BE BOAT-FINANCIAL THIS SHOW SEASON
Finance brokerage Finlease is warning potential pleasureboat buyers at Australia’s approaching major boat shows to have their finances in order with credit remaining tight for 2010.
Finlease claims the major banks are remaining reluctant to lend on new boats, despite positive signs of an economic recovery from the Global Financial Crisis.
“Think of it like fishing for money, it’s not just a matter of going to the same old spot hoping to hook the finance you’ll need to have your tackle in order to land a good catch,” said Finlease.
“The latest banking research indicates that credit will still be tight during 2010, meaning boat buyers will have to be on their game to secure funding. Several international financiers actually pulled out of the Australian market last year, making the situation even tighter,” said the company.
Finlease says it specialises in securing finance for all forms of pleasureboats and charter boats and advises potential buyers that sellers will be less willing than previous years to negotiate unless they have secure finance.
“Now more than ever it’s important to have your finance application presented correctly to a potential lender, as you don’t get a second chance to make a good impression,” said Finlease.
“At the major boat shows this year, expect to see some boat manufacturers and dealers who will perhaps be less willing to negotiate than they were at this time last year. So if you can save some money on the finance, you’ll be ahead from the start.
“Go through the checklist to quickly review your financial position. Before you even get yourself into a boat-purchasing situation it’s a good idea to put an application in place for a hypothetical boat.
“Finance brokers can access funds from a range of lenders, to provide you with funding at the right rate and with more flexible terms. Once you get the approval, then you’re in a position to go shopping and will have the bargaining power to negotiate with the seller,” Finlease said.
The company added that buyers, too, are expected by financiers to have the means to repay the loan, and the security to cover their exposure.
“In 99 per cent of cases a broker should be able to secure the loan against the boat itself, rather than requiring real estate as collateral,” said Finlease.
“Typically, banks don’t understand boats display relatively good retained value over time. This is in contrast with other major purchases like cars for instance, which can lose up to 40 per cent of their value in the first year. Chances are, your local bank manager won’t know a Riva from a Riviera, so a good broker can save a lot of heartache,” it said.
Finlease said it will have representatives on hand at the Sanctuary Cove (May 20 to 23) and Sydney International Boat Shows (July 29 to August 2) to answer all questions and provide assistance.
For further information, visit www.finlease.com.au