There are a few options available to help you finance a jet ski, but how do you find the right one? Lenders can offer a loan tailored to jet ski purchases as well as personal loans.
Each of these options comes with benefits and drawbacks. This guide will take you through your options so you can find the right one for you.
Comparison of loan options for purchasing a jet ski
What options do you have for a jet ski loan?
- Specialised jet ski finance. Some retailers offer in-house financing for the purchase of their boats and jet skis. You may find these structured similarly to a car loan in which you will be required to fork out at least 20% to 50% downpayment.
- Unsecured personal loan. You can generally use funds from an unsecured personal loan for whatever purpose you need, so if you’re approved for the right amount you can put it towards your jet ski purchase. These loans are available for up to seven years and you can usually apply for around two to four times your monthly salary. Rates vary but are usually between 4-8% p.a.
How should you compare your jet ski loan options?
To find the right loan for you, pay attention to and compare the following features:
- Turnaround time. Some lenders can get you the funds in one business day following approval but others may take longer. Remember to check the turnaround time when considering your options.
- Interest rates. What is the interest rate you will be charged and is it competitive? You should also check the effective interest rate as it gives you a better idea of the true cost of the loan.
- Loan terms. Most personal loans are offered from one to five years, but some will go as high as seven. Check what your repayments will be based on your loan term and loan amount and see if this will be affordable.
- Repayment flexibility. Are you able to make additional payments without penalty or pay back the loan before the end of the loan term? Check this before you apply.
- Fees. Check for upfront fees such as processing fees etc.
How much do jet skis cost in Singapore?
The cost of a jet ski varies greatly depending on elements such as the model, age, hours ridden and whether it is new or used. At the lower end, a used jet ski could set you back as little as S$4,000. A higher end new jet ski could cost upwards of S$25,000.
You will also need to add the costs of licencing, maintenance and gear into the upfront cost.
Is there anything to avoid when applying for jet ski finance?
- Over applying. There are many loan providers who will work with individuals with less than perfect credit scores. Research lenders thoroughly if you have a bad mark on your credit report and find one that is willing to work with you. Multiple applications and rejections will only reduce your chances of getting approved for a loan, in the future.
- Penalties. Check the fees that lenders charge carefully for late payments. In some instances, these can be extremely high in comparison to your loan amount.
How you can apply
Use the comparison table on this page to sort through your options and find the right one for you. You can click through to each lender’s review page or website to check the eligibility criteria and documents that will be required to complete your application.
Before applying for a loan, make sure you’ve compared the various loans and features from different lenders. Once you’ve found an ideal financing option for your jet ski, proceed to contact the lender and apply.
Eligibility criteria differ so it’s important to check this before you apply. Most lenders will require you to be over 21 and earning a stable income.
“What if I have bad credit?”
While most lenders will require you to have good credit, there are some lenders that will consider you if you have negative marks on your credit file. Keep in mind that these loans will be higher in cost and you may be required to meet additional criteria. For example, you will need to your latest computerised payslips, income tax notice of assessment and CPF contribution history statement on application.
Depending on your credit worthiness and suitability there is a wide range of options in the marketplace for you to finance your jet ski. Remember to compare the options available to you before applying with any of the lenders on this page.