Published on : 17 August 20203 min reading time
You dream of having your own boat, but you don’t have the budget to finance it? The solution is simple: opt for a charter with purchase option to get it for you! Some bankers and sellers will, in fact, be able to offer you this kind of service at the moment. In addition, follow this article and find out how to buy a yacht by leasing.
What is hire purchase?
By definition, charter with purchase option or LOA is an investment method that allows you to obtain a new boat. Here, you choose the one you like, a financing organisation buys it and then leases it to you for a contractual period. Today, a good number of private individuals are using this alternative. This makes sense because it has many advantages.
You should know that this method of acquisition often comes with a tax niche. In general, this loan disguised as a lease will give you a final payment offer that is lower than the cash purchase amount. In other words, this rebate consists of reducing taxes on the price of the yacht.
The advantages of buying a yacht on lease
What are the advantages of buying a leased yacht? This is a question that pops into many people’s heads. One of the advantages of leasing is that you can benefit from a 50% reduction in VAT on the rentals. Note that the law provides that time spent outside territorial waters is not subject to this condition. Thus, the boat you will take in LOA will have to be homologated in order to be able to navigate in deep-sea zone.
On the other hand, this method of financing will offer you very interesting interest rates. The bank or the seller will give you, for example, the possibility of recovering a total sum of 20% VAT on the purchase price. In addition, you should know that the contract will be transferable in the event of a second-hand sale.
How do I buy a yacht by leasing?
It is now time for you to find out how to buy a leased yacht. To be honest, this is not really complicated in itself. All you have to do is look for a dealer who can provide you with a leasing service with an option to sell. Once you have found one, contact them to set up your LOA contract.
As for the monthly rent, it will be calculated according to three factors:
- The length of the lease agreement
- The price of the boat
- The amount of the first rental fee (varies from 0 to 50% of the ship’s rate)
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