Nautical leasing and other ways to finance a boat

The acquisition of a boat is a significant investment from a financial standpoint. Hence, financing options are crucial to manage the payment. Nautical mortgages are a traditional method for purchasing boats. Nautical credit is especially aimed at individuals buying used or second-hand boats and rental or charter companies. Nautical leasing has become a successful option in recent years, primarily for financing new boats for individuals.

In this article, we will analyze the different financing options for boats, emphasizing newly implemented methods encouraged by governments, as they facilitate transactions.

Financing a Boat

Although it is obvious, acquiring a boat requires a certain purchasing power; and, of course, prices will vary greatly depending on the boat's length, whether it is a sail or motor yacht, and whether it is new or used.

For recreational boats, a 10-meter used model can be obtained starting from 100,000 euros, although it is advisable to check a series of legal elements. In this article, we will focus on the different financing modalities for this type of boats;

When acquiring boats, we can choose from three financing methods: nautical mortgages, nautical credit, or boat leasing. Let's explain in more detail the characteristics, advantages, and disadvantages of each.

Nautical Mortgages

Nautical mortgages are a financing system that mirrors the scheme of home or commercial property mortgages. Before the expansion of boat purchases due to a wealthy audience and the extension of international trade, these operations were considered high risk.

The mechanics of this boat financing system are simple: the buyer offers a guarantee to the financial institution in case of loan default; in return, the institution provides a fixed amount to complete the purchase. If the buyer defaults, the institution would execute the mortgage on the asset, which could be the boat or any other agreed-upon property.

This financing line is mainly used for commercial, fishing, and work boats. The main advantage is that, since there is a guarantee, the interest rates are lower than other methods, although the formalization and registration costs are much higher.

Nautical Crédit

Nautical credits, in reality, differ little from certain personal loans for financing a specific asset. The process involves requesting money from a financial institution to purchase a boat (usually for recreation), and the institution grants it for this purpose, primarily based on the borrower's personal guarantee.

The main advantage of this system lies in the costs, as there is no need to duplicate expenses on experts and notaries; additionally, the interest rate is fixed, though slightly higher than a mortgage. Obviously, the main users of this product are buyers of new recreational boats for rental or charter use and individuals buying used boats.

Since the risks for the buyer are reduced, this type of operation has a growing number of clients wishing to acquire a boat, especially from nautical companies or rental and charter firms. Medium-term prospects suggest that this financing method will continue to expand due to increasing competition in the sector.

Nautical Leasing

This model has an increasing number of clients, both among individual buyers and nautical companies, especially due to the favorable tax benefits it offers. Financial institutions are also particularly interested in this type of contract and typically offer them by default when they identify a client profile that matches these criteria.

Boat leasing essentially involves a company purchasing a boat that is leased to the end customer for a specified period (typically between 4 and 15 years). Usually, when the lease ends, the boat user can purchase it, similar to vehicles or industrial machinery, by exercising the residual value pre-determined in the original contract.

Conclusion

To avoid problems when purchasing a boat, it is especially advisable to seek the assistance of a financial advisor specialized in boats, whether professional or recreational. There are specific financing formulas for boats, and knowing them is essential to save time, money, and receive proper advice. In recent years, the options available to buyers have multiplied.

Therefore, to secure the best conditions when buying a boat, we recommend contacting a financial consultancy that can provide professional answers in this area and offer the relevant advice for the transactions you need to carry out.

If you are thinking of acquiring a boat and need advice on financing it, contact SYSFINANCE, who will help you select the most suitable financial option for your circumstances and possibilities.