10 Financial Questions To Ask When Buying A Boat

boat loan - buying a boat

With an informed approach, purchasing the boat of your dreams becomes easier.


Australians are known for their love of the outdoors. What better way to enjoy our beautiful waterways and sunny weather than owning a boat of your own? We want to help you get out there on the water as soon as possible by enabling a stress-free boat purchase.


Whether buying a boat for personal or commercial use, the Yes Loans finance specialists have extensive experience securing boat loans in Perth, Western Australia, and across Australia. Below are questions worth asking during the boat buying process.


How do I decide on a boat budget?


How many people will be on the boat? Define where and what your boat will be used for—sea or river, fishing or water skiing—to help pinpoint design and model. Once you find a prospective purchase, check history, and ask for an inspection or marine survey.


Along with the cost of any must-have special features at point of purchase, include all additional costs associated with owning and keeping a boat In your financing (see below). Once you have a realistic idea, use our loan calculator for guide to payment schedules.


Are there other upfront costs I should keep in mind?


Clarify if legally required registration fees are included in the purchase price. Research boat licensing fees for your state, and whether tax applies. If purchasing a boat trailer, confirm your car, boat, and boat trailer work in tandem, in terms of power and weight ratio.


Before operating the boat, safety accessories are needed, life jackets and first aid kit being basic examples. In terms of practical items, from ropes to rod holders, be comprehensive. Remember to include the price of any quality inspections in your initial budget.


What ongoing costs are there aside from loan repayments?


Do you have an allocated area at home for the boat? If not, remember to factor in storage fees. How much room will your boat take up? Fees vary, depending on space, type of storage (for example, inside or mooring), and standard rates at your chosen location.


Don’t forget fuel costs and scheduled maintenance of the boat motor to ensure it continues to offer peak performance on the water. Avoiding rust and damage is paramount too. Once you decide on a model, investigate maintenance fees and service requirements.


Is a new boat or a used boat a better investment?


A new boat is often easier to obtain financing for since it is under warranty, but we organise loans for used boat purchases as well. It’s worth having a professional look over the boat’s engine and hull to ensure it’s in peak condition.


The new vs used is an age-old argument with pros and cons on both sides. Your goals and your loan capacity also play a part in this decision. Note that a boat is a depreciating asset, but the level of care and overall condition of your boat impacts resale market value.


What do I need to apply for a boat loan?


Like any loan, a number of elements play into the final decision, including but not limited to work status or history, and your credit rating. Our leisure loans and commercial loans are customised to each applicant. (Leisure loans are for items to be used in your leisure time.)


The good news is, our loan specialists excel at helping you navigate the process, and it’s worth reaching out, even if others have denied your loan request. Begin our easy online application process, or speak to our experts. Our loan quotes are valid for 30 days.


What types of boat financing are available?


Our boat loan packages are extensive, so reach out to us if you have your eye on an unusual purchase. For example, we offer jet ski financing too—and if you already have a boat, our boat engine finance package can help with that boat motor upgrade.


If the boat is for commercial/business use, our commercial marine loans extend across hire purchases or leases. For a boat for personal leisure use, we offer two types of loans: a secured boat loan or an unsecured boat loan. Both apply to new and used boats.

Related: Learn how you can finance a boat purchase.


Should I choose a secured or unsecured boat loan for my boat for personal use?


Both are forms of instalment loans, the key difference is collateral. A secured boat loan uses the boat as collateral. For an unsecured boat loan, no collateral will be requested. Just be aware the option you choose will have an impact on rates and repayment practices.


A secured boat loan likely offers lower rates, higher loan limits and allows for longer repayment windows due to lower risk for the lender. As a result, of the two options unsecured loans have higher rates and shorter repayment terms due to the lack of collateral.


What about insurance?


We organise boat and marine vehicle insurance because why buy a boat without protection? An extended warranty is a smart choice. Like cars, boats can break down. We also recommend marine insurance, in the event of a boating accident or loss of boat due to theft.


Often when we broker boat financing, clients also choose to purchase loan protection insurance, referred to by some as consumer credit insurance. In case of illness or accident, this type of insurance can assist with monthly loan payments per policy outlines, helping protect your credit rating.


Is pre-approval an option?


Pre-approval means you have been given approval for the amount you want to borrow, so your access to a loan is not in question when making enquiries. Our financial experts can help with that. There are a number of positives to obtaining pre-approval for boat financing.


Knowing you have a certain amount secured keeps you on budget when browsing for your boat. You’re not chasing a purchase and financing at the same time. It also puts you in a better stance to be taken seriously when negotiating a better deal for your new boat.


So, Yes Loans can help finance my boat?


Yes, the goal is to customise your loan to your lifestyle. Our experts have extensive experience with boat loan and marine vehicle financing from $5,000. A Yes Loans broker will ensure competitive interest rates and the best flexible monthly repayment terms.


You have the option of applying online or reaching out to our team to discuss the terms of your loan. The good news is, we focus on keeping the process simple and easy. We want to make your boating dream affordable and achievable, so you’re hitting the water asap.


Have more questions? Talk to us.


If looking for a way to finance your boat purchase, Yes Loans has the expertise to make sure the investment is a smart choice, with terms customised to your situation. For quick and efficient financing with friendly customer service, talk to Yes Loans today.


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