Jet Ski Financing In Canada

A jet ski may be one of the more exhilarating purchases anyone could make, but there are some key details to consider before you dive in. Whether you’re looking at a new or used model, a loan could be an attractive option to help spread the cost into manageable monthly payments.

Key Points You Should Know About Jet Ski Financing

• Financing: You can finance a jet ski through banks, credit unions, dealerships, or online lenders, with a PWC loan or a personal loan.
• New vs. Used: A new jet ski will typically come with better loan terms, while used models have lower upfront costs with higher interest rates.
• Additional Costs: You’ll need to consider costs for storage, maintenance, winterization and insurance.

Can You Finance A Jet Ski? 

Yes, you can finance a jet ski via and other similar powersport vehicles with a loan from a bank, credit union, dealership or online lender.

Financing will allow you to spread the cost of a jet ski over time with monthly payments, making it an attractive option for many. There are, however, some key differences between new and used jet ski financing to consider.

New Jet Ski Financing

Generally, when you’re looking to finance a new jet ski, you’ll find lower interest rates and better loan terms since the watercraft is in top condition and thus has a higher resale value. 

You could also consider a dedicated personal watercraft (PWC) loan, or just go with a standard secured or unsecured personal loan to cover the cost. 

Many dealerships will also offer promotional financing deals, such as low or zero-percent interest for qualified buyers, so that’s something to watch out for. 

On the other hand, the upfront cost is usually higher compared to buying a used jet ski, and you’re likely to have larger monthly payments and a more expensive loan, overall.

Used Jet Ski Financing

If you’re financing a used jet ski, the lower upfront cost is one of the biggest advantages, making it easier on your budget. However, interest rates on used jet ski loans are often higher because lenders view models as riskier, due to depreciation and potential wear and tear.

Loan terms for used jet skis may also be shorter, which could mean higher monthly payments compared to financing a new jet ski. Moreover, not all used jet skis will be eligible for financing, many lenders will have age and condition restrictions. Some lenders may not finance private sales.

Jet Ski Financing Features

Loan Amounts

Loan amounts for PWC loans typically range from $5,000 to $25,000 or more, depending on the price of the jet ski and whether it’s new or used. 

Some lenders will allow borrowers to finance up to 100% of the purchase price, but adding a down payment of at least 10% and 20% can significantly lower the total cost of the loan and improve your overall odds of approval.

Financing Rates

Generally speaking interest rates for PWC loans in Canada fall between 10% and 35%. Borrowers who have strong credit scores and good credit histories will qualify for the most competitive rates. 

Those with lower credit scores are likely to have to take on higher rates when seeking loan approval, but you could still find viable options through online personal lenders. 

Terms

For PWC loans, the terms typically range from 2 to 7 years. Shorter terms will come with higher monthly payments, but allow you to benefit from lower total interest costs and a less costly loan overall.

Likewise, longer terms will keep your monthly payments lower, which makes them more manageable for anyone with a tighter budget, but the total amount paid over the life of the loan will be higher. 

Is Manufacturers Financing Available For Jet Skis?

How To Apply For Jet Ski Financing In Canada

Applying for jet ski financing in Canada is fairly straightforward, whether you go through a bank, or dealership or work directly with a lender or manufacturer. 

Many dealerships partner with lenders to offer financing on-site, which offers a convenient option to secure a loan as part of the purchase process. 

Finally, most major manufacturing brands will offer direct financing for sea doos, jet skis and other PWC. The best place to start here is the manufacturer’s website, if you’ve got a certain model or brand in mind.

What You’ll Need to Apply for Jet Ski Loan

• Down Payment: Most lenders require a down payment of 10% to 20% of the jet ski’s purchase price. 
• Credit Score: Requirements vary by lender, but typically a score of 660 or higher will help you qualify for better rates.
• Documentation: You’ll need proof of income, such as pay stubs or recent tax returns, to demonstrate your ability to repay the loan. Bank statements may also be requested to verify your financial stability, along with proof of employment or other documentation, depending on the lender.
• Insurance: Any trustworthy lender will require proof of insurance for financed jet skis, to protect their investment. Comprehensive coverage that includes theft, accidents, and liability is often mandatory and must be arranged before the loan is finalized.
• License: You’ll need a valid boating license to operate a jet ski in Canada, and some lenders will request proof of licensing during the application process. In most provinces, this license is known as a Pleasure Craft Operator Card (PCOC). 

Can You Finance A Jet Ski With Bad Credit?

It is possible to finance a jet ski with bad credit, but you’ll be faced with higher interest rates and often less flexible loan terms. 

Many online lenders and dealerships offer loans tailored for borrowers with lower credit scores, and as with any kind of loan, making a larger down payment or securing a cosigner with good credit can help your chances of approval. 

Remember that shopping around is crucial, even if you feel as though your options are limited.

Can I Get A Jet Ski If I’ve Declared Bankruptcy?

Yes, you can still get a jet ski after declaring bankruptcy, but it may be more challenging. 

Generally, lenders will charge higher interest rates and may require a larger down payment, to offset the added risk given your financial history. To improve your odds of approval, apply after being discharged from bankruptcy, and focus on rebuilding your credit. Moreover, ensure that the loan you’re asking for fits comfortably within your budget.

Can I Get A Jet Ski If I’ve Filed A Consumer Proposal?

Yes, you can still finance a jet ski after filing a consumer proposal, but you’re likely to find it difficult due to the impact on your credit. 

Lenders will view you as a high-risk borrower, which means higher interest rates, stricter loan terms or flat-out refusal of a loan application. To improve your chances, focus on rebuilding your credit and consider working with lenders who specialize in bad credit financing.

Learn more: Can I Get A Loan While In A Consumer Proposal?

Calculate Your Jet Ski Loan Payments

The average cost of a new jet ski typically ranges between $5,000 and $20,000 and beyond, depending on the model, brand, and other features. 

However, a used jet ski can be much cheaper, with prices often ranging from $2,000 to $8,000, again depending on factors such as age, condition, brand etc.

The length of the loan (typically ranging from 2 to 7 years) will determine how much you pay each month. Plus, your credit score and down payment will also affect the interest rate and loan approval terms.

Leasing vs. Financing A Jet-Ski

Financing a jet ski means you take out a loan to purchase it, with monthly payments that go toward repaying the full price, plus interest. Once the loan is paid off, you own the jet ski. 

Leasing a jet ski involves making lower monthly payments to essentially rent it for a set period, usually for two years or more. At the end of the lease, you can either return the jet ski or buy it for a predetermined price. However, leasing has restrictions, such as usage limits, and you won’t be able to own a jet ski unless you choose to buy it.

Learn more: Leasing vs. Buying

Loans Canada Can Help You Find Jet Ski Financing In These Provinces

• Ontario
• Alberta
• Quebec
• British Columbia
• Nova Scotia
• Manitoba
• Saskatchewan
• New Brunswick
• PEI
• Newfoundland and Labrador

What Jet Ski Brand Are You Interested In?

	Brand	Model
	Sea Doo	Fish Pro Scout, RXP-X-325, Spark 60-HP
	Kawasaki	SX-R 160, Ultra 310LX, STX 160X
	Yamaha	FX Cruiser HO WaveRunner, GP1800r SVHO WaveRunner, Superjet WaveRunner
	Krash	Reaper, PRED-RR, Footrocket

Other Things To Consider When Buying A Jet Ski

Do You Need A Boating License To Operate A Jet Ski In Canada?

Yes, you must have a Pleasure Craft Operator Card (PCOC), commonly known as a boating license, to operate a jet ski in Canada. This federal requirement applies nationwide, regardless of the province or territory. 

You can obtain a PCOC by completing a Transport Canada-accredited boating safety course, and passing the associated exam. 

How To Insure A Jet Ski In Canada

While jet ski insurance isn’t mandatory in Canada, it is nevertheless highly recommended to protect yourself against liabilities, theft, or damage. Some marinas might also require proof of insurance in order to dock or launch your personal watercraft. 

You can search for PWC insurance through specialized marine insurers or general providers, and the process works just as it would with car or home insurance.

Do You Have A Place To Store Your Jet Ski In The Winter?

If you’re thinking of buying a jet ski, it’s worthwhile to think about the potential additional costs you could face, on top of financing. 

For example, storage can be a significant expense, especially if you don’t already have a space such as your home garage. Whether you choose a marina, a self-storage facility or home storage, costs can typically range from $300 to over $1,000 per season. 

Winterization is another expense, typically ranging from $200 to $500 per winter. 

On top of that, you’ll also need to consider ongoing costs like fuel, which can add up during the summer months, as well as safety gear such as life jackets and fire extinguishers.

Additional Reading

Private Party Auto Loans

Is It Better To Apply Online Or In Person For A Loan?

What Happens When I Can’t Make My Loan Payments?

Jet Ski Financing FAQs

In Ontario, and throughout Canada, you must be at least 16 years old to operate any PWC without supervision.