hullofjustis

iTrader: (1)

it sounds great on paper, however you would still have to rent them and that is not a gaurentee. i can't imagine 2-3 k a month on 5 boats for maintenance is realalistic. it would take one person running a boat aground to shoot that budget. considering you don't run through insurance which could tie up the boat for a few weeks. so when it is not in use it can't be rented. i think it is a great idea. i just don't think it would be a money maker. a hobby yes you make break even if there are renters.

Sydwayz

iTrader: (1)

IF anyone embarks on this, the #1 thing I would consider about the boat would be EASE of MAINTENANCE.
Changing the impeller on a 33 Active Thunder is a VASTLY different experience than changing one on a 33 Baja.

This is going to affect the labor cost as well as a premium to pay techs to do this work; which doesn't always go according to the book hours.

offshorexcursion

iTrader: (5)

It doesn't work.

Not enough profit in the business for multiple reasons.

Even if it makes more financial sense the customer is not willing to pay since "renting" does not satisfy the Americans EGO!

Home ownership makes me laugh also. America looks down on "renting" but if you have a 30yr Loan on a house you claim to own but the bank actually owns your all of a sudden somebody?

Cool idea thought about it in the past myself but there's no profit to be made.

88Fount33

Let's see,,, Hummm.,,,,New engines and drives after each rental, yeah, that would work. OK, rent for $150,000 per day.

soldier4402

You have a point there people always believe buying something vs leasing or renting is bad thats not always true as you speak. Sometimes you have to go dollar for dollar when figuring renting. I dont thumb my nose up at renters and your right the bank homes your home, but banks own cars and boats and everything else, but in general I think I would have to disagree with your statement on housing. But again in general, some areas of the country and certain life, tax, business instances owning doesnt make sense so before someones says in this instance, no I agree there are instances.

Again in general after 30 years I own something that I will never have to pay for on again beyond maint and taxes, renting you will always pay but then again you could feasibly rent for cheaper even when retired then if you owned and paid just taxes and maint. But in general not having a house payment is a good thing specially when retired. With owning a home I will get some of my money back and possibly all of it. When i retire my house is a six figure savings account if I need it, rental you cant say that. In the long run renting vs owning is not the best idea in most cases not all. And a home is investment, investments typically dont reward you in just a few days or years.


A little beer math a 200,000 home assuming no money down and not doing bi-monthly payments or extra payments and paid off in 30 years would cost you 341k over 30 years. Now no taxes in there or maint cost either. Mortgage payment is 954 a month. If you rent you will probably not find an equivelant rental for cheaper then you could buy you just wont. So say 200k brand new home you could have bought you are now renting for $1500 a month, over 30 years that cost you 540k. So we are retired and live another 30 years rental will cost you another 540k. In most cases your taxes and home maint wont come close to that. The idea of renting is so someone that owns something can make money, so they are adding cost to what they paid for it, so thats why in general renting long term on just about anything really makes no sense.



Back to the boat I just see the rental being a hard draw given the conservative numbers on pro forma by another poster. I just dont see famlies lining up to rent a boat for 2 grand a day when they can get a pontoon or four winns for 500 bucks for the day. And families is where the money is it when it comes to tourism and recreational activities.

302Sport

Why get old used up boats? Don't forget this is a business, so if you buy new boats, you can depreciate them and claim the loss. Also, they will be under warranty, so it will keep maintenance costs down. When they are out of warranty, sell them and buy new again.

Sydways, what would a stripped out 33 AT with Merc 8.2 Mag HO's cost, if 5 were ordered for the same person, and you knew every couple of years an order for 5 more boats would be placed. It would be every 4 years to be exact because that's what the warranty is.

soldier4402

good point but because you depreciate say 100 bucks doesnt mean your getting 100 bucks back, it will only lighten the burden.

Too Stroked

Ever see what folks do to the average rental boat or Jet Ski? You simply would not believe the stupidity, carelessness and outright recklessness that goes on – generally followed by more lies and fake tears than you can shake a stick at. And there’s enough “incidental” damage to bring one to tears too. Hell, we stopped renting Jet Skis after two years because we were tired of having to take the service boat out to pick them up off the bottom of the lake. Oddly enough, it was never the renter’s fault that one sank.

Now, let’s up the ante a little bit with a larger, more expensive to buy, more expensive to maintain, harder to drive / dock boat that’s supposed to be “high performance.” No insurance company in the world would take you on. No bank with a lick of sense would loan you the money. And every idiot who could utter the words, “Hey y’all, watch this” would beat a path to your door.

I could probably think of bigger money losers, but I’d really have to work at it.

NASCAT

Interesting I've always been under the impression that fractional ownership is really more like a Timeshare. You own a certain amount of time on a specific aircraft type / model but don't necessarily get the same plane or crew at each use. You can sell a timeshare but isn't fractional air like a parking meter, once you've used up all the time you purchased you have nothing except the opportunity to purchase more??

I'm asking out of ignorance not b/c I think I know.

With regard to the thread I find the concept interesting but I think that it would take some deep pockets to get it launched & keep it going until it gained enough traction to sustain itself. My only parallel would be the NASCAR Driving Schools or like a Skip Barber Pro Series where you just show up & drive. But keep in mind they offer classes & or races in several locations throughout the USA which means increased inventory or the ability to move your inventory to different venues.

NASCAT

If this were to take off maybe align your boat availability & locations w/ a PR promoter like FPC??