Adapting financing to the boater
When buying a boat under management/leasing, it is important for the yachtsman to choose the right financing method. For this, specialized companies generally offer several solutions to adapt to the financial situation of their clients, as explained by Chloé Fouéré, head of Navigare Yachting France: "Today, 80% of boats are sold with financing, whether it is leasing, traditional credit or a forward sale program. Our role is to find the formula that suits the customer's capabilities and sailing program."
Leasing, the main method of financing boats
Among the boats financed by rental management, rental with purchase option, also called LOA or leasing, represents the vast majority of the cases. Despite tax changes in several European countries, this solution is generally the most profitable, even if the price of boats has risen rapidly and the operation is no longer profitable.
Chloé Fouéré insists on the interests of the device: "90% of the boats we sell are leased. This remains the best way to finance it to sail at lower cost. The purchase is usually done through a company. The interest is that the boat is owned by the bank until the end. The initial contribution is between 20% and 50%. The more you contribute, the lower the rate. We make sure to match the monthly payments and the client's contribution capacity with the operating periods."
Credit for companies
In some cases, the classic credit can be relevant. These are purchases by companies that wish to amortize the purchase, or certain specific navigation conditions where leasing is not relevant.
Financing by leasing companies
In a third case, the boater may not use bank financing. The leasing company plays the role of financer, as is the case in forward sale programs. Chloé Fouéré explains how Navigare Yachting works. "In our case, the Smart and Smart+ programs require more initial contribution than leasing, 60% in the first case and 65% in the second. In this case, Navigare Yachting acts as a financing relay. This is relevant in the case where the client has some funds but has difficulties in obtaining bank financing or, for example, in certain countries such as Greece or Thailand where the boats must be locally flagged. Some countries also do not allow leasing."
Relying on the leasing company to determine the best choice of program is therefore crucial to making the right financing choice when signing the contract.
