What’s a leisure loan, I hear you ask? Well it is a loan that you use to purchase vehicles or equipment that you use in your leisure time. Maybe it’s easier to say that with a leisure loan you can buy your new boat, caravan, camper trailer or Jet Ski!
A leisure loan is a way to achieve your dreams and have the time of your life in your spare time or when you are on holidays. No longer will you have to sit on the beach and watch everyone else having fun on their Jet Skis, ask your mate to take you out on his boat this weekend or hire a van in a caravan site that doesn’t go anywhere.
With a competitive leisure loan the world is your oyster, giving you the freedom to hitch up the caravan and take off for three months around Australia, throw the kids in the car and hook up the Jet Ski for a day of fun at the local lake or marina, and be the one that your mates call – because you have a boat and they don’t.
So if a leisure loan sounds like a bright idea to you, here are five points to consider before you sing on the dotted line.
Borrow what you can afford
A leisure loan is not an invitation to bury yourself in debt, instead it is a great way to give yourself and your family the life you deserve. So look at your income, your bills and your discretionary money and decide how much you can comfortably afford to borrow.
New is better than old
When you borrow money to buy a vehicle or piece of equipment that will be used for fun, you want to make sure that it is in perfect condition. The best way to achieve this goal is to always buy new, because you have a warranty in case anything goes wrong. Don’t forget that financiers will lend you money more readily for new vehicles and equipment, because they are more valuable than second hand.
Stable employment
If you are unemployed or don’t have a reliable and consistent work history, you might have trouble obtaining a leisure loan. So if you think that you might have this type of problem, do your best to put together documentary evidence of your employment history over the past few years, demonstrating that you have worked consistently.
Finance details
Any finance company will want to see evidence of your income and your savings, as evidence that you can make the repayments on your leisure loan. If you don’t have much in your savings account, because you have just finished paying off another loan for example, then you might be able to use this as evidence that you can make the repayments.
Credit checks
One of the first actions made by a lending institution, when you apply for any type of loan, is to run a credit check. So it will pay you to check your own credit rating and if there are any anomalies that could prevent you receiving a loan, amend these errors before you apply for your leisure loan.
When you borrow money for your leisure vehicles and equipment, you want someone who can compare all of the different interest rates and find you the most competitive loan on the market. National Finance Solutions have a reputation for being leaders in the loans industry, and with an extensive network of financial lenders, we are well-known for finding the most competitive rates for our clients. Looking for more information before finalising your Leisure Loan? Check out one of our other recent blogs, How To Get Finance In 5 Easy Steps, or speak to our friendly team today – we’ll happily point you in the right direction and provide you a quote too.
