Shane Ford
How we’ll help you get the best boat finance – fast
Boat loans are the key to one of our favourite Kiwi pastimes; fishing and getting out on the water.
If you’re looking to finance a boat, yacht, or even a jet ski in NZ, the team at Vehicle Loans can help you find the best deal on offer. Here’s how:
- We’ll show you offers from the multiple specialist boat finance providers we work with.
- We’ll use our relationships and experience to negotiate hard to get you the best deal possible.
- We’ve experience helping borrowers in different situations to get the finance they need. Bad credit is not a problem.
- We’re experts on lenders’ eligibility criteria and application processes, meaning you can get your boat finance sorted faster.
If you’re ready to get a fast, no-obligation quote, call us for free on 0800 651 480. Or if you want to learn more about boat finance in NZ here’s everything you need to know.
How does boat finance work?
A boat loan is a type of secured finance that offers funds to borrowers for the purchase of a range of marine vessels and boating equipment. The loan is secured by the asset purchased with the funds.
Boat loans work similarly to other types of vehicle finance, like car loans and caravan finance.
- You’ll borrow an amount of money to finance the purchase of a boat or vessel
- The loan term is typically between one and five years
- You’ll make regular repayments (weekly, fortnightly or monthly) to the lender to repay the total loan amount
The total amount to repay includes the original loan amount, plus loan costs including:
- Interest applied to the loan based on the lender’s interest rate
- Establishment fees
- Loan maintenance fees (usually monthly)
- Early break fees if you repay the loan early
- Other costs or fees (e.g. late payment penalties)
| Minimum loan amount | Maximum loan amount |
|---|---|
| $5,000.00 | Up to $150,000 but varies by lender |
What can I finance with a boat loan?
A boat loan can be put toward:
- New or used trailer boats and outboard engines
- New or used launches or luxury yachts
- Repowering existing vessels
- Personal watercraft (e.g. jet ski)
Secured versus unsecured boat finance
| Secured boat loan | Unsecured boat loan |
|---|---|
| The vessel is used as security | No security for the loan |
| Reduced risk for the lender | More risk for the lender |
| Lower interest rates | Higher interest rates |
| Higher loan amounts available | Lower loan amounts available |
How to apply for boat finance NZ?
Applying for boat finance in NZ is relatively easy to do. It’s usually an online application where you give the lender information about your situation and the purpose of the loan. Before applying, consider the eligibility criteria for boat finance.
In general, the majority of lenders will require borrowers to be:
- 18 years of age or older
- A New Zealand citizen or hold a work permit or permanent resident (PR)
- Currently employed or have regular income
When you apply, you will need to provide photo identification and proof of address to verify your identity with the lender. You’ll also need to provide evidence of your ability to repay the loan, including:
- Proof of income (pay slips)
- Proof of your other expenses (bank statements)
- Proof of other assets you own (e.g. property, vehicles)
What if I have bad credit – can I get boat finance?
It’s usually still possible to be approved for boat finance if you have issues in your credit history or a limited credit record. There are several lenders in NZ who specialise in offering finance for bad credit borrowers.
But depending on your personal circumstances and credit history, the application process may be more in-depth with additional information about your credit history required by the lender.
Likewise, if you are a younger borrower, you may need to provide additional income documents to prove your ability to afford the repayments comfortably. Contributing a deposit towards the boat purchase is another common step that can make it easier to be approved.
Want to see if you qualify for a boat loan? The team at Vehicle Loans can conduct a quick-and-easy No Credit Check Pre-Assessment if you call 0800 651 480 now and speak to one of our trusted vehicle finance brokers.
How can I get the best interest rate on my boat finance?
Boat finance rates in NZ generally start from around 7.95% p.a. but the rate you get will depend on your application. Here are some factors that could help you secure a lower boat finance rate:
- Buy a new or newish boat
- Get a secured loan – watch out for lenders offering ‘boat loans’ that are actually unsecured personal loans
- Contribute a deposit towards the cost of the vessel
What do I need to provide for a boat loan?
Not every boat loan will have the same lending criteria. Below is an overview of the individual collateral requirements for each type of secured vessel or vehicle loan.
| Type of vessel or vehicle | SEcured using | requirements |
|---|---|---|
| New or used trailer boats and outboard engines | The boat
The outboard engine The trailer | Hull number if available
Outboard engine number Trailer registration number |
| New or used launches or luxury yachts | The vessel | Hull and engine numbers |
| Repowering existing vessels | The vessel being re-powered | Hull and engine numbers |
| Personal Watercraft (e.g. Jet Ski) | The watercraft The trailer | Hull number
Trailer registration number |
How to save money on your boat finance
Buying a boat, yacht or even a jet ski is expensive, with ongoing costs of ownership adding to the cost. To limit your expenses, you should take extra care to understand the factors that will help you keep your boat finance costs low:
The cost of your loan will depend on the:
- Borrowing amount: A lower boat finance sum will mean you’ll be charged less in interest. Some borrowers contribute some of their own money as a deposit for the boat to reduce the loan amount.
- Loan term: It’s possible to get boat finance for up to five years but a shorter term will mean less to pay in interest and ongoing fees.
- Interest rate: Finding the cheapest boat finance rate possible will mean big savings. Even a small rate difference could add up to thousands of dollars during the loan.
- Fees: Overpaying on fees will undo any savings you make on your boat finance elsewhere. Watch out for upfront and ongoing fees, plus any other conditional fees hidden in the fine print.
Where to apply for boat finance
In New Zealand, you can generally acquire a loan for a marine vessel or recreational vehicle from a bank, the dealer you buy the boat from, or through a finance broker.
Below we’ll look at an overview of these lenders and their relative pros and cons.
Banks
If you’re looking for a loan, a bank is what springs to mind for a lot of borrowers. They offer personal loans that can be used for more or less any purpose, including a boat purchase. However, most banks do not offer loans designed specifically for marine vessels.
Pro: Usually large institutions trusted by borrowers, with branches, phone and online support.
Con: Rarely offer the best deal for specialist finance and may not accept a boat as loan security.
Finance brokers
Brokers offer more specialised services to borrowers, which can be particularly useful for financing a boat. A broker will:
- Take time to understand your financial position and needs
- Recommend a range of competitive options to match your situation and the boat you’re buying
- Assist with completing and submitting your application
- Negotiate the interest rate on your behalf and assist with approval
- Act in in line with the the Responsible Lending Code for consumer protection rights
Pro: Will have knowledge and expertise on boat finance specifically, with access to multiple specialist lenders.
Con: Usually do not work with every lender in the market.
Dealerships
Many boat dealerships will also offer finance. Finance acquired at a dealership can seem convenient as you can apply there and then when you purchase the boat.
The downside to acquiring finance through a dealership is that it’s rarely the best deal on offer. Dealer finance salespeople work on the basis that the buyer is in a rush to get their boat and may be prepared to tolerate higher costs. But spending just a few minutes comparing your options instead of agreeing to the first offer presented at a dealership could save you thousands of dollars.
Pro: Convenient and potentially fast way to get boat finance.
Con: Usually considerably more expensive than other finance options.
What other boat expenses may I need to account for?
If you’re applying for boat finance, keep in mind you’ll also need to factor in additional costs related to purchasing and maintaining your vessel. This may include:
- Trailers to transport the vessel: Trailers will be a requirement for smaller boats and personal watercraft that aren’t permanently moored. Generally, the cost of the trailer will be included in the total loan amount, with the value of the trailer used as security on the loan.
- Safety equipment: Safety equipment is a requirement and can cost anywhere from $500 to $5,000, depending on how you plan to use the boat and the maximum number of passengers.
- Boating equipment: If you’re looking to buy a boat for the great New Zealand fishing holiday, you’ll likely want to budget for the fishing equipment as well. Prices can vary massively between various types of equipment and can cost anywhere between $100 and $10,000 (or more!).
- Storage and servicing: Be aware that, depending on where you choose to store your vessel (particularly if it’s a launch or larger fishing boat), you may have to pay marina fees, and you’ll need to account for annual servicing to ensure your boat stays in good condition.
Marine Loan FAQ
How fast can I get approval for finance?
With a lot of lenders you can complete a boat loan application in minutes and have approval the same day, or even within hours. This depends on how straightforward your application is – if your situation is complex, allow more time.
Once approved, the loan funds could be in your bank account (or paid directly to the boat seller) within a day or two.
Can I get pre-approval on a marine loan?
Yes. To see if you qualify for finance, simply call 0800 651 480 now and speak to one of our trusted vehicle finance brokers for a quick No Credit Check Pre-Assessment.
Can I get a boat loan if I have bad credit?
Yes it should still be possible. Vehicle Loans works with a number of lenders that will overlook previous credit issues. Our brokers can assess your individual situation with a No Credit Check Pre Assessment.
Do I need a deposit for a boat loan?
You generally do not need to provide a deposit on a boat loan. However, providing a deposit can reduce the risk to the lender (by reducing the total principal amount owing) which may allow you to access slightly lower rates. If you have bad credit or a limited credit history, contributing a deposit towards the cost of the boat is a positive signal to lenders and may help you get your loan application approved.
Can I buy a boat from a private seller using a boat loan?
Yes. If you are purchasing the boat privately (e.g. through TradeMe) the Vehicles Loans team can perform necessary checks to ensure the vehicle is not encumbered (still under finance) or reported as stolen. We can then help generate a private sale agreement and mediate the process between the purchaser and the seller.
What fees does Vehicle Loans charge to apply for finance?
There is no fee to apply for finance.
Lenders and insurers pay Vehicle Loans a fee, commission or brokerage fee for processing the application and settlement of a finance agreement. Any fees that are charged to you by the financiers are fully disclosed and agreed with you before the loan documents are signed by you.
Vehicle Loans operate under the Credit Contracts and Consumer Finance Act (CCCFA) and all financial arrangements provided by Vehicle Loans are compliant with this Act and follow the guidelines under the Responsible Lending Code advised by the Ministry of Consumer Affairs.