Need help please

[355spider]

I was approached at the Houston boat show by a company that has some type of fractional ownership for boats. They wanted me to include my 280DA in their lineup. Basically the way they work it is people pay a certain amount per month based on how much use they want out of the boat. They pay for all storage, maintenance, weekly cleaning, quarterly waxing etc.. They put money into a pool per hour it is run so that when the engines need replacing they pay for it through the pool. They pay up to $600 of my $1000 payment. They pay for insurance. They enforce any damage repairs. Sounds like a really good deal as we only use our boat about 1 time per month on average. It's an 04 with only 100 hrs on it.

My concern is I don't have enclosed cooling and that's salt water the boat will be on. They do replace the Zincs often though. Mine has bottom paint. They also put 200-300hrs per year on the boat.:wow:
That would take bout $1000/'month out of my payments which would be nice. What do you guys think? Anyone else done this with their boat.

 

[Uplate]

I have never done this with my boat, but there is a similar service at one of our lake marinas here. I think it is called Nashville Boat Club. They have about 6 or 7 boats of various types. Nothing as nice as yours. Mostly ski, pontoons, or upscale big bowrider types.

For a yearly fee, you can become a member and choose a boat for your schedule. You only pay for gas after your membership fee. The top tier fee says it will guarantee any boat on anyday you choose. Evidently they bump off the lower tier reservations.

If I only used my either of my boats once a month, I would consider this as it is _way_ cheaper than maintaining two boats and two slip fees.

You should also consider that your boat will be more likely treated like a rental car. Renters do not care if they drive it with no oil pressure, stain the upholstery with puke, run the piss out of it, etc,etc.

 

[mwph]

As little as I know I still feel qualified to say this.........You are kiding right?

You would let complete strangers take your boat out whenever & as often as they wanted. In return this "company" is going to pay some of your loan payment, store it & clean your boat up every once & a while? All this while you are still on the hook with the bank?

Here is a better idea... If you only use your boat once a month, ask him if he has anything you can "rent".

 

[Aarrhh & Aarrhh]

There might be something in your loan that says you can't do it.

 

[spimik]

This is a scary idea. Total strangers using your boat? I would steer clear of this.

With all due respect, it sounds as though you have made an investment that you don't use and really are not comfortable with the cost associated with ownership.

As an idea, what if you tried selling 1/2 of your boat? What I mean is, with the current economic situation, what do you think your chances would be of finding someone who really wants a boat, but can't afford the whole thing? You could "sell" him half of your boat and then work out a schedule of usage. (They pay you 1/2 of the payment, 1/2 the slip fee, 1/2 of the storage, etc. etc. A simple letter of agreement that is notarized should cover both your and their interests)

This way, you know exactly who is using the boat and the other party has as much of a financial investment in it as you do. At least this way, you have a little more assurance that it will be looked after. It also lessens the financial burden on you with not only the payment, but operating and storage costs etc.

Plus, the boat will be happier. It will actually get out more.:smt038

 

[Sea Gull]

If you like the idea then negotiate to sell them your boat and become a customer of theirs. Otherwise the math does not work. They will pay 60% of your loan note, but they will be using your boat 96% of the time (200-300 hrs/yr vs. 25).

Weekly cleanings are no where near enough, in my opinion. Even if I were just a customer the boat would have to spotless after each use.

 

[Big Al]

I would never do this. It would be like having strangers living in my house when I am not there.

Regarding the maintenance, 200-300 hres/year of usage from people that you don't know could add a lot of wear and tear on the boat very rapidly. What is the guarantee behind the replacement of components using the pool of money. Boats components are not cheap.

Now , depending on your boat budget if you want to reduce/share expenses maybe the alternative proposed by Spimik is a better one ?

 

[white glove]

I'm with Seagull ,The care that these boats get is far from what they say they provide. It would break your heart to see the wear and tear they go through. Buying a boat and sacrificing it to fractional ownership to me is like taking a shower with a raincoat on ,what's the point.The rent a car scenario is not far from the truth either. You will get anybody who ponies up the dough abusing this vessel in ways you couldn't possibly imagine. Your once pristine boat would soon resemble and smell like the enterprise rent car . The thought of other peoples schmek and proteinaceous waste smeared on each and every surface makes me queezy, scratches,bent things broken things run agrounds .Have you ever thought of donating your boat? At least it can die with dignity. It's procedes go to very worthy causes and you can get a nice tax deduction. Maybe you should just sell. If you don't care about the boat like some boaters then this type of financial arrangement is for you.If you are like myself where my boat is a member of the family then you may not care for the arrangement. Spimik has a good idea.Again it boils down to how you feel about the boat.If you really want it cared for then get into a deal with a friend that you can trust its care to mitigate your costs. If not ,you may not like what you get.

 

[jitts3]

You should also consider that your boat will be more likely treated like a rental car. Renters do not care if they drive it with no oil pressure, stain the upholstery with puke, run the piss out of it, etc,etc.

Absolutly, I am the very type. If I'm out of town I'll Rent a car I would never buy, And run the crap out of it. Mostly Cadillacs and Lincoln Town Cars. I always get the optional rental insurance. Towncars do great doughnuts:thumbsup:

Have you ever rented a boat. They are not in the best shape.

Besides, this is a bloodsucking buisness. I'll explain. Say you want to start a boat rental company, so you need startup cash to buy some boats, right, wrong. Find a sucker who has trouble with the payments. I know of plenty of people who drive new Cadillacs have $450K homes mortgaged to the hilt and cry poor. So this "buisnessman" with his new boat rental buisness get you to sell him a "piece" of your boat, kicks your butt off of it most of the time and clooects the cash while others treat your pride and joy like a $10 "woman of the night". All the while YOU are left with the responcibility of paying the payment.

The mafia would call this a "Bust Out" Watch Sopranos or Goodfellas. Two good examples. David's Sporting goods Store...Lost for 40K in gambling. Sopranos. And the Copa in Goodfellas.

Long Story short, after they DESTROY your boat for profit...YOU still pay the bank:smt009:smt009:smt009:smt009!!!!

If you have payment troubles get a partner. 1 partner. Trust me, 1 is hard enough.
:smt021

I bought this "gem". A 1973 SRV 240. With no outdrive and no running engine. I can fix her cheaper than I can get a relyable running boat. I have no payments. Now I realize that most cant do what I do mechanically, but this is my only way of getting a large boat and enjoying it with my family without sacrificing my familys financial future.

 

[Mr Salt]

There are a lot of boats out there that are rented by the week. The ones that remain in the kind of condition that we would our boats have crews on them, who watch out for their owner's investment. The thought of allowing anyone to rent my boat and having some company that is only interested in collecting their fee while I retain all of the liability for the damage done is very repulsive. Think about it, that company is having a bad year and don't take care of your boat, just declare bankruptcy and go away, you are still on the hook for the loan and the repairs to the boat.

All in all, I am one more voice that says --- bad idea.

Mr Salt
2001 540 CPMY
Caterpillar C-12s
Cape May, NJ

 

[Vince_nj1]

This would be a lot easier to handle if I bought a boat with the intention of sub-letting out. If I was going to do that, I would look for a great deal on a scappy boat that has already been beat up. I think I am too personally attached to my boat to consider that arrangement.

 

[gerryb]

Not to mention what it would do to your resale value when potential buyer finds out this was a RENTAL boat? Would you buy a $75,000 boat once the seller notifies you it was part of a boat club fleet and that he only used it once a month???

 

[Irishhearts]

I would stear clear of it. Remember, if it sounds to good to be true, it probably is. Someone made mention of your boat being used like a rental car ... very good analogy ... remember, "there's no curb too high for a rental car!" I've heard of people doing this in the past and all of them have regretted it.:smt009

 

[mistercomputerman]

FYI

We have one of those types of clubs based at our marina. Two of them dock on the other side of the pier from me. The boats are in horrible shape. They may get rinsed off after each use, but, I have yet to see the hulls being waxed, etc.

They get operated by weekend warriors. I would steer clear myself.

 

[johnjarrell]

My thought is likely the same as most others. I have a better idea....someone buy my boat and I will rent it once a month for a few bucks. What a deal for me.

 

[Donald46]

I can't tell you if this is a good deal or not for YOU. What I can tell you is that we have two of these types of boats at our Marina, and when any of them leave their slip we are all out on our bows, protecting our boats from these people that have no idea on how to pilot a boat. I am hoping that next year they will be moved far, far away from us. But, getting involved with this type of Co. may be dangerous for you and all concerned.

 

[Maxiestaxi]

I agree with the guy who said sell the boat and join the club. Your boat would become a commercial rental and I woulf bet insuaance and loan rules are against it.

 

[355spider]

Ok I just needed the sense a smacked into me. Bad idea I had not fully thougt through. Good deal for the renter though. Suprisingly the have some nice boats in their program.

 

[billandamy]

oooofff...ill agree with the majority. I wouldnt loan or rent my boat out to anyone who I couldnt personally beat the crap out of if they damaged it.

The boat can sit for a whole year for all I care, we bought it for my family regardless of how often we use it, and make the monthly payments not looking at how often we got "our money's worth." It is a toy. Lending it out to others is the furthest thing from my mind.

 

[comsnark]

Oh. . so "Fractional ownership" is basically chartering? Yeah. . I have chartered large sailboats. In general, they are trashed. Even the big nice ones. In the better ones, the "good" electronics are removed by the owner and only appear on the boat with the owner. On one boat, the engine tach was busted. I asked the charter company "How do you expect me NOT to burn up the engine if the Tach is busted?". I came close to asking for a liabilty waiver FROM THEM.

One time, we lost the rental of a 46' catamaran because the previous week the renter demasted the boat (75'+ tall mast) going under the wrong part of the Bay Bridge (Annapolis) at full engine throttle.

The other model is "limited partnership", where you get 1 or 3 friends to buy a huge boat. I have four friends in a 36' catamaran, and I know another pair of owners who just bought a 42 sedan bridge. In these arrangements, the partners have equal shares in a limited partnership. Costs, and usage time, is split amongst the partners.

These arrangements can be tough. What happens if two partners want to upgrade radars and the other two do not? How does it work if two retired partners want to take the boat to the Caribean? It requires patience. But it does substantially reduce boating costs.