A fractional boat plan offers a realistically priced means of enjoying time on the water. As with all fractional plans, you purchase a share of the asset and are thus allocated an amount of usage time. This is an ideal way to make the most of both your time and your money. An additional advantage comes in the form of managed maintenance. Fractional boat plans include a monthly fee that covers -
- A cleaning and valet service
- Mechanical maintenance and upkeep
- Insurance
- Mooring and dockage
- A crew for larger yachts
- Administration
- Emergency assistance
As well as the initial acquisition cost which pays for the purchase of the boat, there are two more payments that owners need to make. A monthly fee covers the cost of the services outlined above. This is divided between the members of the plan, and varies according to how many owners there are and the size of their respective shares. The size and type of boat is also a factor - larger craft will attract a higher mooring and maintenance fee. The individual owners are also responsible for the cost of fuel used during their time onboard.
Usage and TimeMany fractional boat companies are set up as LLCs (Limited Liability Company) in the USA. This means an individual owner of a particular vessel is only liable for the money they invest. Boats are typically available to owners for 35 - 40 weeks a year. The other 12 - 17 weeks are needed for maintenance of the vessel. During this period, there is also the opportunity for people who couldn't use their allotted time to still make use of the boat.
The plans themselves usually run for between 5 - 10 years. At the end of this period the boat is sold and the proceeds divided up amongst the owners.