| Financial
Comparison: Leaseshare vs. Solo Ownership
For most people, the financial benefit
of leasesharing (e.g., timesharing under a single season lease without
equity ownership) is overwhelming. As an example, the analysis that
follows shows that the typical sailor who leaseshares rather than
solo owns a new, well-equipped Jeanneau 37-foot yacht:
• Pays 13 times less overall
($4,650 vs. $60,660) in year 1
• Pays 5.75 times less overall ($4,650 vs. $26,660/yr) in years
2-15
• Pays 5.75 times less per sail ($310 vs. $1,778) in years 2-15
• Pays $0 down vs. $34,000 down
• Has an obligation of 1 year for $4,650 vs. 15 years for $136,000
• Does not suffer massive, real depreciation when selling the
yacht
• Has no maintenance obligations pre, post or during the season
• Avoids all the hassles of boat ownership - simply show-up
and sail
Amazing but true - for most sailors
(and power boaters), leasesharing is a financial “slam dunk”
when compared to sole ownership. The estimates above are based on
the following analysis, and assume that the yacht is not part of a
managed ownership program like that offered by Pinnacle Yachts <
more >.
Purchase Costs
and Mortgage
The total purchase cost of a new, well-equipped yacht with roller
main, roller jib, autopilot, GPS, wind instrumentation and customary
upgrades is approximately:
| Base Price |
$140,000 |
| Upgrades |
$5,000 |
| Electronics |
$10,000 |
| Outfitting |
$3,000 |
| Sales Tax |
$12,000 |
 |
| Total Purchase Price |
$170,000 |
With 80% financing over 15 years at
7% interest, the required down payment, amount financed and mortgage
payments for a 12-month period are approximately:
| Down Payment |
$34,000 |
| Amount Financed |
$136,000 |
|
| Total Mortgage Payments Annually |
$14,660 |
Operating
Expenses
Assuming some seasonal and ongoing maintenance work, and all cleaning,
pumping of the head and fueling is performed by the owner, annual
operating expenses are approximately:
| Insurance |
$1,500 |
| Mooring/Dockage |
$3,500 |
| Storage |
$2,000 |
| Maintenance Ave/Year Over
Life |
$3,000 |
| Replacements & Upgrades |
$1,000 |
| Fuel, Supplies |
$1,000 |
|
| Annual Operating
Expense |
$12,000 |
Annual Cash
Outlay
Total cash outlay during the first year is approximately:
| Down Payment |
$34,000 |
| Mortgage |
$14,660 |
| Operating Expense |
$12,000 |
|
| Cash Outlay Year 1 |
$60,660 |
Total annual cash outlay for each
of years 2 through 15 is approximately:
| Mortgage |
$14,660 |
| Operating Expense |
$12,000 |
|
| Annual Cash Outlay Years
2-15 |
$26,660
|
Cost Per Sail
In reality, because of the many demands on personal time during
the warm months, (e.g., vacations, weekend trips, kids sports, home
improvement, etc.) most boat owners sail only 10 to 20 times during
a 20-week sailing season. Using 15 sails as a midpoint, if you own
the boat, the average cost per sail for years 2 through 15 is approximately:
| Typical Sails Per Season |
15 |
| Annual Cash Outlay Years
2 -15 |
$26,660 |
|
| Average Cost Per Sail |
$1,778 |
In contrast, the average cost per sail
for the same boat under Pinnacle Leaseshare program is approximately:
| Typical Sails Per Season |
15 |
| Leaseshare Costs |
$4,650 |
|
| Average Cost Per Sail |
$310 |
|
