Moorings Lease Arrangement

[maytrix]

Originally Posted by BWB75

Also very important is your point about the lack of cost sharing with a charter management program. (Even if I intended to ask my friends to pay their way at the outside, I know I would never really do that.)

So are you saying if you owned a boat in charter and we're going down to use it for a few weeks, you wouldn't expect anything from your friends?

We treat it like any other charter - we split the costs. They just happen to be far less expensive than they would be if we didn't own the boat - everyone benefits.

[BWB75]

That's pretty much what I said, yes. I don't have a boat in charter so I haven't faced the issue, but I don;t know if I would charge my friends their portion of the non-existant charter fee. They always pay their share of food and fuel, etc.

I like you handling of it, though, and if it is cheaper for everyone then maybe I would.

[maytrix]

There's really no reason not to still split the owners fee. After all, they'd pay a LOT more if you didn't own the boat. In fact, even having friends pay the entire owners fee wouldn't be out of the question - after all, you've already paid a pretty penny to reduce your charter cost to just the owners fee

[BWB75]

Interesting point about the owner's fee. I wasn't aware of that - it didn't appear in the sales lit that I received.

I was thinking about what they would have to pay for a straight charter. I.e., if the boat would cost 7k for two weeks if I didn't own it, charge my friends the same 3500 they would have paid anyway.

I would certainly ask them to split an owner's fee.

[nautical62]

Originally Posted by maytrix

There's really no reason not to still split the owners fee. After all, they'd pay a LOT more if you didn't own the boat. In fact, even having friends pay the entire owners fee wouldn't be out of the question - after all, you've already paid a pretty penny to reduce your charter cost to just the owners fee

I think my point got missed. (I may not have explained it well) The owner's fee isn't much compared to the cost of an equivalent charter.

If I charter a cat with 6 friends for a week at $6,000. we'd be splitting the charter fee 6 ways., so while the charter fee is $6,000, my cost would only be $1,000.

So, if those are the people I'd be sailing with, when I evaluate owning vs. chartering, I should not compare the average weekly cost of owning to the entire weekly cost of chartering a boat. I should should compare it to my share which is only $1,000, not $6,000.

Sure, you can split the owner's fee with everyone if you like, but you are still providing the boat itself at your expense, not sharing all the costs 6 ways as you would if you were sharing charter costs with friends.

If it's just you and your family sailing, then you'd be paying the entire charter cost, (not just 1/6) so you should use the entire $6,000 in your comparison.

[BWB75]

A small owner's fee seems perfectly reasonable. After all, the charter company will clean, check, fix, tank off, and generally take care of all the little things you would otherwise have to do yourself.

As for the comparisson to charter costs, Nautical62, I am not sure I did appreciate the full significance of your observation. Most charterer's probably do sail with friends most of the time (we do - it's mroe fun!). I suspect this breaks the math when they look at buying a charter boat.

This means that a prospective buyer should consider both realistic use of the boat durnig the contract period and the potential offset from cost sharing. This could reduce the projected cost of chartering the equivilant yacht time by half or more. In your example the cost was cut by roughly 85 percent!

[nautical62]

Originally Posted by BWB75

As for the comparisson to charter costs, Nautical62, I am not sure I did appreciate the full significance of your observation. Most charterer's probably do sail with friends most of the time (we do - it's mroe fun!). I suspect this breaks the math when they look at buying a charter boat.

This means that a prospective buyer should consider both realistic use of the boat durnig the contract period and the potential offset from cost sharing. This could reduce the projected cost of chartering the equivilant yacht time by half or more. In your example the cost was cut by roughly 85 percent!

Exactly. In the comparisons the charter companies provide and the comparison I used showed that owning is notably cheaper than the cost of paying a full charter price for an equivalent time. That's a good cost-benefit comparison for a family that would pay full charter price.

However, let's say owning on average costs half as much per week a a full charter. That means for me personally, if I would typically pay half a charter, it's break even. If on average a charter would get split 3 ways, now I'm paying more to own, than my share of chartering.

On my last owner time, I upgraded to a cat that had 6 friends onboard. That really made me think about that, and made me realize, that while owning may be cheaper overall, for me personally sharing a cat charter with 6 people 3-4 weeks per year is notably cheaper than buying a cat and having people join me on a similar cat.

[maytrix]

Ok, now I get it For us, it wasn't so much about reducing the charter cost (although that helps). It was about getting more time and having a boat at the end. We also make use of short notice a lot and upgrade which has tremendous value as well.

Sharing a Cat charter with 6 people for 3-4 weeks a year is probably cheaper than buying a cat, but probably not cheaper than having a smaller boat in the program and using short notice and upgrading We've used short notice more often than not.