Which Jetski Financing Option Is Best for You?
Riding a personal watercraft (PWC), like a Jet Ski or perhaps a Sea-Doo, is exhilarating for water sports lovers. And since some models are roomy enough to support as much as three passengers, a little family or friend group can ride the waves all summer long.
A Jet Ski or Sea-Doo can be expensive, but owning one is not unrealistic. If you're determined to be the proud owner of an individual watercraft, there are multiple financing and loan possibilities.
What You should know Before Financing a Jet Ski
Depending around the model you purchase, a personal watercraft (PWC) may cost between $5,000 and $25,000.
PWCs depreciate like cars. A brand-new PWC may not be worth what you paid after it leaves the casino dealer. You may want to consider buying a used Jet Ski (or Sea-Doo) from the private seller. They may even toss in some accessories that will help reduce your overall costs.
New or used PWCs include additional expenses – the sticker costs are only the start of your costs. From maintenance to making your monthly payments, should you finance your PWC having a loan, you will need to factor upfront – and continuing – costs into your budget.
Think about the price of:
- A transport trailer
- A hitch for the watercraft
- Storage
- Your boating license
- Personal watercraft insurance
- Boat accessories
- Annual maintenance
- Fuel
These additional expenses (and much more) can – and will – accumulate.
How To invest in a Jet Ski
To finance a Jet Ski, you'll need to know how much money you can borrow and just what your monthly payment will be. Speak to your local credit union, a bank or an online lender to ascertain if they provide personal watercraft loans and compare rates of interest and loan terms.
If you intend to buy a watercraft from a Jetski dealer, they may offer in-house financing having a special promotional offer. If you are planning to put down payment, this article assist the lender project what your payment per month will be.
What kind of credit do you need to finance a Jet Ski?
The credit rating you will need to qualify for a Jetski ski loan will vary by lender, usually lenders prefer a credit rating of 600 or higher having a low debt-to-income ratio (DTI).
If your DTI is high or your credit rating is gloomier than 600, you may improve your chances of qualifying for a financial loan having a co-borrower or a co-signer.
In-house financing programs may allow more flexibility for borrowers with low credit scores. But the lower your credit score is, the higher the interest rate will probably be on the loan.
Jet Ski Financing Options
Financing a Jet Ski isn't a one-size-fits-all endeavor. You will need to do your homework and explore all of your financing and loan options. If you are concerned about the length of financing, for instance, be sure you understand how long or how short your repayment period could be for each loan option you consider.
Personal watercraft loan
Like an auto loan, a personal watercraft loan is really a secured loan. Your Jetski can serve as the collateral to secure the borrowed funds. Should you default around the loan, your lender may repossess your PWC.
Some lenders permit you to finance a Jetski for 12 – 60 months. With respect to the rate of interest and loan terms, you may be entitled to a limited-time incentive like a lower rate of interest or 0% interest for loans with 12- to 18-month repayment periods.
If you have a car, the application for a PWC will feel very familiar. And you may receive financing within a few days or up to a week.
Personal loan
You can apply for an unsecured personal loan to finance your Jet Ski.
A personal bank loan might offer more time to repay the loan than the usual PWC loan. With unsecured loans, you borrow a lump sum of cash upfront that you simply pay off in fixed monthly payments over 12 – 60 months. Depending on your creditworthiness, you may be offered rates of interest around 8% – 9%.[1]
Some lenders require a credit rating of 650 or more.[1]
Manufacturer financing
If you are buying a used or new Jetski directly from the maker, they may offer in-house financing with incentives such as a 0% APR (apr) with specific loan repayment terms.
Some manufacturer financing options include secured personal loans that use your PWC as collateral.
Credit card
Using credit cards to purchase a big-ticket item could be a money-savvy move if you can rake in rewards, cash back or points, and you are able to remove the balance before interest is tacked on.
You can also make use of a card having a 0% APR promotional offer to “eliminate” interest fees from your purchase. If you know you are able to remove the Jetski prior to the promo period ends, interest will not be charged on the purchase. If you can't pay off the entire balance, you'll pay market rates of interest on whatever's left over, making your Jet Ski purchase much more expensive.
Financing a Jet Ski with Bad Credit
First, the good news: You can purchase a PWC with a low credit score. Now, the not-so-happy news: Loans for borrowers with low or poor credit typically have high interest rates and short repayment terms. The loans are usually secured personal loans, meaning the lender will expect an asset to cover the borrowed funds. In this instance, the collateral would be the Jetski. Should you default on the secured loan, the lending company will repossess your PWC.
If the waves can't wait, expect to pay more and be prepared to cope with more debt. If the waves can wait, push pause on the loan and work on building your credit rating so you can be eligible for a a much better loan with better loan terms and – bonus – improve your credit rating history.
Consider getting a credit builder loan. It works like the name says if one makes all of your payments promptly. When the loan pays entirely (yes, you receive the borrowed funds amount after you have to pay them back), you should use the cash like a down payment in your PWC.
The Surf is Calling
Can you hear the ocean calling your name? If you want a PWC, don't let a price tag steer you against your dreams of ownership! Search for an affordable financing option that lets you ride the waves with full confidence. Your main goal should be to make sure your brand-new water ride doesn't sink you into debt.