If you’re planning to buy a boat in the near future, you might be starting to consider options for financing.
Going through a finance broker is a popular option for many Aussies. But what are the advantages of using a broker when applying for boat finance?
In this article, we look at some of the top reasons to use the services of a broker. You’ll also learn how a finance broker works and the reasons why you should avoid some brokers.
1. They Can Have Access To A Large Selection Of Loan Products
Brokers in Australia often have access to 30-50 lenders and their associated loan products. Sometimes they may even have access to products not typically offered to the general public.
This is great news for you because it means you’re not limited to the small selection of loans offered by one particular lending institution.
The broker can search from their panel of lenders to find the boat financing option best suited to your personal circumstances.
2. They Can Save You Time
Finding the perfect boat loan on your own can be a tiring and time-consuming process. You might need to make multiple enquiries to find a lender suited to you.
A good broker will save you time by comparing interest rates and finding the most suitable lender on your behalf. They’re also able to speed up the application process by lodging your application to the lender for you.
3. They Guide You Through The Process
A broker will be there for you through every step of the boat loan application process.
When you work with a good broker, they will make the process as simple as possible for you. Trying to navigate the finance application process on your own can often be confusing and stressful. Especially if you haven’t gone through the process before. But having a broker on your side helps to create a stress-free financing experience.
4. Protect Your Credit Score
Applying for finance through multiple lenders can have a negative impact on your credit score. This could affect your ability to get finance in the future.
A good finance broker will seek to protect your credit file by only submitting an application to one, single lender. Because a good broker will have extensive knowledge of top lenders and their policies, they will only submit your application to a lender likely to accept it.
What Are Your Other Options?
Besides going through a boat finance broker, your other main options are to apply directly through a lender or if you’re purchasing your boat through a dealership you can organise finance through them.
Applying for finance through the boat dealer may seem like a convenient option. But dealership finance can often be the most expensive way to finance your boat. Unlike finance brokers, they generally only have access to a very limited number of loan products.
When you apply directly through a bank or lender, you are also restricted to a limited number of financing options. This means you could be missing out on a better interest rate or a product better suited to your financial situation.
If you’re planning to finance a used boat, keep in mind that some lenders won’t offer financing for used boats.
How Does A Boat Finance Broker Work?
Finance brokers will firstly assess your requirements and financial circumstances to determine if you are likely to be eligible for a loan.
Assuming that you do meet the basic criteria to apply for a boat loan, they will search from their panel of lenders to find the best deal for you. They will collect the documentation required for the application and submit the application to the lender on your behalf.
If you haven’t already decided on which boat you want to buy, they can also organise a pre-approved loan for you so you know exactly how much you’re able to borrow.
Not All Brokers Are Equal
If you decide to use the services of a boat loan broker, keep in mind that not all brokers are the same.
Some brokers will have much more experience and expert knowledge of lenders than other brokers. A good, experienced broker should be able to help you save money and save time. But the wrong broker might set you up with a bad deal or create further stress.
We suggest looking for an experienced broker that has a lot of positive online reviews. Check their Google reviews to see what past clients have said about their experience with that broker.
Credit One Boat Finance Brokers
Credit One has a team of experienced specialist boat finance brokers. With over 1200 five-star Google reviews, Credit One is Australia’s best-rated finance broker. You can see what clients have to say about Credit One here.
Begin a no-obligation boat finance enquiry with Credit One today.