Leading financier says dollars still available
Bargains on new boats, a good choice of pre-owned boats, low interest rates and finance is still availableCurrently, and for at least the next six months, some boat brands are offering reduced prices or generous cash back deals on new boats and there is a wide selection of pre-owned boats available.
But while these boat bargains are on offer and interest rates are at a forty year low, the major lenders have tightened up their lending criteria, making it more important than ever to ensure that finance applications are handled correctly. All the information a financier needs has to be correctly presented as a finance refusal may damage chances of borrowing from that financier in the future.
"Compounding the difficulties is that only certain financiers are lending against boats in this tighter market," said Finlease's Mark O'Donoghue, a finance broker with extensive marine experience. "The services of a specialist finance broker assists buyers with their finance application ensuring that all the information a financier needs is correctly presented and that it goes to the appropriate financiers."
"A finance broker works as your advocate in presenting a case to a financier," said Mark. "This increases your chance of a successful application at preferential terms."
Mark advises that it's a good idea to get finance in place early. Set a price for a hypothetical boat, get the application in and approved before you go shopping, then when the ideal boat is found, you are in a stronger position to negotiate.
Boat shows are an ideal opportunity for prospective boat buyers to compare boats and prices. As the boat show season starts soon it is time to start talking finance so that if the boat on the wish list is at the right price, it can become a reality.
The Finance checklist below is supplied by Finlease and highlights what lenders are looking for when approving a loan:
- Your capacity to meet the repayments based on your income.
- For 100% finance you need to prove that you have 'tangible' net worth, i.e. equity in property or investments. Financiers do not want a mortgage, but will simply want to feel comfortable that you have the ability to make good any shortfall between the second hand value of the boat and the amount owed.
- A good credit history.
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