Boat bargains are beginning to surface.
As you trawl through the various trader websites and magazines, you’ll find there are some real bargains on offer in the boat market right now. Certain brands are offering generous cash back deals, while in the pre-owned market there is a good choice of boats available.
Of course while the bargains are flowing freely, you may also find that funding options are drying up as well. With lending criteria amongst the major lenders tightening up in recent months.
Is it really that tough? On speaking with Finlease, a finance broker with extensive marine experience, finance for boats is not ‘dead in the water’. Interest rates are at 40 year lows, which will save you even more money. However it is more important than ever to make sure your finance application is handled correctly, with all the information the financier needs correctly presented. You can’t afford a slip-up as a finance refusal can torpedo your chances of returning to that financier for a second attempt.
Compounding the difficulties is the fact that only certain financiers are lending against boats in this tighter market. So the services of a specialist finance broker will not only oil the wheels of the transaction, it may be vital to ensure that the deal goes through at all. So where do you start?
Mark O’Donoghue of Finlease advises that it’s a good idea to get the finance in place early in the piece. Set a price for a hypothetical boat, get your application in and approved before you go shopping. Then when you come across that once in a lifetime opportunity, you’re in a stronger position to negotiate.
A finance broker works as your advocate in presenting a watertight case to a financier. This greatly increases your chance of a successful application at preferential terms. Be aware that from a financier’s point of view, boats generally have substantially better long term resale values than high ticket items like motor vehicles.
So with the boat show season fast approaching, talk to a finance broker like Finlease that specialises in marine finance to test the water for you. Because right now you can get into the boat you want for much less than you might have imagined.
Here’s what lenders are looking for when approving a loan:
1. Your capacity to meet the repayments based on your income.
2. 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.
3. A good credit history.