Jet ski finance for your watercraft adventures in South Africa
CompareLoans brings you information about jet ski financing so you can start wave riding on the best deal for your budget.
How do jet ski loans work?
A jet ski loan gives you a lump sum of money so you can purchase a new or used jet ski of your choice. That means you get to enjoy the thrill of water sports without paying the full purchase price out of pocket. You can borrow any rand amount between R10 000 and R300 000. Furthermore, you only repay the loan in monthly instalments that can last for a year minimum or 7 years maximum.
4 ways to finance a jet ski in South Africa
Secured personal loans
A personal loan for a jet ski can be secured by the jet ski itself much like how car loans work. That means the lender has a legal right to claim the jet ski if they don’t receive the full repayment from you.
- Advantages. It’s a popular option that has lower interest rates and which enables you to borrow more since there’s less risk for the lender.
- Disadvantages. There’s the risk of losing the jet ski if you default.
Unsecured personal loans
Unsecured personal loans are another flexible option where the jet ski is not held as security. However, this option is more favourable to borrowers with a good or excellent credit score.
- Advantages. Missing a few payments won’t put your jet ski at risk of being seized. Furthermore, you can prequalify for the loan, which gives you the flexibility of shopping for the jet ski with the cash in hand.
- Disadvantages. No security means more risk for the lender, and they’re more likely to charge a higher interest rate.
Jet ski company financing
Some jet ski companies offer one-stop services if you need both the jet ski and financing for the jet ski. Financing can be provided directly by the manufacturer or through third-parties such as banks and other lenders.
- Advantages. A hassle-free option that saves you the effort of shopping around for a loan. Additionally, jet-ski manufacturing financing may offer lower interest rates than personal loans.
- Disadvantages. The starting interest rate offered by the manufacturer may go up if you take longer to pay off the loan.
Credit card
Since credit cards often have low limits, using a credit card for your jet ski purchase is only a viable option when you’re buying a low-priced machine or using your savings to top up.
- Advantages. If you’re applying for a new card, you can capitalise on interest-free promotional periods that can last as long as 12 months.
- Disadvantages. Credit cards are high-interest-rate options if you’re unable to find a credit card with no repayment fees.
How to compare jet ski loans so you can find the best option
You can pay for a jet ski in several ways, but the best way depends on your individual circumstances. For each type of jet ski loan, consider the following factors:
- Borrowing limits. Some popular jet-ski brands like Seadoo and Yamaha can cost you upwards of R300 000. First, check the maximum loan amount allowed by the lender before applying.
- Interest and fees. A competitive fixed or variable rate is the way to go along with minimum fees. Standard loan fees and charges include initiation and monthly service fees but watch out for any penalty fees that are applied to early repayments or late repayments. These can significantly increase the total cost of your loan.
- Security against the loan. If the jet ski can serve as security for the loan, the question is, are you willing to risk the machine in exchange for a competitive rate?
- Insurance. If you’re opting for a secured personal loan, the jet ski typically has to be insured at an extra cost.
- Repayment flexibility. You choose a repayment period between 1 and 7 years. The longer the repayment process, the more the loan will cost you. Paying off your loan quickly means more savings for you since you pay less interest.
- Processing time. You might already have a holiday circled on your calendar. If the jet ski is a big feature of that holiday check to make sure you the lender will offer financing within your desired timeframe.
Jet ski loan repayment calculator
Using the jet ski loan calculator from CompareLoans helps you to factor in the 3 key parts of your loan, which are the loan amount, loan term, and your monthly repayments. To get started, use the sliding tools to select your loan amount and term, then click calculate. The results are your expected monthly payments which should, ideally, align with your budget.
Is Jet ski finance available for bad credit?
Jet ski loans for bad credit history may be available, but in such cases, the lender always takes steps to minimise the risk they’re taking on. For example, payday loan lenders don’t perform a credit check, but they charge very high interest rates while limiting the amount you can borrow. Bad credit personal loans typically need to be secured before the loan is approved. This ensures the lender can recover their money in case of failed repayments.
How to apply for a jet ski loan online
- Our comparison tables on this page feature several options to choose from when comparing loans and while using the jet ski loan calculator.
- Once you have a favourite lender, click on their “Go to Site” button to begin the application process.
- Get ready to provide personal details that typically include your email, ID number, and phone number.
- In addition, you need to upload the following documents – copies of your South African ID, your latest payslips and bank statements as well as proof of residence.
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