Financing powersports - high interest rates 😭

You can get a lower rate if you shop and have good credit. Do you have any experience around jet ski's, boats and wave runners? I hope you can afford the fuel for a day out on the water.
 
skyactiv said:
You can get a lower rate if you shop and have good credit. Do you have any experience around jet ski's, boats and wave runners? I hope you can afford the fuel for a day out on the water.
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Yes. My parents owned 7 different boats over a period of about 43 years until they passed. I got my own boat at 17
 
Honestly, the powersports companies do buy down rates all the time. If im not mistaken, Sea Doo had either 0% or 1% interest this month?

Finance it at 10% and pay it off fast. It will be your incentive to not carry the debt.




2025-08-27_19-33-54.webp
 
Wow, I had not idea Jet Ski's were that expensive. I guess everything these days.

Anyway, interest rates 101.

Prime rate is what a bank would charge its best commercial customer on a secured loan. Secured meaning collateral they can easily claw back and sell. Prime is usually fed funds plus about 2.5 to 3% - so right now Prime is about 7.5%. That is the lowest anyone is going to borrow from a bank.

Add to that the risk of the jet ski. As mentioned, Jet ski is not easy to claw back, and not easy to turn back into cash if they do. Your probably paying something closer to a unsecured rate - meaning a rate where the bank is betting on your good name rather than actually hoping to get the jet ski back. So you pay a lot more interest on a jet ski than you would a car - for example.
 
The motor guy said:
How does that work? What's an example of a secure asset? I usually do pay cash because the amount of fees they add on makes me furious
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How have you financed your previous boats?
I don't know if that's valid for power sports, but the best way to finance a vehicle is to check the credit unions in your aria. If your credit history is very good they can give you the lowest apr than any other financial institution. You just tell them what you want to finance and give the them the VIN and they tell you if the price is good and if they would finance it or not.

The only inconvenience is that you have to open a checking account with them and it takes about a week or two to approve you.
 
Japanese said:
How have you financed your previous boats?
I don't know if that's valid for power sports, but the best way to finance a vehicle is to check the credit unions in your aria. If your credit history is very good they can give you the lowest apr than any other financial institution. You just tell them what you want to finance and give the them the VIN and they tell you if the price is good and if they would finance it or not.

The only inconvenience is that you have to open a checking account with them and it takes about a week or two to approve you.
Click to expand...
These were cheap boats that I always paid in full for.
 
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