There comes a time in the life of all goods, even favoured possessions such as boats, when they approach their use-by-date. In the life of a boat that date may be due to a range of circumstances. It may mean changes to the way you want to use your boat, in what waters with the excitement of offshore beckoning. The family growing up or the arrival of new family members (grandchildren maybe) might signal the need for changes. Or the use by date may come around through the general wear and tear incurred over the years you’ve enjoyed your boat.
So when the time comes for change, boat owners have a choice. When your preferences change and your current boat no longer meets your boating style or your boat needs a spruce up, do you upgrade, update and repair your current one or buy a new one?
You might be looking at a bigger motor so the boat has the capabilities to head offshore to reach new fishing areas. This may involve upgrading to a larger outboard or changing over a single outboard into a twin or even a triple if suited to the vessel.
Other major engine parts may be reaching their lifecycle end and that can mean significant maintenance costs. An upgrade may involve recoating to repair and restore worn coatings and finishings. The hull may also need some attention. An upgrade may involve updating tech, devices and electronics for safety or entertainment purposes. It may involve buying new safety gear such as updating life jackets to meet new standards, updating expired flares and other items. It may involve major spending to update and replace tired and worn seating, covers and canopies.
Jade Boat Loans offer up the financial argument for and against upgrade or just buying a new boat that has all the features and inclusions to meet your current requirements.
Considerations re Update and Upgrade
While financial decisions need to be made on an individual and personal basis and if required professional advice sought, we have a few considerations to contribute.
The first step is to cost up all the expenses involved in updating your boat to meet your changed requirements or to affect the repairs required. Will spending this money increase the overall value of the boat? Will you recoup your money in the future when you do eventually sell or trade in on a new boat? Review the used boat market to see what prices boats of the age/model of your vessel are fetching. It should give you some guidance.
Consider how you are going to finance the costs of the upgrade. Some marine maintenance and engine work in particular can be costly. While Jade Boat Loans offer secured loans for the purchase of boats, the costs of work on existing boats would not be covered by a Secured Boat Loan. We may be able to assist with an Unsecured Personal Boat Loan, depending on lender guidelines. To receive a better understanding of potential repayments, you can utilise our online marine finance interest rates to compare lending options. Alternatively, you are also welcome to give us a call to discuss your requirements.
When considering financing these updates, thought should be given to the life of the entire vessel once the upgrades are done. What will it be worth over the term of, and at the end of an unsecured loan repayment period? What other aspects will break down or require repair at some stage in the near future which will require additional cash outlay?
The Case for Buying a New Boat
Now we get to our preferred and specialist area of interest – finance for new boat purchases. We put forward our perspective on buying new v upgrade and repair for your consideration:-
- Armed with the total costs of what it will cost you to upgrade your current boat, it’s time to compare the expenses with possible repayments and the advantages of buying a new boat.
- Trading in or selling your existing boat, as is, will save you the cost of upgrade and give you some dollars towards the cost of the new boat. Though Jade Boat Loans provides no deposit finance so you can keep the proceeds of the sale for other purposes and include 100% of the new boat price in you loan.
- You can spec up your new boat with all the inclusions you want, brand new. Speak with your Jade Boat Loans consultant about the options, accessories, safety gear, sound systems and other items which we can include in your loan.
- You can use our online boat loan calculator to generate estimated repayments on any loan amount you are considering.
- Interest rates! That is the big drawcard at the moment for buying a new boat. Lending interest rates are at historic low levels which is enhancing the option of buying a new boat rather than cover the costs of repairs and upgrade through your cash reserves. We are currently offering exceptionally cheap interest rates on our Secured Boat Loans.
So if you’re boat, as much as you might love it, requires extensive much-needed work, why not talk to us about how cheaply we can get you onto a brand new boat which has all you want and needs to meet your boating requirements.
Contact 1300 000 003 for a quote on new marine vessel lending.
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.