With the current focus on cybercrime due to hacking attacks and that Scam Awareness Week was recently held, we are prompted to revisit some of the guidelines we have previously covered in regard to safe buying and securing suitable boat loans. This has also been prompted by the increasing rate of inflation which is placing cost of living pressures on many Australians at a time when interest rates are also rising in some lending markets.
Scam operators and fraudsters are unfortunately always out there to take advantage of individuals and an increase in this type of behaviour was noted during the pandemic period. Buyers, especially in the second-hand market, should be aware of scams and risks so as to avoid pitfalls. In addition, it is important to be aware and protect against identity theft which could impact the prospects of sourcing finance or at minimum, present challenges.
Issues around rising prices for basics, for boats and for finance, individually or combined may lead to a sense of panic for some boat buyers and those seeking boat loans and potentially unwise choices being made. When unwise financial decisions are made, the ramifications can be long-term and quite severe. This doesn’t need to be the case if basic guidelines are followed in regard to purchasing and in regard to sourcing marine finance.
When seeking boat loans, despite rates rising, affordable boat loans at cheaper rates are available through licensed credit providers including Jade Boat Loans. We revisit a few of the topics we have covered in the past including consumer finance laws and lender responsibilities and cover a range of ground which relate back to buying safely and securely sourcing boat finance.
Scams Awareness Week
The ACCC – Australian Competition and Consumer Commission, is a national body which is responsible to ensure that both businesses and individuals comply with the laws in Australia regarding fair trading, competition and consumer protection. A particular focus being the Competition and Consumer Act 2010.
The ACCC runs the Scamwatch website which has lists of recent scams and a whole lot of other great information and resources. The ACCC held Scams Awareness Week over 7-11 November, presenting a great opportunity for individuals to improve their own knowledge of what to look for in order to protect themselves, their identity, their finance and many other aspects of their lives. aopt and prems
Buying Second-hand Boats
Buying used boats is extremely popular and for many buyers offer great value for money compared with a brand new model. Second hand boats of various types, sizes and price ranges can be bought through marine dealers, private sellers directly and through a number of online marketplaces. Buyers may also choose to engage a boat broker to do the hard work and source their boat.
Some boat dealers will be members of the Boating Industry Association which has a code of ethics for members. Buying from reputable marine dealers can be an astute way to buy.
When buying a boat online, it is important to follow established principles and go even further in checking out the credentials and identity of the seller and the boat. Buying a boat unseen may not be advisable as the condition may not be as appears in photos. Some online marketplaces will offer customer protections and some purchases should be covered under state or national consumer laws. But buyers should take the utmost care and be over-cautious and diligent especially when making payments to unknown persons.
Buyers should check the PPSR to see if money is owed on the boat. Registration checks may be possible to verify ownership. These are some of the details that we can assist buyers with when engaged to source finance for second-hand boat purchases.
Where finance is required for a second hand boat purchase, buyers should be aware that there can be differences between boat loans for new boats and for used boats. The boat needs to be accepted as security by the lender for the Secured Boat Loan. If a used boat is not accepted as security, buyers can consider an Unsecured Personal Loan and that type of loan does have different features and typically a higher interest rate due to the unsecured nature of the loan.
Say ‘No’ to ‘Zero’ - 0% Interest Rate Boat Loans
If buyers come across advertisements and promotions for 0% interest rate boat loans, we, along with many marine and general lenders, advise consumers to say no or tread extremely carefully and from a position of knowledge. Particularly when many are feeling price pressures, it can be tempting to go for something that potential presents such a massive saving. We say ‘potentially’ because that 0% may only be valid for a few months of the boat loan term. After that concludes, a much higher than could be acquired in the market would apply.
These loans are considered by many in the sector as promotional tactics are not the way that responsible lenders such as Jade Boat Loans conduct business.
Consumer Finance Laws
Marine finance to private boat buyers, which will include most recreational boat buyers, is covered under Australian Consumer Finance Laws. ASIC sets the guidelines and regulates the sectors. Lenders that provide this type of finance need to be Licensed Credit Providers. Lenders should display their Australian Credit Licence number
Lenders must not make loan offers that are unsuitable. So dealing with a responsible lender is an important first step in securing a loan that is suited to your needs.
Securing Cheaper Boat Loans in Rising Rate Scenario
With rates rising and more increases to come, the focus for buyers is very much on sourcing the cheapest interest rate boat loans. Rates from lenders operating in the sector can vary quite significantly which has a direct impact on the monthly loan repayment.
While our consultants work hard to source and negotiate the cheapest rates for our customers, buyers can take their own actions as well. Maintaining a good credit score is very important as is having a good financial balance sheet.
Safety is critical in boating but also important is adhering to safer buying practices, being aware of scams and sourcing boat finance through brokers, banks and lenders that are highly regarded and reputable.
Contact Jade Boat Loans on 1300 000 003 to discuss a quote for a boat loan.
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.