Using a Boat Finance Calculator
While you’re creating your wish list of the boats you’re interested in purchasing, it would be helpful if you could have some rough indication of what monthly repayments on a boat loan for that particular vessel would be. A boat finance calculator allows you to do just that – quickly and easily calculate a very rough ballpark estimate on boat loans.
Boat Loan Calculator Explainer
- Most finance brokers, lenders and banks will display a finance calculator on their website.
- Online calculators are formatted like many other online forms: clearly indicated fields (boxes) where you enter data (details and information) and essential information fields marked with a red asterisk.
- They usually start by you entering the amount of your boat loan. Tip: you can enter the full purchase price if you would like to apply for a 100% loan; or the price less any discount or trade-in you choose to include; or add an extra amount to cover any additional expenses you may incur during the purchase process, ie dealer and delivery charges.
- Next you would need to enter the loan term, that’s how long you would like to pay off the loan. Tip: some lenders will have maximum loan terms for some finance products.
- You will need to enter the interest rate. No, you can’t choose what you would like to pay, you need to enter the interest rate that that particular website is advertising as their current rate for boat loans. Tip: the consumer (personal) rate is usually higher than the business interest rate. Look on their home page for the displayed rate.
- Business borrowers will be given the option of including a balloon or residual. Tip: this is a percentage of the purchase prices that you would like deferred to pay at the end of the loan term. In the case of leasing, the residual may be determined according to the value of the boat in accordance with ATO guidelines.
- Once you’ve completed all fields you simply calculate and an estimate of monthly repayments will be displayed. You can note this down against that boat then do the same process for the next boat you are considering.
- You can easily see how the repayments vary from boat to boat and by varying the loan term.
- Be aware that online calculators are generic devices and do not have the functionality to allow for individual exceptions including what fees and charges a lender may charge on your loan and any particular conditions which apply according to your individual application.
- Treat the estimate as a rough guide only, read all the disclaimers and terms and conditions for that calculator to avoid being misled.
If you’re interested in using a boat finance calculator, we know where you can source one and would be happy to direct you to that website. Just contact us for details