wild french boat leases

tcm

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i have been asked to explain wot the hell this cheap lease deal is.

In france, boats are rated in navigation categories. The categories are
1 no distance limit
2 up to 200 miles from port
3 up to 60 miles from a port
4 up to 20 miles from a port
5 up to five miles from a port
6 up to 2 miles from a port

Now, seeing as how monster boats (like cat 1) might bog off and pay vat to luxemboiurg or not pay anything in cayman islands, it's worth their while offering a slight deal someohow. Anyway, for some reason, if a frecnh company buys these boats and rents them out to non-frenchies or perhap it's if the boat spends a proportion of its time outside french waters.... then the vat payable by those french companies is reduced. The reductions are cat 1 50%, cat 2 40% and cat3 15% and cat4 10%.

So french leasing companies can get inside the difference between 10% vat and the 20% ish vat on a decent sized boat, make a few quid themselves and stikll good rather incredible deals.

Soo...this mean that a french leasing company can sell you a french-registered eu-vat-paid boat over 3years and the total payments made all add up to a bit *less* than the new cash price plus vat. At the end of the lease, a final payment is made to buy the boat, and from there you re-register the boat as a uk boat or whatever. So, it's highly recommended and there's now no excuse for you not to rush out and buy a massive boat.
 
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