The boating season is essentially September/October through to around Easter with many buyers typically looking to upgrade in time for the season start. But as we approach the end of the current season, there are a number of reasons why by knowing, especially with boat finance, could be good timing. Reasons including recent events in the financial and economic areas - the collapse of the Silicon Valley Bank and issues with other banks in the US and troubles for Credit Suisse and the latest Australian jobs data.
Commentary on developments suggest they may impact decisions by the Reserve Bank of Australia (RBA) in regard to interest rates. Specifically, it had been suggested by a number of banks and analysts that the RBA may pause rates as early as the Board’s April meeting.
In addition to these finance and economic developments, there are also reasons around boat pricing and availability to consider and the outlook from the Bureau of Meteorology for great boating weather ahead.
Interest rate pause?
The RBA indicated in its March Monetary Policy statement that the conditions may be near to indicate a pause in rate rises could be appropriate. At that time, many analysts considered there would still be a rise in April and a pause in a later month.
But following the events in the banking sector in the US and Europe and the release of the latest jobs figures, some consider that pause may come as early as April. Westpac, one of our major lenders, has changed its outlook for the cash rate to peak at 4.1% down to 3.85% on the back of these recent developments. On the other hand, the ANZ is holding with its original outlook of two further 0.25% rate rises in coming months. But that view is not shared by all.
In its February Monetary Policy Statement, the RBA Board referred to ‘uncertainty’ many times and in reference to many issues. That uncertainty appears to have been well-founded in the light of the US development.
The other development is the fall in the unemployment rate of 0.2% as reported by the Australian Bureau of Statistics in the past week. This is seen by some commentators as having potential to influence RBA decisions towards a pause in April.
Exciting news for those of you seeking Secured Boat Financing – you've got an additional month to take advantage of boat loan interest rates before they set sail! This gives you extra time to find that perfect vessel and chat with us about locking in a fantastic financing deal. The best part? We can even arrange the finance before you finalize your purchase, so you'll know exactly what rate you'll be offered and what your repayments will be. Smooth sailing ahead!
La Nina Has Ended!
Yes, it’s finally over and the outlook is for great autumn-winter boating weather and a compelling reason to upgrade to a new boat now. In its latest climate driver update, the Bureau of Meteorology (BOM) announced the end of La Nina in our part of the Pacific Ocean.
Through our autumn, the Bureau is expecting neutral conditions. That means neither La Nina nor El Nino. Though the Bureau reports of signs of El Nino forming later this year. As such, an El Nino watch has been issues.
As the Madden Julian Oscillation (MJO) moves into the Atlantic in coming weeks, drier conditions may be seen in Australia over the last part of March. For fishers wondering about what species to target, the Bureau says warmer than average sea surface temperatures are expected to persist in south eastern and west coast areas of Australia and closer to average temperatures in the northern area.
As a savvy boat buyer, you know that timing is key. And now is the perfect time to make your purchase. While international reports indicate that boat prices have increased, the supply chain issues that caused inflationary pressures are finally showing signs of easing. Plus, with new boat models hitting the market, you'll want to act fast before prices inevitably rise.
At our company, we understand that financing your boat purchase can be daunting. That's why we offer a Boat Loan Quote service to help you secure the right loan for your needs. Don't let the fear of financing hold you back from your dream boat - let us assist you in making your Easter plans a reality
Buyers that wait until the start of the 2023/24 boating season – September/October, may see higher prices on new boats than what is currently on the market. Deciding on a current model could be a saver. Demand is typically stronger as the summer season kicks than in winter so there may be more stock available. Jet skis and PWCs in particular have experienced supply issues. Securing what is available could be a smart move.
Prior to the pandemic, the final quarter of a financial year was earmarked with EOFY sales events. But due to limited supply in many consumer goods markets, these events are not as widespread these days. Having said that, there may be marine dealers that are keen to clear existing stock to make way for new models. New models are often released at the big shows starting with Sanctuary Cove. Deals may be out there to be found.
Before doing your rounds of the boat dealerships, speak with us about pre-approved boat finance. Recent developments in global banking and local unemployment rate may mean an April rate pause and reason to buy now with cheaper rates on boat finance.
Contact Jade Boat Loans on 1300 000 003 to discuss boat finance at our current cheaper interest rates.
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.