Fractional Owners have Bigger Boats

Part 5 in a series of Articles of the Advantages of Yacht Shares

By Matt Condon,

President of Signature Yacht Shares

www.signatureyachtshares.com

All things are not equal when comparing fractional yachting to going solo. Fractional owners generally have bigger boats. But, does size really matter?

Many people think of fractional yacht share as a cost-saving alternative to buying and maintaining a boat exclusively. However, a key advantage of fractional is you can own a substantially larger boat for the same dollars. As an example; you can own a share of a 3-stateroom, 58’ Motoryacht worth more than $2,000,000 for about the same cost as a 35’ Express Cruiser. Signature Yacht Shares of Destin, Florida, offers unlimited use of a Viking Yacht for about the price of your typical Sea Ray runabout. The larger yacht has more amenities, is more comfortable to stay aboard, and offers a smoother ride in rough seas.

Larger boats may be safer boats too. For the price of a single engine center console, you can own a fraction of a twin engine boat like the 29’ Regulator or the 32’ Regulator. Twins are considered far safer than a single engine when running offshore. And, for the price of a gasoline powered boat, you can own a share of a safer diesel powered 39’ Tiara Yacht. Bigger boats also have more robust machinery and advanced redundant safety features. As an example: on the 58’ Viking there is a manual engine control system that kicks-in should the electronic controls fail. This kind of peace of mind is priceless.

Not all mariners are old salts. You may discover more friends and family members willing to go boating with you on your larger fractional yacht because they feel safer and more comfortable.

Fractional yacht owners enjoy the benefits of a larger boat for the same or less cost than going solo on a much smaller boat. The additional safety, comfort and prestige are all benefits of owning a larger yacht fractionally. So, the next time you see the yacht of your dreams; don’t assume the owners are wealthier than you, because if it is a fractional yacht, they may be just a little bit smarter.

Tell Your Banker "No Thanks!"

And say goodbye to that 20-year boat loan
With fractional ownership

Part 5 in a Series on the Advantages of Yacht Shares
By Matt Condon, President
Signature Yacht Shares, www.signatureyachtshares.com

Boat buyers like to negotiate but, really, who wants to pay too much? Buying a boat brings out the best negotiator in all of us - it’s your chance to be like Donald Trump and make the deal of the century. Take it from an industry insider, no matter what price you pay, you are going to pay too much if you take out a 20-year loan. Let me explain.

What a 20 Year Boat Loan Costs
If you take out a typical $100,000 loan at 6.99% for 20 years, that means you not only pay $100,000 for the boat, but will pay another $85,000 in interest. Even if you aren’t financially savvy, it’s clear that this is just plain stupid. Bankers have enough of your money, why give them more? There is a better way. Fractional yachting allows you own a share of a yacht outright for about the same as a typical down payment.

Keep Your Balance Sheet Clean
The 20 year boat loan may negatively impact your finances in more ways that just paying too much. It adds a very large long term liability on your personal balance sheet and another mortgage on your credit report. If, instead, you used your down payment to pay cash for a yacht share, you will save big time. Even if you decide to finance a yacht share purchase, your payments will be so low that your credit limit is hardly touched.

Fractional Ownership Saves in More Ways Than One
Sharing a yacht may not be for everyone, but it has some definite financial advantages. It costs less to buy, less to maintain, and a lot less to own over time. So, my advice to boat buyers is this; “quit worrying so much about the sale price of a boat and instead focus on the total cost.” You may discover that fractional yachting is a compelling alternative. And, in the process you get to tell your banker “no thanks!”.

Be Green On The Deep Blue Sea

How fractional yachting conserves resources

Part 2 in a series on the Advantages of Yacht Shares
By Matt Condon
President of Signature Yacht Shares

Think about it. The vast majority of boats sit moored in marinas unused for weeks on end. A boat is used on average about 20 days per year according to Boating Industry magazine. They report little variation from region to region. Florida boats lay idle about as much as boats on the Great Lakes. Each vessel takes a substantial amount of non-renewable resources to produce. Does it make sense to expend 100% of a resource to utilize it only 10% of the time? Is shared yachting a more environmentally friendly way to own a boat? Absolutely!

Boats and yachts were constructed of wood - a naturally regenerating material. Starting in the mid 1960s, boats are now constructed of fiberglass, which is a form of plastic made of glass strands and resin. Resin is produced from oil. It takes a lot of plastic to produce a 40’ boat.

A typical fractional ownership arrangement has eight users per boat. So, there are eight people utilizing a single asset instead of eight separate boats. The savings in natural resources it takes to build these boats adds up quickly. If only one boat is built for fractional ownership instead of eight, approximately 100,000 pounds of plastic is saved - that’s about the same as three million plastic water bottles!

There are other resource savings too. Most yachts have two massive diesel engines, each weighing several thousands pounds and made from iron and an assortment of other heavy metals mined from the earth. Yacht share saves the need to produce 14 engines. That in itself is an 85% savings in natural resources.

The yacht share form of ownership is better aligned with the way we live today. It saves money and conserves resources for the future too. So, next time you have the urge to get out on the deep blue water, consider going green and go fractional.