Your Ultimate Guide to Financing Your Boat and Jet Ski

Summary:

Navigating marine finance doesn’t have to be overwhelming. This guide simplifies the process of securing a boat or jet ski loan with clear steps, smart preparation, and expert support:

• Learn the difference between secured and unsecured marine loans to choose the right fit for your needs and financial profile.
• Set a realistic budget, check your credit score, and gather key documents to boost your chances of approval.
• From online application to loan settlement, the journey is made simple with pre-approval and personal lending support.

Owning your own boat and jet ski can be thrilling with the number of adventures you can have, but tackling the world of marine finance on your own can be stressful with confusing jargon, endless paperwork, and the nagging uncertainty if you are truly getting the best deal. It’s a process that can quickly turn the excitement of making a new purchase into a source of anxiety.

But it doesn’t have to be that way! Our guide is here to be your trusted first mate, navigating you through the entire process. We’ll break down everything you need to know about jet ski and boat finance, from understanding the basics to preparing your application. You’ll get a simple, jargon-free guide, empowering you with the knowledge you need to make sure you’re getting the best deal.

Understanding Boat and Jet Ski Finance:

Marine finance works differently than your typical car loan. You’re dealing with what’s called “leisure loans”. This is special financing designed specifically for recreational watercraft like your boats, jet skis, and other marine equipment.

There are two main types of marine loans, which are:

1. Secured Loans: Use your boat or jet ski as security, also known as collateral. This means if you can’t make payments, the lender can take your watercraft. The upside, though, is you’ll usually get better interest rates because the lender has less risk.
2. Unsecured Loans: Doesn’t require your boat or jet ski as security. You’ll typically have higher interest rates, due to the increased risk for the lender.

If you’re looking for a way to start creating a budget, Moneysmart has a great article, “How to Do a Budget”, where they take you through six simple steps to create a budget.

Preparing Your Loan Application:

A well-prepared application is the key to securing smooth and efficient marine financing. Here are three things to get in order before you apply:

1. Know Your Budget:

The first and most crucial step is to determine how much you can comfortably afford to borrow. This isn’t just about your repayment amounts; it’s also factoring in the ongoing costs of ownership for your boat or jet ski. These can include:

• Insurance: Comprehensive insurance is usually required by a lender for a boat or jet ski loan.
• Registration and Licensing: These are annual government charges.
• Maintenance and Servicing: Regular upkeep is essential to keep your watercraft in top condition.
• Storage: If you don’t have space at home, you’ll need to budget for storage or mooring.
• Fuel: This will vary depending on your usage.
• Trailer: A quality trailer is vital for safely transporting your boat or jet ski to and from the water, and it’s an additional cost to factor in.

2. Check Your credit Score:

Your credit score will be a key factor that lenders will consider when you apply for your jet ski and boat finance. A higher credit score usually indicates a lower risk for lenders, which can lead to better interest rates and more favourable loan terms.

You can check your credit score for FREE at any of the major credit bureaus below:

• Equifax
• Illion
• Experian

We also have a blog, “Guide to Understanding Your Credit Score”, where you can get a deeper dive into everything from what a credit score is to how you can improve your score.

3. Gather Your Documents:

Having your paperwork ready will speed up the process for your jet ski and boat finance. Typically, you will need to provide:

• Proof of Identity: Valid driver’s licence.
• Proof of Income: Recent payslips or, if you’re self-employed, your business financials and tax returns.
• Bank Statements: Normally, you’ll need to supply at least three months (90 days) of bank statements for lenders to assess your affordability.
• Boat or Jet Ski Information: This is not required when you submit your application, but if you have information on your boat or jet ski, such as the year, make, model, or whether you are purchasing from a dealer or private seller, the information can be helpful.

Your Boat and Jet Ski Application Process:

With your preparation complete, you’re ready to apply for your loan. Here’s a simple five-step guide to what you can expect:

1. Online Application: The easiest and quickest way to start is to apply now for your jet ski and boat finance. Our application process is an obligation-free service and only takes a few minutes, where you will provide your details and your loan amount, and once submitted, your own dedicated lending specialist will call you to guide you through the process.
2. Get Your Pre-Approval: This will tell you exactly how much you can borrow and what your repayments will be.
3. Shopping Time: With your pre-approval in hand, you can shop with confidence. You’ll know your max spending limit and won’t waste time looking at boats or jet skis that are beyond your budget.
4. Finalise Your Loan: Once you’ve found your perfect jet ski or boat, your lending specialist will help finalise everything with your lender. They will be responsible for making sure all the paperwork is in order and submitted on time. When everything is ready, you will get loan contracts sent for you to sign. This is where we will walk you through the contract and answer any questions you may have to make sure you fully understand.
5. Settlement: The best words you can hear are ‘Your loan is settled!’ With the keys in your hand, the only thing you’ll have left to do is hit the water and start making those memories!

Your Adventure Awaits:

Apply today for our stress-free, quick, and easy financing!

Curious about the hidden costs that can come with your boat or jet ski? Read our blog “Hidden Costs of Boat & Jet Ski Ownership to Budget For”.