As other said, many previous threads.
My boat just came out of 7 years in charter this June. Overall, I was very happy with the experience. They took good care of the boat, paid for all the maintenance
, all the insurance
, all the dockage and I got about half the purchase price
back in revenues. When I went to get the boat at the end of charter I was a little frustrated to find via a shake down cruise
a few things that they should have addressed, but didn't, but they took care of all those issues in 2 days. Once those things were taken care of, I felt it was in much better condition than the many neglected privately owned boats I've seen on the market. I sailed the boat back from the BVIs to Florida
early this summer.
Since I haven't yet sold the boat, I can't speak to the final numbers, but it seems clear to me I'm way ahead of having chartered for the same period of time. - Assuming I would have paid for the full charter myself, and that's a big question to consider. (Paying 1/6 of a charter divided among 6 friends is a very different comparison than paying for your whole family)
Charter management companies, are not in the rental business, that's why they don't buy sailboats themselves. It's like comparing a company that owns and rents condos/apartments to a company that manages condos that are individually owned. They are just different business models.
For me it looks like about 2 weeks per year will be the break even point - less than that and simply paying for a charter makes more sense - more than that and owning is cheaper.
As you look at this in more detail, some things I would give thought to:
1. Do you feel confident you will use the boat or trade
3 or more weeks per year?
2. Are you happy with the charter- like lifestyle and locations?
3. Investigate the tax consequences - I had to declare income
, but also got to write off depreciation.
4. Consider any turn around or owner's time fees
. - while not huge, they need to be considered.
5. Is the income
6. Are you responsible for any of the maintenance
7. What are your plans when the contract
ends? - At that time, is having the boat a burden or plus? Having to store the boat in some exotic location could be expensive as can be delivery
fees. If you plan to sell it, do you think their estimated value accurately reflects the real market? Remember possible broker's fees.
8. What would you otherwise do, what would that cost and how happy would that make you in comparison? Would a smaller, well used boat
costing a fraction of the price
meet your needs? - If so, despite maintenance, etc. that might be a better option. Would you be splitting a charter with others, which keeps your share of the price down - again, that may be a better option, than taking on the whole price yourself.