It's a buyer's market!
It's never been a better time to buy a boat, so if you're in the market for a new or second hand vessel Sydney International Boat Show is the place for you. This year's show looks like being a mecca for astute buyers looking to snap up a bargain. The recent oversupply of new production vessels, and a glut of boats in the second hand market, means it's an ideal time to get into boating or upgrade your existing vessel. Brokers, manufacturers and importers are all keen to deal and you may well find that you can negotiate a price considerably below the advertised retail. And if you see the right boat at the right price, Finlease are on site to help with all your finance requirements.
'Sydney International Boat Show Day 1'
Sail-World.com/ AUS ©
Mark O'Donoghue, principal of Finlease, commented that a boat which may have cost you $100k a year ago may well sell for as little as $85k today. He observed that although interest rates are higher than they were a year ago, in many cases this was being offset by lower purchase prices and in some scenarios monthly repayments have actually dropped. Sail-World/Powerboat-World asked O'Donoghue to do the math:
'If we had a $100k boat and that was financed over a five year term with a 40% balloon, which is a traditional loan structure, at an interest rate of 10.5% the payments would be $1640 a month.'
'But if we are in such a market that the boat you would have paid $100k for eighteen months ago can now be acquired for $85k, then $85k funded over a five year term with a 40% balloon at 10.5% is $1395 per month.'
That's a potential saving of approximately $250 per month.
The Finlease team are in the ideal location if you're looking for boat finance at the Sydney show- they're in a houseboat on the north eastern corner of the Marina next to the bridge. So if you've done the math and have seen the boat you want, at a price you like, there's a good chance Finlease can provide an offer of finance within 24 to 48 hours. 
'A three to four minute conversation with one of my people is going to give you an indication of what sort of payments would be involved in that sort of purchase and the likelihood of an approval' said O'Donoghue.
'In most cases we can say to a client 'if everything you've told me is as stated, then you'll be approved.' You can leave us with great confidence that if you want to buy that boat, yes you can.'
Finlease offers a service similar to a mortgage broker: you let them know your requirements and they search out the best boat loan product from over twenty different finance providers. Then it's up to you whether you choose to go ahead with it or not. If you decide not to go ahead with the loan, there's no charge, no obligation and no pressure- it's a free service.
Finlease are particularly good people to go and see if you're considering buying a charter boat- they're widely acknowledged as industry experts in this field with close links to a number of the charter boat importers and manufacturers. Often prospective purchasers will arrive at Finlease's boat show office with a charter boat broker in tow. The Finlease team built up this level of expertise while lobbying the ATO for changes to the income tax system; this was at a time when proposed legislation had the potential to adversely affect charter boat investors.
In 2002 a number of key players in the marine industry established the Charter Boat Industry Survival Campaign, which was spearheaded by O'Donoghue, and which resulted in amended income tax legislation and greater certainty for people involved in charter operations.
'We've lived and breathed this thing for nearly ten years, and really more expertly for the last seven or so' reflected O'Donoghue. 'We can't advise our clients, that's not our role. But what we can do is make it very simple for them to understand what is available on the market, what they need to think about when it comes to buying a charter boat, and what outcomes they should expect.'
O'Donoghue said that he expects that Finlease's houseboat office will see a steady stream of enquiries and applications from buyers who have come to the show looking for bargains. On one hand, he says, there is a small segment of the market that remains unaffected by global economic conditions and will continue operating as usual. The Sydney International Boat Show has always been a 'one stop shop' for these top level buyers and this year doesn't look like it will be any different.
But he's expecting a far greater number of buyers who, not possessing this degree of economic largess, have formed the view that interest rates are likely to have peaked and will remain more or less unchanged for the next eighteen months or so. These buyers will be busily crunching the numbers, surfing the net, sweet-talking their wives and researching their chosen boat before the show even opens.
These buyers know the industry, they know that just now they have the power, and they know that the brokers want to deal. And most of all they know that they love boats, want to go boating, and that you only live once.
As O'Donoghue puts it:
'We are in a very good buyers market for boats.you can pay 85% of what you would have deemed to have been the market value for a comparable boat 18 months ago. Even at the current rate of 10.5% it still represents a significant saving relative to what you would have paid back then.'
'Although interest rates may be marginally higher than they were this time last year, this is offset by the potential for a much lower purchase price. a price that will not only offset this but will go a very long way to getting you a lower overall cost.'
'It really is an opportunity to pick up some great deals.'
For more information on the full range of Finlease's financial services see www.finlease.com.au, call the friendly Finlease team on 1800 358 658 or drop into the Finlease houseboat office at the marina of the Sydney International Boat Show.
by Jardine Media 
Click on thumbnails to enlarge and find more photos:
Ormiston, QLD
