However it can be tricky to know exactly what you need to do and which documents you need to provide in order to apply for leisure finance.
Buying a boat does not have to be a difficult process, especially if you are using registered financial services and have a clear credit record for the bank to examine.
When you are applying for leisure asset finance there is a process to follow. Start by building a budget and remember to include monthly repayments and interest rates for a clearer picture.
You will need to have the right documentation in place as well as insurance in case of any loss or liability while you use the boat. So, if you are interested in taking the plunge and buying that new boat, read on below for everything you need to know.
- Draw up a budget
The very first step, and arguably the most important, is to draw up a budget for your boat. The budget will need to include the monthly instalments, fuel costs, insurance repayments, storage, a place at a dock for your boat to be kept, as well as maintenance and service fees. Moreover, you can find the best dock builders here.Instead of looking only at the price tag, include all extra costs. You will also need to be aware that some leisure asset finance loan terms can be up to 20 years, so be sure that you can afford to make repayments for this period of time.
Be sure your budget is realistic and that you have looked at all of your expenses and deductions. You can use an online calculator to get a clearer picture of how much you can afford to pay each month.
- Think about the type of boat you want
Now that you have your budget in mind, you will need to start thinking about the type of boat you would like to purchase. This decision will be based on what you would like to do with the boat, how many people will be on the boat at one time, what size it should be, as well as where you will be using it.For example, if you will be the only person using your boat for deep-sea fishing, then a large boat with a lot of fancy features might not be the right choice. However, if you will be taking your family on the boat for leisurely cruises around a harbour, then a larger and safer boat is right for you. You should also think about whether you would like a new or used boat, as this is likely to have an impact on your loan terms and conditions.
- Perform a credit check
Once your budget is clear and you have decided on a boat, you will need to perform a credit check. A credit check will show you what your credit history and rating are, allowing you to contact the credit bureau and speak to them about any discrepancies or to let them know that some debts have been paid and finalised in order for this to reflect in their books.Another reason you will need to perform a credit check is that the bank will perform one on you for their own records and to decide whether or not you are eligible for leisure finance for a boat. If you are prepared ahead of time, you will better be able able to explain any debts and tell them how you are planning on repaying these debts. If you show that you are fiscally responsible then the bank will be more likely to approve your loan application.
- Get your documents in order
Having the right documents to apply for the finance will help immensely to make the process smoother and easier for everyone involved.The documents you will need are outlined below:
• A copy of your up-to-date green barcoded ID as well as the original
• A valid skipper's licence
• Recent payslip or other proof of income not older than three months
• Proof of residential address not older than three months
Insurance details
For the dealer who you will be purchasing the boat from, you will need to have the above documents as well as the following below:
• Signed marital status if your spouse will be listed on the insurance
• Original ID and skipper’s licence
• Proof of insurance on the boat
You will also need to provide proof that your loan has been approved for the boat of your choice.
- Sail off into the sunset
Buying your very own boat can be both exciting and daunting. You might feel overwhelmed but there is a simple way to get it done. Start by drawing up a budget and thinking about the type of boat you would like, then move onto performing a credit check.Once you have your documents in order, you will be able to go out and choose the boat of your dreams.
We give you the best daily information on news, technology, lifestyle, career, health tips, agriculture, business and entertainment. If you can write very well and want to make a living writing online, click HERE!