Jet skiing is a thrilling watersport that has become increasingly popular in recent years. If you’re thinking of purchasing a jet ski, you may be wondering how to finance your purchase. There are a few different ways to finance a jet ski, and the best option for you will depend on your individual circumstances.
In this article, we will explore three different ways to finance your jet ski purchase. We will discuss secured finance, unsecured finance, and paying cash for your jet ski. By the end of this article, you will have a better understanding of the best way for you to finance your jet ski purchase.
Buy a Jet Ski with your own money
One of the best ways to finance your jet ski is to save up the money to pay for it outright. If you haven't already accumulated enough savings, you may need more time, but it will be worth it in the end.
When you have enough money saved, you can pay cash for your Jet Ski - putting you in a better negotiating position with the vendor.
Need Finance for a Jet Ski?
If you're thinking about buying a Jet Ski, we have you covered. Find out how much you can afford to borrow with our free online Jet Ski Loan Repayment Calculator, then get a free online eligibility assessment (without impacting your credit file) and compare multiple loan offers from a selection of Australia's leading and best-known marine finance specialists. Paying cash also means that you are not paying interest or other loan-related charges over the life of your jet ski.
There are a few different ways to save up money for your jet ski.
- You could start by creating a budget and making sure you have enough money left over each month to put towards your jet ski fund.
- You could also look for ways to make extra money, such as picking up a part-time job or selling unwanted items.
Once you have saved up enough money, you will be able to pay for your jet ski outright and will not have to worry about interest rates or making payments each month.
Buy a Jet Ski on finance
If you don’t have the cash to pay for your jet ski outright right now, you may need to look for a loan. There are a couple of options here:
Secured Jet Ski Loans:
With a secured loan, you’ll be required to put up collateral, such as another piece of recreational equipment, to secure the loan. This type of loan often has a lower interest rate, but you could lose your collateral if you can’t make your payments.
Unsecured Loans to Buy a Jet Ski:
With an unsecured loan, you won’t have to put up any collateral. However, you may be required to have a higher credit score to qualify and the interest rates will likely be higher than with a secured loan.
Buy a Jet Ski Using Your Home Equity:
Accessing your home equity can be achieved in a number of ways ... by using your mortgage redraw account (if you have one) or getting a home equity loan. Interest rates on loans that use your home as security are typically lower than other secured and unsecured loans.
A specialist Jet Ski Finance Broker can help you find the best loan solution if you want to buy a Jet Ski on finance, even if you have poor credit. A broker can also arrange a pre-approval letter, giving you much of the negotiating power of shopping with cash.
Another, less favourable option, is to get a loan through the dealership. The dealership may have relationships with lenders that can help you get financing for your jet ski. However their access to lenders will be more limited than a broker and the interest rates usually higher. The dealership's priority will typically lean more toward getting you approved quickly than finding you a loan the best rates & options. They are in the business of selling Jet Skis, not finance broking.
Use a credit card to buy a Jet Ski
If you are buying through a dealer and you have good credit, you may be able to finance your jet ski purchase with a credit card. This can be a good option if you don’t want to take out a loan or if you want to take advantage of rewards programs.
Just be sure that you can afford the monthly payments and that you pay off the balance as soon as possible to avoid interest charges. Interest rates on credit cards are considerably higher than other ways of financing a Jet Ski.
The "hybrid" solution
You can, of course, use more than one of the above methods to finance a Jet Ski purchase.
For example, if you have some savings, but not enough to buy the Jet Ski that you want right now, you could use your savings as a downpayment ... and finance the balance with a secured or unsecured loan ... or by credit card. This would cost you much less in interest charges than financing the total amount and would mean that you could buy a Jet Ski now - as opposed to waiting until your savings had grown enough. Making a downpayment also makes it easier to get a loan because it reduces the lender's risk.
Another example would be using a credit card for the downpayment and a secured Jet Ski loan to finance the balance. Whilst this may potentially be more expensive than a "no money down" or "0% deposit" Jet Ski loan, it may make it easier to qualify for the secured loan because you have made a downpayment.
In conclusion
Purchasing a jet ski is a significant financial decision. There are a few different ways to finance your jet ski, and the best option for you will depend on your individual circumstances. Be sure to do your research and compare your options before making a decision. Talk to a specialist Jet Ski finance broker ... he/she does this every day.
Published: Friday, 30th Sep 2022
Author: Paige Estritori
