As we move out of the prime summer boating season and into autumn, what winds of change are blowing that could impact boat buyers and users? There are a number of factors which are on the horizon which could affect how you use your boat and affect the boat buying process also.
Those that perhaps delayed that boat purchase earlier due to availability or other reasons may now be looking to proceed. The disruptions and uncertainty created by COVID-19 over the past 12 months have resulted in many people pausing major purchase decisions. Now that seems to be easing, many will now have the confidence to proceed with buying or upgrading to that dream boat.
Stocks may also be more readily available as manufacturers overcome many of the issues which plagued several markets over 2020-2021. In the boat market, that was very much a surge in demand. Though the microprocessor issue is still impacting production in some areas.
The climate outlook can also be a deciding factor when timing that boat buy and according to the Bureau of Meteorology (BOM), La Nina appears to have peaked, so we’re in for a change in conditions.
Also in for a possible change is the interest rate climate. For a very long time Australians have enjoyed historic low interest rates across the lending market. But due to changing economic conditions, it is looking highly likely that a rise could be on the cards.
We update you on what could be an interesting season of change, what it could mean for autumn boating, especially fishers, and especially what it could mean for those looking to buy a boat with finance.
BOM Update
The BOM recently issued its latest climate outlook with news that observations and the climate models are suggesting that the La Nina pattern of 21/22 has now peaked. The indications are that there will be a return to the neutral ENSO during autumn for the southern hemisphere. ENSO is of course the El Nino-Southern Oscillation.
As we have seen over the past few months, La Nina has the effect of increasing the chances of tropical cyclones and delivering rainfall above average in eastern and in northern parts of the continent. This happens during summer and to a smaller degree during autumn. While it appears La Nina has peaked, while it is weakening it can still influence climate and weather.
The BOM reports that in the eastern, tropical Pacific, the surface sea temperatures remain cooler than the average. But below the surface, temps are beginning to warm. These are the changes that the BOM say indicate a breakdown of La Nina.
On the other side of the continent, in the eastern Indian Ocean, the MJO (Madden-Julian Oscillation) has been recorded as strengthening. The BOM says this suggests that the MJO is likely to move eastwards at a moderate strength into the maritime continent. When this happens, increased rainfall and cloudiness occur over the north of Australia and in the tropical areas.
Staying across BOM updates can assist boaters and fishers plan their activities. Having the BOM app on your phone for live local forecasts and alerts is highly advisable for safe and enjoyable boating.
Interest Rate Update
So while the climate itself is set for a seasonal change, it looks like the interest rate market may also be in for an adjustment also. We have posted a number of articles around the prospect of a rise in the cash rate recently and that probability continues to increase.
Comments made by the Treasury Secretary at a Senate hearing and by leading executives at major banks including one of our major lenders, the CBA, have added further to the talk of a rate rise in 2022.
We continue to post and remind potential boat buyers of changes to the outlook for rate rise so they can move quickly and secure the boat loan while rates are at the historic low levels. While Jade Boat Loans will always stick to our policy of better interest rates, if all lenders respond to a cash rate rise, then rates across lending markets will rise.
To see exactly what even a small incremental difference in the interest rate means in terms of boat loan repayments, simply take a quick look at our Interest Rate Comparison calculator. With this loan tool, we’ve listed a number of banks and lenders including ourselves with the boat loans each offers with the current interest rate.
All you have to do is enter the amount you may want for your boat loan and you’ll see the estimated repayments for each of the lenders at the interest rate displayed. It’s a great way to demonstrate how higher interest rates mean higher repayments.
A demonstration that could be just the motivation you need to get moving on securing your boat and your boat loan before the ‘seasons of change’ blow in. Before discussing price with a dealer, first speak with us to arrange a pre-approved boat loan so you know exactly what budget you can set and you’re set to commit on the spot.
Autumn offers great boating conditions and with rainfall set to decrease as La Nina departs our region, it should be an ideal time to get out on the waterways.
Contact Jade Boat Loans on 1300 000 003 for all types of boat loans
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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