Finance Options for Leisure Boats & Jet Skis

Table of Contents

• The Growing Popularity of Leisure Marine Finance

• Understanding Your Finance Choices

• Key Considerations Before Applying

• Pro Tips and Common Pitfalls

• Expert Insight

• Case Study: A Smooth Sailing Purchase

• Frequently Asked Questions

• Final Thoughts

• Take the Next Step

The Growing Popularity of Leisure Marine Finance

The UK’s waterways and coastal spots have long been magnets for boating enthusiasts. As more people seek the thrill of jet skiing or the relaxation of cruising, demand for leisure boats and personal watercraft is steadily rising. Yet, buying these high-value assets outright is often out of reach—making finance a crucial part of the journey.

Understanding Your Finance Choices

When considering how to fund your leisure boat or jet ski, you’ll typically encounter several options:

1. Marine Mortgages

A marine mortgage is a secured loan specifically for boats. The vessel acts as collateral, meaning the lender could repossess it if repayments aren’t made.

Typical features:

• Loan amounts from £25,000 upwards

• Terms from 2 to 15 years

• Fixed or variable interest rates

• Often suitable for larger or more valuable boats

2. Personal Loans

Unsecured personal loans are more flexible and can be used for smaller boats or jet skis.

Considerations:

• Borrow £1,000 to £25,000

• Terms from 1 to 7 years

• No asset secured against the loan

• Higher interest rates than secured finance

3. Hire Purchase (HP)

With HP, you pay a deposit and then fixed monthly payments. Ownership transfers to you after the final payment.

Benefits:

• Structured repayments

• You own the boat/jet ski at the end

• Suitable for new or used purchases

4. Personal Contract Purchase (PCP)

While more common for cars, PCP is emerging for marine assets. You make monthly payments with an option to buy at the end by paying a balloon payment.

5. Specialist Marine Finance Brokers

Working with a broker, such as Kandoo, can open up tailored deals from a panel of lenders, often with expertise in marine assets.

Key Considerations Before Applying

• Deposit Requirements: Many lenders require a deposit, often 10-20%.

• Credit History: Your credit score will influence access and rates.

• Age and Type of Vessel: Some finance products exclude older boats or certain jet ski models.

• Insurance: Comprehensive cover is usually mandatory as a loan condition.

• Running Costs: Factor in mooring, maintenance, licensing, and fuel.

Understanding these elements upfront will help you avoid surprises later.

Pro Tips and Common Pitfalls

Pro Tips:

• Compare APRs, not just monthly payments

• Check for hidden fees and early repayment charges

• Read the small print on ownership and repossession

• Use a marine finance broker for tailored guidance

Common Pitfalls:

• Underestimating total cost of ownership

• Overcommitting to a monthly payment

• Overlooking insurance or running costs

Expert Insight

“Finance for leisure boats and jet skis is more accessible than ever, but it pays to work with a broker who understands the marine market and can find competitive, responsible deals.”
— Kandoo Marine Finance Specialist

Case Study: A Smooth Sailing Purchase

Sarah and Mark wanted a family-friendly motorboat for summer holidays. With a £10,000 deposit and a good credit record, they used a marine mortgage to finance the remaining £30,000 over seven years. Their broker secured a fixed interest rate, ensuring predictable monthly payments and peace of mind. The couple budgeted for mooring and maintenance, making their boating dream a reality without financial strain.

Frequently Asked Questions

Can I get finance for a used boat or jet ski?
Yes, many lenders finance both new and used vessels, though terms may vary.

What’s the typical deposit?
Expect 10-20% of the total price as a deposit.

Is a broker necessary?
Not essential, but brokers often access better deals and specialist lenders.

How quickly can I arrange finance?
With all paperwork in order, approval can take as little as 24-48 hours.

Final Thoughts

Financing a leisure boat or jet ski needn’t be daunting. By understanding the available options and planning carefully, you can enjoy the freedom of the water without financial turbulence.

Take the Next Step

Ready to explore your marine finance options? Speak with a specialist broker like Kandoo to receive tailored advice and competitive offers—so you can set sail with confidence.