Why Buy a Boat to Place in Charter?
Many people do not realize that charter companies do not own the boats in their charter fleets.
Individuals (like you) own the boats and lease them to the charter company which offers them for “bareboat charter” to qualified skippers. Often these “bareboat charter” boats will also be offered for captained charter to those guests who want more of a luxury vacation. The owner is paid most of the charter fee that is charged.
Your boat could help earn its own keep AND – owners get first choice of all the charter weeks!
Marine Servicenter has strategic relationships with some of the best “Boutique” Charter Companies in the Pacific Northwest, Mexico, and the Caribbean. We have helped owners to purchase several vessels that have been placed in these fleets and are well versed in the intricacies of this type of transaction. Let us help you to take advantage of Charter Yacht Ownership to achieve your goals of owning a yacht yourself!
Top 10 advantages to placing a boat in Charter:
- Boats placed in Charter in the PNW, a 12-14 week forecast season, can earn between 75% – 95% of the 6 expenses of ownership. Boats placed in Charter in the Caribbean, a 20-25 week forecast season, can earn up to 100% plus of the 6 expenses of ownership.
- Expenses of Ownership:
• Annual Excise Tax
• Misc. Expenses (related to charter service)
• Loan Payment
- With a Boat placed in Charter, you will own your boat for around 25 cents on the dollar (or even less!) compared to “private” ownership.
- If you place a boat in charter in WA State, you will not pay WA. State Sales Tax when you buy and place a boat directly into bareboat charter.
- If you place a boat in the USVI or Puerto Rico you will not pay any Sales Tax when you buy and place a boat directly into bareboat charter.
- Bonus! – your down payment, is thousands less as you are legitimately not vesting in Sales Tax!
- Brand new or late model year boats that Charter companies demand and might otherwise be a “stretch” financially are now affordable for many.
- If you can afford a boat, with charter you can afford a newer boat or bigger boat for the same money or even less.
- Other people (qualified charter guests) help pay down your loan, as you build equity in the vessel (largely on their money).
- Owners get first pick of all the charter weeks each year and still get great recreational value out of a boat in charter.
- If you are currently chartering 2+ weeks a year, Charter ownership in the Pacific Northwest will cost you about the same as what you are paying in Charter fees currently. In the Caribbean you will most likely get “free” use of the boat.
- Placing a boat in Charter gives you immediate access to Moorage in Bellingham, Anacortes, Fajardo Puerto Rico, St Thomas ( Red Hook) USVI. All places that are incredibly beautiful and in high demand with long wait lists.
- Emphasis on preventive maintenance means your boat will be very reliable and always ready to enjoy! Boats placed in Charter get more maintenance and professional maintenance typically than private vessels.
- Wear and tear on Charter boats in the Pacific Northwest (with an average of 12-14 week of charter annually) is minimal. Climate and weather conditions in the PNW tend to allow for a 10% higher resale value compared to other parts of North America.
With 12-14 weeks of charter, most Charter Boats are not breaking even on the costs but some get very close. If you can take the Section 179 IRS deduction you many breakeven or make a little.
Climate and Weather conditions in the Caribbean tend to decrease resale values up to 10% compared to other parts of North America. Wear and tear on Caribbean boats in our “Boutique” Charter Fleets on average get 20-25 weeks of charter annually, Wear and tear is a bit more but your boat will either breakeven of make you a little. If you can take the Section 179 IRS deduction you will most likely make money.