YOPTION$ FOR BOAT BUYERS
CURRENCY RISK SOLUTIONS FOR YOUR YACHT PURCHASE
Buying a new or used boat in a foreign currency?
Balance and/or final payments due later?
We can mitigate the currency risk for you!
Simple & competitive SPOT exchange rates
The time between signing a purchase contract and paying balance and/or final payments for you yacht could leave you exposed to currency fluctuations. This could easily mean you end up paying much more than you expected.
Our hedging services enable you to protect yourself against negative currency swings whilst still being able to benefit from potential upside gains.
Peace of mind and confidence while you wait for your new boat to be delivered!
Buying a boat with no delay and simple need to exchange currency? Try our bank beating exchange rates!
How Does YOPTION$ Work?
Via our fully FCA regulated partner Assure Hedge Ltd, we are able to present you with different types of hedging products and you can choose from a selection based on the currencies involved, amount of currency to protect and the time period for the transaction.
The hedging products can be based on simple fixed future rates or can be a mix of downside protection with potential upside gains.
If its a simple currency exchange for an immediate boat purchase, no problem! Just ask for a quote from our highly competitive rates in over 30 currencies.
The type of hedging product you choose determines the fee and how you pay for the service.
To understand more about these hedging services please get in touch.
YOPTION$ AVAILABLE IN MULTIPLE CURRENCIES
Hong Kong Dollar
New Zealand Dollar
Saudi Arabian Real
United States Dollar
South African Rand
Call Us For Other Currencies!
Frenchman Francois is buying a new motor yacht from a British yacht builder for a total price of £1,750,000.
He has placed a 20% deposit and to complete the purchase he has to pay £600,000 in three months time and £800,000 in eight months time.
At the time of contract the exchange rate was 1.13 euros to the pound, meaning his cost in euros was €1,977,500. After Brexit, things went crazy!
By month 3, the exchange rate has increased to 1.37 meaning his original 1st balance payment of £600,000 was now costing him an extra €144,000! His currency hedging contract protected him and he only paid the original €678,000.
By month 8, when the final payment was due, the rate had swung wildly to just 1.05. While Francois was protected from any potential downside, our hedging services enabled him to benefit from this positive move and his final payment was now €64,000 less than planned!
Overall Francois saved €208,000!
Australian Sailor Sam has just signed a contract to purchase a beautiful 22 metre sailing yacht from a famous European manufacturer.
He has placed a 10% deposit against the total purchase price of €2,800,000. To complete the purchase he has to pay €1,000,000 in six months time and €1,520,000 in ten months time.
He holds Australian dollars and is concerned the exchange rate is getting worse for him. Today's rate is 1.58 AU$ to Euros.
By month 5, the exchange rate has increased to 1.66 meaning his original cost of €1,580,000 has gone up to €1,660,000, an increase of AU$80,000!
By month 10, when the final payment is due, the rate has recovered a little but is still worse than at the time of contract at 1.62. The remaining balance payment of €1,520,000 now costs AU$2,559,600 - an increase of €63,200.
Overall Sam has paid AU$ 143,200 more than he expected!
Our hedging services would have fully protected him from this! Had the rate moved in his favour, he still would have been able to benefit from the upside.
John from London is buying a second hand brokerage superyacht priced at €9,500,000.
The deal has been agreed, contract signed and a 10% deposit placed with the broker. The boat now has to have a sea trial and survey and John knows that there will be some problems with the yacht meaning the price must be renegotiated or the seller must fix the problems. All of this could take some time, John's broker estimated between 2 and 3 months until completion.
John is worried that the exchange rate may go down during this period, the rate today is €1.12 to the pound.
John uses YOPTION$ to arrange a regulated contract to protect his positon and fix the rate at €1.12.
After 8 weeks, the deal is ready to complete and John was right, the rate decreased to €1.07 meaning his original cost of £7,633,928 would have risen to £7,990,654 - an increase of £356,726. His hedging contract has fully protected him from this increase.
Had the € rate increased (in John's favour) rather than decreased, he simply would have let the hedging service agreement expire and exchanged at the market spot rate, benefitting from the upside, reducing the cost of the boat.
YOPTION$ Limited is not authorised or regulated to directly deal in sophisticated FX products and any such services are provided by Assure Hedge UK which is authorised and regulated by the FCA to arrange and deal in derivative FX products.