Up front Marina fees

[PowerSlapper]

Just received a letter from the marina offering up to 5 years berthing at discounted rates if paid up front.

Deal is 10% discount on this years fees fixed for 5 years (or 2, 3 or 4 years if that is what floats your boat). Vat at 15%. Total amount to be paid up front.

I read of similar deals going around but cannot find the threads now.

I am a little concerned over what happens should the marina holding company go to the wall in a year or two. What protection would I have over berth already paid for? Any way of protecting my lease / investment.

What would there be to stop the marina, once they had my money of moving my boat to a smaller finger at an unfavourable end of the marina and releasing the longer finger in a popular area of the marina for rent?

Seems to me the marinas are cash strapped and are looking at getting a quick injection of cash without any guarantees.

Has anyone taken up such a deal from their marina (assuming such was offered)?

If so how did you protest your "investment"?

Jules

 

[chrisross]

I believe (as a former PM said) the The Devil is ALWAYS in the detail. Read the small print, is there any mention of what happens if there is failure, are there any insurance backed indemnity guaranties for clients what are the early termination clauses so if you for example are unable to make use the berth because the boat is sold through illness or death can can you get any refund or sublet, is the remainder assignable?. The terms and conditions are there for the benefit of the supplier. So some negative indicators may be terms and conditions that are lengthy, tiny almost illegible feint grey text with lots of subclauses and jaargon.
I am always wary of offers that want you to pay now for jam tommorrow or pressure if you dont buy now we will put up the price. But it is a minefield and at the moment cash is king.

 

[Otter]

10% discount is laughable. Inflation is set to fall to 1.5% and they can offset your full five years worth of fees against their borrowing which costs them at least 7%. They get 5 years interest offset and were entering a period of minimal fee increases anyway! And they are only offering you a 10% discount??? Even if it was 10% off the whole five years it is still all stacked up in their favour.

/forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

 

[Phoenix of Hamble]

yep.... that was my reaction....

Personally, for committing that much money, i'd want at least 50% off the first year....

 

[MoodySabre]

I wouldnt do it. Too risky, inadequate discount, too many variables in life.

 

[domlee]

With the danger of a sustained period of deflation on the horizon this is something you do not want to do - the cost of commodities and services will fall but you could be left paying over the odds for something that seemed a bargain at first.

A marina may be suffering a 'cashflow' problem and may ask berth holders for 'advanced cash' to ease their situation, again I would recommend no. Unless there is some indemnity available leave it alone.

What would be the scenario if you asked them for credit? Perhaps you should think like a banker or mortgage provider - refuse them credit, wait untill they go under, then get together with all the other berth holders and buy them out at nominal cost.

 

[PowerSlapper]

It is 10% off for the full term so say 4k now would be 18k for 5 years but paid up front (20k-10%).

In the cold light of day not such a good deal perhaps.

On reflection had it been 50% for 5 years I may have been tempted if there was some security / insurance should the marina go to the wall.

From the lack of replies from anyone that has actually taken up such a deal I guess no one has, or at least very few.

Thanks for the opinions, I just needed convincing my initial reaction to walk away from the deal was correct.

Jules

 

[PeterGibbs]

Quote: I am a little concerned over what happens should the marina holding company go to the wall in a year or two. What protection would I have over berth already paid for? Any way of protecting my lease / investment.

What would there be to stop the marina, once they had my money of moving my boat to a smaller finger at an unfavourable end of the marina and releasing the longer finger in a popular area of the marina for rent?

Seems to me the marinas are cash strapped and are looking at getting a quick injection of cash without any guarantees.
_______________________________

How right you are. Even if you had a written agreement to a certain position in the marina, you and I know you have no comeback (they now having your money) should they ask your cooperation in "just a temporary move, sir, we're sure you understand the need...we have so much demand from our new customers....."

If the company goes to the wall in the next 5 years, there is every propsect you and all the other berthholders (what a joke expression that is!) in the marina will be sent a bright new form, inviting you to apply for services from the 1st of the new month.. "sorry sir, whatever payments you made before have been put under administration by the receiver for the previous owners, we are a new enterprise. We have to direct you to talk to them for any recovery available, but I would not raise..."

Keep your money in your pocket, my friend, and sleep sound!

PWG