Buying a new boat
Our advice for the purchase of a new boat
The sales team at A&C Yacht Brokers, at www.boats-caribbean.com, will help, guide and advise you about your specifications and your navigation schedule whilst bearing your budget in mind at all times.
We will accompany you right up until the handover of your new boat.
Buying a boat with a Leasing Agreement
A Hire-Purchase agreement, or a Leasing Agreement, is one way of enabling you to achieve your dream, under the best financial and fiscal conditions.
Leasing : What is it all about? A Leasing Agreement is accompanied by a unilateral sales agreement at the term of your contract. It enables you to acquire a sailing or motor boat at the end of a leasing period that can last as long as 15 years.
At the end of this period, you will become the owner of the boat once you have paid the final purchase option figure of 0.01% of the initial sale price.
Under what conditions can you benefit from a Leasing Agreement?
In principal, a Leasing Agreement is only used to finance the purchase of new boats; however, it can be applied to a recent previously-owned boat when the latter is being sold by a professional and is subject to VAT, or if the boat is already subject to a Leasing Agreement, in which case the Leasing Agreement is simply transferred across.
What are the advantages of a Leasing Agreement?
You can acquire your boat at a lower price than if you had bought it straightaway for cash!
You can benefit from reduced VAT! VAT is reduced by 50% for all new or previously-owned boats that are subject to VAT, that are French registered and that are of category A, B or C and over 5 metres in length.
With a Leasing Agreement you will benefit from reduced VAT on your monthly instalments (10% instead of 20%) for navigation in Europe.
This is all possible – but under the following conditions:
The boat must be registered in Europe and the leaseholder must be a European resident. In order to navigate outside European waters the rental installments must be billed excluding tax.
The leasing organisation buys the boat with VAT at 20%.
If the boat returns to Europe before the end of the contract, VAT on the monthly installments will be at the rate of 10%, ie. at half the usual rate. At the end of the contract period, the boat is sold including all taxes, (in general this is 0.01% of the initial tax amount).
If the boat is bought before the end of the contract (what is known as taking up the intermediate purchase option), the bank will re-bill the boat with VAT at 20% (broadly this is the remaining capital due plus VAT), the rental will be stopped and the boat will be sold.
The rent is calculated in accordance to the length of the contract (from 3 – 12 years), and depending on the price of the boat and how much your downpayment was (anywhere between 26 – 50%).
Optimise your estate by leaseholding a boat
You can postpone the entry of your boat into your estate. Throughout the entire period of the contract, your boat will not count towards your legacy. As such, it is not taken into account in the calculation of your wealth tax, if you fall into this tax category.
You are the simple leaseholder throughout the entire period of your Leasing Agreement.
Sell your boat during a Leasehold Agreement
If you decide to sell your boat, this is possible because you can sign it over to a third party, who will simply carry on with your Leasing Agreement. This third party will likewise benefit from all the advantages of purchasing with a Leasing Agreement.
How to arrange a Leasing Agreement
As with any kind of financial project, your request for a Leasing Agreement must be approved by a financial organisation which will study your income and your borrowing potential.
Customise your Leasing Agreement
You require additional equipment for your boat? Because your Leasing Agreement is personalised, it can enable you to integrate the cost of new equipment into your contract, either by increasing your monthly payments or by extending the loan period.