Your boat is insured by our fleet insurance policy with a deductible equivalent to 2& of its hull value. Each charter client pays a damage deposit of $2,000/engine. If they damage the vessel, the first $2,000 ($4,000 for twin engine boats) comes out of their deposit. The differance between that and the 2% deductible is paid by FYG. Your insurance company pays the balance.
It is certainly true for the large operators who send the boats out week after week to get themselves as much charter revenue as they possibly can. Some will charter your boat out, as many as 30 to 35 weeks per year and this much usage will certainly increase wear and tear while decreasing the value of your vessel. FYG is a limited charter program. Our owners break even or make a profit after as few as 10 weeks a year and we usually take a week between charters to maintain the boat. If you've ever chartered in the BVI's, you'll notice their 3-year-old vessels aren't as in as good shape as our 10 year old vessels. It's all about professional maintenance and yacht care.
If you are using one of our recommended financing companies SGB, CGI, or Scott Financial and going into our charter fleet you will be on our fleet insurance policy and the finance company will understand it is a commercial loan. Florida Yacht Group is proud to be one of only 3 charter companies in the world approved for these types of loans. Most banks will not approve loans for charter yachts but the above lenders will for the FYG Charter program due to our rigorous maintenance and impeccable yacht care program. In other words, we take care of our boats and don't allow them to get beat up. These banks know this because they have physically inspected our fleets and reviewed our maintenance records.
We caution you not to use typical bank financing because at closing the lender will review the charter insurance policy and may decline to close. Most “Bank Charters” do not allow them to lend money for commercial operations and a charter yacht is considered a commercial application. If you do wish to attempt to use normal bank financing you should inform them immediately of your intention to place it in our charter fleet. They may charge you a slightly higher rate but failure to disclose this information could result in them declining the loan, losing your deposit, or demanding an early payoff, which could create an undue hardship for you.
Yes, as long as you obtain your Florida Sales Tax Certificate at least 72 hours prior to closing on your vessel. If you apply for and obtain the certificate after closing the State will insist on payment of Sales Tax with no exceptions.
At least 72 hours prior to closing you must obtain your Florida Sales Tax Certificate or you will be required to pay up to $18,000 in Florida Sales Tax on your charter yacht purchase. We can do this for you but we need your LLC documents prior to submitting the paperwork. Please provide those LLC documents to our administrative/accounting office as soon as possible but minimally 72 hours prior to closing to save the $18,000.
Absolutely. You can still buy a yacht for placement in our fleet or one of our affiliated charter companies in the Caribbean or the Med. To qualify for the IRS Tax savings you must be paying taxes in the USA, which you will be doing on your charter yacht income. USA law requires all charter boats to be documented by the USCG. To do this you must have a friend or relative who is a citizen be an officer of the company or establish a trust to hold ownership of the vessel. Other excellent alternatives for non-US citizens are the Lease-Purchase option, Fractional Option, or simply base your boat in the Bahamas, BVI, or one of our affiliate locations.
Your broker can supply this information which also happens to be a vital part of demonstrating your proper due diligence to the IRS. You need to prove your charter yacht acquisition is based on a profit motive and not motivated simply by tax savings, which would be illegal.
You can buy any vessel from out Guaranteed Income Offering portfolio. These yachts are sold fully configured for chartering.
FYG is happy to have you stay in our fleet for up to 10 years and in some cases longer. However, after 5 years we need to review the program terms. After 5 years, it maybe necessary to consider shifting to the Smart Yacht Business program. You have the right to leave at any time with 6 months notice and you must honor all outstanding charters booked on the boat. Most of our owners stay with us for all 10 years and buy then they are part of our family so a few stay even longer than that.
For the Guaranteed Income Program, you must buy from FYG. Florida Yacht Group is a large sailboat dealer and can always beat any dealer's price for the yachts we offer, and are required to do so by our BEST PRICE GUARANTEE POLICY.
No, the Guaranteed Income Program geneally requires that yachts be new when they enter the program. For a used boat, you can consider the Smart Yacht Business Program, instead; We allow certain select used boats into our fleet if purchased through a FYG broker. If not purchased through a FYG broker an inspection fee is required and the boat must be brought up to FYG standards through the FYG service department so we know the work is done to code, our safety, and industry standards. For the Smart Yacht Business Program, the commission split on a used boat is 50-50 so if you plan to keep it in the fleet for a long time you may be better off buying a new boat because it will charter more and you'll earn 60% instead of 50% (that's a 20% raise) on each charter. Over a few years the savings could more than justify the added expense of a new purchase.