Marine Finance for Boats and Jet Skis

A secured boat loan uses the vessel as collateral. The rate is lower, and the lender will have requirements about age, survey and insurance.

An unsecured loan is not tied to the boat, which makes it the practical answer for older hulls, project boats and anything below a lender's minimum secured amount.

On a package worth $80,000 the rate difference is worth chasing. On a $15,000 runabout the simplicity of unsecured often wins.

A dealer or marine broker purchase is the simplest to settle, with a clear invoice and a traceable history.

Private sales are where a lot of the value is, and plenty of lenders get twitchy about them. Those that do fund them will want proof there is no finance owing on the boat, engine and trailer, and will pay the seller directly.

Approval in place before you inspect is worth more in marine than in almost any other category, because good boats sell in a weekend and interstate purchases add another layer.

Most lenders cap the vessel age at the end of the term, which is what shortens the term available on an older hull.

Above a certain value or age a lender may want a marine survey. That is a cost and a delay, and it is also the single best protection you have on a used boat.

Fibreglass, aluminium and timber are not treated the same. Timber in particular narrows the panel sharply, and that is worth knowing before you fall in love with one.

A boat loan usually funds the package: hull, motor, trailer and the gear that is part of the sale.

A repower can often be financed on its own, and sounders, safety gear, covers and a new set of electronics can usually go in rather than onto a card at a much worse rate.

List everything up front. Adding items after approval means reworking the deal, and some lenders cap how much of the total can be non-core.

A balloon is a lump sum left at the end of the term. It drops your repayment now, and you still pay interest on the full amount the whole way through, so the loan costs more overall.

Boats depreciate unevenly. A well-kept hull holds value reasonably while the motor does not, which makes a large balloon riskier here than on a car.

If you intend to upgrade in a few years it can work. If this is the boat you will keep, a balloon usually just means refinancing later at worse terms.

Comprehensive marine cover is a condition of almost every secured loan, and it is priced on where the boat is kept as much as what it is.

Berthing or storage, antifoul, servicing and a tow vehicle rated for the load all belong in the budget alongside the repayment.

We work the repayment against the whole cost of ownership, because the loan is rarely the part that catches people out.