A Year of Sailing: How The Moorings Points System Works
Everything You Want to Know About Financing a Charter Yacht
If you are considering financing a boat through our Yacht Ownership Program, then you probably have plenty of questions, especially if this is your first time purchasing a yacht. The Moorings has been in the business for almost 50 years and we are proud to say that we invented Charter Yacht Ownership. So it goes without saying that we know the business in and out. In addition to our 50 years of expertise, we have partners in the finance industry that we have worked with for decades who understand the way our business works. To get a bit of an understanding of how you can finance a yacht in through an ownership program we encourage your to keep reading.*
What are my options for financing a charter yacht?
We have several financing sources for you to consider when making your yacht purchase. You are also welcome to use your own financing source or pay cash. A fair amount of our owners in the US finance their yacht through LaVictoire or Essex Credit (Bank of the West). We have been working with Essex Credit for about 25 years. When financing your yacht you will received a 15 year loan with a fixed interest rate. If you would like to know more about what the current rates are, contact us today.
How much Money do I need to put down?
When purchasing a yacht through our yacht ownership program the lenders require that you put down 25% of the purchase price of the yacht.* With certain qualifications, they will allow a lower down payment, or you can put more down and potentially receive a lower interest rate.
What other fees do I have to pay?
When you purchase a yacht through the Moorings you will have no closing costs. The only fee that an owner will pay is the registration fee. If you register your yacht with the U.S. Coast Guard, the document fee will set you back about $500. Most of the lenders for charter yacht purchases in the U.S. are going to want the yacht documented by the U.S. Coast Guard. With the boat being operated outside of the U.S. and in a charter fleet full time this provides a level of comfort for your lender.
What happens at the end of the program?
When financing a yacht through our Yacht Ownership Program lenders do not consider the guaranteed income that you will receive as an owner to help qualify you for the loan. Therefore, it is a very similar process to financing a private yacht. There is no balloon on the note, meaning that you will not have one large payment to satisfy your loan at the end of the program. For some owners who choose to keep their boat at the end of the program, if the interest rate has dropped, the owner may opt to refinance the remaining loan balance. As an owner, should you choose to keep you boat, you would sail it home and keep making payments to the bank.
If you would like to see a breakdown of numbers for a yacht purchase with The Moorings, click the button below to use our pricing tool.
*Financing options in this article are available to US customers and subject to change.
