Boat Finance

Accessing Boat Finance

Boat finance refers to the process of securing financing for the purchase of a boat. Generally, financing the acquisition of a boat might involve either of two (2) methods. The first is financing via outright cash payment while the other involves acquisition via loans.

Both systems have their benefits, which we outline thus:

Benefits of Financing via Cash

If you obtain it by paying upfront, the benefits you get include:

1) Permanent Ownership

When you pay for your new boat by paying for it upfront, you get the documents that permanently grant you ownership of the boat.

With this, you can use the boat for any purposes you desire without any pressures whatsoever. 

2) Freedom from Stress

Acquiring the boat by purchasing outright will offer you freedom from financial stress and strain. This is because you are free from external financial pressures.

This may not likely be the case if you acquire via boat loans. When you acquire boat loans, you are subjected to regular interest payments. At times, this can bring about significant stress on your income and general financial health. If you run into temporary financial crises, it might affect your mental and emotional well-being. 

This is because defaulting for a long time may likely bring about a lien being placed on the boat. Direct purchase saves you from all of these.

3) Investment Opportunity

When you acquire your boat by putting the cash down, you may be providing yourself with some ample investment opportunity. For one, since the boat is yours, you can put it to whatever use you desire. This includes leasing it out regularly to persons who might want to embark on boat cruises. This way, you earn quality, regular rental income.

You may not get this freedom to use as you wish when you acquire loans.

On the other hand, if you keep the boat in good condition, you can easily sell at a future date for a nice profit. Vintage and old boats, although rare, are always in demand and will command high purchase costs.

4) Asset Building

Boats are assets, and acquiring them means getting assets that will add to your net-worth.

It also serves to diversify the portfolio of your investments, since investing in it is less risky.

Benefits of Financing via Loans

On the other hand, the benefits of financing through loans are:

Long-term Payment

As we mentioned above, the costs of purchasing a boat are quite on the high side. Putting down the cost outright is not usually easy unless you have a lot of funds. Thus, taking out a secured boat loan in Australia is the correct decision. With a good boat finance plan, you can save yourself the high costs of paying upfront. 

You get to spread the lump sum over a long period. This saves you from financial stress and enables you to enjoy the

Low-interest Rates

The interest rates for boat financing plans are usually low. The reason for this is that the plans often last a long time. As such, you can spread the interest payment over these periods. This reduces the strain of payment in the immediate.