Do you have your heart set on a new jet ski this summer? With prices stretching to nearly $15,000 apiece — and you may want more than one for families — you may be busy researching jet ski financing options to turn your daydreams into reality.
Getting jet ski financing isn’t difficult. In fact, it’s similar to financing most other recreational vehicles. But some methods are better than others, depending on your particular situation. We’ll walk you through some affordable ways to finance your purchase and some options you would probably be wise to avoid. Keep reading to compare your choices using our side-by-side chart.
As with any type of financing, the better your credit rating, the more attractive the options you may have available to you.
The best way to finance a jet ski is going to be different for different people. Here’s a side by side comparison to help you compare the features of the four jet ski financing options above.
Average Interest Rates | Changing Interest Rates | Credit Requirement | Risk of Credit Score Damage from High Utilization | |
---|---|---|---|---|
Manufacturer Loan | Interest rates may start as low as 0% for qualified borrowers | Rates sometimes start out low and increase over time | Good or better to qualify for the best offers | No |
Powersport Loan |
APRs usually lower than personal loans | Rates are typically fixed over the life of the loan | Varies — the higher your score, the better your interest rate | No |
Personal Loan |
APRs usually higher than powersport loans | Rates are typically fixed over the life of the loan | Some lenders have options beginning at a minimum credit score of 525 (though you probably won’t get the best interest rates). | No |
Credit Cards | Average APR is 16.86% | Rates may change over time | N/A if your account is already open | Yes |
*Note: The chart above is a helpful guide, but you should always check with individual lenders to compare the specific rates and terms available when shopping for any type of financing.
It’s true that owning a jet ski can be a lot of fun. However, you shouldn’t finance any recreational vehicle unless there’s room in your budget to afford it.
Rosenberg recommends that you “never let this type of purchase put you under financial pressure. It isn’t worth the cost if you’ll miss other bills.”
Not sure how much jet ski you can afford? This helpful payment calculator from LendingTree can help you to figure out the answer. LendingTree is MagnifyMoney’s parent company.
Can you afford to purchase your jet ski in cash? If so, you might want to think twice about taking out a loan and paying interest to a lender. (Of course, if you qualify for a 0% or low introductory offer through a manufacturer, you could always take advantage of the low-intro rate and then pay the remaining balance in full when it expires.)
There’s also something to be said for saving your money in order to avoid high interest on a major purchase through your credit card. It might mean putting your purchase off until next year, but the money you could save on interest could be a great trade-off for your wait.
If you prefer to take out a loan so you can enjoy your jet ski now, focus on the interest rates and fees charged by different lenders. We found some of the lowest rates at credit unions and online lenders. Shop around and don’t forget to check with your own bank — many offer discounted rates to existing customers who use autopay. Also, don’t forget that you may be able to make extra payments to wipe out the debt more quickly and potentially lower the amount of interest you’ll have to pay in the long run.
By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.
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Source: https://www.magnifymoney.com/blog/auto-loan/jet-ski-financing/