A lot of boating enthusiasts especially buyers will be making plans to attend the upcoming Melbourne Boat Show and many more will be getting ready to buy a new boat as the boating season gets underway. If that purchase is to be made with finance, then buyers may have a raft of questions around if, how and in what way boat finance differs with the boat.
With many different types of boats and watercraft available – yachts, power boats, cruisers, jet skis, PWCs, houseboats, trailer boats, ski boats, it is not surprising that buyers will want to know exactly which boat loan will be appropriate for their purchase.
The Secured Boat Loan from Jade Boat Loans will suit most new boats with variations in boat finance offers based on individual aspects of the loan application. When buying a boat with a secured loan, lenders require buyers to take out comprehensive insurance. There may be differences in insurance policies and premiums according to the type of boat. We will address aspects of the boat finance and our consultants may be able to assist with answering queries re marine insurance also.
Overview – Boat Types
In general terms, our Secured Boat Loan will be suited to the purchase of most new boats. This includes power and sail, houseboats, jet skis, cruisers etc. The power rating of boat motor would not affect the type of loan. There can be special finance requirements for buyers purchasing boat and motor as separate items. This is addressed below in package loans. The same applies to boat and trailer purchases.
With the Secured Boat Loan, the boat is accepted by the lender as security against the finance. We arrange this type of loan with a fixed interest rate over a fixed finance term. The results in fixed monthly finance payments. This format is a fairly universal format for secured finance.
Differences may occur however, with used boats. It is up to the lender to decide if the vessel is acceptable as suitable security for the loan. The lender will take into account the age and condition of the boat in regard to the loan amount.
Where a boat is not accepted by one of our lenders as suitable security, we offer customers our Unsecured Personal Loan. This has different features and does attract a higher interest rate as a result of being unsecured.
Size of the Boat
The size of the boat does not affect the type of loan. The same Secured Boat Loan would be suitable for say a PWC as for a luxury cruiser. The same features of the loan would apply. What of course usually differs with different sized boats is the price. A higher-priced boat will of course require a larger loan amount.
The loan amount will determine finance repayments. Buyers considering boats of different sizes and prices can use our marine loan calculator to get a rough idea on how those extra feet or metres of boat may represent more per month in repayments.
Package Loans
One area where loans may vary is with trailer boats and outboards. Sometimes trailer boats are purchased as a package deal from the same dealer. In other situations the boat and trailer are purchased separately.
The similar scenario can occur with boats with outboard motors. Some dealers offer these as complete packages while others will sell the hull and engine separately.
As specialists in marine finance we fully understand these variations and cater for all possibilities. Where the boat, trailer and/or motor are purchased concurrently from the same dealer at the same time, the one Secured Boat Loan can be arranged for all the items.
Where the items – boat and trailer or boat and motor, are purchased at different times or from different suppliers, separate loans will be required. To clarify what may apply with your particular purchase, simply give us a quick call.
Boat Loan Offer Variations
While the type of boat loan product will apply to most new boats, loan offers made to individual buyers will vary. We handle each application on an individual bases and each is assessed by our lenders according to the specific details.
Lenders assess the applicant in terms of creditworthiness, the amount being requested and other aspects. The interest rate offered on the loan will based on that assessment. Rates advertised by lenders, including ourselves, typically apply to applicants with a good credit record.
With the RBA increasing rates for five consecutive months and with another increase due in October, it is more important than ever to ensure a good credit profile is maintained. This can be significant when it comes to interest rate offers.
So how can buyers find out what they may actually expect in an offer? With pre-approved boat finance.
Using our calculator is a great way to attain estimated repayments on different boats. But that is a generic device which does not account for variations in loan applications. To secure an exact loan offer, potential buyers can apply for a loan prior to purchase. This will provide a firm offer which is a valid for a certain time period. Buyers can then proceed confidently to purchase a boat within their budget.
Whatever new boat you are planning to purchase, we can assist with the finance requirements with individually sourced, negotiated and tailored boat finance.
Contact Jade Boat Loans on 1300 000 003 to apply for boat finance on all types of new vessels and watercraft.
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.
