Buying a boat is without doubt an exciting experience. But for many buyers, it can come with plenty of decisions around the type of boat, the length, new or used, and price. Where financing is required, many of the decisions may rest on the financing. And that can lead to another new list of questions. Is finance on a high-ticket cruiser different to a loan to a smaller family runabout? Do new boat loans cost more than used boat loans? Are yachts cheaper to finance? As specialists in marine finance, we have the answers and tools to allow buyers to more easily compare boat loans to assist with their boat buying decisions.
Comparing financing options prior to purchase can assist with the buying process. Knowing what loan type is required for what type of boat can be a starting point. Having boat finance pre-approved can be helpful especially when comparing vessels at a boat show such as the upcoming Sydney International Boat Show or when a model is in short supply.
Comparing boat finance includes a number of aspects – the marine finance market, different loan types especially for new and second-hand goods and interest rates. While it can all sound very confusing, Jade Boat Loans simplifies the process of securing the right finance with a comprehensive boat financing service and our choice of two loan types for all recreational vessels – Secured Boat Loan and Unsecured Personal Loan. This includes power and sail, small and large vessels, watercraft, and boats at all price points.
Compare Boat Loans Lender Market
There are many credit providers that offer financing for recreational goods including boats. These include finance companies, many banks, marine dealers and some boat manufacturers, and finance brokers including Jade Boat Loans. Dealers typically offer finance through an arrangement with a finance company.
Loans to individuals for recreational vessels is consumer finance, a lending sector regulated through ASIC. This regulation provides some uniformity, primarily in the information that lenders must obtain for the loan application. Beyond the application form and process, there are a wide range of variations with lenders.
Differences across the market can include the type of finance product available for boats, whether the interest rate is fixed or variable, the loan limits approved, the criteria used to approve loans, and interest rates.
Covering off on all the variations and options to find the right boat loan can require considerable time and resources. We make the process quick and easy with our lender base of 80+ credit providers and highly skilled brokers. Our brokers match our customer with the right lender before proceeding to source the right loan at the best rates.
Compare Boat Loans for New and Used Craft
With price a key deciding factor for many buyers and with good quality craft available on the second-hand market, many buyers will look to buying a used boat. The considerations when looking to compare boat loans for new with used vessels is the lender’s assessment of a used vessel as acceptable collateral for the loan, their assessment of the loan amount to be approved for that vessel, and potentially a higher interest rate.
These decisions depend very much on the vessel itself so requesting a boat loan quote for that specific craft is advisable.
Compare Boat Loans Product Features
The features of specific loan products can vary with lenders, and buyers should consider the detail of any offer presented to them. Unlike Jade Boat Loans with our specific Secured Boat Loan, not all lenders provide a specific boat loan product. Instead, they include finance for watercraft in their more general Personal Loan product.
Our loan types are the Secured Boat Loan and an Unsecured Personal Loan. Secured finance is the most widely used for new and quality used vessels. It is extremely popular as it allows the boat to be used as the main form of collateral. This type of loan also attracts a lower interest rate than an unsecured format loan type.
Buyers may also look closely at the minimum and maximum limits that lenders set for the marine finance products. This may impact any deposit they are planning to make and what boat they can purchase with finance.
Another consideration is if any accessories and extras can be included in the same loan as the boat. Many new boat buyers can typically want to add extras such as additional covers, upgraded electronics, larger bait boxes, etc when buying a boat. Lenders will have guidelines around whether this is approved or not. Our guideline is that where the extras are purchased at the same time as the boat and from the same supplier, we can usually negotiate with our lenders to include the costs in the boat loan.
Finally, consider the finance term available. Does the term offered provide for a repayment amount that suits the budget? Head to our Boat Finance Calculator to quickly see how loan terms impact monthly repayments.
Compare Boat Loans Interest Rates
Interest rates are where buyers can find significant variations across the market. There are two aspects to consider – the amount and the type. Lenders may offer a fixed or a variable rate of interest. We arrange our secured boat loans and some unsecured personal loans, at a fixed rate. That means, no changes to the rate of interest and therefore the monthly repayment amount, over the fixed terms we arrange. Variable interest rates are subject to change with decisions by the RBA which typically flow through to lenders.
Before comparing the actual interest rate advertised by lenders, buyers should appreciate that an advertised rate is typically for new goods and for applicants with a good credit score. Loan rates are offered following an assessment of the applicant’s credit score and financials. The rate you are offered may be different.
Easily Compare Boat Loans with Finance Calculator
Jade Boats Loans assists buyers to easily compare boat loans for all types of boats – power and sail, new and used, with an online finance calculator. Buyers can calculate repayment estimates on any boat to assist with buying decisions.
Compare boat loans with an online calculator and speak with Jade Boat Loans on 1300 000 003 for the best rates on a specific quote to suit your requirements.
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.
