Commonly Asked Questions About Boat Finance

If you are thinking borrowing money to buy a boat here are some commonly asked questions.

Can I finance up to 100% of the boat price?

Yes, the majority of new & used boats are 100% financed, however the buyers can elect to pay any level of deposit they desire.

Do I need to provide any other security in addition to the boat for the loan?

No, usually the boat is the only security.

Would I qualify for a boat loan?

There are four main things that Finance Companies look for when approving a loan – these are:

1. You need to show that you can make the finance payments from your annual income.
2. If you require 100% finance, you will need to show that you have some ‘tangible’ net worth such as equity in Real Estate or investments. The Finance Companies will NOT want a mortgage; they 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 that they initially financed.
3. You have a good ‘credit history’.
4. You have been in stable employment.

How many years can I have the loan for?

Usually up to 5 years, if required a residual of up to 40% can be structured into the loan in order to keep payments lower. The residual can be refinanced for a further period of up to 5 years at the end of the initial term.

Can I Finance a USED BOAT?

Absolutely, at least 50% of all boats financed are used. Typically, the boat would need to be no older than 15 years for this finance however, there are always exceptions. Recently someone financed a 1953 Halvorsen Bridgedeck Cruiser. You can also finance boats which are being privately sold.

with compliments of
Finlease (Australia) Pty Ltd
www.finlease.com.au
1300 FINLEASE (346 532)