Financial Questions to Ask Before Purchasing a Boat

While owning a boat is certainly a goal for many Aussies, it can be a costly affair which is why it’s very common for people to take out a loan. Financing all or part of the boat allows you to spread the upfront costs over a longer period, allowing you to get out on the open water faster. However, you should be aware of the interest and terms of the loan before you sign on the dotted line.

At Rostron Finance, we’ve forged great relationships with over 50 different lenders and finance specialists to make sure we can offer the best service and deal in the market that will suit your budget requirements and individual circumstances.

Before you even start looking at boats, you need to consider how much you can realistically afford. This means taking into account all your other financial commitments, such as car payments and bills, and seeing how much you have left to put towards a boat purchase. Make sure you factor in the additional costs of running a boat, such as insurance, mooring fees, replacement parts and maintenance costs.

It’s easy to get swept away with the excitement of owning a boat, but it’s crucial that you take the time to properly understand the loan terms, including how long it will take you to pay it off. Depending on the size of the loan, this could be anything from a few months to several years. It’s important to consider that a longer loan will accrue more interest. So, think about how long you’re willing to be tied to a loan and make sure that you’re comfortable with the repayment schedule.

If you’re considering taking out a loan, you should also look into what happens if you miss a payment. Generally, your lender will charge you a late fee and report the missed payment to the creditors, which could affect your credit score. We can also offer loan protection which will cover your loan repayments in case anything goes wrong.

When buying a boat on finance, there may be other costs to consider, such as setup fees and legal fees. There are also ongoing costs like mooring and maintenance. Make sure you chat with your broker about these additional costs you might incur so you can plan accordingly.