Pfaff Super Sport by Cardon MarinePfaff Leasing offers you an alternative way to enjoy your new yacht…and other pleasures as well, like a Pfaff 28 Super Sport for example

By Andy Adams

When I first saw the display at the Toronto International Boat Show saying that you could lease a new yacht, it stopped me dead in my tracks. While I had never considered leasing boats, we are certainly seeing growth in boat rental organizations, so leasing didn’t seem out of line. In fact, I wondered why it had taken this long to see boat leasing come to the market.

However, I have a reasonable understanding of how leasing works compared to financing a purchase and I wondered how the numbers could work for something like a yacht. The sign was in front of a 60 foot Princess Express Cruiser – about $3,000,000 worth of yacht. What would the payments be? How could anyone manage that?

You can easily understand that I would be seeing this though the eyes of a magazine editor and his annual income level, so I was skeptical about the concept except that the leasing company was Pfaff Leasing.

Background
Hans J. Pfaff started his first Volkswagen dealership on Yonge Street in Newmarket, Ontario in 1964. At the time, the population of Newmarket was a mere 3,000 people. Pfaff Motors Inc. sold 100 cars a year. That’s pretty good for such a small town and from 1964 to 1997, Pfaff was exclusively in Newmarket and doing better and better every year. Pfaff is still a family owned and operated business lead by President and CEO Christopher Pfaff, H.J. Pfaff’s son. Christopher took over the helm in 1985. Under both his and his father’s leadership, the company has excelled at building strong brand recognition of the Pfaff name – a difficult feat in the automotive industry. They’ve always wanted customers to think of the Pfaff name first, rather than just the brands they sell.

Pfaff High End Market PlaceA quick glimpse of the Pfaff Reserve area, their high-end marketplace for previously owned vehicles that includes McLarens, Porsche and other vehicles available for sale or re-lease.

Volkswagen, Porsche and Audi remain mainstay brands, but the Pfaff organization now has 13 brands (not including Marine) at 20 different showrooms. The top level vehicle is the Pagani and last month they sold two - remarkable. Then, Pfaff is the only McLaren dealer in Canada, and they operate the most successful and largest volume Porsche dealership in North America in new and used vehicles, and they also have dealerships for Mercedes, Audi, Volkswagen, Toyota, Dodge Ram and more. In total they have 13 brands and they have just added Pininfarina who will be bringing out a new 1900 hp British-built all-electric super car starting at $3 million each and available only by application. It's super exclusive.

Serving those brands and the customers they attract, the company has a number of different branches that they call Specialties; Pfaff Leasing, Pfaff Tuning, Autoworks, Motorsports (which is their racing team) and Reserve which is their high-end marketplace for previously owned vehicles.

More than just your dream car
As the business has expanded and evolved, a segment of their clientele took their relationship to a level beyond merely buying a car, especially among the Porsche enthusiasts. The racing side of the business was probably a key aspect of that.

This has opened the doors to the other luxury performance brands like McLaren and Pagani and in turn, those owners were receptive to other things.

This spring, Pfaff Leasing is launching Pfaff Marine with a new website and a consignment and brokerage service. Customers will be able to list their boats for sale with Pfaff, and they can also handle transactions on boats for customers seamlessly, with the same level of customer service and professionalism their car and bike clients get. It’s a new level of service and customer focus for the boating industry in Canada.

Doing the math
Pfaff Leasing serves a wide spectrum of customers but the new Pfaff Marine side is geared to the high-end and enthusiast markets; people who love cars and other luxuries like vintage cars, yachts and even classic boats.

The concept is to provide clients the flexibility to own or drive what they want, when they want it. And their new Pfaff Marine division, like Pfaff Leasing, will operate nationally from coast to coast and in cooperation with marinas and marine dealers.

So, owners can lease what ever they want through Pfaff Leasing and the dealer of their choice can still be their dealer, from start to finish.

I interviewed Craig Cernak who is leading the charge at Pfaff Marine and he explained to me that the business is focused on the "customer experience" and they feel they can add a lot to the world of boating.

Pfaff Leasing BuildingThe Pfaff Leasing building with the new Pfaff 28 Super Sport by Carbon Marine on a trailer for display.

Consider the majority of new boat buyers. It's quite common for somebody to purchase a live aboard power yacht using a 20-year boat mortgage. The idea is to spread out the payments so they work within the normal family budget on a monthly cash flow basis.

That is certainly where most of us fit in, but there are those entrepreneurs, professional athletes, or tech disruptors that become the twenty-something billionaires.

For that very small and exclusive group of people, buying the new McLaren, Porsche or Rolls-Royce is not only not a problem financially, but replacing it the next year with something new or different, becomes a part of life's rich tapestry for them.

The full cost of buying, and then selling a yacht just a few years later would be nasty. The GST impact alone could be significant. That's where leasing comes into play.

Cernak was very upfront about the fact that this won't work for most buyers but it's brilliant for some customers. The sweet spot for new boats seems to start at around $100,000. Those customers are almost certain to be experienced boaters who are buying the boat that they want this year, but who are likely to want to change it up or out, in the next year or two.

Cernak explained that there can be significant GST benefits to leasing compared to purchasing and there could be other benefits to leasing as well.

PfaffAn example he gave was a theoretical buyer purchasing a 2014 model Sea Ray 350 Sundancer at lets say, $350,000. Based on the residual value of the boat after three years and with a down payment that might be 25% of the purchase price, the monthly lease would come in a little under $3,800 a month. But, at the end of three years, the boater can buy the boat outright, re-lease or trade in with their dealer on a newer model of choice usually with positive equity.

It's hard for an ordinary person to see things in this way. The same boat on a 20 year boat mortgage will be substantially less on a monthly basis, but even with a big down payment, it might take them 13 years of payments to become “cash positive”.

Another example Cernak gave was a buyer who has arranged to purchase a used 57 foot Marquis to try out the experience of yachting, but they're planning to move into a new Sunseeker next year; a much larger yacht that will be worth far more. They are leasing all the way which allows them the flexibility to develop a migration plan from a smaller yacht to the yacht of their dreams. They are starting with a very small commitment compared to the new $3.5 million Sunseeker. Pretty smart really!

Pfaff 28 Super Sport by Carbon Marine
Like their exclusive on McLaren supercars, Pfaff Marine has the Canadian Exclusive for the Pfaff 28 Super Sport by Carbon Marine.

Matching the aesthetics of Pfaff Automotive’s finest supercars, the Carbon Marine 28’ Center Console will be the only boat of its kind on the water. The carbon fiber construction leads to both a premium finish and unheard of high performance handling.

Handmade in Canada, Carbon Marine boats show a dramatic advancement in performance, handling, luxury and reduction in fuel consumption. Also in keeping with the Pfaff high performance heritage, the Pfaff 28 Super Sport is powered by the latest Seven Marine 627 HP Supercharged V8 Outboard. Seven Marine is a division of Volvo-Penta and the 627 model uses a supercharged V8 to achieve top speeds in the 80 MPH range and yet a cruising speed of 51 MPH @ 2 miles per gallon.

The new Pfaff 28 Super Sport may be viewed by appointment.

For now, the leasing program is for powerboats only. For more information visit: PfaffMarine.com.

Related Articles

Lifestyle

  • Prev
This afternoon portrait of her son enjoying a snooze in a pretty unlikely spot comes to us from ...
I've been cleaning dresser drawers for space and came across this 1979 LYRA t-shirt. This was my ...
Our Photo of the Week comes from one of our CY team members who writes “This is my son and his best ...
This boat carries the distinction as the last boat to leave the C&C Custom shop in Oakville ...
We crossed Lake Ontario from Oswego with a minimum of fuss and did a little happy dance when we ...
Our Photo of the Week comes from Mark and Lisa Harris who winter in Vancouver, Washington and spend ...
I am new to boating. Bought a 2019 Ranger Tug in April followed by taking a short boating course ...
Arie and Maribeth sent us this photo from their honeymoon departing Killarney…I think they were in ...
This shot was taken last week by Jessica Lee, a freelance photography pro, Albacore racer and part ...
On a sunny and windless day we led Alicia and another sailboat into New York Harbour. There were ...

Boat Reviews

  • Prev
With a philosophy of quality and 'doing things right Ranger Tugs launches the all new R-25 at the ...
The new Beneteau Swift Trawler 41 renews the spirit of the practical seaworthy cruiser. The ...
The Canadian Yachting test crew last week had the opportunity to run the Bavaria S36 HT at St ...
ILCA is seeking new builders to complement its existing network of manufacturers, the International ...
Nelson Gilbert (1854-1921) began building canoes in Brockville in the 1890s, a time when the sport ...
I have heard a lot of talk lately about trends in yacht clubs where senior membership is getting ...
To get you in the mood for cruising the Boat Show then launching in spring, here’s a boat that ...
Quite simply, the styles of boats have changed. Where in past years a buyer might have been looking ...
At the boat shows, the Ranger Tugs’ classic tugboat lines always grab the crowds, with the wives ...
Sometimes a great idea requires an encore, and French yacht builder Jeanneau got that with the ...

J99By Katherine Stone

All set to pull out the Code 0 before dousing the jib.

It was a very cold and wet beginning to the summer and we never thought it would arrive in Southern Ontario. Doing a 100 miler race on Lake Ontario (billed as the COOLEST race on the lake) with my 8 layers of thermal clothing, woolen ski toque and ski mittens, along with a neck warmer kept me on the edge all night, just out of frostbite reach. I shouldn’t have complained, as we also had wind!

July and August arrived, and it has certainly warmed up, in fact, its too warm, AND we don’t have wind. We are now counting 5 Wednesday nights in a row without wind to race. 

Read more about the J99 Offshore Shorthand Speeder.....................

 

Cruisers Yachts 38 GLSBy Andy Adams and John Armstrong

The North American power boat market has begun to see a new trend toward larger day boats for luxurious onboard entertaining and the new Cruisers Yachts 38 GLS is right on trend plus, it brings a different flavour and set of cruising attributes to this market.

The new Cruisers Yachts 38 GLS carries on the styling and accommodation quality of the company's Cantius line of cruising yachts while beginning an entirely new family of day boats. 

 

Read More about Cruisers Yachts..................

Destinations

  • Prev
Boom & Batten Restaurant is suspended over the water adjacent to the Songhees Walkway and ...
Provincial Boat Havens are those special places to drop anchor in British Columbia’s West Coast and ...
NW Explorations, a Bellingham, Washington-based yacht charter, brokerage, and marine services ...
If you haven’t cruised the Rideau Canal before, you have missed a special treat and even if you ...
At the 2019 Vancouver International Boat Show I had the pleasure of meeting up with Allyson and ...
Following the harsh impact of Hurricanes Irma and Maria, The British Virgin Islands is making an ...
For the adventurous boater Bunsby Marine Provincial Park is a special place, situated due south of ...
There is good anchoring in Cowichan Bay and nearby, and salt water enough to make any boater happy. ...
We’re gliding through green-blue waters, colours so vivid and bright they hurt your eyes. We’re set ...
The Halifax waterfront has been attracting more and more large yachts in recent years. However, a ...

KingstonBy Amy Hogue

Cruise into the city of Kingston, Ontario, and it will quickly become clear that this city and surrounding waterways have something special. Built around the northern shore of Lake Ontario, Kingston is the place to go if you love to explore new waterways, fantastic views, and exceptional boating opportunities.

Sitting at the intersection of three world-class Canadian bodies of water, Lake Ontario, the St. Lawrence River, and the UNESCO World Heritage Site, the Rideau Canal (Cataraqui River from Kingston to Newboro), the water’s influence is deeply woven into Kingston’s culture and history. 

Read more about Kingston......................

 

Marine Products

  • Prev
Most dock boxes aren't sturdy enough to sit on. Nor are they too comfortable. Finally! - the ...
Too hot to bake? No oven onboard anyway? Try these no-bake shipboard treats. (Yes, we know they’re ...
It is not that often I drive as big a vehicle as the Nissan Armada but I love the nautical name and ...
The new edition of PORTS Cruising Guides: Georgian Bay, Lake Huron & the North Channel from the ...
Canadian Yachting’s Chartering Handbook, full of information and advice for heading off to a ...
Navigating the process of yacht care and maintenance just got a whole lot easier, following the ...
I will be honest, I am generally not a big fan of Sport Utility Vehicles (SUV). My wife and I own ...
The FX model is Yamaha's top-of-the-line three seater WaveRunner and a totally new model for 2019. ...
In the April 2015 edition of CY magazine, I published an article on anchors and anchoring – Staying ...
The Seabin device part of the Oak Bay Marine Group trial, has had promising results so far while ...