When making the decision to buy a new boat, the process for many buyers will start with creating a shortlist of makes and models which fit the bill. When intending to purchase with marine finance, another set of considerations also enter the equation. Considerations around the boat loan.
Individual requirements and preferences will determine what types of boats will be added to a buyer’s shortlist of boats to buy. Preference for power or sail, trailer boat or permanently moored model, type of boating activities such as fishing, family, getaways, longer journeys or just the whole lot of fun offered by a wake boat or PWC. Where the boat can be stored, suitable towing vehicle and boating capabilities of the owner also need to be considered.
Budget is usually a high priority as most buyers will have some idea of what they can afford. But do they? The purchase price of the boat is one thing. But if the intention is to purchase the boat with marine finance, comparing boat loan repayments can be a far more significant figure to consider than the purchase price.
Creating a shortlist of boats to buy then cutting back the selection based on affordability can be a relatively simple process with use of boat loan tools and resources. We share our shortcuts to culling a boat buyer’s shortlist based on marine finance factors.
Culling the Buying List on Loan Repayment Basis
The benefits of comparing the loan repayments on boats with different prices is primarily twofold. Yes, there’s the obvious. The process allows prospective buyers to clearly see how much in loan repayments they may be paying on finance for the different priced boats. But it can also highlight how a higher priced boat may actually be in their affordability zone when the loan is sourced at the cheapest interest rate.
Other benefits include assisting prospective buyers make decisions around the loan application. Assisting with answering questions such as whether to apply for a loan for the full amount of the purchase price or to pay a deposit to reduce the loan amount. Also, whether or not to order the extra options or upgrade motors and interiors from the standard offering and include those expenses in the loan.
In order to start comparing possible boat loan repayments buyers need access to information as to what loans are available. You will need to identify which banks and lenders offer boat loans or take the ultimate shortcut straight to using a finance broker like Jade Boat Loans.
Our services provide the key benefit of saving customers time and hassle in having to contact multiple lenders in order to get a quote. We do all that and more. But in preparation or in the initial stages prior to contacting a lender or ourselves for a quote, there are DIY tools that buyers can utilise.
Compare Lender Boat Loan Interest Rates
The interest rate is key to the overall cost of the loan and the repayments. Sourcing the cheapest interest rate boat loan is a top priority. The interest rates offered by banks, finance companies and other lenders will vary. Rates are set using the RBA cash rate as somewhat of a starting point and then individual lender costs, risk factors and other aspects factored in.
Rates offered by lenders may also vary at different times. This may reflect their assessment of the sector. The interest rate displayed by lenders, unless otherwise stipulated, will be for new boats and for applicants with good credit. Ensuring your credit profile is ship shape can contribute to achieving a better boat loan interest rate.
To assist with quickly comparing some of the boat loans on offer, we provide a list of lenders and their current rates. Users only need to input the amount they want for their loan and the system auto-calculates the estimated repayments for each of the lenders displayed.
Optimising a Boat Loan Calculator
In addition to the lender interest rate calculator, we also provide a Boat Loan Calculator. This is used in a similar way but with just one interest rate at a time used in the calculations. Playing around with this tool can assist in those decisions around deposit or not and what add-on options and accessories may be included in the loan to cut back on out-of-pockets after the purchase.
If the repayment estimate displayed is more than the target amount, change the loan amount and see the result. Enter the prices of as many boats as you want and note down the repayments. The results provide a great guide if cutting back a short-list based on affordability is the objective.
Another great use of a calculator is to see how that higher priced boat may actually be more affordable than you think with our cheap interest rate boat loans.
Differentiating Calculator Repayments with Quotes
A clear differentiation needs to be drawn between loan repayment estimates derived on a loan calculator and an actual quote for a boat loan. As we point out on our calculator page, the results calculated are estimates only. We, in conjunction with our lenders, need to assess a number of aspects in arriving at an actual loan quote.
Aspects which it is not possible to allow for in a generic loan calculator. These include the credit profile of the individual, affordability assessment in line with ASIC consumer finance regulations and of course the boat being purchased.
To assist buyers, we can provide quick quotes for different loan amounts to assist buyers fine-tune their buying possibilities.
Pre-Approved Boat Loans
Another great resource for those seeking to purchase a boat with marine finance is to apply for a pre-approved boat loan. These loan applications are submitted and processed based on an estimated loan amount, which is usually what the applicant thinks they may need to pay for the boat they want.
While handling the loan application, your Jade Boat Loans consultants work with our customers to amend the preferences to meet both lender requirements and the customer’s preferences as far as possible. For example, if the initial loan amount is rejected by the lender we go back to the customer and discuss either them buying a cheaper boat or paying a deposit. If the repayments don’t meet the customer’s preference, we can negotiate with the lender with the objective of achieving the target.
Buying that dream boat can be quite the process, especially if you are tossing up between several options. Using our shortcuts will hopefully assist you cut down the options and make that buying decision.
Contact Jade Boat Loans on 1300 000 003 to discuss pre-show boat finance
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.