Jamesuk
Well-Known Member
British people borrowed £31.6 Billion in 2016 alone (FT.com) to buy cars.
Are they available on boats?
Are they available on boats?
PCP/lease on a boat?
- Thread starter Jamesuk
- Start date
jac
Well-Known Member
Never seen one.
The big difference is that with a car, you have very high volumes of sales so can fairly confident predict the value in x years time. Not so easy to do with boats where only a few dozen of each model may be made and even each of those configured differently with different packs, upgrades etc. That means a large risk for one party as the boat may be handed back at the end and be worth much less than expected.
Finance of course is available, either marine mortgage for large amounts or just a standard personal loan.
What you could consider if you want fixed price boating is joining one of the "timeshare" type schemes such as flexisail where you buy in and pay each month. You don't own the boat or have exclusive use but no capital tied up and easy to get out when required.
ex-Gladys
Well-Known Member
A number of financial commentators are predicting the PCP/PCH regime as the next bubble to burst...
wotayottie
Well-Known Member
No you cant which is why PCP is viewed as the next financial crisis. A sort of repeat of mortgages given to those who lied or couldnt afford them and caused the last financial crisis. Even the governor of the B of E is warning about them.
Jamesuk
Well-Known Member
Precisely, hence the reason to get the boat now!! ;/)
PCP may make buying and registering a boat in Malta an even cheaper way to make your buck go further.
I think many Superyacht's are already structured on a lease agreement in Malta.
For me a Laser Dinghy would be a good PCP plan, the value of Lasers has gone up. My old Laser is worth more today than when I sold in in 2003!
A £6000 Jetski would be an obvious PCP plan.
Frogmogman
Well-Known Member
The automotive PCP market does indeed seem to be like a ticking bomb.
Over here in France, leasing is quite a popular way to finance a new yacht as there is a VAT advantage (you only effectively pay half the VAT on it). With current interest rates, this makes it a very interesting deal. (I don't know what the rates are on yacht leases at the moment, but my lease on my latest car was at 1.3% pa).
What's more, for people who are liable for wealth tax, a leased boat is not counted as a capital asset, as it doesn't belong to you. Mind you, anyone with experience of boats would view any boat as a liability.....
Over here in France, leasing is quite a popular way to finance a new yacht as there is a VAT advantage (you only effectively pay half the VAT on it). With current interest rates, this makes it a very interesting deal. (I don't know what the rates are on yacht leases at the moment, but my lease on my latest car was at 1.3% pa).
What's more, for people who are liable for wealth tax, a leased boat is not counted as a capital asset, as it doesn't belong to you. Mind you, anyone with experience of boats would view any boat as a liability.....
Tranona
Well-Known Member
Leasing schemes for boats do not exist in the UK. HMRC does not allow the types of schemes popular in France, Italy and Malta, which incidentally are very restrictive and only apply to certain types of boats, mostly expensive ones.
Apart from that the UK market for new boats of the sort of value where leasing might be interesting is tiny - and in the 00s a year compared with millions of cars. Even conventional finance is rare nowadays as boats are poor security and not very "liquid" as the banks discovered post 2008. Very limited with restricted loan/value ratios, for example min of £50k and typical L/V of 50%. So boat has to be £100k+. Therefore most boats are purchased out of savings or loans secured on other assets, although at the lower end personal unsecured loans are probably quite common.
Apart from that the UK market for new boats of the sort of value where leasing might be interesting is tiny - and in the 00s a year compared with millions of cars. Even conventional finance is rare nowadays as boats are poor security and not very "liquid" as the banks discovered post 2008. Very limited with restricted loan/value ratios, for example min of £50k and typical L/V of 50%. So boat has to be £100k+. Therefore most boats are purchased out of savings or loans secured on other assets, although at the lower end personal unsecured loans are probably quite common.
wotayottie
Well-Known Member
Is the leasing scheme advantage only available on French built boats as was the case in the south sea colonies?
incidentally do you own a Morgan car? Just wondering with your name - Welsh Morgan car owners are taffmog.
Frogmogman
Well-Known Member
The leasing scheme is available for non-french built boats, but knowing how things work in this country it wouldn't surprise me if it turns out to be much easier to arrange on a french built boat (ahem).
I did have a Morgan 4/4 for 5 years - I sold it last year.
Great car.
Tranona
Well-Known Member
Naughty boy! Had mine from new since 2003. Would not dream of selling it.
Frogmogman
Well-Known Member
I bought mine new in 2011, and I have to say the whole experience was a real joy. I just needed something more practical.
I do miss it, and I'm pretty sure I'll have another Morgan in the future; who knows, maybe a 3 wheeler next time around.
Tranona
Well-Known Member
I thought of going the other way and getting an Aero 8, not that I would really know what to do with it, but just a nice thing to have. However does not fit my garage so bought a new boat instead. Interestingly both were virtually the same price!
Frogmogman
Well-Known Member
Do you ever visit the Talk Morgan site ? It's an excellent forum. Great bunch of people and some good banter.
pvb
Well-Known Member
I've never understood the appeal of Morgans, rather as I don't understand the appeal of wooden boats.
Frogmogman
Well-Known Member
The appeal is that you get all the pleasures and much of the experience of driving a vintage car, yet with modern performance and brakes and very few of the hassles that go with classic car ownership. The motoring equivalent of a Spirit of Tradition sailing yacht.
Have you driven one ? Give it a go, they're a hoot.
Have you driven one ? Give it a go, they're a hoot.
pvb
Well-Known Member
Never driven one, but once owned a 1949 MGTC which probably had similar standards. I don't think I'd describe my TC experience as much pleasure. If we're talking about classic cars, I had a lot more fun with Ferraris.
Tranona
Well-Known Member
+1
Plus it is the only sensible toy from an economic point of view. I paid £21k for mine (£18k plus a reasonable MGB GT) in 2013. Similar models/year sell for £24k retail. Servicing has averaged £250 a year, and only two big bills, one a steering rack and last year a cambelt change and new radiator. Insurance £150 a year on a multi car policy. Still on the original tyres, spare not used and original Red Flash battery.
Big pose factor - elderly women "we had one of these when we were young", elderly blokes "always wanted one of those", more aware youngsters "nice car mister" and a wave.
I have a wooden boat (since 1980) but laid up now because not enough time to use them all.
Tomaret
Well-Known Member
I'd describe my 1972 4/4 as the most uncomfortable ride on 4 wheels you could possibly have - suspension designed a century ago in a car designed in the 30's and built at the height of the British car industry's malaise - doesn't stop it being great fun.
There was some talk on TalkMorgan about PCPs on Morgans but again volume seems to be an issue. However I couldn't bring myself to "buy" a brand new Morgan (on any terms) any more than I could a new boat.
