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When it comes time to
get a new car, do you buy or do you lease? Things to consider in making
that decision include whether you plan on keeping a car for a long time
or prefer to have a new one every few years and whether you want to avoid
the financial costs associated with owning and the hassles of dealing
with depreciation and resale values. For many, leasing is an affordable,
convenient alternative that allows people with changing needs or tastes
to trade in their existing vehicle for a newer model after a few years
with little aggravation.
Since, reportedly, more
than half of all American drivers now lease their cars, it may come as
a surprise that most boat dealers do not offer leasing. After all, the
down payment on a purchase can tie up a lot of money, and the residual
(resale) value of the boat will drop the minute she leaves the dock. In
addition, boating needs, like car needs, can change. There are numerous
ways to finance a boat purchase, but few options are available to you
if you don’t want or can’t easily afford to buy a boat outright.
So what about the family
with two children which is presently well suited in a 35-footer but might
need to upgrade to a 40-footer as the children grow, or downsize to a
30-footer as they become involved in activities outside of boating? Or
what about the wealthy businessman with substantial personal assets who
wants use of a boat whenever he desires, but doesn’t want to tie
up $20,000 of his money on a down payment?
Enter Russo Marine,
which bills itself as New England’s largest powerboat dealer. In
combination with Russo Marine Financial Services, the company’s
own leasing/lending agent, Russo Marine has been offering boat leasing
since 1997. President and CEO Larry Russo, Sr. says the program was designed
as an alternative to traditional marine financing and to create “a
shorter vessel-ownership cycle.” Today, leases reportedly make up
ten percent of the company’s annual sales. In fact, leasing has
been so successful for salespeople that “I just spent two hours
talking with a customer about leasing who decided to buy the whole boat
instead!” has reportedly become a running joke amongst the sales
team.
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Leasing? continued > Page 1, 2,
3
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