Personal treasury
The first option is to buy your sailboat with your own money. You have the cash needed to purchase your boat in full and you will therefore pay cash for your boat.
The bank loan
The second solution is to use a bank loan for a conventional credit with your bank. It is also a solution that can be proposed by the nautical actors of the financial sector.
"It's a solution that can be a bit complicated for the banks, because it's a bit more complex than a simple bank loan, because there are additional notions, like the flag and so on." explains Eddy Pazalja, Director of Partnerships and CGI Finance.
Leasing/Leasing with Purchase Option (LOA)
The LOA is a financing system contracted with an organization that buys your boat for you and leases it to you for a contractual period.
"Unlike a credit - where you own the property, in LOA, you rent your boat. You can either pay off the financing and become the owner or you can sell your boat and buy a new one by passing on the LOA. There's a certain flexibility in knowing what you want to do: own, sublet, sell..." details Eddy Pazalja.
The duration of the LOA is calculated according to the client's monthly budget, ranging from 3 to 15 years. The contribution is free, from 0 to 50% of the total amount. On average, the duration of an LOA in boating is 10 years.
Today, financial organizations also offer additional services such as yacht insurance, maintenance or mechanical breakdowns. All these services will be integrated into a single monthly payment.
This LOA system has several advantages and offers a lot of flexibility.
- Exemption from French VAT
As of November 6, 2020, the state tax authorities have ended the ' 10% tax abatement applicable on the amount of VAT included in LOA contracts relating to pleasure boats. Nevertheless, you will be able to claim a VAT exemption if you are going on a round-the-world trip or sailing outside Europe. A solution that may be more advantageous than buying the entire amount, including VAT, as equity capital. If after several years, you decide to return to France, you simply need to notify the financing organisation, which will re-include VAT in your rentals.
In the case of a company, the latter will also be able to recover the VAT on the rents which will be calculated on the basis of the VAT.
- Adaptability
Customers can adjust their monthly payments throughout the term of their credit: progressive or decreasing installments, pause the drawdown for a few months, adjust their rents to extend or shorten the term of the LOA.
This system also provides for recharging. That is to say that it is possible to re-include in its financing an invoice related to the maintenance of its boat, such as the purchase of new sails for example.
- Transferability
In the case of the sale of his sailboat, it will be possible to transfer the financing from the former owner to the new buyer. The first will recover the balance between the financing balance and the transaction price.
- Time Sharing
Several customers can buy a boat together with co-payments on the financing. This has an advantage for the use, as they will all be insured on the boat.
- Subletting
An owner may decide to buy a boat and make it available to a charter company. In this way, the amount of the rentals received will cover the entire rent.
