When seeking a loan to purchase a Jet Ski or other make of PWC, it is natural to focus on the interest rate being offered by the bank or lender. There are other important inclusions and components of a consumer loan to take into account including the fees, flexibility of the lender in offering the terms you want, any special conditions on the loan and the ease of access to sourcing and securing the loan. But by far the interest rate is key to the overall cost of the loan.
In comparing interest rates on loans for jet skis, it’s worth having a good understanding of how consumer loan interest rates work, why they vary across the lending market.
Consumer Loan Interest Rates
‘Interest rates’ are regularly mentioned in media and other channels in reference to the Reserve Bank of Australia (RBA). The RBA Board meets each month (except for January) to make their decision on rates. But the actual interest rate this is, is not the consumer lending rate but the official cash rate. A rate on loans amongst lenders.
This rate, the official cash rate, has been kept on hold at 0.1% since November 2020 as the RBA utilised monetary policy as a stimulus during the height of the pandemic economic crisis. While this rate is not the rate a borrower will be offered on a jet ski or other consumer loan, it is significant.
Lenders will use the cash rate as somewhat of a foundation for their interest rates across their loan portfolio. If the cash rate rises, then interest rates on most lending and finance will usually rise. The exact amount that any lender will increase their individual rates will depend on individual circumstances and will vary across the market. The shifts in the cash rate are usually more significant for home loans which are longer loans than say jet ski loans and include variable interest rates.
Comparing Jet Ski Lender Rates
When reviewing jet ski and other consumer loans across the lender market, you will likely notice a difference from bank to bank, finance company to finance company. They are different as each lender will need to allow for their own costs of acquiring their funds. The variation in rates can also reflect the lender’s preparedness or interest in lending to that sector.
For example, unlike Jade Boat Loans, not all lenders will offer a specific PWC or Jet Ski Loan category. Their option may be a general Personal Secured Loan, which is offered for a wide range of goods such as cars, boats, caravans and motorbikes.
Another key aspect is the difference between the Advertised Interest Rate and the Comparison Rate. The Advertised rate is, in simple terms, the base rate. The loan fees and charges will then be added into the overall loan when an offer is calculated.
The Comparison Rate is a rate which does include fees and charges and is calculated based on a specific loan example. Not all fees may be included. When you see a Comparison Rate, look for the small print alongside which details the loan example.
Unless otherwise specified, advertised and comparison rates all relate to new goods. Used goods may attract a different interest rate as the age and condition of the goods is assessed by lenders when making a loan offer. It is however possible to achieve a cheap interest rate on used jet skis. Speak with one of our consultants to discuss this.
When it comes to our boat loans, Jade Boat Loans does offer a specific Jet Ski Loan with a cheap interest rate that reflects our expertise in marine finance and our interest in lending to this sector.
Our interest rate on Jet Ski Loans is a fixed interest rate. That means if and when the RBA does lift the official cash rate, there would be no change to the interest rate for our customers who have secured a fixed rate jet ski loan.
With our Jet Ski Loans offering terms of 5. 6 and sometimes 7 years and the RBA expected to lift rates in 2023/24, you can easily realise the significance of securing a cheap interest rate jet ski loan now. If you secure a cheap rate loan now, you are assured of that cheap rate over the complete loan term.
Securing the Cheapest Interest Rates
When sourcing a jet ski loan at the cheapest rate, buyers can DIY the task or engage a finance broker style lender such as Jade to do the hard work for them. Taking on the task yourself can be time-consuming as you may need to contact multiple banks and lenders to get loan quotes. As an individual, you will not have much if any bargaining power to negotiate on a better rate or better loan.
By engaging a Jade Boat Loans consultant to handle the task, we use our bargaining power as a specialist in marine finance and utilise our expert connections with a vast selection of banks and lenders. It can be a much faster and easier way to a cheap interest rate jet ski loan as our track record shows.
To take ‘easy’ to another level, we’ve actually provided a list of banks and lenders with the loan type and rate they are currently offering on jet ski loans. This list doubles as a calculator so you can quickly calculate what your repayment estimates may be with different lenders and how cheap our offering is in comparison.
We take the hard work out of shopping jet ski loan interest rates and take the hassle out of securing a loan offer.
Contact Jade Boat Loans on 1300 000 003 for a cheap interest rate jet ski loan quote
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 MIS-PRESENTED DATA AND DETAILS HEREIN.