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Yacht Finance

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Yacht Finance

Clifton private finance

We specialise in sourcing high value Yacht finance in the UK and internationally

 

High quality Yacht finance solutions for UK & international clients.

  • Finance from £25,000
  • Competitive marine vehicle finance that often outperforms dealer offers
  • Flexible finance options which includes: Personal loans, Personal contract Purchase (PCP), Hire Purchase, Lease Purchase
  • Tailored bespoke service
  • Refinance options
  • Flexible repayment periods
  • Finance available on new, used and auction bought Yachts
  • Business owners - Refinance existing assets to free up your company's liquid capital
  • Business owners - Cashflow matched repayments
  • Asset finance for Yachts 

We can deliver enhanced, bespoke or exclusive terms through our market knowledge.  

Call us on 0203 900 4322 to discuss your requirements.

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Best ways to finance a Yacht purchase in the UK

Yachts are the perfect choice for those who enjoy the freedom and excitement of sailing the seas. Yachts provide you with comfort, luxury, and fun, as well as a variety of options to suit your preferences and needs. You can choose from different sizes, shapes, and styles of yachts, depending on your budget and lifestyle.

However, buying a yacht is not a simple affair. The upfront cost of a new or used yacht can be quite high, and you also have to consider the depreciation, maintenance, and insurance costs that come with owning such a valuable asset. That’s why many people opt for financing their yacht instead of paying cash.

But how do you finance a yacht in the UK? What are the different options available, and how do they compare? How do you find the best deal for your needs and circumstances? And what are the popular types of yachts that you can buy on finance?

The Different Finance Options Available for a Yacht

If you want to buy a yacht in the UK, you have several finance options to choose from. Each option has its own features, advantages, and disadvantages. Depending on your personal and financial circumstances, you can choose the one that suits you best:

Marine Finance

Marine finance is a form of leasing, where you pay a monthly fee to use the yacht, but you do not own it. The monthly fee is based on the depreciation of the yacht over the lease term, and the residual value at the end of the lease. The residual value is the estimated value of the yacht at the end of the lease, which is agreed upon at the start of the contract.

The advantage of marine finance is that you can enjoy sailing a new yacht without having to pay the full purchase price upfront. You also have lower monthly payments than other finance options, as you are only paying for the depreciation of the yacht.

At the end of the lease, you have three options, you can either:

Boat Loan

Boat loan is a form of credit, where you pay a deposit and then monthly instalments to buy the Yacht over a fixed period of time. The monthly instalments include both the principal and the interest, and the interest rate is usually fixed. The yacht is the security for the loan, which means that if you fail to make the payments, the lender can repossess the yacht. This is similar to hire purchase, which is a type of asset finance that allows you to own the asset at the end of the contract, after paying a final option to purchase fee.

The advantage of boat loan is that you can own the yacht at the end of the contract, and you can choose the deposit and the duration of the contract to suit your budget. You also have the option to settle the loan early, by paying the outstanding balance and a small fee. The disadvantage is that you have to pay interest on the loan, and you do not own the yacht until you make the final payment.

The final payment is usually the same as the monthly instalment, plus a £10 option to purchase fee. This fee is a legal requirement, and it transfers the ownership of the yacht from the lender to you.

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Boat loans and marine finance may have some differences from hire purchase and asset finance, such as:

Hire Purchase with Balloon Payment

Hire purchase with balloon payment is similar to boat loan, but with a twist. Instead of paying equal monthly instalments, you pay lower monthly instalments and a larger final payment, known as the balloon payment. The balloon payment is usually 25% to 50% of the purchase price of the yacht, and it is agreed upon at the start of the contract.

The advantage of hire purchase with balloon payment is that you can have lower monthly payments than boat loan, and still own the yacht at the end of the contract. You also have the option to refinance the balloon payment, or trade in the yacht for a new one.

The disadvantage is that you have to pay more interest than boat loan, and you have to save up for the balloon payment or find another source of finance. The balloon payment is usually the same as the agreed percentage of the purchase price, plus the nominal fee that is added to the final payment. This fee is a legal requirement, and it transfers the ownership of the yacht from the lender to you.

Contract Purchase

Contract purchase is a leasing option, where you pay a deposit and monthly instalments, based on the depreciation and the residual value of the yacht. You do not own the yacht, but you can buy it for the residual value, return it, or part-exchange it at the end of the contract.

Contract purchase has lower monthly payments and less upfront cost than other finance options, but no equity and possible extra charges for exceeding usage limit, or any damage or wear and tear.

At the end of the contract, you have three options. You can either buy the yacht for the residual value, return it to the lender and walk away, or part-exchange it for a new one or use any equity as a deposit.

Personal Contract Purchase (PCP)

PCP is a flexible leasing option, where you pay an initial payment and lower monthly instalments, based on the depreciation and the residual value of the yacht. You can own, return, or part-exchange the yacht at the end of the contract, by paying, avoiding, or using the residual value as a deposit. PCP has lower monthly payments and more options than contract purchase, but higher interest and a large final payment.

Popular Models of Yachts you can Buy on Finance

Now that you have an idea of the different ways to finance a yacht in the UK, you might be wondering what types of yachts you can buy on finance. The good news is that you can find almost any model of yacht on finance, as long as it is within your budget and meets the lender’s criteria.

However, some models are more popular and available than others, depending on the demand, supply, and market trends. Here’s a brief overview:

Model

Description

Price Range

Monthly Payment

Sunseeker

Luxury motor yachts, petrol or diesel engines, sleek and sporty design, spacious and elegant interior, leather seats, sunroof, advanced navigation and entertainment features.

£200,000 to £30,000,000

£1,500 to £200,000

Princess

Luxury motor yachts, petrol or diesel engines, F, Y, X, S, V, and R classes, dynamic and versatile performance, sophisticated and modern design, comfortable and luxurious interior, leather seats, panoramic windows, cutting-edge safety and connectivity features.

£300,000 to £20,000,000

£2,000 to £150,000

Fairline

Luxury motor yachts, petrol or diesel engines, Targa and Squadron ranges, agile and smooth performance, stylish and contemporary design, spacious and practical interior, leather seats, retractable roof, advanced safety and infotainment features

£100,000 to £5,000,000

£800 to £40,000

Beneteau

Luxury sailing yachts, diesel engines, Oceanis, First, and Figaro ranges, innovative and efficient performance, elegant and classic design, comfortable and functional interior, leather seats, skylights, advanced safety and navigation features

£50,000 to £2,000,000

£400 to £15,000

Additional Costs of Owning a Yacht

Owning a yacht can be a significant financial commitment, so you should carefully plan your budget and compare the different finance options available. You should also consult with a professional yacht broker, who can help you find the best yacht for your needs and negotiate the best deal for you.

At Clifton Private Finance we can help. With over 20 years of experience and access to exclusive lenders and rates, we’ll offer you expert advice, tailored solutions, and a hassle-free service. Contact them today and get your dream yacht on finance.

Besides the purchase price and the finance cost, you should also consider the costs of owning and operating a yacht, which can vary depending on the size, type, and condition of the yacht. Some of the main costs include:

What Happens at the End of a Marine Finance Plan?

Marine finance is a type of finance that allows you to use the yacht as an asset for your business or leisure, while paying a fixed monthly fee to the lender. Marine finance can be either a finance lease or an operating lease, depending on whether you want to own the yacht at the end of the term or return it to the lender.

At the end of a marine finance plan, you have different options depending on the type of lease you have chosen. Here are the possible scenarios:

The option that you choose will depend on your preferences and circumstances. For example, if you want to own the yacht at the end of the term, you might prefer a finance lease. If you want to have a newer and more efficient yacht, you might prefer an operating lease.

Using a Finance Broker to Help

If you are interested in financing a yacht in the UK, you might want to consider using a finance broker to help you with the process. A finance broker can help you find the best marine finance option for your needs and budget, as well as negotiate the best deal with the lender. A finance broker can also advise you on the different types of marine finance available for buying a yacht, such as flexible terms, low deposits, and bespoke solutions.

At Clifton Private Finance, we have a team of specialist finance brokers who can help you finance a yacht in the UK. We can work with yacht manufacturers and dealers to arrange your yacht finance plan and finalise your purchase. We can also help you finance new, used, or auction-bought yachts, and offer the most competitive marine finance service for you.

To find out more about our finance broker service, don’t hesitate to contact us today.

We offer a free and no-obligation telephone consultation at a time that suits you.

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Call us today to discuss your requirements on 0203 900 4322


 

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