When buying a new boat most people will be looking to finance their purchase with a boat loan. While browsing lender options, you’ll see that lenders do tend to focus on the interest rate they are offering. When it comes to banks and finance companies, that is essentially their product, so it is understandable. At Jade Boat Loans, we certainly focus on interest rates because we know that it is our better interest rates that form the foundation for our cheaper boat loans. (But we do offer a much more extensive ‘product’ than just our interest rates represents. More on that later)
But we’re also well aware that yes interest rates are important when seeking a boat loan. But can actually be more significant to most people what is achieving the loan repayment amount that suits them. You can have the cheapest interest rate boat finance ever but if the loan repayments don’t suit your budget….mmmm, probably doesn’t work for you.
You can check out as many lender interest rates as you like, but what you are probably really looking for is how that rate works with the overall boat loan and how you can get what you want in loan repayments. As part of our mission to inform and educate our customers, we’re covering off on a number of key points to assist you get closer to what you want in your boat loan. We’re presenting quite a range of issues here, but stay with us, it all comes together to give you a big picture view of securing the boat loan you want.
Interesting Interactions
First, understand how the interest rate interacts with the loan term and the loan amount and lender fees and charges to arrive at the loan repayment amount.
- The lower the interest rate, the less amount of total interest you will pay over the term of the loan.
- Have a shorter loan term and you will pay less interest in total because you’re borrowing money for a shorter time period.
- The interest rate is not the only component to factor into a loan. Fees and charges applied by lenders vary and need to be considered.
- While Jade Boat Loans offers genuine cheap interest rate loans, some offers by other sources such as 0% interest rates can conceal much higher fees and charges.
- We’ve provided a Lender Comparison Chart so you can quickly see how Jade Boat Loans compares with several other major lenders when it comes to interest rates.
- With consumer finance there is an advertised interest and a Comparison Rate. The Comparison Rate is a formulation which is based on a specific loan example. It shows the interest rate on a specific loan amount over a set loan term including fees and charges and then averaged over the loan term. As this includes the fees, the Comparison Rate is always higher than the advertised rate.
Pre-Loan Calculations
We provide our boat loan calculator to allow customers to receive ballpark estimates on boats they are considering. But this is also a great tool to assist in planning how you would like your loan structured. It’s also a great way to see how the components of a loan interact to calculate the loan repayment.
- When using the calculator, you’ll see how changing the loan amount or the loan term while keeping the other data constant, changes the repayments.
- Paying a deposit is a bit like stating the obvious. But lowering the total loan amount does lower the repayments and if you have a target repayment you want to achieve, play around with entering different values in the calculator to see what combination brings you closest to the target.
- While interest rates on loans are at very low levels, they are also low on savings. So you may like to discuss with your financial advisor using part of any savings you have as a small deposit to reduce the amount of your loan.
Improve Your Application
A quality loan application can contribute significantly to improving your prospect of achieving a better boat loan at every step. Address your credit profile, deal with any issues and assemble very detailed loan application information so you present the best loan application possible.
Negotiating the Deal
Now we get down to the real nitty gritty – the bargaining process. If you approach a bank or finance company yourself, you probably don’t have much bargaining power to negotiate the loan terms and eventual repayments you want.
Banks and many finance companies have strict lending guidelines, not just in approving applications but often in what they will offer in regard to loan terms. And as mentioned above, the length of the loan term impacts the loan repayment.
Jade Boat Loans does have the bargaining power, courtesy of the large amount of marine finance business we do with our large number of banks and lenders. As your lender, we represent you and negotiate hard on achieving the loan terms and conditions that will result in the repayments that you are after. As marine finance specialists, we have access to more lenders that offer better deals in the boat loans space than the traditional banks. Engaging our services is easy and available for all boat loan customers.
Recapping on achieving your target boat loan repayments:-
- Look at loan structure overall not purely on interest rates.
- Compare Comparison Rates not just advertised interest rates to avoid high fees and charges.
- Engage Jade as your lender to negotiate the best deal on your behalf.
- Enjoy boating!
For assistance in achieving your target boat loan repayments, call Jade Boat Loans on 1300 000 003
DISCLAIMER: YOU ARE ADVISED THAT THE INFORMATION PRESENTED HERE IN THIS BLOG, IS FOR GENERAL INFORMATION AND NOT INTENDED TO REPRESENT FINANCIAL ADVICE IN ANY WAY. IF YOU CONSIDER THAT YOU DO REQUIRE ADVICE IN REGARD TO YOUR FINANCIAL SITUATION, THEN WE RECOMMEND THAT YOU SEEK A CONSULTATION WITH A PROFESSIONAL FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO THE DETAILS OR ANY ERRORS IN THE CONTENT WHICH MAY IN PART HAVE BEEN SOURCED FROM A RANGE OF SOURCES.
