When considering boat finance, Sydney residents often find themselves a little overwhelmed. The options for new boat loans are varied and although the principle is the same as car financing, the products differ in a number of ways. Therefore, before considering making a purchase, it is important that you are aware of your options for used boat finance.
There are a number of sources for used boat finance available in the marketplace. However, there are fewer options available compared to car financing. While you can source a loan from your bank or another high street financial institution, there are online companies which specialise in providing boat finance. Sydney residents should take the time to research their options fully to determine the best possible deal. It can be a good idea to choose a specialist company as these companies are intimately familiar with used boat finance products and can provide guidance as to which deal is best for you.
When choosing a company offering used boat finance, it is important that the company has a good reputation. You need to feel confident that the company will provide a good level of service regardless of the terms and rates. You may regret saving a few dollars by choosing a company with a poor track record if there is a problem or issue during the duration of the loan. It is a good idea to compare used boat finance deals to determine which offers the best arrangement for you.
It is important that you fully check the terms and conditions attached to your finance deal. There are a variety of terms and rates which can be applied to new boat loans. You will need to consider your preferred loan term. While allowing your loan to have a longer duration will reduce the monthly repayments, it will result in you paying more interest over the full term of the loan. You may also need to consider if the loan company offers additional products such as mechanical warranties and special service programs, which could be beneficial. Choosing a product which includes these extras could save you money for the care and maintenance of your boat in the longer term.
Another factor to consider is the impact the loan will have on your investment. While you may have plans to keep the boat, you need to be aware that if your circumstances change and you need to sell the boat, the balance of the loan does not exceed the value of the boat. For this reason, you will need to assess the interest rate and terms of the deal. Some loan products impose an early repayment fee. This means that you will pay an administration charge should you wish to sell the boat and settle the loan early. This could be a fixed fee or a percentage related to the outstanding balance of the loan. Either way, this could result in you needing to pay hundreds of dollars, simply to close out the loan account.
If you would like to know more about used boat finance, contact us. We offer access to a wide range of financial products including new boat finance. Our specialist advisers would be delighted to answer any of your questions and assist you in securing the best possible deal.
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