Jet Ski Loans: Is the Fun Worth Financing

Jet Ski is a particular brand of personal water craft (PWC) manufactured by Kawasaki. Other brands include Sea-Doo, Polaris, AquaTrax and WaveRunner, but most folks use the term Jet Ski to generically refer to jet-driven boats under 13-feet in length. Jet Skis are very popular recreational boats, especially in the U.S. and Australia. They move quickly in the water, are highly maneuverable and can hold up to four people.

The two PWC styles are “sit-down” and “stand-up.” The popular sit-down model holds two or more people, whereas the stand-up model is a one-person model used for racing and tricks. Both styles are powered by inboard engines that drive the screw-shaped impeller of the pump jet. For those who desire a bigger craft, jet boats are available in the 30- to 40-foot range.

One of the best ways to pay for a jet ski is with a low interest personal loan. These allow consumers to finance their fun without breaking the bank. You can see some of the best personal loan lenders below:​

Lender	Rates (APR)	Amount	Terms (Years)
GET YOUR RATE >	Variable Rates: 5.00% - 11.10% Fixed Rates: 5.49% - 14.24%	Minimum: $5,000 Maximum: $100,000	3, 5, or 7
GET YOUR RATE >	Variable Rates: N/A Fixed Rates: 6.37% - 29.99%	Minimum: $1,000 Maximum: $50,000	3 or 5
GET YOUR RATE >	Variable Rates: 5.99% - 15.74% Fixed Rates: 6.00% - 16.26%	Minimum: $5,000 Maximum: $50,000	3 to 7

Jet Skis have a number of uses:

• Recreational: Because of its small size and powerful engine, a Jet Ski moves quickly on the water, is easy to use and highly maneuverable. Families often own a set of Jet Skis and ride together. Riders can learn to do different tricks, especially on the stand-up models. Jet Skis are most often used in lakes, bays and rivers, although many riders like to venture into the ocean as well. Because Jet Skis do not have external propellers, they are considered relatively safe for wildlife and swimmers.
• ​Fishing: PWC fishing is a fast-growing segment of the industry. Anglers are attracted to their modest price, their speed and their relative safety.
• ​Law enforcement: Jet Skis move quickly and are often used in harbor patrols. The Italian police use PWCs in Venice to catch the bad guys. Rangers enforce laws on rivers and lakes using PWCs.
• ​Rescue: PWCs can be outfitted with rescue platforms for use by lifeguards. The platforms allow PWC drivers to pick up folks in distress on the water and carry them back to shore. The craft are also useful for rescuing flood victims.
• Remote use: With the addition of radar, compass, GPS and remote control, PWCs can be operated remotely to explore caves and other dangerous locations. The U.S. Navy has used remote PWCs for target practice.

Cost

PWCs are relatively affordable, but they aren’t cheap. Most manufacturers offer a lineup of models from simple to fancy, with prices to match. Note that the prices listed below are MSRPs, but most models can be purchased at discount.

• Kawasaki Jet Ski: Models range in price from just under $10,000 to $18,000. The top-of-the-line Ultra 310LX features a 1.5-liter supercharged engine, 1890 pounds of thrust, a Deep-V hull, 496-pound load capacity and a 3-blade stainless steel impeller.
• ​BRP Sea-Doo: 18 models are available from $5,300 to $18,000. The top-model GTX Limited S 260 features seating for three, an exclusive independent suspension with 5.5 inches of travel, a 1.5-liter supercharged engine, multiple operating modes and an Ergolock stepped seat.
• Yamaha WaveRunner: Yamaha offers 13 models in four different series, ranging from $6,600 to $16,900. The FX Limited SHO features a 1.8-liter supercharged 4-cylinder engine, electric tilt steering, seating for three, no-wake mode and a multi-function information display.

Financing

The major PWC manufacturers offer financing through affiliated banks. For example, Yamaha extends credit through WebBank and Capital One credit cards. It offers promotional annual percentage rates (APRs) as low as 2.99 percent, or 0 percent for six months and 15.99 to 23.00 percent thereafter. Yamaha’s standard APR is 12.99 to 22.99 percent fixed or 15.24 to 23.24 percent variable.

Sea-Doo arranges financing through Sheffield Financial, a unit of BB&T Bank.

LightStream, a division of SunTrust Bank, is a third-party lender for recreational vehicles including PWCs, with fixed rate APRs as low as 3.24%* APR with AutoPay and terms from two to seven years*.

Other non-affiliated personal loan lenders include Citizens Bank, PNC Bank, and TD Bank.

There are several methods to pay for a PWC ranging from cash up front, an unsecured personal loan, all on the credit card, as well as payment plans offered by PWC itself. Here are the pros and cons of each:

Cash

Pros

• You avoid interest charges
• ​No hassles or paperwork
• Don’t need a good credit rating or history

Cons

• You may not have enough disposable cash lying around
• ​You might want to use the money for another purpose, such as investing
• Does not allow you to build your credit

Credit Card

Pros

• You may already have one or more credit cards with sufficient credit limits, which makes the transaction easy to do
• ​Opportunity to earn points, miles or cash back
• ​For those with excellent credit, the interest rate can be quite low
• Pay on time to build your credit score

Cons

• Could lower your credit score by increasing your credit utilization ratio
• ​Interest charges up to 29.9 percent APR
• Could be very expensive if you make minimum payments

PWC Financing

Pros

• Lower interest rate because collateralized by the craft
• ​Availability of special low rates
• Dealers have incentive to approve the loan

Cons

• Availability and APR depends on your credit rating
• ​Causes a hard pull of your credit report
• ​Paperwork
• Craft could be repossessed if you miss payments

Personal Loan

Pros

• Quick approval
• ​Not collateralized, so craft won’t be repossessed because of missed payments
• If you use a peer-to-peer loan website, competition could provide you with a good deal

Cons

• Availability and APR depends on your credit rating
• ​Causes a hard pull of your credit report
• May be more expensive than other alternatives

One last word – however you pay for your Jet Ski, please follow all safety directions. These craft are meant to be fun, but using them improperly could cause damage and injury. Be careful.

*Payment example: Monthly payments for a $10,000 loan at 3.24% APR with a term of 3 years would result in 36 monthly payments of $291.87. LightStream disclosures here.