PCP On a boat

I'm not sure about a PCP, almost certainly not but I do know that Lombard offer a balloon payment at the end of the term thereby reducing your monthly repayments. I heard this today at SIBS but it wasn't a lombard employee so can't 100% vouch for it.
 
I don't know but I'd expect you could get a final balloon payment loan product from somewhere. However I doubt you'd get a "or hand it back" option. Finance houses just don't have the resources to handle a load of handed-back used boats, unlike the car trade, and residuals are hard to predict
 
These guys seem to have a range of options with a balloon payment being one of them, but no hand back option. Unless underwritten by the manufacturer I think you're unlikely to find one either.
 
ricky_s said:
Can you do a personal contract plan on a boat? Pay so much a month and then a balloon payment at the end or just give it back?
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Lombard were offering it with new boats. Not PCP, but a flexible deal with a balloon final payment. I know that they had it with Princess last year and were willing to do it through Ancaster on a new Beneteau.

Definitely only on new build boats though and I think they wanted a bigger deposit (25 or 30%) but then only repaid 50% with a 20-25% final payment after 10 years.

Lombard were also offering an Interest only 5 year period on a 15 year mortgage last year, but then for the last 10 years your payments would go back up to normal. Great if you regularly change your boat!

Have to say I am not in tune with current market..

Paul
 
Its a good question. I've often thought that the marine industry is pretty backward when it comes to finance products. IMHO many buyers, particularly for smaller boats, would be attracted by a simple £ per month figure rather than having the hassle of negotiating a purchase price and finding finance separately. After all what matters to most buyers is not the purchase price or the interest rate but the amount that comes out of their monthly salary.
I know this would create the problem of boats coming back to the dealer or finance house at the end of the hire/lease term but if conservative residual values were used, I would think this creates another profit oppurtunity for the dealer when selling the boat on. This is the way that many assets are sold, not just cars.
 
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