The Moorings is credited with creating the “guaranteed income” ownership model that has become the most popular plan among the world’s largest charter companies. This attractive option aims to remove all risk to the owner as it ensures their loan or lease payment will be covered in the form of a guaranteed monthly payment from the charter company. Boat buyers are reassured during the sales process that no matter what, they will receive this payment, regardless of the actual charter activity of their boat. This guarantee is the cornerstone of the entire program. Without it the model fails, and the owner can be put in a very difficult situation.
But can all these charter companies guarantee they’ll remain able to send out hundreds of payments each month ranging from $1,000 to $10,000, no matter what trials and turmoil come? The fact is some of them can’t.
Read more below and don't miss the video from Yacht Sales President, Franck Bauguil, specifically addressing this reality.
Whether it was the 9/11 attacks, the U.S. recession in 2008, or the more recent devastation of hurricanes Irma and Dorian, many charter companies folded under the circumstances and found themselves unable to honor their guaranteed income commitment. Meanwhile, The Moorings (and sister company Sunsail) never missed an owner payment.
Moorings Yacht Owner, George Psaros, attests, "The first boat I owned was with The Moorings in 2001, I tried other companies and then I came back. I had experiences with a different charter company in which my checks were chronically late. What is really good about The Moorings is that the Owner Care Team will bend over backwards to accommodate the owners, and they are honest about availability of yachts. After Hurricane Irma, our yacht was out of service for 8 months and The Moorings did not make any revenue off of it during this time. And what was consistent throughout the whole process was that every check arrived from The Moorings, on time. I have friends who owned boats with other companies in shared revenue schemes and the payments stopped immediately. Some of these owners got hurt pretty bad."
The world again finds itself under the weight of another crisis. This time in the form of a global pandemic that has shut down travel and tourism completely and has sent global markets into uncertainty and disarray. Honoring our guarantees to our owners is more important now than ever. We can, and will, continue to do so. This is also attesting of the financial strength of our company, and our commitment to our owners.
We have however, learned over the past few weeks that some of the other large charter companies find themselves unable to pay their owners. They have officially ceased all owner payments for several months, sometimes even until 2021 and the resuming of those payments may be conditional.
It is important for anyone considering purchasing a yacht through a guaranteed income program to be aware that “guaranteed” sometimes only means guaranteed during the good times.
We believe guaranteed means guaranteed, no matter what.
So, please make sure you do as much research and fact-checking as you can before entering into a partnership with a group that may be unable to fulfill their obligations to you.
Here you can find some testimonials from our beloved owners attesting to the fact that we remain a trusted partner through good times and bad.
Stay safe out there and we’ll see you on the water soon!