When you’re buying fruit and veg, the price fluctuates according to the season. When a variety is in season the price usually drops and when out of season and harder to get, the price rises. Seasonal price fluctuations are commonplace in many industries. But do these cyclical patterns affect the marine sector? When it comes to buying a boat and getting a boat loan are there seasonal impacts? Does the time of year when you buy a boat affect the price? Do interest rates on boat loans exhibit cyclical trends? How do the seasons play out in regard to boat prices, availability and most importantly to us, boat loans? When should you buy and borrow?
As boating is viewed by a lot of people as primarily a summer activity these are quite reasonable questions. Though many boat owners would disagree that boating is seasonal as they enjoy their time on the water year round. In northern areas of Australia especially, every season is boating time.
But let’s stay with the ‘summer thought’ and consider the seasonal impacts of boat buying. We’ll offer up some ideas on what could play out and our hints and tips on how to get the most from buying a boat at the end of the official summer boating season.
Seasonal Trends on Supply
While boat manufacturers and builders will likely gear up with stock for a surge in sales at the start of the boating season, the major boat shows in Australia are held in the autumn and winter months. So manufacturers can be more inclined to launch new models in conjunction with the shows for maximum market exposure. As some boats are custom-built to order there can be a lag between ordering and taking delivery.
If a manufacturer is launching new models and dealers have current model stock to move to make way for the new releases, then you may find some good ‘end of model’ sales available. In line with the wider consumer sector, end of year sales are also available in the marine sector.
Due to the effects of coronavirus, 2020 saw a surge in boat sales as seen in the increase in boat registrations reported by several states. The demand for jet skis and PWCs in particular was so great that it is reported that stocks were completely depleted in Australia.
As the season comes to a close, some boat owners may consider selling due to a range of personal reasons. Possibly they didn’t use the boat enough that season to justify keeping it, they don’t want to pay the costs of storage when not in use, they’re planning to upgrade next season or simply lifestyles change.
So the used boat market can be strong through winter and prices may drop if sellers are seeking a quick sale. There is plenty of great boating opportunities through all months of the year, so don’t discount buying at the end of the season.
Buying during autumn-winter does give you the opportunity to ready your vessel and upskill your boating knowledge and capabilities in time for the start of the official boating season in October.
Boat Loan Considerations
At Jade Boat Loans, our boat loan products don’t change based on any market trends or in response to any cyclical patterns. The Secured Boat Loan and Unsecured Personal Loan are standard loan products with formats which essentially have remained constant over time.
Lenders may vary their approach to boat loan applications in response to economic and other financial market conditions. For example, at the start of the coronavirus pandemic as the realisation of the economic impacts were only just beginning to emerge, banks and lenders in general did tighten their lending. It was a period of uncertainty and lenders reacted accordingly. But as the situation improved, our lenders returned to normal processes in regard to approving boat loan applications.
Interest Rate Fluctuations
Interest rates on boat loans and other consumer finance can fluctuate in response to a range of impacts. These include global economic conditions and closer to home, the RBA’s changes to the official cash rate. When the cost of acquiring their funds increases, lenders can increase their price to borrow, being their interest rates.
As you can see from our lender comparison chart, different lenders already offer varying interest rates on boat loans. Individual lenders will set their interest rates for a particular industry or sector based on their assessment of the sector. Lenders that are extremely active in say the marine finance sector can tend to be more competitive on interest rates than those that are more active in other sectors.
Currently, interest rates are at historic low levels and based on recent comments by the Governor of the RBA, Philip Lowe, they could be expected to remain low through 2021.
So in summary, boat loan interest rates do not tend to fluctuate with the boating season so you can expect to achieve Jade’s cheap interest rate boat loans for your end of season boat purchase.
Applying for Boat Loan
Jade Boat Loans is open and operating for boat loans year round! You can apply for a loan with us at any time over the phone or online. With the boat show calendar looking solid through autumn-winter, it can be a good time to secure a pre-approved boat loan so you’re ready to order.
Contact Jade Boat Loans on 1300 000 003 to discuss your boat loan requirements.
DISCLAIMER: THE INFORMATION PRESENTED IN THIS ARTICLE IS NOT INTENDED AS THE SOLE BASIS FOR INDIVIDUALS TO MAKE FINANCIAL DECISIONS. THOSE THAT REQUIRE ADVICE OR GUIDANCE IN REGARD TO THEIR FINANCIAL DECISIONS SHOULD CONSULT WITH AN ACCOUNTANT OR FINANCIAL ADVISOR. THE INFORMATION AS DETAILED IS BASED ON DATA, SPECS AND REFERENCES AS SOURCED FROM A RANGE OF SOURCES AND LIABILITY IS NOT ACCEPTED FOR MISINTERPRETATIONS, MISREPRESENTATIONS OR ANY ERRORS IN THE CONTENT. THIS ARTICLE IS FOR GENERAL INFORMATIVE PURPOSES ONLY.