First time
Boat Buyers
If you’ve recently decided to purchase your first boat, you may be wondering about the best way to finance your purchase. In this article, we’ll take a look at some of the options available to boat buyers in New Zealand, including boat loans.
Personal loan
A personal loan is one option you could consider if you’re looking to finance your boat purchase. Personal loans can be used for a variety of purposes, including the purchase of a boat. Personal loans typically have a fixed interest rate, meaning your repayments will remain the same each month. This can make budgeting for your loan repayments easier. Personal loans can be repaid over a period of time that suits you, typically between one and seven years. The length of time you have to repay your loan will affect the amount of interest you pay. The longer the loan term, the more interest you’ll pay.
Secured loan
A secured loan is another option you could consider if you’re looking to finance your boat purchase. Secured loans are secured against an asset, such as your home or your car. This means that if you fail to make your loan repayments, the lender could repossess your asset. Secured loans typically have a lower interest rate than unsecured loans. This is because the lender has less risk with a secured loan.
Boat loan
A boat loan is a type of loan that is specifically for the purchase of a boat. Boat loans are available from a range of lenders, including banks, finance companies, and boat dealerships. Boat loans typically have a fixed interest rate, meaning your repayments will remain the same each month. This can make budgeting for your loan repayments easier. Boat loans can be repaid over a period of time that suits you, typically between one and seven years. The length of time you have to repay your loan will affect the amount of interest you pay. The longer the loan term, the more interest you’ll pay.
Hire Purchase
Hire purchase is another option you could consider if you’re looking to finance your boat purchase. With hire purchase, you make an initial deposit and then make monthly repayments until the loan is paid off. The boat is owned by the finance company during the loan period and is only owned by you once the loan is paid off in full. Hire purchase typically has a fixed interest rate, meaning your repayments will remain the same each month. This can make budgeting for your loan repayments easier. Hire purchase agreements typically last for two to five years. The length of the agreement will affect the amount of interest you pay. The longer the agreement, the more interest you’ll pay.
Personal Contract Purchase
A personal contract purchase (PCP) is another option you could consider if you’re looking to finance your boat purchase. With a PCP, you make an initial deposit and then make monthly repayments until the end of the agreement. At the end of the agreement, you have the option to buy the boat outright, return the boat to the finance company, or trade the boat in for a new one. PCPs typically have a fixed interest rate, meaning your repayments will remain the same each month. This can make budgeting for your loan repayments easier. PCP agreements typically last for two to four years. The length of the agreement will affect the amount of interest you pay. The longer the agreement, the more interest you’ll pay.
Things to Consider
When you’re considering taking out a loan to finance your boat purchase, there are a few things you should keep in mind.
Firstly, you should make sure that you can afford the loan repayments. The last thing you want is to miss a loan repayment and risk damaging your credit rating.
Secondly, you should make sure that you compare different loans to get the best deal. Different lenders will offer different interest rates and loan terms, so it’s important to compare different loans before you decide which one is right for you.
Lastly, you should make sure that you understand the terms and conditions of the loan before you agree to anything.
