Deciding to buy a boat is an exciting time, especially for first timers but also for those planning to upgrade possibly after owning their current vessel for an extended period. But from that initial decision comes a myriad of sub-decisions to be made to ultimately determine the specific type, make and model to be purchased. So any assistance is likely to be greatly appreciated.
For those embarking on the process for the first time, it may be quite overwhelming. But assistance and support can be found in several channels – referring to boating reference websites and chat rooms, attending boat shows and talking to the exhibitors and other attendees, joining a club or visiting a marina to talk with other owners and of course, using the boat buying tools available. Specifically the marine finance tools such as our loan calculator available right here and free to use.
In this general informational piece we’re covering the basics of boat buying decisions and the specific details on how using a boat loan calculator can be a must-have in a buyer’s kit.
Basic Buying Guidelines
You can find boat buying advice and guidelines from many sources. But in general, the basics to consider include but are not limited to:-
- Type of waterways you intend to boat – off-shore, inshore, riverine.
- Purpose – fishing, family, general cruising, adventure excitement, extended stays etc.
- How many people intend to accommodate?
- Sail or power.
- Day boat or overnighter.
- Storage options – mooring, marina or trailer.
- Boating skill level and capabilities.
- Finance options and affordability.
Where you start is an individual decision. If the plan is to buy the boat with finance, then the relationship between price, boat loan and affordability may be the starting point.
Boat loan repayments can become a key deciding factor in that they relate to the affordability of the vessel. That’s where our calculator comes into its own. As marine finance lenders, we focus on the dollar decisions particularly the boat loan interest rate and repayments regarding achieving that all-important affordability factor for our customers.
Using a Calculator as a Buying Tool
The boat loan calculator can effectively be used to:-
- Make quick comparisons based on our cheaper rates when a loan offer is made at the point of purchase.
- Narrow down the wish list based on price and finance affordability.
- Plan how you may like the loan structured to achieve the goal repayment figure regarding loan term.
- Make decisions around whether or not to pay a deposit to reduce the loan amount or request no deposit boat finance.
- To engage the family or others in the conversation about what repayment amount would be achievable and acceptable with the individual or the household budget.
- To save time in dreaming and inspecting boats that are not within the affordability range.
- To be prepared to order when the dream boat is sourced. Especially handy at boat shows and for makes and models that are in limited supply. This situation has occurred recently with PWCs especially.
Our calculator is free to use and there is no obligation attached to using it.
Secured Boat Loan will be the most widely used loan. So refer to our interest rate for that particular loan type.
- Enter the loan amount with or without allowing for a deposit.
- Enter the preferred loan term – the number of years/months to repay the loan.
- Click on ‘calculate’.
- Immediately the estimated repayment based on that data is displayed.
- Repeat the above for another boat at another price.
- Note the results – boat/repayment, as the calculator does not store the results in a memory that can retrieved.
A Word on Interest Rates
The key to most loans regarding repayments and affordability is the interest rate. So achieving the cheapest possible interest rate will be key to the cheapest loan. Lenders set their rates based on the RBA’s cash rate as a base.
The RBA is set to increase interest rates in the coming months which will be reflected in increases across the marine finance lending market. Rates do vary across lenders as can be seen in our comparison chart. So keep that in mind – depending on your buying timeframe, the rate advertised today and used in the calculator now, may not be the rate that is advertised when you come to applying for your loan.
The cheapest rates advertised are for the purchase of new goods that as brand new boats and for loan applicants with a good credit score. If your score is less than good, take action to improve it.
If purchasing a used vessel, a higher rate may apply.
The ‘Keep in Mind’ Issues
When using ours or any other loan calculator there are several issues to keep in mind:-
- This is a generic calculator that is available for everyone. So it does not possess the capabilities to differentiate or allow for individual nuances regarding loan applications. Especially credit issues. The calculator does not replace your Jade Boat Loans consultant in sourcing specific detailed boat loan quotes and seeking loan approvals.
- The calculator derives estimates based on data entered.
- The results are not specific loan offers, just guides.
- Not all fees will have been allowed for as these will vary across our lender panel.
- The results are not an approval so don’t commit to a purchase based entirely on using a loan calculator unless you are confident
To support the use of our loan calculator in making buying decisions, applying for a pre-approved boat loan may be considered. This is a great way to get finance sorted before making that final buying decision based on price.
Enjoy your boat buying process and reach out to our consultants for quick quotes to assist in arriving at the final decision.
Contact Jade Boat Loans on 1300 000 003 to assist in boat buying decisions with firm loan quotes.
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.