The Moorings Yacht Ownership Program
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- čas přidán 29. 06. 2024
- In this episode of the Anchors Aweigh podcast I discuss The Mooring Yacht Ownership program and why we chose it as our first form of sailboat ownership.
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Great video Todd! Very informative video.
Thanks for watching. I appreciate the feedback!
The simple economics are that you EFFECTIVELY SPEND $45,000 per year as a Moorings “owner”. 1. You must buy the boat. 2. Moorings sends you cash during 5 years in the program. 3. You sell the boat. When you factor cash/loan to buy, monthly cash-in during the program, and cash from selling the boat, you will have been out of pocket around $45,000 per year--for 5 years. So, you can simply compare the cost of a la carte chartering you might do to a $45,000/yr baseline.
I just left the program. I loved it. I got to sail all over the world. If you don't have the time to take all the trips its not a great deal. I went on my actual boat once in last 3 years.
So glad you had a good experience Mike! I’m looking forward to sailing in as many locations as possible over the next several years.
I’d love to hear more about the details, costs and the overall budget if it comes to Moorings.
The actual costs depends on the vessel and base location, but is something I could go into more detail in future episodes for sure. You can also see a lot of information on the pro-forma sheets for each vessel at www.mooringsyachtownership.com/pricing
@@ToddMiddlebrooks Yeah, I went through advertisement brochures already - but would like to hear some honest truth. ;)
You really seem to like how you have access to their boats at many of their locations. I guess they didn’t tell you at the boat show that they have a public facing website, where you can book boats as a charter and not buy a asset that will be beat to hell. You also mentioned professional maintenance, have you been to their Tortola location? Good luck with that, hope your boat arrived on time and isn’t late(first sign of a journey that you will end up regretting). This is a time share like situation. Ever wonder if it made sense, why Morning’s just doesn’t buy the boats?
Yep.. stupid stupid stupid. You buy the boat they use it all they want. Bottom line you bought a boat you can not afford hoping it all works out. However you have access to some other nasty charter boats all over the world you can use. Please the boat you bought will take you there... just go where you want to sail. Absolutely a time share but one you got to buy a 500K plus boat to join. A firggin joke. You pay for the boat and the charter company (The Moorings) makes all the money all the while trashing your boat. Do name it properly something like... ss party barge or better still ss motel 6 because buy the time Moorings is done with it she will be a dumpster fire with pecker tracks from bow to stern.
The financial outcome depends a lot on the boat’s residual value in 5 years. People who bought 5 years ago ended up doing very well due to Covid and inflation. Time will tell. If you can use it as a US tax shelter and like boating, it is very attractive but I don’t think a lot of their buyers set it up to meet all of the requirements to tax deduct it.
Agreed. We have put in a lot of work up front to ensure we maximize our sailing fun and the benefits of ownership. Ultimately our goal is to reduce the costs of sailing over the term of the agreement. To what extent we’re able to do that depends on the market for sure.
Would love regular updates on this ownership experience. Still thinking. Similar situation as you.
Thanks for watching and commenting! I’m working on updates that will be coming soon.
Thanks for the video. What happens during hurricanes? And who absorbs the lost value should the boat become damaged?
Our boat will remain in the BVI for hurricane season. Should we incur any damage or loss dues to a storm, the insurance carried by The Moorings on our vessel will kick in. One of our partners experienced a total loss during hurricane Irma in 2017 and the Moorings handled the insurance process and replacement of his vessel. This is one of the reasons I have even more confidence in The Moorings as a company.
@@ToddMiddlebrooks Thank you for the reply. In the states, the insurance company pays for all repairs to automobiles after an accident. However, the automobile is still valued 10-30% less than a similar vehicle that has not been in an accident even if there is no evidence of an accident. If this is similar with yachts, does the insurance company compensate the owner for the loss in value?
This is an excellent question. I’m only familiar with total loss scenarios, so you bring up a great point. I've found in our agreement that there is a required "lender loss payable clause" in our included insurance policy, "in the event of a final determination that there has been an actual or constructive total loss of the Yacht." I hope this helps answer your question.
Thanks for the info Todd!! We are currently reviewing Moorings/Sunsail! Have you now taken possession? What make/model/etc. did you purchase? Any updates to share? Also, cabin layout? We are looking at the 4 cabin version instead of an owners suite. Thanks in advance!
Thanks for the comment Bruce! I’m planning a follow up video soon. We closed on our boat in August and it arrived in the BVI at the beginning of November. We went with the Moorings 5000 (Leopard 50) in a 4-cabin layout. The nice thing about that floor plan is that you get four cabins with an owner’s suite! Best of luck in your process. Let me know if I can help in any way.
Look forward to seeing your cat and more of your adventures and memories as you make them!!😎
Im ignorant. How does this compare with simply renting when you want to? Then if you are able to go full time, buy one of the post charter boat either alone or with a buddy?
If you only plan to sail once per year or so, then chartering is definitely the way to go. However, if you want to charter up to 12 weeks per year, then this type of ownership allows you to do so much more economically. It's a great option for between occasionally chartering and full boat ownership. I guess it depends on how you want to sail and own a boat. Many stay in a program like this forever, because it fits their needs. I hope to move on to full ownership at some point and sail my boat when, where and as much as I can.
So it's a time share basically? How it's described sounds alot like a time share and with the bad reputation of other types of time shares I think I'd pass. To each their own but I associate time shares with scams.
Hey Chris,
I can see how this might look similar to a timeshare model. A lot of people think that when they first hear it.
The difference is a fractional time share is typically an asset (condo, Villa, home, etc) that is owned by the timeshare company and sold or leased in fractions of “ownership” that correspond with the use the buyer gets.
In The Moorings model, we actually own the asset and place it in their charter system for use. In return we receive guaranteed income and the ability to use any of their boats at all of their bases, for a certain amount of time each year over the term of the agreement. At the end of the agreement term, we still own 100% of the boat.
Thanks for watching and I hope this helps!
How did they handle the guaranteed income during COVID when everything was locked down? How guaranteed is "guaranteed"? I recall hearing horror stories about this.
While I was not in the program at the time, one of my boat partners was. They continued to make the guaranteed payments to owners, even though in many locations they weren't able to charter at all. This is one of the things that gave me confidence in their program.
@@ToddMiddlebrooks Wow, ok, that gives me some real confidence as well. Good for them! And thanks for the response. :)
in 2020 i was thinking about that as well. these companies must have taken on so much debt to cover "guarantees" it is scary, especially with declining boat values-
@@brettharman8921 I just assumed they had a loophole in the contract and bailed on the payments... I'm glad to hear they didn't. I wonder if they added the clause to the contract afterwards... 😂
I have major trust issues with stuff like this.
After seeing charter captains doing some of the craziest and dumbest stuff I have ever seen I would hesitate.
For god sakes I hope you backed out of that crap ass contract. It will be one of the biggest mistakes of you life. You buy a boat and have limited access to it . O and the things they do as for maintenance... research (Cheeki Rafiki) boy they sure took good care of that charter boat. Boat was a total loss and only 5 people lost lives due to cost cutting and time saving bad decisions.
They’re called “ports” not “bases”.
The town or harbor is the port. The company has "bases" at the ports. When you are returning from your charter and have to call in to arrange docking, you call "Mooring Base, Moorings Base, this is...".