The Ultimate Guide to Jet Ski Financing

Securing jet ski finance in Australia is a fantastic way to own a jet ski without having to eat the full upfront cost. Whether you’re looking at jet skis in Sydney or Perth, we’re here to help you navigate the financing process, so you can get the best deal while also saving time and money.

As jet ski finance experts, we’ve helped thousands of customers realise their dream of owning a jet ski, and in this guide, we’ll walk you through various financing options, what to expect in terms of interest rates and terms, and how to find the best deals when you’re looking to finance a jet ski.

What Are Jet Ski Loans?

Jet ski loans are a type of marine finance specifically tailored for purchasing personal watercraft (PWC). Unlike general boat loans, which may cover a range of marine vehicles from yachts to fishing boats, jet ski finance is designed with the speed and agility of personal watercraft in mind.

Jet Ski Financing Loan Types, Terms, and Rates

Secured vs. Unsecured Loans

When you’re looking at a jet ski loan, you will generally have two options: secured and unsecured loans. Most jet ski loans are secured, meaning the jet ski itself serves as collateral for the loan. Secured loans typically have lower interest rates due to the lower risk to lenders, and will often allow you to have a longer loan term.

However, the downside of a secure loan is that you do not have a clear title on the jet ski until the loan is fully paid off, meaning the jet ski is not truly ‘yours’ until that day comes.

Unsecured loans, while not common for jet skis, do exist. Unlike a secured loan, an unsecured loan does not require you to post collateral but does come with higher interest rates and shorter loan terms to offset the risk to the lender. Although an unsecured loan carries a higher cost, the fact that you gain immediate ownership of the jet ski makes them an appealing option for borrowers who can afford the higher rates and shorter terms.

Ultimately, whether you opt for an unsecured or secured jet ski loan will depend on your personal circumstances and appetite for risk.

Loan Terms

Jet ski loan terms can vary from short-term loans (1-3 years) to longer terms (up to 7 years), allowing flexibility in how quickly you pay off your debt.

Interest Rates

Rates can vary based on several factors including your credit score, the loan amount, the term of the loan, and whether the loan is secured or unsecured. As with any loan, a fixed interest rate offers stability and predictability of repayments across the life of the loan term, although it has the potential to be more expensive than a variable interest rate if the cost of borrowing decreases.

On the other hand, while a variable or floating interest rate can offer lower repayments, it leaves you vulnerable to quick rate rises (like the ones we have seen over the past two years) and can potentially put you underwater on your loan if the increased repayments outstrip your ability to meet them.

Repaying a loan is about good budgeting and sensible decision-making. So, while a variable interest rate may seem more appealing in the short term, its unpredictability means it is generally less popular than a fixed interest rate, especially for depreciating assets like jet skis.

Required Documentation for Jet Ski Financing

When applying for jet ski finance, you’ll typically need to provide:

• Proof of Income: Pay stubs, tax returns, or other documents that prove your ability to repay the loan.
• Identification: Valid driver’s license or other government-issued ID.
• Proof of Residence: Utility bills or lease agreements that show your current address.
• Banking and Credit History: Lenders will usually conduct a credit check to ensure that your credit history fits within their risk tolerance.
• Details of the Jet Ski: Including the make, model, and possibly a bill of sale or quote from the dealer.

How to Use a Boat Finance Calculator for Jet Skis

A boat loan calculator can be adapted to jet ski loans to give you a rough estimate of potential payments. By entering the amount you wish to borrow, the interest rate you expect, and the loan term, you can get an idea of monthly repayments. This tool is invaluable for budgeting and comparing different loan offers.

Quick Tips to Get the Best Jet Ski Loan Deals

If you’re looking to secure the best financing deal for a jet ski, consider the following steps:

Shop Around and Compare Lenders

Check offers from various financial institutions, including banks, credit unions, and online lenders. Don’t overlook local lenders in cities like Adelaide, Brisbane, Perth, and Melbourne, who may offer competitive rates tailored to local buyers.

Equally, expanding your search to take in financing companies with a national presence (like Credit One) could help you access better deals than those that are available to you locally, as national companies will have access to thousands of lenders, and can find the perfect one to suit your personal needs.

Check for Special Deals

Sometimes, manufacturers or dealers offer promotional financing rates, especially during off-season months, end of financial year sales, or special show deals at boat shows. If you know when these deals will be on the table or are willing to travel, you can time your jet ski purchase to take advantage of them and potentially save yourself thousands of dollars.

Negotiate the Terms

Don’t accept the first offer you receive. Finance is a competitive industry and lenders are often willing to make concessions on the terms of their loans if they think it will lead to them getting your business. If you have a good credit score and stable income, you might be able to negotiate better terms, and shouldn’t be afraid to see if lenders will match an offer you’ve received from their competitors.

Read the Fine Print

A loan is a contract between you and the lender, and as with any contract, the devil is in the details. Once you’ve narrowed down your offers to a select few, take the time to carefully read through the fine print – and then read it again. When you’re comparing the details of different loans, the main things you want to look out for are any fees, penalties for early repayment, and what happens if you miss a payment.

In doing so, you will often find that the best offer is not always the one with the lowest rate or the longest loan term, but the one that gives you the most freedom when it comes to the fine print.

FAQs About Jet Ski Financing

Can I finance a used jet ski?

Yes, many lenders offer loans for both new and used jet skis. The terms and rates may vary based on the age and condition of the jet ski.

What credit score is needed for jet ski financing?

While you can obtain financing with a variety of credit scores, a higher score (650+) typically results in lower interest rates.

Are there any penalties for paying off a jet ski loan early?

This depends on the lender. Some might charge a prepayment penalty, while others do not.

Can I get jet ski financing with bad credit?

Yes, but expect higher interest rates. Some lenders specialise in bad credit loans.

Start Your Journey to Jet Ski Ownership with Credit One

With extensive access to a wide range of lenders and specialist jet ski finance available, we make it easy to secure the jet ski of your dreams. Whether you want to buy new or used, our team are here to guide you through the process and ensure you get the best loan at the best rate possible. Get a quick quote or contact us today to start your journey to jet ski ownership with Credit One!