SYDNEY BOAT SHOW: Get your loan on
Going to the boat show? Get a pre-approved loan in 24 hours!In case you missed the news, it’s the boat-show season. The biggest of them all, the 45th Sydney International Boat Show from July 31 to August 4 is a boat-buyer’s bazaar. But one thing many prospective new-boat owners tend to neglect is sorting out their borrowing power and finances beforehand.
With this in mind, we asked the loan experts Boatfinance.com.au (approval application link below) about how prospective boat buyers can secure their finance prior to the upcoming Sydney boat show. The show is special this year, to be staged at Darling Harbour and Glebe Island, with ferries running in between.
For this reason, we created the following scenario that’s probably representative of the majority of new-boat buyers heading to boat shows right around the country.
We said we’re in the market for a trailerboat in the $30-50K range, perhaps a little more but we'll stretch our savings to cover that splurge if we have to. By and large, $30-50K buys a decent family fishing rig in the 4.5-5-metre range with a 60hp+ outboard on trailer.
We're going to consider a lot of local and imported rigs on show. If we get swayed and want to spend a bit more, say $55 or $60K, we might find the extra dough ourselves. But we know we can rustle up a $10K cash deposit now, leaving a loan of $20-$40K for our new boat.
This is the scenario that lies ahead of us as we drive into the show to buy our new rig. But wait! The smart boat buyer will also know something about their borrowing power, interest rates, terms of repayment and, thus, arrive at the show with their finances in order.
Which is why we asked the finance experts at Boatfinance.com.au about the best practice for financing a boat at the upcoming Sydney International Boat Show opening July 31.
For this 47th Sydney International Boat Show, BoatFinance.com.au has created a special dedicated landing page to assist fast pre-show finance approval. See http://www.boatfinance.com.au/sydney-boat-show.html for loan approval within 24 hours.
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10 KEY QUESTIONS
- Securing a new-boat loan
1. We plan to haggle at the show, as that's what shows are good for. We plan to explore the dealer's financing options on the boats as well. So, first up, why is it beneficial for us to use your pre-approval process rather than go through a boat dealer at the show? Are you 'cheaper'?
Getting a pre-approval gives you an indication of your ability to borrow and repayment options before you attend the show. You can negotiate your price knowing an approval is in place. Potentially, this gives you more bargaining power.
2. What then will you require from us to gain your loan approval?
Ten minutes of your time is all it takes to make an application. Once a conditional approval is obtained, then the required supporting documentation can be gathered later, ie, payslips and/or tax returns.
3. What interest rate can we expect to pay on an unsecured private loan for our new boat? We don't want to secure the boat with our house. But what will you need as security then? A car or the boat itself? Or nothing?
Unsecured rates start at 13.95%. Loans can be arranged using the boat as security at much lower rates.
4. Out of interest, how much could one borrow given a secure employment record and an income of, say $80-100K with rental outgoings, etc, leaving $10-15K annual disposable income for a leisure pursuits and purchases?
It is difficult to give an exact figure based on this hypothetical scenario, without a completed application, but somewhere in the $40-$60k range (ED: Great as that’s exactly the kind of loan we’re after here).
5. What are the terms of a typical boat loan? We're thinking five years?
Loans are available to seven years and repayments would be dependent on the age of the boat and your individual profile.
6. Would the cheapest money be drawing down on our mortgage (providing we repay it in the same time frame as a loan)?
7. Are there any other hidden charges, establishment fees, etc, that we need to know about?
For consumer loans all fees and charges have to be disclosed as required by the National Consumer Credit Protection legislation. Therefore there are no nasty surprises when it comes to fees.
8. Out of interest and to make us feel even more comfortable about our new-boat purchase, what is the size of your typical average boat loan?
The average would be around $40K but boat loans typically range from $7K to $500K.
9. In what case would hire purchase or leasing be worth considering for a boat purchase?
Only if the boat is to be used for business purposes, so in the majority of cases secured loans are used.
10. How long will loan approval take and how long does it last?
Normally within 24 hours. Remember, pre-approved is pre-armed and ready to negotiate for the boat of your dreams. Typically,
Now for the boat-show shopping, surely the most exciting part of the while boat-buying process. And with loan pre-approval you are now in an ideal position to negotiate the best deal.
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