Question 1

What is boat leasing?

Accepted Answer

Leasing a boat does not mean hiring a vessel. Boat leasing is instead a credit facility that businesses can access to help them buy expensive assets for their operations. In the case of boat leasing, the boat is being acquired for use in the business. 

Under a boat lease, the lender purchases the boat on behalf of the business and will lease it back to the business. To repay the loan, the business will repay the loan in monthly instalments over an agreed term. 

At the end of the term there will be a residual, or balloon payment, which the borrower will pay to finalise the loan. Throughout the loan term, ownership of the boat will be with the lender, not the borrower. Once all payments have been made, including the residual, the business will own the vessel.

Question 2

How does boat leasing differ from boat financing?

Accepted Answer

Boat leasing involves essentially ‘renting’ a boat for a loan term. Boat financing involves taking out a loan to purchase the boat outright. Under a boat lease, borrowers will be able to secure lower monthly payments compared to financing, but they won’t open the boat unless they choose to buy it at the end of the lease term.

Question 3

What types of boats can be leased?

Accepted Answer

All boats are able to be leased depending on the lender’s leasing criteria. This includes sailboats, motorboats and fishing boats. The boat leasing criteria will generally include consideration of factors like the boat’s age, condition and value.

Question 4

What are the benefits of leasing a boat?

Accepted Answer

A boat lease can offer lower upfront costs, flexible terms, and the option to upgrade to a newer model at the end of the lease.  Leasing a boat often also includes maintenance and service packages which can lower the overall ownership cost.

Question 5

What happens at the end of a boat lease term?

Accepted Answer

At the end of a boat lease term, a borrower will be able to purchase the boat by paying the residual, return the boat to the leasing company, or refinancing the remaining amount.

Question 6

What restrictions typically exist on a leased boat?

Accepted Answer

Leasing agreements will generally have restrictions on how and where the boat can be used. These restrictions can include limits on modifications, where it can be used, and operational conditions to protect the boat’s condition and value.

Question 7

Will I be able to customise or modify my boat if it is under lease?

Accepted Answer

Significant modifications and/or customisations to a leased boat are generally not allowed. This is because the boat needs to be returned in its original conditions. Minor upgrades may be allowed with the prior approval from the lender.

Question 8

What costs can I expect on a boat lease?

Accepted Answer

Costs associated with boat leasing include monthly lease payments, insurance, and maintenance costs. Some leases can sometimes include additional fees for exceeding usage limits for wear and tear.

Question 9

Why should I lease a boat through Easy Boat Loans?

Accepted Answer

By coming to Easy for your boat lease, you’ll gain access to a wider selection of boats, expert advice on choosing the right vessel, and more competitive lease terms. Our established relationships with lenders allows us to negotiate better deals and tailor the lease to your specific business and financial needs.

Question 10

What is the residual value in a boat lease and why is it important?

Accepted Answer

The residual in a boat lease is the estimated value of the boat at the end of the lease term. The residual is important because it influences the monthly lease payments and the purchase price if a borrower decides to buy the boat at the end of the lease. Generally, higher residual values will result in lower monthly payments. However, this will often mean a higher purchase price if a borrower chooses to purchase the boat at the end of the lease.

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