The end of winter is not far away and won’t come too soon for many yearning to get out on the water in warmer weather conditions. The official start of the boating season is the first weekend in October. A long weekend holiday in many states and the perfect time to launch that new boat. If you can wait that long. With the clock ticking, it really is time to act on those buying plans and purchase that new boat with cost-effective marine finance.
Those purchasing a new boat with marine finance face a range of decisions to be made around the type of boat and where to acquire the cheapest boat loan. Existing and long-term boat owners usually have a pretty good idea of what they want from their new vessel. Whereas first time buyers may need assistance and guidance in selecting the boat that meets their requirements.
The recent round of boat shows has given prospective buyers ideal opportunities to see many of the latest makes and models in sail, power, luxury cruisers, trailer boats and tinnies. But now it comes down to decision time. Which one will it be? For first time buyers in particular, we provide some points for consideration in regard to both boat selection and sourcing marine finance.
The Buying Process
Boat selection involves consideration of a range of preferences and requirements including:-
- The waters that are planned to boat in – riverine, offshore and/or inshore.
- Activities to be undertaken – sailing, fishing, tow sports, racing or general recreation.
- Length of stays – day boat, overnight or longer stay vacations.
- Number of persons including children to be catered for in capacity and/or overnight accommodation.
- Storage – trailer, moor or marina berth.
- Boating capabilities based on experience.
- New or second-hand.
- Budget – the purchase price is often a key guide to the final decision.
Referring to boating community forums and online platforms can provide useful information from real experience from experienced boat owners.
Before selecting a boat or during the selection process, check in with the maritime services in your state regarding requirements for that type and size of boat.
These requirements may determine what extras you need to include in the purchase. These can include the correct type of lifejackets for the waters you are planning to visit; emergency beacons and other devices; fire extinguisher; paper maps and charts; air horn or whistle; radio and other communications devices; waterproof floating torch; and of course, a boating licence.
The regulations can vary for these matters across state authorities so it is important to ensure you comply with both your home state and if planning interstate visits, with other states as well. Where the extra gear is purchased at the same time as the boat, your Jade Boat Loans consultant may be able to include the cost in the overall loan amount to ease the budget.
Taking account for weather conditions can also form an important part of the boat selection process. The Bureau of Meteorology (BOM) climate driver update released on 2 August says that La Nina watch is continuing. This means a 50% chance of La Nina forming (again!!) later in the year. This is twice the normal chance of occurrence. That can mean above average rainfall in some parts of Australia.
This may give rise to the need for better quality or additional covers and protection for the new boat. Covers and biminis to protect occupants while on the water and protect the boat when not in use.
When you take delivery, make sure you download the BOM app for live weather updates while you’re out on the water.
Marine Finance Options
With choosing a boat, for many buyers, also comes the need to source marine finance. Marine finance is available through a range of sources including finance companies, banks, some marine dealers and specialist marine finance broker-style lenders such as Jade Boat Loans.
Though the finance is fairly widely available, specifically structured and named ‘boat loans’ are not as widely found. General lenders that cover a wide range of goods may simply have the one Personal Secured Loan to cover leisure goods such as boats, motorbikes, caravans and similar items.
Our specific marine finance products are an indication of our specialist expertise in the field, our deep understanding of the market and our interest in servicing this sector with cost-effective loans at cheaper interest rates.
The type of loan may be determined by the age and condition of the boat being purchased. The type of boat – sail or power, size and price, does not as a rule affect the type of loan product. The most popular type of finance for new boats is the Secured Boat Loan. With this loan, the boat is accepted as security by the lender against the finance. Where the boat is not accepted as suitable security, an Unsecured Personal Loan may be considered. Lenders make their own assessment and decisions around accepting boats as security. Older boats and boats not in the best condition are examples of where the vessel may not be accepted as security. Your Jade consultant will assist you with these matters.
The interest rate is of course central to the overall cost of the loan. Currently interest rates in general are in a cycle of increases as the RBA normalises monetary settings and addresses rising inflation rates. These increases have flowed through to marine finance. However, as can clearly be seen in our comparisons, we continue to maintain our competitive advantage in regard to interest rates. The best rates displayed are for good credit rated applicants.
Another aspect to watch is whether marine finance is offered at a fixed or a variable interest rate. Variable rates can vary with future rate rises and more are strongly indicated this year. Fixed rate marine finance has a rate which remains unchanged for the full finance term. We feature fixed rates on our Secured Boat Finance and our Unsecured Personal Loans can have a fixed or a variable rate.
So there’s a brief overview to get you started on your boat purchase process. If the finance is critical to the decision, then speak with us first for either a firm quote or a pre-approved boat loan. Your Jade consultant will assist by handing the entire finance process so you can concentrate on the purchase and planning where to head off on your first boating trip.
Contact Jade Boat Loans on 1300 000 003 to discuss marine finance options and assistance when purchasing a new boat.
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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