With interest rates on the rise and another cash rate rise by the RBA possible within weeks, boat buyers seeking finance will want to be far more diligent and detailed when sourcing their boat loans than when rates were historically low. That small difference in the interest rate can add up to a significant amount when calculated out over the full term of the loan.
So the question can arise – how many boat loan quotes do buyers need to obtain to be confident they have achieved the cheapest offer?
Seeking a boat loan is not a process that boat owners need to embark on very often. Possibly only a few times in a lifetime. So it is understandable that many will have questions and uncertainties about many aspects of the process.
- How many lenders would they need to request a quote from?
- Where to start and where to finish when it comes to covering the marine finance market?
- Which banks and finance companies offer boat loans?
- Which lenders offer the cheapest interest rates?
- Supply is tight in some boat categories so how long will the cheap loan search take?
- Will I miss out on the boat because it spent so much time covering many, many lenders to get the cheapest loan?
- I’m not a finance specialist, do I have sufficient knowledge to analyse the details of each offer to know which is genuinely the cheapest?
There are a lot of considerations when seeking a boat loan. As specialists in the marine finance market, we assist by addressing some of the uncertainties buyers may have regarding sourcing their loans. Specifically, doing the lender round – the hard way and the easy way.
Marine Finance Lender Market
Buyers have several options when seeking finance to purchase a boat.
The main lender sources are:-
- Finance companies
- Boat dealer and manufacturer finance
- Marine finance brokers and broker-style lenders
Within each of these is a sub-categories and in total, a lot of lenders. Not all will specialise in boat loans and marine finance. Such lenders may offer a more general secured loan which is designed to cover a raft of leisure-related goods such as caravans, possibly motorbikes and boats.
Dealer finance is becoming more widespread and available at many places where boats are sold. The finance may be via the boat manufacturer or the seller may have established an arrangement with a finance company.
Some dealers will establish a working relationship with a finance broker, such as Jade Boat Loans, to which they refer their customers to for their finance. We have such relationships in place.
For boat buyers intent on getting as many quotes as possible be confident they have unearthed the cheapest – there’s a lot of ground to cover!
Covering 80+ lenders in one quote request? Yes, it’s possible!
The easy way to ensure that you have been offered the cheapest quote, that multiple lenders have been covered in obtaining that quote and that your best interests have been considered is to engage a broke-style lender such as Jade Boat Loans.
We have accreditation with over 80 lenders, including the major banks, which enables our consultants to quickly cover a vast section of the boat loan market for our customers. No need for our customers to make contact with multiple lenders, make multiple applications and spend their valuable time to get the cheapest boat loan quote. It’s all done for them.
Our consultants bring the connections knowledge and expertise to analyse the loans available and source the boat loan that is best suited to meet the requirements of individual customers. The detail is explained in plain-speak to ensure every aspect is understood.
Comparing Interest Rates
Lenders that are active in the marine finance sector will offer a Secured Boat Loan either as a specific marine loan or a more general consumer loan. This is the most popular loan for most boat buyers and has a universally accepted secured loan format.
But while there may be some uniformity regarding the type of loan, there will be a lot of variations in the affordable boat finance interest rates offered on boat loans across the market. To assist buyers, we have compiled a table showing the interest rates on offer from several banks and lenders.
By entering the amount required for the loan where indicated in the table, buyers can instantly see the estimated repayments for a loan from each lender. This is a good way to see how a small incremental difference in interest rates can impact the monthly repayment amount.
The other issue to consider with interest rates is the type of rate – fixed or variable. We arrange our Secured Boat Loan at a fixed interest rate, which means the rate will remain unchanged over the complete boat loan term.
Some lenders however will offer a variable interest rate boat loan. This would mean the interest rate is subject to change as interest rates change. Lenders respond to moves by the RBA on cash rates by adjusting their rates. Currently, that could mean the rate would be increased when the RBA next moves, which could be soon.
In summing up – to ensure the cheapest boat loan is obtained, good coverage of the lender market should be completed. The quickest way to cover multiple lenders with one contact is to engage the services of a specialist marine finance broker.
Contact Jade Boat Loans on 1300 000 003 to source a boat loan quote quickly and easily from over 40+ lenders
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.