General Info: Atlantic Cruising Yachts and Business Yacht Ownership

[mgerdes]

Hi everyone,

Has anyone had experience using the Business Yacht Ownership plan offered by Atlantic Cruising Yachts they'd be willing to share? I apologize for the long first post or if this is the wrong place for this topic, but I didn't find anything specifically about this program when I searched and thought this might be the best place to ask since it's directly targeted towards new FPs.

My wife and I are considering putting down a deposit on an Astrea 42 and are trying to do our due diligence first. We met with our accountant today and are digging into the financial details, but that analysis will only be as good as the assumptions used on the business plan put together by ACY for anticipated income and expenses at each of their affiliated charter basis.

We would plan to have the boat in the charter fleet for 2-4 years before moving on board and starting full-time cruising, at which point we understand that we'd be paying tax recapture for converting the boat to personal use.

So far, when looking at the whole picture the numbers seem to indicate a relative wash from a purely financial stance from going the route of buying a new boat and utilizing charter income and tax advantages for a few years compared to just waiting and buying an equivalent used boat when we're ready (again, IF those assumptions provided by ACY are accurate).

So, the decision would then come down to the benefits of selecting all of the options we'd like directly from the factory and of having a few years' worth of use that we wouldn't have by waiting and buying used compared to the negatives of added wear and tear of unknown charter customers along with the risk of having someone relatively unknown manage this large asset for us from a very long ways away (we live in Nebraska).

If anyone here has gone this route, would you do it again?

Do you feel like you received accurate projections of income and expenses?

Do you think that the income and tax benefits outweighed the added wear and tear on your boat?

Which charter base did you decide to use, and why?

I appreciate any insight anytime may be able to offer. Cheers!

[Spear06]

I sent you a PM.

Didn't want you to think no one would answer your post.

[mgerdes]

I've gotten a couple with some great insight, thank you both!

[LeeV]

Will you provide a summary for the rest of us who are curious?

[Falbala60]

Originally Posted by LeeV

Will you provide a summary for the rest of us who are curious?

I would bet that nobody will have the courage to do it publicly.

[LeeV]

[comesatime]

"analysis will only be as good as the assumptions used on the business plan"

Berman wrote a decent piece outlining the drivers of catamaran depreciation

https://multihullcompany.com/article...epreciation-2/

Some things to consider if you haven't already during your financial forecasts:

As a consumer durable, yacht values are very cyclical and the current US expansion is in its 107th month and is only 12 months away from being the longest expansion in modern history. Charter income would also be negatively impacted during a recession so you will need to consider counter-party risk if some company is guaranteeing income.

At 1.2, the EUR USD exchange rate is in the middle of its historic range of .8 to 1.6.

[mgerdes]

Great points about the impact of the exchange rate on the new and used values, as well as the double negative that the next economic downtown will likely have on both boat values and charter revenues. My current business is very cyclical itself, so that could become a challenging combination depending on when the next one hits and its severity.

For those wondering about the responses I've received, both from their own direct experiences and of those they were familiar with, the summary is that it's been a mixed bag. Some people have had good experiences, some less so.

As you might expect, this is largely driven by the particular charter manager that one might partner up with. I'm sure it also has a lot to do with the luck of the draw of the charter costumers you end up with. We've dabbled in rental houses with largely the same results - it just depends.

The great news is that this post has certainly reinforced my faith in the value of this forum, as the responses I've gotten have been very thoughtful and useful.

Thank you again for those who took the time to do so.

[Falbala60]

Originally Posted by mgerdes

As you might expect, this is largely driven by the particular charter manager that one might partner up with. I'm sure it also has a lot to do with the luck of the draw of the charter costumers you end up with. We've dabbled in rental houses with largely the same results - it just depends.

Absolutey...and even more ... it grealty depend on the local charter base manager.

On my side BEFORE signing the contract, I met the base manager and discuss many things and among those maintenance program, booking, "client selection", etc. ... He was giving lot of details, lot of time for me, I was in confidence.

After that I met him 3 times in the charter co booth at differents boat show... same good relation ... so the company rely on him... and myself.

A A______ salesman, that was angry about the fact I purchase with an other company tried to convince me I made a bad decision by telling horor stories about "others"... I let him finish and then I started to tell the stories "others" was telling about them... HE STOPPED and changed subject.

In my mind this is maily the local base manager that makes the difference !

[JCuezze]

We are interested in the details as well! Thanks

[Falbala60]

Originally Posted by JCuezze

We are interested in the details as well! Thanks

Ho what sort of details ?
Even if myself I would like to read "horrors stories" from others about having a boat with charter companies, I understand why people are shy to display their stories publicly.

When you have a boat in charter ... you now make part of that business and try avoid to break it... this will hurt yourself.

[AKA-None]

It all sounds so reasonable until the details are known. I personally would not find it a good proposition as the charters seem to like max cabin layouts which would then need a refitting for my purpose.

[meatservo]

Would also like to know if this is a good charter business plan...


meatservo

[fehlinger]

I would also love any input (good, bad, or neutral) about ACY. I'm curious as to how close their numbers are to reality and overall experience.

Thanks,
Mike

[Snore]

PM sent