Pros and Cons of Leasing a Go-Fast
 

There are pros and cons from the perspective of the leasor and the lessee. I'd like to explore them because I see virtually no lease business in our arena. But imagine leasing one for a season. Summers in the North, Winters in the South. Let's start with the leasor:

Pros:
High monthly recurring income

Cons:
Lessee beats the heck out of the boat (how to reconcile this?)
Lessee beats the heck out of the engine (how to reconcile this?)
New boat depreciates quickly
Insurance?


As for the lessee:

Pros:
No long term commitment to payments and potential residual loss when boat comes to term. (when you go to sell your boat 2 or 3 years later it will have depreciated greatly and you could lose a lot).

Cons:
You lease a boat that may or may not have good service support should it need repairs

Re: Pros and Cons of Leasing a Go-Fast
 

Lease used boats w/ stock power.
How about insuring those boats... whoa! :eek:

Re: Pros and Cons of Leasing a Go-Fast
 

Honestly, I don't see any good coming of it.

First of all, I can't imagine any insurance company writing a policy for leasing purposes(it's hard enough for the owner to get insurance).

Secondly, performance boats are so particular with their requirements for handling and maintenance I would be terrified letting someone else motor off into the distance with a performance boat.

As far as realizing the value of the boat, I think that only the true owner could ever appreciate it.

Simple damages or negligence can cost tens of thousands of dollars on boats like ours, not to mention routine maintenance -- I can't imagine ever making that back on a seasonal or monthly basis.

A buddy of mine was part of a boat club, where you pay a monthly fee and get to take out these little 20' deckboats with outboards. The average lifespan of a boat there was like a year. It's unimaginable the damage some of these people can do to boats.

Re: Pros and Cons of Leasing a Go-Fast
 

I have an idea what it costs but would never want to really work the numbers and figure out what my boat costs me per month. If I did I would probably sell it.
As for writing monthly check :eek:

Do the quick math (I won't), what do you think a lease payment would be on a 150K boat?

Re: Pros and Cons of Leasing a Go-Fast
 

Without going into it too deeply, suppose you are able to power a new 30' boat with a 496 magnum. Put a givernor on the engine, etc. Divide the year into 2 seasons: end of May until mid September, boat is in the North at a prescribed boat yard, stored high and dry. Second season is South, from mid October until end of March, same scenario. This way the owner can keep tabs on the boat. Charge something like 2,000 to 2,500 a month, plus insurance. Again, this is for illustrative purposes because I have not worked out every factor in the cost.

Re: Pros and Cons of Leasing a Go-Fast
 

Oh yeah, I forgot, the boat cost about 55k with power.

Re: Pros and Cons of Leasing a Go-Fast
 

Let's see how Captain 18'Bayliner can handle those six footers? :eek:

My guess for insurance? ... In the millions.

Re: Pros and Cons of Leasing a Go-Fast
 

This was tried several years ago and I believe there are a couple of threads on the subject. Bottoom line is that it never moved forward. Try a search.

Re: Pros and Cons of Leasing a Go-Fast
 

Lease's are write offs :eureka:

Insurance would be know different then a leased car

Leasing company would have a low residual rate to make all the money upfront :D

The right people could make this work :cool:

Re: Pros and Cons of Leasing a Go-Fast
 

Actually, you're on to something.
Buy this 30ft Superboat. $55,000.
Lease it @ $2300/mo for all 12months... either up north or down south.
At the end of 3yrs you get a 3yr old used boat and take in an extra $27,800.

Re: Pros and Cons of Leasing a Go-Fast
 

HMMMM,,, a dozen or so Super-boat 30 Y2k's w/ 496 mags for 55K a piece.... that would make a nice rental fleet...

But for 25 k per year to lease a boat,, you could probably afford an outer limits at that price.. Most boat loans are 10-15 years, Anybody who has that kind of money ( 75K ) to throw down on a 3 year lease isn't going to be tooling around in a 30'er.. Even our boating season is 7-8 months, i'm not gonna spend 16 K a year to lease a boat, I would just buy...

Re: Pros and Cons of Leasing a Go-Fast
 

Yep, thats the idea. After 2-3 years you have a fleet of boats that cost you nothing, you can either sell or continue to lease.

Re: Pros and Cons of Leasing a Go-Fast
 

Insurance is not the Leasors problem.
BMW dont care if my car is insured.

Re: Pros and Cons of Leasing a Go-Fast
 

I think before your try to do the math if you can make money or not, do some homework on insurance. Cost and if you can even get it.

Re: Pros and Cons of Leasing a Go-Fast
 

1 word comes to mind, LIABILITY! Joe shmo leases the boat, takes idiot friends out, Joe gets tanked, and hurts/kills one of the idiots! :eek: Dead Idiot's family sues Joe Shmo, and the LEASING Co.!
End of story!
Unfortunately, that's how the world seems to work these days! :mad:
Dean

Re: Pros and Cons of Leasing a Go-Fast
 

Dean, I know NY law changed for that.
I'm guessing this is just speculation and we are doing our homework here and now.

Even if you leased it for $1000/mo for 36mo you'd still have a 3yr old boat that cost you $19,000.(approx)

Re: Pros and Cons of Leasing a Go-Fast
 

It is know different than leasing a car, truck, plane, forklift ect...ect...

Re: Pros and Cons of Leasing a Go-Fast
 

There was a 3yr old 29 Baja (100k ?) at my marina a few years ago.....I would not have given the guy 19k for it......and he loved his boat :eek: :drink:


How about asking Chris Reidel (?) or the guy that was leaseing the Apache for Poker Runs?
Would be interesting to here from someone who has tried it before.

Re: Pros and Cons of Leasing a Go-Fast
 

What, that someone couldn't sue the owner of the boat leasing co. if a person got hurt on one of his LEASED boats? The guy leasing the boat doesn't OWN it, he's just leasing it from the boat leasing co. I know that the leasee is resonsible for providing the insurance, (If he can get it) on the boat, BUT people are going to sue everybody associated with the boat, unfortunately! :(
I can't the risk vs reward upside on this idea, IMO.
Good luck,
Dean

Re: Pros and Cons of Leasing a Go-Fast
 

I know with big fishing boats they set up franchises or time shares. Ive gotten offers at the office but never really looked into it. If I get another Ill post it.
Not sure if those were captained boats though, wouldnt be hard to do in that case.

Re: Pros and Cons of Leasing a Go-Fast
 

Even if you leased it for $1000/mo for 36mo you'd still have a 3yr old boat that cost you $19,000.(approx)

Then the cost of your original$55,000 @9%= $5,000/year and the boat will need new engines at a cost of about $20,000 with labor and selling the worn out motors(for twins) So really after 3 years the boat costs you $19k+$15k+$20k=$54,000. WOW I just made $1,000 in three years.

Re: Pros and Cons of Leasing a Go-Fast
 

See...thats why I dont want to know :p

Re: Pros and Cons of Leasing a Go-Fast
 

leasing companys don't own the items, banks do. Its know different then a conventional loan. Its all about predicting the market value of the ITEM at the end of the term.


For Example

You lease a SC Range Rover from me for 24 Months 10K miles a year

MSRP is $93,450.00

Land Rover Capital Gurantees the car will be worth 59% of the original MSRP after the term.

You Finace the 41% diffence plus the money factor AKA "Intrest rate" Thats how the banks make their money..


So if I was going to lease a boat or be a leasor you need to determine the market value at the end of the term...

The Liabilty falls on the person leasing the item, not the bank..


I hope the is a better explanation.....Tom

Re: Pros and Cons of Leasing a Go-Fast
 

WOW. i don't even know what to say about that, but i think is you don't have the $$$ to get a boat and pay gas , repairs and insurance(that is not chip) find a friend that is responsible and own one and pay his gas he will give you a Sundays ride,rf

Re: Pros and Cons of Leasing a Go-Fast
 

So there are a lot of considerations to be aware of. Some things to do to mitigate a loss at the end of the lease term are to lease a used boat which is fully depreciated. But assuming that insurance is not prohibitive, etc. do you guys generally think its a good idea for the lessee, assuming 2,500 a month for like 6 months or so, plus insurance?

Re: Pros and Cons of Leasing a Go-Fast
 

2500.00 a month for a both that does not cost over 45K brand new would be a good deal for the leasor

Re: Pros and Cons of Leasing a Go-Fast
 

Pro: Guy who leases boat; gets to beat chit out of boat that is not his.

Con: Guy who leased boat to guy above gets back POS boat.

Re: Pros and Cons of Leasing a Go-Fast
 

Why not start out with a used boat? That's exactly what you'll be left with.......i guess the bank wouldn't touch it, as it's a lot tougher to figure out the depreciation....

Re: Pros and Cons of Leasing a Go-Fast
 

If anyone has ever turned a leased vehicle in they are aware of the back charges for all of the nicks and dings.

Re: Pros and Cons of Leasing a Go-Fast
 

If you start out with a used bot that will no longer depreciate then its easy. For that matter, if you own the boat yourself and want to lease it to people then its even easier

Re: Pros and Cons of Leasing a Go-Fast
 

Exactly! People are confusing leasing with RENTING. Big difference.

Re: Pros and Cons of Leasing a Go-Fast
 

Is it possible to buy extended warranties and keep it covered while you lease it? That would be the only way I would even consider it.

Pay cash for it at $55k. Collect $28-$36k in payments over three years. Sell the boat after the three years for $30k, $35k, ??? depending on condition and replace the boat.

Honestly, IMO the ONLY way you could make it work would be to have warranty and collect LARGE security deposits for damage.

Re: Pros and Cons of Leasing a Go-Fast
 

Just what we need... an easy way for more inexperienced boaters, going too fast with little education. If you can't afford to invest in the hobby, then you shouldn't be in it. We're having a hard enough time protecting our rights. I'd say the payoff is not worth it.

Re: Pros and Cons of Leasing a Go-Fast
 

Holy shiit, no way I'm ever BUYING a Rover. Two years later it's worth like 38k LESS? I thought f'n boats were a hole. Most 100k boats are still worth more than 55k after 2 years... :rolleyes:

Re: Pros and Cons of Leasing a Go-Fast
 

it would be alot worse in two years if you did a covential finace or stroked a check for it :( :( Thats all High end cars not just Rovers...........

Re: Pros and Cons of Leasing a Go-Fast
 

I understand the finance system of leasing. I know the factories (and co sponsored finance) hold abnormally hi residuals. I was just commenting on the supposed myth about boats being the biggest losers..... :rolleyes:

I wouldn't ever consider a purchase of a hi-end or exotic new. Only used for this kid. It's the only way I can have more than one toy anyway. :D

Re: Pros and Cons of Leasing a Go-Fast
 

i agree :cool:

Re: Pros and Cons of Leasing a Go-Fast
 

Is there anyone out there willing to plunk down 24K / year at 2 grand a month to lease a 30 foot boat ??? that in this part of the country you can only use 8 months ?? I wouldn't even pay 12 K per year... I say if you got 24K to spend yearly on a boat, you aint gonna be tooling around in a 55K 30 super-boat, and if you did have that kind of cash why not buy it ?? what would be the benefit of the lease...

Re: Pros and Cons of Leasing a Go-Fast
 

[QUOTE=cobra marty
Then the cost of your original$55,000 @9%= $5,000/year and the boat will need new engines at a cost of about $20,000 with labor and selling the worn out motors(for twins) So really after 3 years the boat costs you $19k+$15k+$20k=$54,000. WOW I just made $1,000 in three years.[/QUOTE]

Buy in cash... so no 9%.
Single 496 w/ 5yr warranty... so no repower... still 2yrs warranty left on motor.

"If anyone has ever turned a leased vehicle in they are aware of the back charges for all of the nicks and dings."
-exactly, but you leasing out 10 boats may not have the leverage/strong arm tactics GM has.

"that in this part of the country you can only use 8 months ??"
- I think you missed in the initial post... 1/2yr up north, other half down south. Each leasee only pays for 6 months.

I am not trying to make a case that this is smart or will even work. Just helping Noboat make his point.

Re: Pros and Cons of Leasing a Go-Fast
 

tax write offs for business, you don't have to track the hours for business vs personal in a lease. in TX you simply write of 90% of the payment