We Aussies love our outdoor sports, and water sports are a way of unleashing the beast inside us. You might be planning to buy a jet ski, but is a bad credit score a thorn in your path?
Lessen your worries, mate! Boat financing with bad credit has been around for years, and people have found help with the right guidance.
However, you need to know whether you qualify for a powersport loan or not. A loan sanctioned to buy off-road vehicles like a jet ski is a powersport loan. Someone with a low credit score can avail of one with a bad credit powersport financing.
How to get a loan with bad credit?
Bad credit ATV loans are available as powersport loans. However, lenders will need some guarantee that you will pay them back on time. You can then use an ATV loan calculator to check your payment options.
Lenders will analyse your credit score, income, and also annual returns. If you use a huge chunk of your income to pay off debts, you need to lower that a little. Once you do that, you should be able to get a loan with low-interest rates.
However, if you are unable to do this, you can do the following –
- Improve your credit score: You can improve your credit by making payments on time for a couple of months. Once the score is higher, you can apply the following two steps.
- Make a down payment: When you put a substantial amount forwards, you increase your chances of getting the loan. Even a $500 down payment could bring you good news. The more money you invest at the beginning, the lesser the chances of default. However, if you do, the lender can quickly compensate when they recover the jet ski.
- Apply for a collateral loan: You can apply for a secured/collateral loan from a dealership. These loans are generally safer for the lender because it allows them to repossess the vehicle in cases of non-payment.
What to consider before buying a jet ski with bad credit?
Boat financing with bad credit not only includes a loan, but you must calculate the price, maintenance, fuel costs, etc., before buying.
- Purchase price – Jet skis are expensive. However, you can buy used water bikes to save up to 50%. If you want add-ons, they will cost extra.
- License and Safety – It is mandatory to own a driver’s license in some states. Moreover, some states demand that you get special training before you can take it to the waters.
- Freight charges – If you live away from the shore, you will incur moving charges. You will have to churn out around a hundred to a thousand dollars for a trailer.
- Fuel and maintenance – You can stop worrying about fuel costs as jet skis do not use up much fuel. However, repair and maintenance could take away a chunk of your money at the end of the year.
- Taxes – Research taxes (sales + property tax) as they vary from state to state.
- Loan costs – You might have to pay high APRs and initiation fees. The APR or Annual Percentage Rate is the cost you must bear each year. Get preapproved to learn about your qualifying rates and chalk out a plan according to your budget.
Bottom Line
There are multiple ways to own a jet ski without having a skyrocketing credit score. Boat financing with bad credit is possible with the right financer and a little research. Further, demand for jet skis is off the charts in Australia as more people are vacationing at home post the pandemic.
So if you plan to invest in this summer beauty, it’s time to book in advance. Moreover, if you repay your jet ski loan on time, you will improve your credit history. Now that you know the nitty-gritty, what’s stopping you from owning that beautiful jet ski?
