Boat Finance in Brisbane

Yes. Most lenders in the marine sector will offer pre-approved finance. Pre-approved finance is funding which is arranged prior to the buyer/borrower committing to a specific purchase. The borrower proceeds with the loan application process based on either a make or model they are interested in acquiring or on a dollar value. The lender proceeds to process the application based on those parameters through to approval stage. The buyer then knows they have been approved to borrow that loan amount and can proceed to commit to a purchase of a vessel. When the purchase is confirmed, the lender amends the paperwork for the details of the specific goods being purchased. Pre-approved loans have a timeframe after which they would need to be reviewed and re-issued.

Yes, subject to individual lender approval. When applying for lending to cover 100% of the purchase price of goods, the financial sector refer to this as no deposit lending. It is widely available and a common practice for many buyers. It allows for the entire price of the goods to be included in the loan amount. Additional gear, accessories and options may also be included when purchased concurrently with the watercraft. The total amount requested would be subject to individual lender requirements. No deposit lending is different from deposits requested by sellers to secure the purchase. Where a deposit is requested to hold the vessel while the finance is being arranged, in most cases it can be refunded to the buyer when the lender settles with the seller.

Yes. Finance is available for a wide range of vessels and watercraft. This includes PWCs from the leading manufacturers including Kawasaki, Yamaha and Sea Doo. For private buyers of new goods, a secured finance would likely be the most appropriate loan for this type of vessel. The PWC would be accepted by the lender as security against lending but the buyer would have full ownership and would be responsible for ongoing expenses including insurance, registration and maintenance. The interest rate can be at a fixed rate, the terms are fixed and a fixed repayment amount would apply. Lenders do have minimum lending thresholds and the price of the goods would need to be above that threshold.

Instant Asset Write-Off and temporary full expensing are accelerated asset depreciation measures. They are introduced by the Government at certain times and for specific timeframes as a form of stimulus measure to incentivise business to invest in equipment and assets. It was introduced in 2020 as part of the COVID-19 stimulus package and the timeframe extended in the 2021/22 Federal Budget through to 30 June 2023. In order to be eligible for this measure, both the business and the vessel must meet the criteria and the appropriate finance product selected. Chattel Mortgage allows an asset to be depreciated to realise a tax benefit and is seen as an appropriate lending product for this purpose.

Business finance deals have tax deductible aspects. To be eligible for commercial lending, the vessel being purchased must be primarily for use in the business; the business owner must have a current ABN; ID and will be requested to provide financial documentation. A range of commercial financial facilities are available to businesses each with varying tax deduction rulings. The most popular choice of lending for businesses is Chattel Mortgage. With this type of commercial lending the entire GST on the purchase of the vessel can be claimed on the next BAS after purchase; the interest and any fees are tax deductible; and the asset can be depreciated as a way of claiming a tax deduction by the business. This is done by the accountant when the end of year accounts and income tax return is prepared.

The interest rate on marine finance varies across the different types of lending available. Finance for business buyers is by its nature lower than consumer finance. Consumer loans which are finance for the purchase of watercraft for personal recreational use include secured and unsecured loans. Secured lending attract the lower interest rate as the vessel is put up as security for the lender against the loan. With no security, unsecured loans will usually attract a higher interest rate. Lenders advertise their current rates for different market sectors. With consumer finance that will be an advertised rate and a comparison rate. Consumers should review the explanation of comparison rates. These rates are based on applications with good credit. If an applicant does not meet all the requirements or is seen as a higher risk, a different interest rate may apply. Reviewing the current interest rates being offered by major lenders in the marine sector can be seen on lender interest rate comparison calculators which are displayed online by some lenders. For a specific interest rate quote for specific financing, persons can request a quote.

The financial services sector in Australia operates essentially on a national basis with consistency in finance and lending across all states and territories. The residential location of a financial applicant should not in itself impact the interest rate, conditions and terms of a finance agreement. These aspects of lending would be determined by an assessment of the individual application. Each application is considered based on a range of factors around the applicant and vessel being purchased. Most lenders and banks operate on a national basis and offer the same finance facilities to all regions. Online and phone lending services are available through many loan providers. There is no necessity for applicants to select a lender located in their locale.

There are different types of loans for marine craft for personal and business buyers. If the watercraft is being bought for private recreational use such as a family runabout, a fishing boat, speedboat, PWC, cruiser or general water activities there are two main financing types: secured and unsecured loans. Secured finance is the most widely used and it follows a standard format. The goods are accepted as security by the lender against the finance advanced but the borrower has ownership and full responsibility for the ongoing costs. The loan is repaid over a fixed term with fixed repayments. If an older vessel is being acquired or boat share or other circumstances where offering the goods as lending security is not appropriate, an unsecured personal finance may be suitable.