A fare share: a different approach to boat buying

Boat/US Magazine, Sept, 2004 by Dick Thompson

* Fractional companies assess each owner an upfront cost to establish a capital fund covering unanticipated repairs. This fund should be part of the Limited Liability Company, and a fully audited financial statement should be provided annually to include expenditures from this fund.

* Pick a plan that offers a convenient and flexible procedure for scheduling, such as on-line scheduling. Determine how holidays and weekends are to be allocated and determine how far in advance bookings can be made.

* Ensure that you will be able to sell your share if the need arises. Determine if there are any restrictions or penalties connected with selling your share.

* Find out what the brokerage fee is for selling the yacht at the end of the contract, and determine what the procedure is for purchasing another boat.

* Review the owner regulations to understand what restrictions and requirements are connected with yacht usage--many regulations restrict pets.

* Each plan should have an owner orientation and training program on the specific yacht. Make sure that the program qualifies you in all aspects of boat operation.