The application of proven financing methods to boating
Financing offers have grown strongly in the yachting sector. Leasing or leasing with purchase option, LOA, has been growing for many years. The 2019 school year saw Dream Yacht Charter present its Triple Play offer. Open to Zodiac MedLine and Bénéteau Flyer 6.6, this is a financing without initial contribution, with a guarantee of repurchase, subject to availability for rental on the SamBoat site. For its part, Kiriacoulis promoted its management and rental offer for Jeanneau's new Sun Loft 47 yachts during the 2019 Grand Pavois.
Boating applies a recipe that has already been proven in other sectors and is following the trend towards abandoning direct ownership, as shown by Jean-Hugues Devolve, Director of CGI Finance, a leader in boat financing and a partner in the Triple Play offer. Société Générale's subsidiary claims more than 60% market share with 400 million euros of financing per year. "We are also the number one independent in automotive financing. We see an increase in the so-called balloon LOAs of 40% per year (NDLR: short term purchase option to limit rents, compared to the more traditional long term LOAs in pleasure boating). Why shouldn't this apply to boats, or even amplified?"
Bénéteau Flyer 6.6 proposed in the Triple Play offer
Tax benefits and the involvement of the yachtsman
Beyond the environmental discourse on "rational use of the property" thanks to the provision of unused boats at the lessor's premises, to be compared with the race for the rapid renewal of the fleet, financing presents several interests for the yachtsman. The success of the LOAs was due to tax benefits and the VAT exemption granted since 1973. By providing rental income, boat rental companies also reduce the cost of renting boats. Dream Yacht Charter's Triple Play offer is without initial contribution, with a buy-back guarantee at the end of the lease. The lessor also considers that the rental of the boat on its Samboat platform must be able to cover the rents. "We are able to predict the number of rental days required depending on the boat's home port. It rotates between 30 and 50 days a year" estimates Loïc Bonnet, CEO of Dream Yacht Charter. The assurance of such filling rates will nevertheless depend on the navigation basin... Similarly, Kiriacoulis has a purchase price of ?198,000 for the Sun Loft 47 monohull. But it is in fact only the initial contribution of 50% of the value of the boat, considering the rents covered by the rental.
"It's a desirable purchase and you can advertise yourself as an owner," says Jean-Hugues Devolve.
The Sun Loft 47, designed for charter, is also available as a financing option for private yachtsmen
Financing a new fleet at a lower cost, or even more...
Boat rental companies also have their interests. Dream Yacht Charter's willingness to apply the proven recipe on large units to small motorized, semi-rigid and flyer units is proof of this. Boaters are here the financiers of rental companies, allowing them to quickly create a fleet and ensure its renewal. "Thanks to Triple Play, we will have more new boats on the SamBoat platform, more suitable for intensive rental than the offer mainly made up of old boats. The objective is to have about thirty boats in the first year, and double the following year, spread over France, Italy and Spain," explains Loïc Bonnet.
Kiriacoulis, by selling the Sun Loft 47, which is not part of Jeanneau's traditional network, to individuals, can hope more than to build a fleet. Sales and commission objectives, of a rarer boat, add to the appeal of the operation.