Choose a Specialist Broker:
Although it is possible to go it alone and directly approach lenders, finding a broker who specialises in boat finance can remove a great deal of frustration from the process. A broker will take note of your details and liaise with their panel of lenders to find the deal best suited to your needs. A reputable broker will also help with managing the paperwork, expediting the approval and assisting you to get the funds you need quickly and effectively.
Get Pre Approval:
While it is tempting to start boat shopping immediately, it is a far better idea to get pre-approval on your used boat finance. This will allow you to have a firm figure in mind of what you can spend, eliminating the disappointment of finding that the boat you have set your mind on is not within your budget. Additionally, since you have pre-approval, you may be able to negotiate an even better deal as you are not relying on dealership finance to secure to the sale.
Compare Interest Rates:
A good broker will offer you a number of different deals to compare. This means that you can compare the interest rates to determine which the most attractive package is. Of course, the interest rate should be assessed in consideration to the loan term and whether it is secured or unsecured. Ideally, you should compare like for like deals for a fair assessment. It is worth checking the monthly repayment and total loan cost to ensure that your comparison is accurate and you choose the most favourable deal.
Check for Hidden Charges or Fees:
Some lenders apply hidden charges or fees to their loan accounts. This can include processing fees, arrangement charges and early repayment fees. These fees and charges can significantly increase the actual cost of your boat finance. For example, if there is an early repayment charge based on a percentage of the outstanding balance, this can add up to hundreds of dollars. The broker should provide a written document which details the terms and conditions including any fees or charges, so be sure to read through this properly to ensure that you are completely happy before you agree to the loan.
Balance Monthly Repayment and Loan Term:
Although you are likely to want to pay as little as possible each month for your loan, a cheaper monthly cost is usually accompanied with a longer loan term. This means that you will end up paying more in interest charges over the full term of the loan. To get the best possible deal, you will need to balance the short term gain of lower payments with the long term prospects of paying more. You may find that paying five or ten dollars more each month can have a dramatic effect on the total cost of the loan.
