Boat Finance in Sydney

Yes. While Australia has a highly-regarded marine manufacturing sector with many outstanding and highly reputable builders, many vessels are also imported from overseas for sale in Australia. Primarily, these are imported by authorised dealers of the international manufacturer and are approved by Australian regulatory authorities for use in local waters. These types of purchases are covered by the standard range of lending available for both personal and business borrowers. Where a vessel is being purchased by an Australian buyer directly from an international seller, finance should still be available. If purchasing in this way, the buyer may be advised to check that the vessel meets Australian marine safety and other regulations and is eligible to be registered in the state it will be operating in.

Loan repayment estimates can easily be calculated with a loan repayment calculator. These are online devices which are made available by lenders, banks and many marine sellers for use by not only their prospective customers but by the general public. These are generic devices which allow users to enter the amount they want for their finance, the interest rate offered by that lender for that category of loan and the term required to repay. The calculator performs calculations based on financial compound interest computations to deliver a monthly repayment estimate for those values. This is displayed instantly. These types of devices do not include all fees and charges nor make allowances for individual lending conditions and should always be used as a guide only.

The entire purchase price of a vessel can be included in many lending contracts. This is referred to as no deposit finance and is a widely-adopted practice in the lending sector. Borrowers borrow 100% of the purchase price in their loan and can often also include additional equipment and gear and upgrades to optional packs and accessories. Individual lenders will have their own guidelines around the total amount of funding they will extend to individual borrowers. If they assess the applicant unsuitable for that amount, being the full purchase price, they may request the total financial amount be reduced. With older vessels, the price to value ratio will be considered by the lender. It should be noted that by borrowing 100% of the purchase price, immediately on settlement, the borrower would owe more than the price value as interest, fees and charges would be included in the finances.

Yes. Pre-approved loans are available across the full spectrum of marine finance products. A pre-approved loan is applied for and processed based on a dollar amount the borrower considers they may pay for their vessel or a possible actual vessel. It would need to be advised if the buyer considered a new or used craft as the age and condition will impact lending conditions. The process for pre-approved lending is very straightforward. The same application form is used, and the lender processes the application to the approval stage. The buyer then knows they have approval to spend that amount on their vessel. When a sale is completed, the lending details are completed with the specific details of the vessel.

Where a watercraft will be moored or stored and on what waterways it will be operated would not usually form part of a lending application or conditions of a finance contract. The loan would be offered and approved based on aspects of the applicant and details of the actual goods being purchased not how and where those goods would be used. Where the vessel will be operated, on what types of waterway being off shore, riverine or inland, and where a vessel is moored or stored when not in operation, would form part of the application for insurance purposes. The insurance policy may include conditions or restrictions around where it can be used. If a vessel was damaged or stolen when used outside of the policy conditions and the insurer refused payout, the borrower/owner would still be liable for the lending commitments. In that circumstance, the place of operation would be of interest to the lender.

A package deal traditionally includes a vessel, the outboard motor and the trailer or the vessel and the trailer. These deals can be offered by marine dealers and private sellers. A combination deal offered through an authorised dealer can often represent good value for money as the dealer will often have an arrangement with the vessel and the trailer supplier and be able to purchase both at a good price. The entire package can be included in a finance deal. The loan may be sourced for 100% of the purchase price which means no deposit is payable by the buyer. No down payment required. The same interest rate and lending specifications should apply for vessel only or package deal loans.

Yes. Finance is available for marine vessels purchased through a range of channels including direct from a manufacturer or builder, from an authorised dealer, through a marine broker and directly from a private seller. Many private sellers advertise through online selling platforms and buyers should be aware of online buying best practices so as to avoid falling victim to scams and fraudulent activities. The same range of loan facilities are available regardless of seller. Private sales would usually mean second-hand goods and the lending conditions and pricing may vary from financing available for new goods. In buying privately, buyers should also check ID of the seller, verify ownership and ensure the vessel is not being sold under finance. When using a finance broker style lender, many of these details may be attended to by the lender.

Yes. When goods are acquired with secured finance, lenders require that they be covered by insurance. That includes the marine sector. The most popular forms of marine finance are secured loans and that involves the vessel being provided as security for the lender against the funds loaned. The lender will want to be assured that the security is covered in the event of theft or damage and that is why insurance is required. Marine insurance is available through a range of insurers including specialists in the field. Insurance policies vary greatly in regard to what is and is not covered in the policy. Buyers can confirm what the lender requires in their specific policy. Buyers should read the fine print carefully to ensure the coverage suits the waterways they will use, the purposes, the people and what items on the vessel are and are not covered.