French Leasing Scheme for Yacht purchase

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jackho

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Any UK resident out there used this scheme to buy a new boat for use in the UK.
It seems quite a simple process but at the moment I can't google a French leasing company to discuss. The French lease system apparently involves 4 conditions to be contracted :
1 – you must contract this financial scheme with a French lease company.
2 – you must be a E.C. resident ;
3 – you must have a French bank account
4 – your boat must be under French flag, but only during the lease period !
As I understand it, the interest is cancelled out by the 50% Vat rate leaving a 5% saving overall on the boat cost. Is it that simple or what have I missed.??
Any advice,contact or general info. appreciated.
 
This system has been very popular in Italy for the last 8 years or so, and works very much as you say; that's why you find 50% of the boats in any Italian marina are flying French flags.
I have just contracted to do the same thing with an Italian leasing company and am saving in real terms about 5% over a 3 year lease.
What you may also consider is having a longer lease and if you decide to sell the boat you can transfer the lease to the new owner .... it makes selling a boat more attractive if the new owner does not have to find all the cash; Italian leasing is for a maximum of 10 years.

It is usually very easy to set up, the agents selling the boat will normally prepare all the arrangements and you just have to sign the contracts and pay the notary (900 euros in Italy) for preparing the lease contract.

Alan.
 
I intend to live in the UK and sail in UK waters although should my plans materalise I would keep the boat in France for the summer. Your reply suggests that I therefore cannot avail of the French leasing scheme so may I ask are you absolutely sure?
Thanks for your reply - this is where the forum is so useful in get getting feedback info.
 
[ QUOTE ]
Do you want to live in France, as that is what you;ll have to do to get a French Bank acct.

Phil

[/ QUOTE ]

Don't think so - I have bank accounts in 4 countries (including France) yet I live in the UK. (even says so on my bank statement)
 
I entered into this scheme 18 months ago and it works much as you say.

I am a UK national living in the UK, the boat is berthed in a Portsmouth marina. Setting up a French bank a/c was simple, the agent drove me across town and I gave me a personal introduction to a manager at the branch.

The scheme dates back to the 1960's when the French government introduced VAT on leisure boats. To ease the pain they declared that if a boat was purchased on a commercial lease they would assume it was going to be used for business purposes and hence might spend much time out of French waters. The 50% VAT discount was the concession.

There are other variations on the scheme apart from the 50% down payment. The 10% VAT discount funds interest due on the 50% loan over the 3 years and leaves a little surplus which is used to discount the price of the boat beyond any discount already agreed.

When weighing up the details factor in multiple trips to the dealer, and beware those special offers never seem to apply to a short notice trip for a single passenger.

A reputable UK insurer will collect an additional 14% of French VAT on your sterling funded premium, (still puzzled by this one).

The main issue is that dealing with all those post delivery niggles becomes far more problematic at a distance.

Little things can get lost in translation, for example I ended up with 45m of 10mm anchor chain when 8mm would have been more appropriate :-)

There are some upsides and travelling to France is never an ordeal for me. I was treated to an excellent lunch time meal overlooking the harbour in Dieppe and on 3 further visits to Normandy the agent's wife provided an excellent lunch in their dining room with a panoramic view of the Norman countryside, where I sampled vintage farm distilled calvados and learnt the Norman way to sample a post lunch espresso coffee.
 
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