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Article: Charter boat finance: There have been significant changes in the finance for charter boats and pleasure craft over the past five years, says boat finance expert Mark O'Donohue. (Destination).(Brief Article)(Statistical Data Included)
- Article from:
- Offshore Yachting
- Article date:
- April 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 National Publications. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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IN THE EARLY 1990S THE MAJORITY OF BOATS WERE financed reluctantly, and usually using 'bricks and mortar' as security.
Fortunately, the attitude among many lenders has changed, and they are now prepared to finance boats using the boat as the sole security where the applicant demonstrates reasonable income and is considered to have some 'substance' (ie some tangible financial net worth).
Boats are typically financed up to 100 per cent of the purchase price over three, four or five years, either fully paid over that term or with a residual or balloon of up to 40 per cent (similar to a motor vehicle lease or commercial hire-purchase facility). These ...