Jet Ski loans in Australia – Blaze a trail on the water
Jet skis are a popular boating option for many Aussies, and the ride is guaranteed to leave you with an adrenaline rush up to your ears. Financing a jet ski is also a common and viable way to get out on the water, regardless of your budget.
But, what’s there to know before borrowing and taking the leap from land to watercraft? Here’s a handy guide on jet ski loans to help you arrive at a decision that’ll hopefully bring wave after wave of fun.
Why should you consider jet ski finance?
While a jet ski or personal watercraft (PWC) isn’t as expensive as a four-wheel vehicle or boat, the average price of between $5,000 and $20,000 can still be a drag. However, your budget or savings shouldn’t be a limiting factor, particularly when there are many finance options in Australia.
Instead of struggling to pay the full upfront cost, you can buy into the fun of owning a WaveRunner, Sea-Doo, Yamaha, or Kawasaki via smaller repayments. Keep in mind a jet ski loan is a personal loan, so there are two main things to consider:
- How much to borrow? – Borrowing limits typically range from $2,000 to $50,000, so getting enough cash to splurge on the jet ski of your dreams shouldn’t be a problem.
- What’s the timeline for paying it back? – Generally, you can spread the cost of your jet ski over 1-5 years. Make sure you choose a loan term that’s long enough for affordable repayments but short enough to keep the total cost of the loan worthwhile.
How do jet ski loans work?
If you’re a rider raring to cruise the waves, following these steps can bring you up to speed on how to apply and get the finance you need:
- Shop for your jet ski. Popular places to find PWCs include licenced dealers, private seller listings, and auctions. Choosing the jet ski you want is usually the first step. However, getting pre-approval is often preferable since you can shop around with a specific budget and more buying power.
- Compare and calculate. Use BestFind’s comparison table and jet ski loan calculator to narrow down your options. The calculator estimates your monthly repayment amount, and you can browse the table for key product information. The goal is to end up with the right option for your needs and budget.
- Apply online. Once you’ve figured what’s best for you, head straight to the lender’s application page by clicking “Go to Site.” Make sure you meet eligibility requirements and have the required documents in place. If the lender approves your application, you’ll likely get a quote. When you accept, you get the funds or the lender pays the seller directly. In any case, you’ll be on your way to living it up on the water in no time.
What jet ski loan options are available?
- Unsecured personal loan. Unsecured loans provide all-purpose funds suitable for weddings, holidays, cars, boats, and yes, jet skis. Since you’re not required to put up collateral, the risk is greater for the lender, and you compensate by paying a higher rate.
- Secured personal loan. The jet ski you’re purchasing, or some other property you own can be used to secure the loan. The lender can repossess the asset if you fail to repay. Because of this assurance, the lender’s risk of loss goes down, and you benefit from a low rate. You are also able to borrow more, typically up to $100,000 depending on the jet ski’s value.
- Specialised jet ski finance. Specialised finance providers are usually non-bank lenders or jet ski manufacturers. They offer customised products that may be structured differently from traditional personal loans. They may have simpler lending criteria, for instance.
- Bad credit jet ski loans. Getting a jet ski loan with a bad credit history may be a tough wave to ride but not impossible. Some Aussie lenders will still welcome your application though they often charge a higher rate.
What’s the best way to compare jet ski loans?
When it’s time to compare jet ski loans, paying attention to the following features will help you zoom in on the right option for you:
- Interest rates. Aim for the most competitive rate available to you whether that’s fixed or variable. Most lenders offer tailored interest rates so what you see isn’t always what you get. Before you apply, find out if the lender can give you a personalised quote that won’t impact your credit score.
- Comparison rates. Dubbed as the true cost of the loan, the comparison rate is just the interest rate with standard fees and charges factored in. If both the jet ski loan interest rate and comparison rate are low, chances are you have found a bargain. However, it’s best to check the fine print for all fees associated with the loan to avoid any nasty surprises.
- Lump sum payments. The deposit is paid upfront while the balloon payment gets paid when the finance period ends. Both lump sum payments affect your repayments, so find out if they are part of the loan structure by choice or requirement.
- Repayment flexibility. Can you pay off the loan early without penalty and are there weekly, fortnightly, or monthly options available?
- Additional features. A quick list of other essential features to look out for includes funding time, loan term, borrowing limits, and add-ons such as insurance and loan protection cover.
What to consider when buying your jet ski
The good news is most lenders will finance all sorts of jet skis whether it’s a single-seater or spacious enough for three. You’ll have to decide if you want a jet ski for recreational, sports or luxury purposes. Other essential factors to consider include the brand name, speed, type of engine cooling system, and if you want to buy new or used.
Lastly, before applying, figure out the true cost of jet ski ownership, not just the purchase price. These extra costs may include:
- Accessories such as safety gear and jet ski covers
- Maintenance and repair
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