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How to finance a jet ski
Ready to get out on the water? Check our guide to find out how to get financing for a jet ski.
There are a number of lenders that offer loans to purchase both new and used jet ski models. With competitive rates and flexible repayment methods, there are multiple ways you can finance your next jet ski purchase.
Most jet ski manufacturers offer financing either directly via the company or through major banks. However, you have other ways to finance a jet ski.
1. Personal loan
You can usually borrow between $1,000 and $50,000 with a personal loan, with repayment terms ranging from 6 months to 5 years, sometimes longer. Personal loans can be secured or unsecured. With a secured personal loan, you offer collateral such as your investments or house. An unsecured loan has no collateral.
You can get a personal loan by applying through a bank, credit union or online lender. Personal loans from online lenders are easier to get approved for and have faster turnaround than banks or credit unions. Banks and credit unions tend to offer the most competitive rates, but you need good to excellent credit (above 660) in order to qualify.
Compare personal loans from online lenders
2. Powersport vehicle loan through a bank or credit union
You can apply directly with a bank or credit union to get a powersport vehicle loan. Loan terms are usually up to 7 or 8 years. However, just like personal loans, you need good to excellent credit in order to qualify.
Powersport vehicle loans tend to be unsecured, so your jet ski will not act as collateral.
Apply for a credit union powersport vehicle loan
3. Manufacturer financing
Instead of comparing loans, you can usually directly finance your jet ski through the manufacturer. They often have deals with major banks to help them provide financing. Manufacturers sometimes offer promotional rates that could be more competitive than your typical personal loan.
4. Credit card
If you don’t need full financing or you’re purchasing a lower-priced jet ski, you can consider putting part of it on your credit card. Consider comparing low interest credit cards if you don’t plan on paying it off in one lump sum at the end of the month.
Compare credit cards to finance a jet ski
5. Saving up
The cheapest way to buy a jet ski is to simply save up and pay for it upfront. You won’t have to pay any interest or fees, spend time applying for financing and you’ll own your jet ski outright. Consider setting up a high-interest savings account that you deposit funds into each month until you have enough to cover your jet ski costs.
Representative example: Jim gets a jet ski
Jim has owned a cottage in Northern Ontario for many years and has always dreamed of owning a jet ski. His neighbour is selling a one year old high-end jet ski for just $7,000.00 – which is an absolute bargain in Jim’s eyes. Jim only has $4,000.00 to spend on a jet ski at the moment, but he doesn’t want to pass up on the opportunity, so he decides to take out a loan to cover the remaining $3,000.00. Jim only has a fair credit rating, so he heads online to compare non-traditional lenders. He finds a lender willing to offer the full $3,000.00 with a 16.00% APR and a 1 year loan term.
|Cost of jet ski||$7,000.00|
|Loan type||Personal loan|
|Interest rate (APR)||16.00%|
|Loan term||1 year|
|Additional fees||Origination fee of 3% ($90.00)|
|Total loan cost||$3,356.31|
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.
A brand new jet ski can set you back anywhere between $5,000 to $20,000, while used ones can sometimes be purchased for as low as $1,500. The price depends on the manufacturer and model. On top of the price, you might have to pay a destination charge to cover the delivery of your new jet ski. These can cost around $300 to $500 and depend on your dealer.
We’ve gathered some of the most popular jet ski prices to give you a better idea of how much you might need to spend.
Depending on the model, Kawasaki Jet Skis typically range from around $10,000 to $21,000.
|Model||Cost of jet ski|
|2021 Jet Ski STX-15F||$12,499|
|2021 Jet Ski SX-R||$14,299|
|2021 Jet Ski Ultra LX||$15,699|
|2021 Jet Ski Ultra 310X||$23,399|
|2021 Jet Ski STX 160||$16,799|
This manufacturer offers more than 10 models of jet skis, which it calls wave runners. These range from vehicles designed for every day fun to professional racing and can cost between around $9,000 and $21,100.
|Model||Cost of jet ski|
|2021 Waverunner Ex Limited||$13,999|
|2021 Waverunner VX Cruiser HO||$17,499|
|2021 Waverunner FX Cruiser SVHO||$23,899|
|2021 Waverunner GP1800R SVHO||$20,799|
Sea-Doo personal water crafts (PWC) are slightly less expensive, ranging from around $6,400 to $14,400.
|Model||Cost of jet ski|
|2021 Rec Lite Spark||$6,599|
|2021 Recreation GTI||$11,399|
|2021 Touring GTX||$16,199|
|2021 Tow Sports Wake||$15,199|
|2021 Performance GTR||$15,599|
With so many lenders offering different types of loans, you should take the time to compare the features of a variety of loans before deciding on the right one for you. Here are a few factors to consider:
- Fund disbursement time. If you’re in a rush to find financing and get on the water, look at how long the application and approval process takes. Some lenders will disburse the funds within one business day, while others may take up to ten business days or more.
- Interest rates. Find a lender that can offer you a competitive rate on a loan. The lender should give you a repayment schedule that shows the amount due, including interest for the term you choose.
- Loan term. Most jet ski loans are offered from one to seven years. The longer the term, the more the loan will end up costing you. Decide if smaller monthly payments are worth paying more in interest in the long run. If not, opt for higher repayments to pay off the loan faster – and cheaper.
- Repayments. Flexible repayments and the ability to make extra ones are features worth looking into. These can help you pay your loan off quicker, saving you money at the same time.
- Fees. Consider any fees that you will be charged by the lender. Some lenders charge administrative fees, early repayment fees and fees for late or missed payments.
Jet skis aren’t a cheap investment. Before you dive into a new loan, weigh the pros and cons of financing your purchase.
- Quick financing. You can get on the water with your new jet ski in a matter of days if you take out a loan.
- Fast turnaround. Once you choose the jet ski loan that works well for you, you may receive an approval response in less than a day. You can usually have your loan funds in hand by the next business day.
- You don’t need additional collateral. You may be able to use the jet ski to secure the loan. This can help save money on interest. But if you fail to make your repayments, the lender can repossess your jet ski.
- Interest and fees. If you don’t need a jet ski right away and want to keep costs to a minimum, you might want to consider saving up for one. Loans are riddled with interest and additional fees.
- Good credit required for good rates. You will need to have a good to excellent credit score to qualify for the best interest rates. Having a score lower than 660 will usually mean much higher rates.
- You might need insurance first. When you finance a jet ski and use it to secure the loan, the lender may ask that the jet ski be insured before offering a loan. This will depend on the province or territory where you reside.
Even when you’re sure you want to buy a jet ski and know exactly what model you want to get, you should still keep the following in mind:
- High markup. All stores will have markups, some more than others. If you come with cash in hand, you may be able to negotiate a better deal than you’d get through dealer finance and store markup.
- Buying at the wrong time. Like many seasonal luxuries, jet skis cost more at the beginning of summer than at the end. If you want a good deal, buy near the end of the season and look for dealer rebates.
- Making late repayments. If you don’t think you can pay back your loan entirely, don’t take one out at all. In addition, making late repayments will not only cost you more in terms of fees and charges, but it may also negatively affect your credit score if the lender reports you to one of the credit bureaus.
Once you’ve compared a variety of lenders and loans, head to the lender’s website to begin your secure online application. Some lenders may additionally allow you to apply over the phone or in person if they have physical branch locations. You’ll need to make sure you meet the eligibility criteria and have the necessary documents on hand to apply. The process usually takes less than ten minutes.
These may vary from lender to lender, however you’ll usually need to:
- Be 18 years of age, or the age of majority in your province or territory
- Be a Canadian citizen or a permanent resident with a valid Canadian address
- Have proof of an income
- Meet any credit score requirements
- Have an active bank account
- Meet any income requirements
You will need the following documents on hand when applying:
- Personal details like your name, address, Social Insurance Number (SIN), phone number and email.
- Income details including pay stubs or bank statements.
- Employment details including your employer’s name and contact details.
- Banking information such as your bank’s name, address and transit number, as well as your personal bank account number.
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