Isn’t it crazy that 1 in 10 Australians hold a marine licence but there are only 1 million registered boats and jet skis in Australia? With a population of over 26 million, there are clearly a lot of frustrated Aussies out there with a boat licence…but no boat. If you don’t currently own a boat or jet ski (but would like to!), this article is for you. Read on to find out what boat loans are and discover expert tips for securing boat or jet ski financing.
What are Boat Loans?
Jet ski or boat loans fall into the category of “leisure loans”. These loans are designed for those wanting to purchase “leisure vehicles” such as boats, jet skis, motorbikes and caravans. They’re similar to a traditional car loan in that they generally come with a fixed term, a set interest rate and a requirement for monthly repayments.
What are the Benefits of Boat Finance?
The main benefit of applying for specialised boat financing is that these loans often come with reduced interest rates compared to unsecured personal loans (a common finance alternative). This is because boat or jet ski finance can be secured against the vehicle, reducing the risk to the lender and allowing them to offer better terms.
5 Practical Tips to Help You Secure Boat or Jet Ski Financing
Before you apply for jet ski or boat financing, there are some steps you should take to ensure you get the best deal to suit you.
Tip 1: Assess Your Situation
Your first step when considering boat loans should be to assess your current budget. Will applying for the loan cause unnecessary strain on your finances? Will you be able to manage the loan as well as ongoing ownership costs (such as registration, storage, insurance and maintenance)? Remember, you want this purchase to bring you joy, not added financial stress.
Tip 2: Check Your Credit Score
A good credit score can make it a lot easier to secure a competitive finance deal, so find out how yours is looking. Checking your credit score is free and won’t hurt your credit rating. Review your credit report for any potential errors and, if necessary, take steps to improve your rating (by paying bills on time and reducing debt).
Tip 3: Research Different Options
Once you’re confident your budget can support a leisure loan and your credit score is in order, it’s time to start researching the options available. A range of lenders now offer jet ski and boat financing, so don’t feel like you have to apply for the first loan you see. Take time to compare terms, interest rates and deposit requirements.
Tip 4: Obtain Pre-Approval
Once you’re confident you’ve found the right loan, it’s well worth applying for pre-approval. Not only will pre-approval confirm your borrowing capacity, but it will also put you in a stronger position when it comes to negotiating the purchase of your new boat or jet ski. Additionally, pre-approval will streamline the process once you’re ready to buy.
Tip 5: Get Expert Advice
To make sure you secure the best loan to suit your needs, make sure you get advice from an experienced finance broker. Why contact a broker? Because they’ll do all the hard work for you! They’ll help you assess your budget and your credit score, research the various loan products available and make expert recommendations on which one is right for you. They’ll even help with the paperwork.
Muscle Money Can Help You Find the Best Boat Loans
Applying for a leisure loan is an important decision, so it pays to spend a bit of time and effort finding the right lender. Fortunately, Muscle Money can do everything for you. Our swift online application helps you get started as soon as you’re ready, backed up by our expert brokers who can answer your questions and offer tailored solutions.
Don’t put your recreational dreams on the backburner any longer. Contact Muscle Money today to find the perfect jet ski or boat finance to suit your needs.
Caleb Waye-Harris, Senior Manager of Asset Finance at Muscle Money, has almost 15 years of relevant experience in the finance industry. His extensive background includes project management, consumer and commercial lending and asset-based lending.
