How To Secure Competitive Boat Finance
The boating industry in Australia has remained vibrant despite the current ominous economic outlook. Boat companies are still reporting strong sales and interest at both market ends. The fact that thousands of boating enthusiasts, as well as buyers of both small and big boats, throng the Sydney International boat show attests to this fact (www.sydneyboatshow.com.au). Statistics from the show indicate strong sales of the newest boat in the market, the multipurpose boat that is ideal for both family boating and commercial fishing. Boat finance is an integral part of the majority of boat purchases. In Australia, this type of finance is usually associated with vessels that measure less than eight meters in length. This is quite logical since 93% of all Australian registered vessels fall in this category.
Tips for Borrowing
Apart from shopping around for the best deals and rates, you have to assess how attractive you are as a borrower to potential lenders. It is important to convenience potential lenders that you are a low-risk borrower. Doing so would enhance your credit rating and save you both money and time. In order for you to get approval for a boat loan, you have to factor in the following:
• Come up with a well-thought out figure of how much money you wish to borrow. Apart from being pragmatic, the figure should also agree with your repayment means.
• If you are going to use your vehicle as security, it is important that it be in perfect working and mechanical condition. Obviously, most lenders prefer relatively newer vehicles to older ones.
• A majority of mainstream lenders fancy borrowers who have stable sources of income. As a borrower, you have to provide sufficient proof of uninterrupted income over a certain duration of time.
• In addition, your income and bank account should clearly demonstrate your ability to repay the loan in set installments. It is important to have a clean credit history. Ensure that all your credit ratings are in order. Correct any mistakes with your previous credit providers before applying for boat finance with a new credit provider.
• First time borrowers should consider getting a guarantor especially if they are seeking a large amount. Anyone with a good credit history can underwrite the boat loan and fast rack your chances for approval.
Shopping for the Best Boat Finance Deal
Just like most other financing options, boat finance is quite competitive. However, it is quite in order to negotiate and bargain for a better rate and deal. The characteristics of a good loan plan include same day approval, zero termination fees, and low establishment fees. In addition, your lender should declare all ongoing charges and fees. This will lower your interest rates considerably.