With winter recreational activities all but wiped out for many Australians due to lockdown, boating and fishing enthusiasts will be focussing on the good times ahead – the new boating season and the purchase of a new boat. Boat owners can usually keep their boats for many years so the time to buy a new boat doesn’t come around that often. As a refresher for them and for those buying their first boat, we provide an update with tips and hints to assist the process. An overview of advice and matters for consideration from bow to tow.
Finance and Boat Loan Interest Rates
Most buyers will be looking to secure finance for their purchase so we’ll start with our specialty – marine loans and those all-important interest rates. It’s been widely reported that interest rates are currently at historic low levels. But rates vary across different types of loans and finance and the economic conditions created by the ongoing pandemic have also raised concerns around lending.
Lockdowns have had an effect in many ways on many people. From our perspective as lenders, the big issue is how the extended lockdowns in particular will affect lending interest rates. For direction and outlook in that area, the lending sector looks to the monthly meetings of the RBA Board and the decisions on monetary policy.
At the 3 August meeting and in the Quarterly Statement on Monetary Policy released on 6 August, the RBA noted the effect of the lockdowns, stating it expected a fall in GDP in the September quarter following positive growth figures through what it referred to as the recovery phase.
The RBA kept the official cash rate on hold at the historic 0.1% and reiterated earlier directions that it was expecting 2024 to be the timeframe for inflation and employment figures to be in the target band to trigger any rate rise.
Currently inflation is at 1.75% and the RBA is looking for this to be sustained at 2-3% over several quarters. It is predicting unemployment to rise following the Sydney lockdown. But it notes that after previous extended lockdowns the economy bounced back quickly and it was expecting that in this case also.
The bottom line for those seeking boat loans, interest rates are currently low and Jade is renowned for achieving cheaper rates. Our boat loans are established with fixed interest rates which remain in place over the full, up to 7 years of the finance term. Any rises in the official cash rate in 2024 as indicated by the RBA would not impact fixed interest rate loans secured now.
Loan Types and Options
Our boat loans are available with boat only, boat and motor and boat, engine and trailer options. Many additional accessories and options may be included in the loan amount when purchased at the same time as the boat and appear on the dealer’s invoice. These may include covers and bimini tops, motor upgrades, additional electronics and safety equipment. Discuss these with your Jade consultant to confirm details for your loan.
The types of loan specs and the interest rate on boat finance varies across the lending market. You can review what boat loan types and interest rates are currently being offered by Jade and a selection of other lenders on our Lender Interest Rate Comparison Calculator. This is a very useful loan tool which can be used to calculate repayment estimates for all new boats.
Jade Boat Loans does not have a maximum loan amount for marine finance and no deposit finance is available. Pre-approved finance is available so our customers can confirm their finance prior to committing to a purchase.
Preparing to Buy
Before getting into the process of selecting a boat and applying for a boat loan, addressing your credit profile can be a smart move. While we can secure cheaper interest rates, our lenders will assess the specifics of individual loan applications when preparing their offers.
A good credit profile is key to achieving the best boat loan. Individuals can access their credit profile through a number of credit reporting agencies and address any errors which may improve their credit score and loan prospects.
Have the Right Tow
Trailer boats are an extremely popular choice as they can reduce mooring and marina costs and provide greater flexibility when it comes to where to launch. You can take your boat on holidays and choose open water or inland rivers, lakes and waterways.
But before buying, an important aspect to consider is ensuring your vehicle has the appropriate towing capacity. With the big push towards electric vehicles, we spied an interesting article in the marine media on whether EVs are suited to towing or not.
It seems it depends on which EV you purchase. As with all types of vehicles, EV manufacturers must advise the authorities of the towing capacity of their vehicles to gain certification in Australia. Some EVs are certified to tow while some are not. So if you’re an EV owner looking to purchase a trailer boat, do your research into your vehicle’s capabilities before hitching up your newly purchased boat.
Buying a New Boat
Supply has been an obstacle for buyers of late as boat ownership rates have soared during the pandemic. Getting in for what you want is important, but due diligence should not be overlooked.
If buying a used boat via an online platform take care of online scams and frauds. Check the ACCC website for the latest alerts.
Follow the guidelines around selecting a boat to suit your activities and your boating skills.
When taking on finance to purchase a boat, you will be required to take out insurance. Marine insurance policies can vary significantly and inclusions and exclusions should be studied closely. Marine insurance specialists such as Club Marine provide a comprehensive range of policies to suit all types of boats and a wide range of boating activities.
To get your boat buying plans off to a flying start, you have the choice of applying for your loan online or simply phoning us to and applying over the phone.
The official start of the 21/22 boating season is the start of October so the countdown is on to secure your vessel to enjoy a great boating summer.
Contact Jade Boat Loans on 1300 000 003 or online to discuss your boat loan requirements.
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.