Everything You Want to Know About End of Program Options
If you are considering the purchase of a Sunsail Yacht into our Yacht Management Program, then without a doubt you have wondered what happens after your time in the program is up.
When that time comes you will have several options to consider including keeping your yacht, selling it, or trading it in for a new yacht in our fleet. During the last year of the program we help our owners decide which option they prefer.
KEEP – If you choose to keep your yacht we recommend hiring a professional surveyor to complete a yacht survey after the phase out maintenance has been completed. This will ensure that all items listed on the equipment list (Exhibit A) attached to your Yacht Purchase and Management Agreement are in good working condition.
SELL – Our brokerage office in Ft Lauderdale can list your yacht for sale during the last year of the program and line up a buyer for the end of your program after it completes the phase out maintenance. After the yacht is sold you will receive the sale proceeds less a standard 10% brokerage commission.
TRADE - Many of our Owners trade their yachts for a new yacht in the fleet. The trade value is linked to the market value and the trade value is applied as a deposit towards the new yacht. If there is a loan balance on the yacht at the time of the trade and you are financing the new yacht, the lender for the new yacht pays off the existing loan on your trade and applies any equity towards the down payment on the new yacht.
What is the duration of the program?
The length of the program in the Caribbean is about five years to include five high seasons. In other destinations around the world this may vary.
How long will it take to sell my yacht after program ends?
The average length to time to sell a yacht in the program is about 3 – 6 months and our Moorings Brokerage office in Ft. Lauderdale can begin to promote your yacht for resale during the last year of the program.
What happens if you can’t sell my yacht at end of program?
If your listing price is based on market conditions there won’t be a problem reselling your yacht at the end of the program. If you aren’t ready to sell quite yet another option is to request an extension of your yacht in our fleet or in our Footloose fleet in Tortola. The Footloose Fleet consists of yachts that have completed the primary program and are still chartering, for up to three years, based on charter demand. We select yachts for Footloose on an as need basis. We can continue to list your yacht for sale while in Footloose or, you may trade it in from Footloose and purchase a new yacht back into the primary fleet or keep your yacht after the Footloose program ends.
Is there a chance my yacht will sell for less than my loan payoff?
We can’t guarantee resale market conditions at the end of the program but the chances of that happening are slim assuming you have applied all monthly positive cash flow towards the loan during the program.
Will you buy my yacht back at end of program?
A buy back of your yacht in our Guaranteed Income Program is not available.
What parts of my boat are replace at the end?We don’t wait until the end of your program to replace equipment (unless needed) as during the program it is our responsibility to repair or replace equipment as needed (including sails) to keep your yacht in tip top charter condition.
Can I quit the program early?
If you have spent a few years with us and you decide to depart from the fleet early, assuming you give us a six month notice, we will do our best to accommodate this.
I don’t know if I want to keep my boat at the end of the program or not…should I decide now?
You don’t need to decide until around the fourth year of the program and then we all work together to help you decide what choice will best suit your needs when the program ends.
How often do you sell yachts at your estimated resale value?Each year the majority of our yachts departing from the Ownership Program that are listed with our brokerage office resell at the original estimated value.
Whatever you decide to do at the end of the program we strive to make this period as easy possible. We have an Owner Care Team who will work closely with you throughout your time as an owner, and especially during your last year in the fleet to ensure a seamless transition.
If you are interested in owning a yacht with Sunsail or The Moorings please don't hesitate to contact me with any questions you may have.