Argosy Financial launches YachtLease

Argosy Financial, LLC, an innovator in asset management and lease financing, has launched a new product, YachtLease, to serve the Luxury Yacht Market, it was announced today at the Miami International Boat Show by president and founder, John J. Flynn, a transportation industry leasing veteran and lifelong yachting enthusiast. 

Mr. Flynn, who pioneered tax-leveraged leasing in transportation assets with funding in the billions as founder of First Fleet Corporation, heads up a team of seasoned professionals, whose principals have a combined experience of over 75 years in the marine, yachting, aviation and leasing industries. Joining him at the helm of Argosy Financial is Lester Abberley, vice president, Marketing & Sales, a yachting industry insider and former publisher of ShowBoats International, the premier mega-yacht magazine. 

“We are delighted to offer this innovative, financial product to high-end yachting clientele, through an intelligent lease that provides economies never realized before in the purchase of Luxury Yachts. Our goal is to reduce the cost and complexity involved in acquiring, using and disposing of a Luxury Yacht; substantially increasing the joy of yachting,” said John Flynn, “who has personally purchased and operated 12 yachts over the past 25 years.” 

The YachtLease, powered by Argosy Financial software, uses a tax-leveraged lease structure that enables qualified clientele, who are previous Yacht owners to opt for this revolutionary, no money down, financing over the traditional marine loan financing. Under the Argosy lease structure the yacht “owners” are exempt from sales tax at acquisition, and although not a requirement, are generally U.S. flagged. Based on a client’s cruising itinerary, and over a three-year period, the state sales use tax, in after-tax dollars, equals only one percent of the yacht’s acquisition cost. This now allows U.S. citizens to proudly fly the American Flag as an alternative, to using offshore tax havens that introduce complex ownership structures, foreign crew problems and re-entry difficulties with U.S. Customs and Homeland Security. 

Argosy principals have a solid track record of maintaining value in ground, marine and aviation assets while improving the quality of its usage. YachtLease currently features only high-demand brand names and models such as Bertram, Hatteras, Lazzara, Viking and Westport, with proven residual values. The YachtLease client will be required to maintain the vessel to high standards following a detailed maintenance schedule, using on-board maintenance software and a list of approved service providers who will ensure the services are completed in a timely manner. Every yacht will carry on-board, third party, audited maintenance and servicing records. 

The yacht “owners” are provided with a turnkey luxury yacht purchasing program that takes them through the yacht selection, purchase, survey, sea-trial and documentation. It also includes a 5-year engine warranty, semi-annual cleaning, polishing and detailing, annual haul-out and blocking and a factory installed GPS based security and safety monitoring system. This highly structured lease financing also allows clients to “enter and exit” multiple Luxury Yachts over extended periods of time, eliminating resale value uncertainties and the associated out-of-pocket costs. 

“We have already delivered the first yacht and have $30 million in new yachts on order with our next delivery in September 2008,” said Lester Abberley. “We plan to add a significant number of new boats during the Miami Boat Show focusing on our introductory yacht featuring 50-80 foot models with an average cost of $3 million. We are staffed with a highly motivated Lease Advisory Team that will work closely with buyers, builders, bankers and brokers.” 

Benefits to The YachtLease program include: 

• Same as ownership, not fractional or time share
• No down-payment is required with approved credit
• No sales tax on yacht acquisition
• Off-balance-sheet, Operating Lease for accounting and tax treatment
• Five year lease term, with option to “seamlessly upsize” after thirty months
• No resale obligation or risk at conclusion—simply drop off the keys and walk away
• Lease extensions and purchase options also available

Note: Business owners should inquire with their Attorney and CPA as to the amount of the lease payments that may be tax deductible.

About Argosy Financial, LLC
For thirty years Argosy Financial Principals have pioneered tax-leveraged leasing in transportation assets, with corporate clients, including Kraft, BP Amoco, Ford, Tropicana, et al, and have consistently designed lease programs that lower costs, increase efficiency and reduce the complexity of ownership. John Flynn and his team at Argosy Financial and YachtLease have parlayed their transportation leasing acumen and yachting industry know-how into a “one-stop-shopping” delight for Luxury Yacht buyers. Argosy Financial is headquartered in Fort Lauderdale, FL—The Yachting Capital of the World.