Boat Loans
Whether looking to acquire a boat for business or pleasure or perhaps looking to refurbish a boat you already own, there are many loans for boat options. While there are specific costs and issues to consider with boat finance, this is a relatively competitive market. Where do you start?
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Boat Finance Loan Calculator
Use our New Zealand online loan calculator to determine the repayments you can afford and how much you should borrow. Usually, you’ll make a deposit on the item you wish to purchase, which acts as security, and we then spread the remainder across 48 months.
$30 per week
Our maximum loan term is 3 years so your repayments on a $6650 loan must be $70 (or more) per week
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Boating for business and pleasure
Whether you are looking for a commercial boat, something for family use or even a place to live while touring, there are many options. Available from just a few thousand dollars to the hundreds of thousands and millions of dollars, the range of boats is vast. Life on the ocean waves, perhaps more sedate travel inland or a mixture of the two, that freedom, the sea air and peace and quiet are within touching distance, perfect!
While loans for boats may be considered a specialist area, like other finance, it comes down to the cost, the applicant’s income and affordability. If your boat is well maintained, it should retain its value and can be used as collateral against boat finance.
As a responsible lender, we would welcome the opportunity to sit down and discuss your financial needs in more detail. That boat you have always dreamed about may no longer be a pipe dream. It could become a reality.
The Internet has opened up new areas for finance, including loans for boats, with more information available today than ever before. While it is essential to do your research, it is just as important to have finance available in the event you find the right boat. This is where we come in….
Did You Know?
Affordable boat finance
Many people will be surprised to learn that you can buy a boat for as little as $5000, although the sky is the limit on the upside, obviously dependent upon your income if using a loan.
As a responsible lender, we provide secure loans and consider all forms of collateral, although, with boat finance, this would usually be the vehicle itself. As a competitive lender, there may also be the opportunity to refinance an existing boat loan on better terms.
Is there an age limit?
While legally, you must be over 15 years of age to operate a watercraft capable of exceeding 10 knots, there are strict conditions when applying for loans for boats.
Not only must you be at least 18 years of age, but you will need a stable income and be either a citizen or permanent resident of New Zealand. On occasion, where you do not have citizenship or permanent residency, you may be able to apply for a boat loan via a guarantor.
What are loans for boats?
In theory, loans for boats will be available for both personal and commercial use taking in sailboats, yachts, fishing boats, houseboats and many other different kinds of crafts.
As boats tend to retain their value better than some assets, they can be used as security when applying for a loan. The greater the level of security available, the more chance of a successful boat loan application on favourable terms.
Can anybody apply?
As with any other type of finance, boat loans are considered after taking into account an individual’s income, expenditure and theoretical loan payments.
Therefore, the interest rate charged on a boat loan will reflect the applicant’s financial status. As we touched on above, you will need to be at least 18 years of age and a resident/citizen of New Zealand to apply for a loan.
How much do boats cost?
How much can you afford to spend? Whatever your budget, there will be a boat available, but they typically start from $5000 upward. As a responsible lender positioned between the traditional banks and payday loan companies, there is a misconception that we only consider relatively low levels of finance.
This is wrong; if your boat loan application is supported by your income and the appropriate level of security, finance into the tens if not hundreds of thousands of dollars may be available.
Do I need a deposit on a boat loan?
In theory, it is not necessary to put down a deposit when applying for a loan for a boat. However, putting down a deposit would reduce your finance requirements and add a layer of security for a lender.
Consequently, you may find favourable loan rates available if you can put down a deposit. While certainly something to consider, we appreciate that not all applicants will have funds immediately available.
Boat loan interest rates
At Alternate Finance, we offer loans for boats at interest rates between 13.95% and 26.98% per annum. The interest rate charged will depend upon various factors such as your credit history, income, loan amount and security available.
Once agreed, the interest rate is fixed for the duration of your loan, which offers a degree of stability.
Do I need security for a boat loan?
The simple answer is yes. Whether looking towards the lower end or, the higher end, we will require sufficient income to support repayments and need an equivalent level of collateral.
The good news is that boats tend to depreciate slower than other assets such as cars; therefore, they will hold their value better in relative terms. So if you are acquiring a boat using finance, it makes sense to use the vehicle as collateral.
Do I need security for a boat loan?
The simple answer is yes. Whether looking towards the lower end or, the higher end, we will require sufficient income to support repayments and need an equivalent level of collateral.
The good news is that boats tend to depreciate slower than other assets such as cars; therefore, they will hold their value better in relative terms. So if you are acquiring a boat using finance, it makes sense to use the vehicle as collateral.
Additional costs associated with boats
It is essential to look at the broader picture before applying for boat finance. Depending on the type of boat and usage, additional costs may include trailers, safety equipment, boating equipment, and storage and service facilities.
You will also need to look at insurance, although you may be able to add this to your boat loan.
Can I get a loan to repair my boat?
While much of the focus tends to be on boat finance used to acquire a new vehicle, those who already own a boat may be looking for finance to repair or refurbish. Assuming you have the appropriate level of income and security available (or a guarantor), there is every chance your application will be looked on favourably.
Can I add insurance costs to my boat loan?
Depending on the premiums charged, your income, and level of security available, it may be possible to add insurance costs to your boat loan application. Insurance costs are just one of many additional expenses you may need to consider when looking to purchase a boat.
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We respond to our customers, almost immediately, but in the meantime, please review our commonly asked questions and information about Crester Credit’s terms and conditions. We’ve included detail about establishment fees, annual interest rates, early settlement options, the responsible lending code of New Zealand, and the online personal finance loans application process. We’re here to help with everything finance related, so please ask if you have any questions at all.
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