When a loan is required to purchase a new boat, buyers may benefit from up-to-date info on boat finance to secure the cheapest loan and make informed decisions. The boat finance market, as with many other lender sectors, is subject to changes especially in regard to interest rates. Over the past few months, the RBA has raised the cash rate on multiple occasions.
These increases can impact boat finance interest rates and add to the overall cost of the loan and the boat itself. So knowing how and where to secure the cheapest interest rate boat finance is an important issue when boat finance is required. But there is more to know about boat loans than just the interest rate. We provide this summary of the boat loan basics to assist buyers make informed finance decisions.
Vessels and Watercraft Eligible for Boat Finance
In general terms, all types of new watercraft and vessels can be financed through Jade Boat Loans. This includes recreational boats, tinnies, jet skis and PWCs, houseboats, working vessels, yachts, cruisers and the full range of power boats. Loans are also available for used boats but the type of boat finance may differ from loans for new boats.
All finance is of course subject to our lender guidelines and assessment of the applicant and the vessel.
Eligibility for Boat Finance
Finance for recreational boats is in the category of consumer finance which is regulated by ASIC. All lenders offering consumer finance must adhere to the relevant laws and regulations. As a Licensed Credit Provider we adhere to ASIC’s Responsible Lender Guidelines.
These regulations and guidelines include matters regarding the loans that can be offered. For example, a lender cannot offer a loan to a consumer where that loan is deemed unsuitable for that individual.
In general terms, under the regulations, applicants for consumer finance must be over the age of 18 years.
Boat Finance Products
We offer two types of boat loans – Secured Boat Loan and Unsecured Personal Loan. The difference between a secured and an unsecured loan is in regard to the security or guarantee against the finance.
With a secured loan, the boat is accepted by the lender as the finance security. Where a lender deems the boat not suitable as security or when the boat is not available as security, such as with share boat arrangements, an unsecured loan may be considered. Some form of other security may be requested by lenders with unsecured loans. This would be advised when we negotiate a loan offer with our lender panel.
The Secured Boat Loan will suit most buyers, most new boats and many second-hand boats. Some used boats may require an Unsecured Personal Loan. Buyers are welcome to discuss this aspect of the boat finance with us prior to purchase. This may be advisable as the interest rates are typically higher on unsecured loans. The better option may be to purchase a new boat with a lower interest rate secured loan.
Insurance is required to be taken out with a secured loan. That cost should be factored into calculations for the overall cost of the boat purchase. Ask your Jade consultant for assistance with specialist marine insurance.
The Lending Market
Boat finance is offered through many lenders – banks, finance companies, marine dealers, boat manufacturers and finance brokers such as Jade Boat Loans. The types of loans offered across the sector can vary considerably in the loan conditions, interest rates and other features. If considering a utilising dealer or manufacturer finance at the point of purchase, it can be an astute move to also consider other options to ensure the loan is the cheapest available to you.
Comparing boat loans to source the most suitable and most affordable can be challenging. That is where our role as a finance broker-style lender can greatly assist boat buyers. Our role involves sourcing and negotiating the cheapest and most suitable boat loan offer from across the multiple lenders that we are accredited with. This process may sound time-consuming – it’s not. We save customers a lot of time and can provide quick quotes and fast approvals whiles still sourcing the cheapest loans.
Getting the Cheapest Boat Finance Interest Rates
The interest rates offered by lenders will, in most instances, be the lowest possible rate they are offering for loan applicants that have a good credit rating and for new boats. An assessment of the applicant’s credit profile forms an integral part of the application approval process and the determination of the interest rate to be offered.
In order to be offered the cheapest interest rate, applicants can utilise our services but also be proactive in improving their own position. This may include fixing any errors on their credit report and/or paying off other loans and lowering credit card balances to improve their personal balance sheet.
Using a Boat Finance Calculator Properly
A boat finance calculator can be the best first mate for boat buyers. This easily accessible and simple to use resource allows buyers to get estimates on boat loan repayments on any number of boats in order to assist with purchase decisions.
But it is important to utilise this tool properly, as we have outlined, and know how to use the repayment estimates calculated.
So there are some of the basics to be across when requiring boat finance. We also encourage you to read some of our other articles which cover a wide range of topics to assist buyers and please feel free to speak with one of our consultants with any other questions you may have.
For assistance with sourcing boat finance, contact Jade Boat Loans on 1300 000 003
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.
