Ever heard of "lease with the option to buy" in the boat world?

[kkckkjm]

We may have to move to San Diego by the end of September and we are in the market for a 35-40' liveaboard. We have a goal to purchase a cruiser within the next 2 years, but are not 100% sure of what to buy. I was wondering if anyone has ever heard of something like a lease with an option to buy? Maybe someone wants to get out from under a slip payment? Not sure if they want to sell? Need someone to take care of a boat while out of the country?

[maxingout]

I have never heard of lease with option to buy on a sailboat. I don't think many people would be interested in such an arrangement. Someone leasing a boat who did not take care of it could significantly hurt the value of the yacht. A damage deposit would be large and insurance on the sailboat would be expensive as well. It sounds like a very difficult arrangement from the perspective of the owner and the person paying the lease.

[nematon785]

Sounds like the seller will carry the loan. they really want to be rid of the boat. better look close at the contract. your own financing likely much better terms but who knows...

[Uncle Bob]

Originally Posted by nematon785

Sounds like the seller will carry the loan. they really want to be rid of the boat. better look close at the contract. your own financing likely much better terms but who knows...

Ah, I do believe that it was a question about a concept, not an actual sale.

[NCGunDude]

Any lease to own arrangement would be substantially more expensive than buying.

My suggestion is to look for a slip to rent or buy, and then maybe get a project boat. Something to put a roof over your head.

Maybe a floating shipping container?

[roverhi]

Live aboard slips are very scarce in California. If you want to liveaboard you'll probably have to buy a boat in a slip that allows the live aboard permit to be transfered to the new owner. The boat will be incidental to getting to live aboard.

As far as a lease to own arrangement, that will depend on finding someone who will go along with it. Once again the boat would be a minor part as it will be finding an owner amenable to your plan will be the challenge. Might want to look into what the lease/purchase contract will entail with an attorney. Doubt any owner would get serious about such an offer without some idea what they are getting into legally.

I've 'bought' a boat on paper so a boat owner could take advantage of my live aboard slip. Also sold a boat on essentially a lease option that involved a substantial up front payment that protected me from any damage that the buyer could do to the boat. Worked out great for us as the buyer defaulted on the contract after virtually paying for the boat in upfront payment and 'lease' rent. Gave a young couple a great deal on the boat that they sailed to SoPac for a number of years.

[michaelratinter]

I lease my lake boat to a sailing school. The school pays for the slip, insurance, and maintenance. I sail the boat one or two days a week (when there are no classes or charters).

I would ONLY do this if I know and trust the lessee, which I do. Adding a purchase option would be simple.

[zboss]

That would be charter boat ownership with the Moorings and such. Usually, you make a large down payment, followed by "mortgage" payments that are roughly equivelent to a leasing arrangement, and then followed with either a rollover into another boat, a balloon payment, or subsequent re-mortgaging.

There is also the Freedom Boat Club or SailTime, which is much more a leasing type agreement.

[michaelratinter]

Not my situation, zboss. I own the boat outright.

The sailing school could negotiate a lease/purchase if she chose to do so.

[sailorboy1]

Originally Posted by kkckkjm

We may have to move to San Diego by the end of September and we are in the market for a 35-40' liveaboard. We have a goal to purchase a cruiser within the next 2 years, but are not 100% sure of what to buy. I was wondering if anyone has ever heard of something like a lease with an option to buy? Maybe someone wants to get out from under a slip payment? Not sure if they want to sell? Need someone to take care of a boat while out of the country?

Doesn't matter if any of us have hear or approve of it.

Post it in the SD Craigslist etc and see if someone is interested!

[buzzstar]

No, but why not? Is purchase financing not based upon a similar basic concept? The potential problems mentioned by earlier posters can be addressed and taken care of by contractual conditions and with the safeguards available and to the extent viable in any contract. These might includes deposits, surveys (before and after), credit worthiness considerations, etc.

[Lancerbye]

I did this once selling a low end housing unit. The first applicant, left in the middle of the night owing me money. The second one played it through. The problem with a boat is that they can easily be moved and hard to track.

[sailorboy1]

Millions of cars are leased, must be doable for boats!

[1Sunseeker]

I would think you could lease with buy option anything. Even a 1st mate. (mechanical of course.) Just be careful if you are the lessee or lessor.

[Lepke]

Leases in general are at higher finance rates than purchases. Insurance is usually higher because of extra coverage. Usually with a lease there is several months payments at the start. First two and last month are common.
I have seen commercial boats sold with this arrangement. Usually a boat that is difficult to sell. Also boats owned by the cannery because the last owner went broke.