[sam843]

If you could get a personal lease on a boat like you can lease a car in any dealer today would you do it.
What are your Pros and cons
and why isn't it wide spread like in the automotive sector

 

[Blue Ayes]

Theoretically, it's possible and it may yet come to pass if the banks want additional ways to lend money. The main problem is 1) the residual value of a boat after 36 months is much lower percentage wise than a car therefore more or the boats value has to be made up in the lease, so high payments. Also , all the big automakers run their own financing Ford GM BMW Nissan Toyote etc. who act as the banks to lease the vehicle. These manufactorers make up most of the leased vehicles, you would need boatmakers to offer the same type incentives and programs Even the big boat guys Bombadier etc. are dwarfed by a Ford or GM in the bankroll dept.

By the way nationwide leasing has dropped 30% in the last 2 years

 

[614048]

Its not so much the amount of depreciation as is the ability to predict it. If the banks could accurately predict how much a boat would be worth at the end of three years they would lend money for a lease with no problems at all. Predicting the market value of a car in 3 years is much more accurate. That is the reason why leasing is a common option.

One of the reasons that leasing activity is slowing now is because of the 0% financing bonanza So many people are buying new rather than used that the current market price of a used car is less than the banks assumed in their financing agreements 2 and 3 years ago. Once this market correction stabilizes, leasing will pick up again.