To understand the potential value to the owner of this program, it is helpful review an example. The same analysis can then be applied to a yacht of your choice to see the results. This example assumes a Jeanneau 439 with a value of $367K is leased with a total out-of-pocket of $239K (consisting of $110K lease payment and $129K loan to FYG). We compare this to a simple cash purchase of the yacht with no financing. During the five years, the yacht is docked at Coconut Grove.
Please refer to the following LEASE PURCHASE 5yr PROJECTION EXAMPLE for complete details of this example.
Assuming the lessee keeps the yacht after 5 years, then, over the entire the 5 year program:
AFTER 5 YEARS IN THE LEASE PURCHASE PARTNER PROGRAM, the yacht, is is now worth $264K, becomes 100% owned by the Lessee, the Lessee has realized benefits from use worth +$292K , but the Lessee paid $239K up front out-of-pocket for a net position of +$318K
FOR COMPARISON WITH SIMPLE PRIVATE OWNERSHIP: If the same yacht was purchased for private use only and not utilized in the Lease Purchase Partner Program, then then the owner would have realized the following: -$126K for 5 years of direct ownership expenses, +$292K charter savings for personal use, -$367K to purchase the yacht new, and +$264K current value of the yacht . That nets to +$63K
Summary: Over 5 years, the Lease Purchase Partner Program put the Lessee/Owner $254K ahead of simple ownership over the same period!
The next step with projections for the prospective Fractional Partner Program participant is to select the yacht they would like to sail from the Lease Purchase Yacht Offerings portfolio and do the math. The yacht and the the math depend on the individual interests and objectives of the prospective participant. Florida Yacht Group can quickly provide projections of all of the above to meet your personal needs. To start this, please register for a web based meeting by going to our Registration page.