How does the charter/sale arrangement work?
Most boats can be purchased for their current appraised value or chartered on a long term basis (minimum three years) with an option to purchase. The purchase price of chartered vessels is usually established at the beginning of the lease and reflects the anticipated market value of the boat three years hence. If a charterer elects to exercise the option and purchase the vessel at the end of the charter, all charter payments are credited against the agreed upon purchase price. There are no interest charges or financing fees, etc. The charterer may also choose not to exercise his or her purchase option, in which case the security deposit will be returned. Charter payments will be kept as charter hire. Broker commissions are generally paid in full at the commencement of the charter. For more information, please contact us by email or call us at (401) 842-0752.