an important factor to keep under control in the current economic climate with other costs of living rising.
Focusing on interest rates is key to keeping the cost of the boat loan down. The rate will vary across the lender market as we mentioned. The RBA sets the official cash rate and then individual banks and lenders set their own rates. The rate a lender sets will vary due to their own costs and assessment of a particular loan market.
We have access to specialist marine lenders that know their field and can offer cheaper rates than many more general consumer finance lenders. To make the process of comparing lender rates on boat loans, we’ve provided a comparison chart.
In addition to the rate, attention should be paid to whether the rate is fixed or variable. Jade Boat Loans provides a fixed interest rate on our Secured Boat Loan. This is especially important if the objective is to take a level of control over costs. A variable rate can change when lenders change their rates in line with the RBA’s rate rises. A rate rise is on the cards in the near future so a variable rate boat loan could mean a change to repayments at some point during the loan term.
A fixed interest rate boat loan ensures the rate and the repayments remain the same over the full term of the boat loan.
Another point to remember is that the interest rates that are advertised by lenders, unless otherwise indicated, are for loans to applicants with a good credit profile and for new boats. Applicants can do their bit towards achieving the cheapest interest rate loan offer by addressing their credit profile and financial situation.
Errors in a credit profile may be able to be fixed to improve the credit score. Financial balance sheets may be improved by paying off other debts such as credit card balances or other loans. Responsible licensed lenders in the consumer finance sector abide by rulings as set out by ASIC and these govern what offers may be made to some applicants.
Keeping Repayments within Budget
The monthly repayment on a boat loan can also be key to keeping individual or household budgets in check in the environment of cost of living pressures. The length of the loan or loan term in conjunction with the interest rate and loan amount determine those repayments.
Requesting a longer loan term will reduce the monthly repayment. But not all lenders will be open to negotiating on such loan conditions. That’s just one of the areas where engaging Jade Boat Loans to source your loan can make a big difference.
Our consultants have the connections and expertise to negotiate on behalf of our customers to work towards achieving the preferred loan conditions.
Achieving a cheap boat loan is at least one expense that it is possible to have a level of control over by taking certain actions.
Contact Jade Boat Loans on 1300 000 003 to arrange your cheap boat loan to make that boat purchase within your budget expectations.
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.