Financial Comparison - LeaseShare vs. Own

For most people, the financial benefit of LeaseSharing (e.g., timesharing under a single season lease without equity ownership) is overwhelming. As an example, the analysis that follows shows that the typical sailor who LeaseShares rather than solo owns a new, well-equipped 36-foot sailboat:

• Pays 12 times less overall ($4,950 vs. $60,660) in year 1

• Pays 5.4 times less overall ($4,950 vs. $26,660/yr) in years 2-15

• Pays 5.4 times less per sail ($330 vs. $1,778) in years 2-15

• Pays $0 down vs. $34,000 down

• Has an obligation of 1 year for $4,950 vs. 15 years for $136,000

• Does not suffer massive, real depreciation when selling the yacht

• Has no maintenance obligations pre, post or during the season

• Avoids all the hassles of boat ownership - simply show-up and sail

Amazing but true. LeaseSharing a sailboat is a financial “slam dunk” when compared to ownership – and LeaseSharing a powerboat is even more compelling since powerboats depreciate further than sailboats.

Purchase Costs and Mortgage

The total purchase cost of a new, well-equipped 36 foot sailboat with roller main, roller jib, autopilot, GPS, wind instrumentation and customary upgrades is approximately:

Base Price	$140,000
Upgrades	$5,000
Electronics	$10,000
Outfitting	$3,000
Sales Tax	$12,000
Total Purchase Price	$170,000

With 80% financing over 15 years at 7% interest, the required down payment, amount financed and mortgage payments for a 12-month period are approximately:

Down Payment	$34,000
Amount Financed	$136,000
Total Mortgage Payments Annually	$14,660

Operating Expenses

Assuming some seasonal and ongoing maintenance work, and all cleaning, pumping of the head and fueling is performed by the owner, annual operating expenses are approximately:

Insurance	$1,500
Mooring/Dockage	$3,500
Storage	$2,000
Maintenance Ave/Year Over Life	$3,000
Replacements & Upgrades	$1,000
Fuel, Supplies	$1,000
Annual Operating Expense	$12,000

Annual Cash Outlay

Total cash outlay during the first year is approximately:

Down Payment	$34,000
Mortgage	$14,660
Operating Expense	$12,000
Cash Outlay Year 1	$60,660

Total annual cash outlay for each of years 2 through 15 is approximately:

Mortgage	$14,660
Operating Expense	$12,000
Annual Cash Outlay Years 2-15	$26,660

Cost Per Sail

In reality, because of the many demands on personal time during the warm months, (e.g., vacations, weekend trips, kids sports, home improvement, etc.) most boat owners sail only 10 to 20 times during a 20-week sailing season. Using 15 sails as a midpoint, if you own the boat, the average cost per sail for years 2 through 15 is approximately:

Typical Sails Per Season	15
Annual Cash Outlay Years 2 -15	$26,660
Average Cost Per Sail	$1,778

In contrast, the average cost per sail for the same boat under Pinnacle LeaseShare program is approximately:

Typical Sails Per Season	15
LeaseShare Costs	$4,950
Average Cost Per Sail	$330