Reward for lost Kraken!
Join Date: Apr 2006
Thanked 132 Times in 129 Posts
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"in retrospect I would have saved 75% on our first boat "
I think that's the same logic that explains why buying a boat and putting it in charter service is a great deal. Or not. (If it was a great deal, I'd expect the charter companies to invest on their own as well.)
The catches with a split ownership would be:
1 & 2 -The boat takes a lot of wear, equal to a charter boat now. It will depreciate more and need more repairs, i.e .the sails will get as much wear in 1 year as they would have gotten in 4 years privately. Typical life of sails? Five years. Maybe two in the split ownership program if one of the owners lets them blow out. Result, faster depreciation and higher maintenance bills.
3- Liability issues. If one partner t-bones a Hinckley...or the boat breaks free from a mooring "Well I secured it properly!" who eats the costs?
And if the partnership is wrapped in a limited liability corporation (as it should be) what does that add to the costs?
I'm not saying it isn't be an overall saving--just that it CAN'T be that simple a saving. Even if you're lucky with your choice of partners.