Leasing with an option to purchase is an original method of financing. A financing organization acquires the boat and rents it to you for a given period of time. This rental offers some tax advantages that we will see together.
What are the advantages of LOA?
- VAT reduced to 50% on rents
The law provides that time spent outside territorial waters is not subject to VAT. It is therefore essential that the boat taken in LOA be certified to sail in the offshore area. - Very low interest rates
The bank offers very competitive interest rates, as it recovers the full amount of VAT (20%) on the purchase price. - The LOA boat is transferable
The boat LOA generally provides that the contract is transferable in the event of a second-hand sale. - The rechargeable LOA.
The contracts frequently provide that the lessee may renew or increase the ship's equipment under the same conditions as when the ship was purchased (reduced VAT). - During the entire duration of the contract, your boat is not included in your assets.
- The LOA is also interesting for the dealer who often receives a commission.
The LOA is very attractive if you do not need funding.
Leasing reserves its best advantages when a first rent (the equivalent of a loan contribution) is paid for 50% of the total value of the boat. Combined with a spread of other rents (similar to loan drafts) over 4 years, the boat will cost between 3 and 5% less than a cash purchase.
In other words, for the acquisition of large boats, this advantage essentially concerns boaters who do not have a fundamental need for financing.
What are the conditions for obtaining a LOA?
- The basis is to rent the boat to a buying organization.
- The boat must be able to sail outside territorial waters (certification and equipment).
- In principle, leasing with an option to purchase finances new ships.
- The boat must be purchased from a European company
- The ship must be delivered in France.
Who proposes LOAs?
LOA's success in boat financing is such that all major banks offer this financing directly or through specialized subsidiaries. Even the Bénéteau group owns a financial institution.
Thus, resellers advise and offer this method of financing.
Leasing has the extraordinary advantage of being very simple to set up during the sale: only one paper to sign, there, at the bottom... Acting as intermediaries for banks, the dealers who offer it to you are remunerated in the form of commissions.
