All You Need to Know about Leasing a Boat
With the great success and popularity of car leasing, leasing is gradually coming to the forefront as a boat financing option. The first step in boat leasing involves both the customer and the dealer coming to an agreement on the capitalized cost. The dealer then has to make an estimate of the boat's worth at the end of the lease (residual value). A high residual value is good.The residual value depends on several factors.
Both the capitalized cost and the residual value will determine your lease payments. Once these figures are determined, you decide the lease duration. Boat leases are commonly for a duration of three years but this is negotiable. The dealer then sells the boat to a financial institution to which you will make your monthly lease payments.
Boat leases are usually closed-end leases. So you can choose from three options at lease end: return the boat, purchase it at a pre-determined cost, or extend the contract and re-lease the boat.
It is essential that you compare the costs of leasing vs. buying before leasing a boat. Keep in mind that a boat lease is a depreciating asset. Also, a boat lease is going to cost you two-times as much per month as buying a new boat.
To know more about boat leasing, you can contact the Graphic Savings Group.
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