Best way to finance a jet ski
The average jet ski costs anywhere between $5,300 to upwards of $18,000, so whether you’re looking at a Sea-Doo Spark or a Kawasaki Ultra 310LX, you’re probably also looking for the best way to finance your jet ski, and with it satiate your inner thrill seeker’s passion for the waves.
But how do you know which loan is right for you? Lenders offer specialised loans for jet ski purchases, along with secured and unsecured personal loans. Here we’ll help with a comprehensive list of the pros and cons of jet ski loans, so you can find the best deal for you.
Jet ski finance
Some jet ski loans are like car loans or home loans; they’re personal loans that are specialised around jet ski finance. Specialised jet ski loans have fixed interest rates, meaning that the interest is calculated on the unpaid balance on a daily basis.
Extra or additional payments will reduce the outstanding balance and therefore reduce the interest charges.
These specialised loans, much in the same vein as dealership loans, are often organised through the company from which you purchase your jet ski, at the time of purchase. In some cases you can even add insurance, extended warranty and loan protection cover to the loan and pay for all as one monthly repayment.
Specialised jet ski loans are often secured against the jet skis, which may mean that they are able to provide potentially lower interest rates.
You may choose to or be required to pay a balloon payment at the end of your loan tenure. This has the benefit of potentially making your monthly repayments lower.
It does, however often make your total repayments higher, and you may end up paying more for the vehicle than it is worth. Also, failure to meet the balloon payment may have a negative effect on your credit score, and might require you to refinance your loan.
You might choose at the end of your loan term to sell your jet ski to meet the meet the payment, perhaps if you had less use for it or even wanted to upgrade to a newer model with a new finance plan.
To find out more about balloon payments, click here.
Secured personal loans for jet skis
Many personal loans for jet skis are secured loans, where the value of your jet ski is used to guarantee the loan.
While jet ski companies can often provide specialised jet ski loans, you may prefer to shop around for other secured loans. Just because the loan being offered by the seller is tailored to the product may not necessarily mean it has the lowest rate attached.
To compare secured personal loans, click here.
Unsecured personal loans for jet skis
You can also use an unsecured personal loan for a jet ski. An unsecured personal loan may mean having to pay a higher rate, as there is more risk to the lender of you defaulting on the loan. However, a benefit to you is that there is less risk to your personal property, should unforeseen circumstances mean you are late on a payment.
To compare unsecured personal loans, click here.
Jet ski loans when you have bad credit
If you happen to have bad credit, getting a loan can sometimes be somewhat of an uphill struggle. However having bad credit doesn’t necessarily mean that your wave riding dreams have to take a back seat.
Did you know about the Personal Loans Marketplace?
The RatCity Personal Loans Marketplace generates personalised rates based on your eligibility for a loan. The Marketplace runs a "soft" credit check on you that won't affect your credit score, and offers you lenders that may be more willing to accept you for a loan.
There are lenders out there that may consider you if you have bad credit. Though having bad credit means that you may be more likely to be charged a higher interest rate on your loan.
Beware the payday loan
While the simple application processes and quick response rates associated with payday loans may seem enticing to some, it is worth really considering whether a jet ski is a purchase that should be made with a payday loan.
Payday loans might be useful for unforeseen emergency costs, like medical bills. It is likely not advisable, due to their higher interest rates, to use them to put towards luxury purchases.