When looking for finance for a boat, jet ski or other marine craft most people are only interested in seeing what effect the interest rate has on their loan repayments. Interest rates are not the full story. There are other important factors that are equally important:
A Term of the loan
The longer the term is, the payment will spread the time taken to pay off the loan and would normally mean you pay more interest over the term of the loan. So the longer the term, the lower the instalment repayments but the overall amount of interest will be higher as the loan will take longer to pay off.
Repaying your loan weekly compared to fortnightly or monthly can reduce the amount of interest paid over the term of the loan and lower your repayments.
A balloon payment is a lump sum that is paid at the end of the loan term to the finance provider. This means that the borrower only needs to finance a lower amount which reduces the instalment repayment with the balance payable at the end of the loan. Not every lender or loan product will support balloon payments.
The Amount Financed
This is singly the most important factor that will affect your repayments. The amount borrowed needs to be repaid to the lender over the term of the loan. The interest rate only reflects the cost of financing the amount borrowed. The repayment can in its simplest form be thought of having 2 components:
- The amount of loan principal being repaid and,
- The amount of interest charged on the current loan balance
Using A Boat Finance Calculator Wisely
Okay so you have played with the boat loan calculator on our website so you know that you can enter and change the loan amount, length of the loan, interest rate, balloon payment and loan repayment frequency, however, this is only part of the story. To find out what you can borrow there are other items that come into play. These include:
- Who the lender is.
- The type of finance you are seeking (secured boat loan or unsecured boat loan).
- Age of the boat, jet ski or other marine craft.
- The type of boat or marine craft being purchased and its intended use.
- Your personal financial situation as the borrower.
Plus a whole lot more, such as fees and charges (upfront and/or ongoing), any payout penalties and so forth. These may also have an effect on what you end up paying to service your loan.
Without knowing your personal circumstances and the details of your desired marine craft purchase, it is impossible to give you an answer as to what the highly competitive interest rate Boat Loans Now will be able to source from our lenders for you. As everyone’s circumstances and requirements are different, we don’t publish boat loan interest rates on our website. The bottom line is we work for you and not for the vendor or financier. It’s our job to get you the best finance deal we can.
Other items you should also ensure that your marine craft finance covers:
- Your approval prospects.
- The level of flexibility you require.
- What it will cost you to pay out your loan early.
- All fees and charges.
- Whether the loan is secured / unsecured.
- Repayment instalment frequency, amount and methods (whether weekly, fortnightly or monthly).
To have a more accurate idea of interest rates and more importantly what your repayments are likely to be, contact Boat Loans on 1300 880 954 or apply online.
We would love to be able to help you!