Ownership Cost Comparisons
Gateway Fractional Ownership is groundbreaking both in terms of cost and in the quality of your ownership experience – it’s simply the least expensive way to own, and is even much less expensive than charter. Below is a chart comparing the average yearly cost for; Sole Ownership, Sole Ownership inside of a typical charter program, the cost to charter for comparable 5 weeks, and the yearly cost to own a 1/8 share inside of the Gateway program giving you 5 weeks availability plus unlimited Open Time.
*Yearly cost is average of typical 7 year ownership costs including sales tax and indirect operating expenses – fuel is excluded. Charter has no residual value.
COST COMPARISON TABLES
No matter how you slice it, a 1/8 share costs roughly 1/8 the total cost of solo ownership. That makes owning within the Gateway program the lowest cost option for enjoying time on the water – and it’s a better ownership experience as we do all the work while providing top-shelf concierge service. More boat, less money, better service.
Cost comparison tables below compare the cost to own as an individual, as an individual inside of a charter program, and incrementally as a fraction inside of the Gateway fractional ownership program with and without financing. The following assumptions are made for comparison purposes only, actual finance terms will vary: Prices are for year 2012. Individual ownership yachts are financed with 20% down, 6.5% APR, and a term of 20 years. Gateway positions assume 30% down, 9.75% APR, and a seven year term. Assumed residual value is 50% at end of seven year period (a negative number for residual value minus debt means more is owed for the boat than it is worth). Cash purchase inside the Gateway program is far more likely than under individual ownership, and would eliminate all financing costs. Yachts are equally equipped and outfitted; not all closing, direct operating, taxes, and ownership costs are included, costs and residual value are estimated and will vary.
26’ Hewescraft Ocean Explorer Ownership Method Comparison:
| Method: | Individual Own | Own w/Charter | 1/8 Financed | 1/8 Cash Buyer | 1/4 Financed |
|---|---|---|---|---|---|
| Acquisition Costs: | $150,520 | $150,520 | $18,820 | $18,820 | $37,640 |
| Sales & Excise Tax (9%): | $13,546 | $0 | $1,694* | $1,694* | $3,388* |
| Charter/Use Tax: | $0 | 14.1% per use* | $0* | $0* | $0* |
| Financing Down Payment: | $32,813 | $30,104 | $6,154 | N/A | $12,308 |
| Payment sum per Year: | $11,743 | $10,773 | $2,838 | $0 | $5,676 |
| Indirect Operating Costs: | $14,000 | $18,000 | $3,180 | $3,180 | $5,940 |
| *Offsetting Charter Revenue: | +$0 | +$10,000 | +possible | +possible | +possible |
| Year 1 Outlay: | $58,556 | $48,877 | $12,372 | $23,694 | $23,924 |
| Outlay per year 2 thru 7: | $25,743 | $18,773 | $6,018 | $3,180 | $11,616 |
| Residual Value Minus Debt: | -$27,198 | -$18,739 | $9,410 | $9,410 | $18,820 |
| 7 Year Total Outlay: | $240,212 | $180,254* | $39,070 | $33,364 | $74,800 |
| AVERAGE OUTLAY PER YEAR: | $34,316 | $25,750 | $5,581 | $4,766 | $10,685 |
*Charter revenue is not included in Gateway ownership calculations, any charter revenue would make the advantages of fractional ownership even more affordable. Gateway members may choose to not pay sales tax initially but then must pay use tax with each use. By paying sales tax upfront, you will break even in about two years of use. Table is for comparison purposes only.
Similar Tables Produce the Following Results:
| Gateway 1/8 Cash Buyer Average Annual Cost | Percentage Cost of Individual Ownership | |
|---|---|---|
| 28′ Aspen C90: | $6,172 | 13.9% |
| 36′ Aspen C110: | $10,497 | 12.2% |
| 39′ Nordic Tug: | $11,907 | 11.8% |
