Engineering a Great Boat Finance Deal
Before committing to a boat purchase, it’s always a good idea to arrange your finance. Knowing you have your finance confirmed provides greater confidence and assurance when selecting a boat.
Types of Boat Loans
Different loan types are available for the purchase of boats for essentially private use and those purchased by marine businesses.
- Personal Boat Loans: the most commonly type of loan is the Secured Boat Loan. This includes a fixed monthly repayment, fixed loan and usually a fixed interest rate.
- Commercial Marine Finance: businesses have the choice of Chattel Mortgage, Marine Commercial Hire Purchase and Boat Leasing. Which is best suited to your business depends on your accounting methods and treatment of GST, tax deductions and balance sheet. It is advised that businesses discuss this decision with their accountant or financial advisor.
Engineering the Best Loan
Using the services of a professional finance broker with specific marine finance expertise can not only make the process of sourcing boat finance easier, it can also greatly assist in being able to structure the loan to suit you.
Varying the length of the loan term to increase or decrease the monthly repayments, having options in regard to the balloon or residual with a commercial finance facility and negotiating the cheapest interest rate are all very important in achieving your financial objectives.
Banks and some lenders do offer cheap boat loans in Australia but they don’t all offer flexibility when it comes to the elements of the loan. A finance broker has access to many lenders and with that comes the ability to source the cheapest interest rates.
By selecting a broker with extensive experience and ongoing work in the marine sector, you’ll have someone working in your best interests that has great bargaining power to negotiate you the best deal.
Many brokers will also assist with handling the paperwork and with other aspects associated with your purchase including ID and checks for used boats and private sellers.
Pre-Approved Boat Loans
Arranged pre-approved finance puts you in a position to move forward more confidently with your boat purchase. Knowing that your finance is not only approved but what your repayments will be on a particular price range allows you to make informed decisions and streamlines the process.
The process is similar to applying for a loan itself, but instead of applying for finance to purchase a specific boat, you apply for a loan to purchase a boat in a specific price range. Your broker or bank will process your application, providing you with a quote of monthly repayments and terms.
Once you’ve then selected your boat and done the deal with the seller, you contact the broker or lender and they will finalise the loan process.
We know people that operate in the marine finance lending and can share their contact details with you. Please contact us for more information.