Why haven't dealers started to offer lease options?

[wakejunky]

With the high price of these boats, for that matter all boats, why haven't dealers offered leasing options? That's typically what people do when they can't afford a luxury car, they'll lease it, have a lower payment, and then turn it in after the lease option. Doesn't seem that it would be terribly difficult, clearly lay out the number of hours allowed, take into account wear and tear on boat and/or trailer and figure out the residual. Seems like it would be a win/win. People could "own" a high price boat for 2 or 3 year lease, turn it in, get into a newer boat and then the old one can be sold at a lower cost that more people could afford.

[Bevostein]

You would need a financial institution decide it was a lease market worth pursuing. I don't think it is or the lease terms would have to be so bad that people would not utilize them.

The number of units sold per year is probably not enough. The used market is highly regionalized and slow turning. The overall segment is subject to wild swings in demand with upticks and downturns in the economy. Resale value can vary widely. Common standards of care can also vary widely.

All factors that work against a lease making sense for the financial institution.

[a0128]

Most people aren't leasing $150k cars.

Not enough units sold to make it profitable for the leasing co + leasing co is not going to go 20 years on a lease (like banks go on a std loan)

No one can afford the lease payment on a $150k boat given 5 year duration

[swc5150]

I remember in the late 80's or early 90's, one could lease a Ski Nautique. I was just finishing high school, and not a buyer, so I don't if was just a dealership thing, or from the factory. The resale value, or residual in the case of leasing I guess, should be strong on these boats, so I'd think a lease could work for some? That is if someone doesn't get stupid and lease at MSRP anyway.

[Bevostein]

I agree a well cared Nautique has good resale but I think there are too many factors that influence resale for an institution to enter the market. For example, if I lease a Nautique here in Dallas I would expect to get Dallas resale value in establishing the lease. If during the lease of the term I move to WI the resale for the lessor upon return may change dramatically. Same facts but, I move to Florida. Even if the boat was only used in freshwater, the resale has taken a hit because if it is returned in Florida and subsequently resold there its presumed to be salty or at least brackish. There are too many variables at play that just aren't present in the auto market.

Care and maintenance is another big one. We all like to think every Nautique owner covers their boat and puts it under a boathouse or in storage but the reality is plenty do not. While these boats are made to be used outdoors they are also made to be covered and protected if the owner wishes to maintain them. Autos are much hardier in withstanding the elements and most neglect can be repaired or addressed at a reasonable cost. Much more expensive for the lessor to deal with an abused boat coming back in off lease. And in the end lessor's don't want to deal with the hassle of fixing leased units before flipping them.

One other negative for a lessor would be that for several months of each year the market moves slow. If they get a unit back in during the fall they are likely sitting on it until spring.

I think if an institution entered the market, the lease terms they would need to turn a profit would be unattractive to most buyers

[vision]

There is a huge used car market. The used boat market is far less stable and predictable.

[Tryathlete]

New boat pricing is way crazy and those who buy new boats are going to take a hit at resale. Used boats are inflated by new boat prices but the upward spiral is a classic bubble and leasing is a bad risk for any financial institution who knows the market.


Sooner or later your toys own you