With the rising costs involved in owning boats today, boat loans have become more of a necessity than a luxury for those interested in purchasing a boat. Before you pick the boat loan you want to sign it’s a good idea to learn a few things about the process first.
Financing a major purchase like a boat often requires that you investigate your options as far as boat loans are concerned. There are many lenders out there vying for your business, but not all of them are going to offer what you need. Some of them may even be highly selective about whom they choose to do business with. Get more information on cheap boat loans Australia wide
These are just a few small considerations that can have a huge impact as to just how attractive the boat loans you’re considering for your water vessel purchase really are.
Secured vs. Unsecured
This is an age-old debate the continues to rage in the world of finance. The first thing you need to know is that it is much easier to get approval for this type of loan if you have some sort of collateral to offer in order to “secure” the loan.
Boats are significant investments and it requires nearly stellar credit to be extended offers for unsecured boat loans. That doesn’t mean it’s impossible. It simply means that secured loans for boats are much more probable. These are a few additional benefits to secured loans for marine vessels and watercraft.
• Lower boat loan interest rates
• Better terms
• Greater flexibility
In some cases you can even wrap incidental expenses associated with boat ownership (insurance costs, taxes, fees, and warranties, etc.) into the loan with certain lenders and under certain conditions.
It is worth mentioning that if you get a secured loan for your boat you will be required to carry full insurance coverage on your boat for the duration of your loan. If you were planning to insure your boat regardless it will be no big deal. If not then you might want to adjust your boat budget to accommodate this unexpected expense.
What To Look for in Boat Loans
Find new boat loans here that will best meet your needs can be especially trying. If you’ve never purchased a boat before, or have little experience with this type of investment, it may be worth your while doing a little homework first. Try to find a lender that specializes in marine lending rather than a general lender with little or perhaps no experience with boat loans. These are a few of the other things you want to be on the lookout for.
• Interest rates (this is the key to keeping your costs down – the lower the interest rates offered the less you will have to pay for the boat)
• Early repayment penalties (will you be charged a penalty if you pay the balance of the loan off early?)
• Credit requirements (is your credit going to be a good match for the lending company?)
• Condition and age of vessel (some companies require boats to be no more than seven model years old)
Finding a Boat Loan Broker
Finding the right broker for your boat loans doesn’t have to be a major challenge. When you find a broker that meets your needs and that you feel you can work with it’s time to get down to the business of buying your boat.
Specialists generally are the better option to meet your boat loan and lending needs. They will have the inside track on which lenders are willing to work with older vessels and which lenders are willing to overlook a few credit flaws and foibles.
They are also more likely to be able to look at the boat and gauge whether there are any potential flaws or characteristics that are going to make lenders balk. These are important details you can use as bargaining chips to get repairs made prior to financing or to reduce the asking price of the vessel.
A few other ways that boat loan brokers who specialize in this type of lending should be able to assist you with include:
• Title checks on the boat
• Ensure clear transfer of funds
• Perform checks to make sure no outstanding loans or fees are due on the boat prior to purchase
These are all important factors to be aware of and are all things a reliable and seasoned boat loans broker can assist you with.
In the end, you want to do business with someone you feel you can trust when you’re working with boat loans. A boat is a sizeable investment that can bring a lifetime of pleasure for you and your family provided that the financing and paperwork are properly handled.
Boat loans do not work the same for every single person. You need to take your time and find the right boat loans and marine brokers to help you get the financing you need today.