Tips For Buying Your Boat

Finding a Boat

First, there's no "right way" to find the right boat for you. Besides searching newspaper classifieds, online, or on the local dealer's lot, some buyers just ask around their marina or pick the brains of fellow boaters. If you are unsure of different types of boats available, check out boating magazines and manufacturers' websites, or spend a beautiful day at a local boat show. Make sure you use all the resources available to you.

Buy Local

Broker or private seller? This argument just may have been going on as long as the debate of which came first, the chicken or the egg. Buying from each has its pros and cons. The going broker commission rate on used boats is 10% whereas a private seller doesn't charge a commission. On the other hand, a good broker will provide you with information the owner may not want to share and will  also provide all the necessary paperwork needed to complete your transaction.A good broker has an array of resources and contacts the avergae buyer doesn't have. 

Whether you end up buying from a broker or from a private seller, Many people will say to, "Buy local." In fact, consider it your mantra when looking for a boat. You will come across all kinds of beautiful boats online or in boat classifieds; however, if you are in Moon, VA, and the seller is in Disco, WI, you can't just hop in the car and take a look at the boat without taking some major time off from work. You also have to consider the cost of getting the boat to your home waters. Can it be trailered? Is it too high or too wide to be placed on a truck? What would be the fuel costs of you are buying the boat and it will be brought to your home waters by water? Can you do it yourself? Do you have to hire a Captain? All things you need to consider when the boat isn't local.

Poring through countless pages of boating magazines, wearing out the soles of your Sperry's at local dealers, and spending hours on the Internet going through classified ads (and playing a little solitaire) have finally paid off: looks like you've finally found the "right" boat for you. Now it's time to go on a fact finding mission to find out if that boat really IS right for you.

Price

Nobody wants to overpay for anything. Used-boat price guides like BUC, NADA, and ABOS can be found at any bookstore or library. Take some time to leaf through them. In addition, pre-qualifying for a loan can get you better rates. Your broker can also do comparisons to see what similar boats have sold for recently.

Dig Up The Dirt

Obviously, no boat is defect-free. There are some models that are known to have problems. But where can you find out this information?

1. Recalls on boats and engines can be found on the U.S. Coast Guard's website.

2. Call the boat and engine manufacturer (have the boat's Hull Identification Number (HIN) and engine serial numbers handy) to try to obtain service records and any additional information on the boat.

3. Do a lien search on the boat's title and registration with the state in which the boat is registered to make sure that the boat is free of any liens.

Purchase Agreements

You've completed your fact-finding missions and the boat has come up clean. Now it's time to PASS ... Purchase Agreement, Survey, and Sea Trial. These are the steps you need to take to make sure the boat makes the grade.

Purchase agreements are important because they protect the buyer and the seller. The agreement should clearly state that the purchase is contingent on a satisfactory survey and sea trial and the ability to obtain acceptable financing (if you are getting a loan) and marine insurance. A "good faith" deposit of about 10% should be included with the stipulation that the deposit is refundable if any contingency can't be met. Also be sure to specify a delivery date when the sale will be completed.A broker will hold the deposit in an escrow account and you don't have to worry about that private seller holding back your deposit if something goes wrong.

It is extremely important that you read the agreement before you sign it. Not only should you look for the above contingencies but also the details of what you have to do to get your deposit back if the deal falls through. Many people have complaints where buyers have lost their deposits due to the contracts being broken without cause. Protecting yourself is important because the majority of used boats are sold "as-is," which means that you will have little or no recourse against the seller if problems become apparent after the sale. Finally, be sure that all signature lines are signed by both buyer and seller.

Surveys And Sea Trials

A survey inspection of the boat prior to purchase can either make or break a deal. A professional marine surveyor is an expert who should be well-versed in boat construction, as well as safety and manufacturing laws, requirements and practices.  The boat should be inspected in and out of the water. Although hiring a surveyor is an added cost, consider it a good investment against buying an unsafe boat or one that needs expensive repairs. If you spend $300 on a survey that reveals $3000 worth of damages to the boat, you can decide whether the boat is worth owning. A surveyor's report can be a bargaining chip when it comes to negotiating with the seller. You can use the problems identified in the report as a way to lower the price or get certain items taken care of before purchase. Remember, though, a surveyor's report is not a guarantee against defects in the boat but the opinion of a professional. A good surveyor is worth their weight in gold. Your broker should be able to recommend several that work in the area that you can speak to and choose who you think fits your needs. Just like with any profession there are good surveyors and there are those that are just going through the motions. A broker can point you in the right direction with that as well. We don't recommend just one surveyor, we give you a choice of surveyors that we feel are in YOUR best interest.

Should you just go to the yellow pages, look up "marine surveyor," and choose the one closest to you? No. A good surveyor should have "certified marine surveyor" status with the National Association of Marine Surveyors (NAMS) or "accredited marine surveyor" status with the Society of Accredited Marine Surveyors (SAMS), two professional groups for surveyors. Also, the surveyor should be someone you hire and pay for yourself.

Remember, because the surveyor represents your interests, not those of the seller, never use a surveyor recommended by the seller or rely upon a surveyor's report provided by the seller.

Also, have an independent marine mechanic inspect the engines. Most marine surveyors do not perform this service. Ask the surveyor for referrals.

Follow up the survey with a sea trial. You wouldn't buy a car before you test-drive it, so don't buy a boat without taking it out on the water and putting it through its paces. See how it performs in varying conditions. See if all the gauges and electrical equipment work properly. Things might show up during the sea trial that wouldn't be apparent while the boat was on land or at the dock.

Making The Purchase

The purchase agreement's signed, you've paid a 10% deposit, and the boat has passed the surveyor's inspection and sea trial with flying colors. It's time to write the seller a check and take the boat home, right? Not just yet. Ask to see the following documentation to help authenticate the seller's ownership:

1. A bill of sale showing that the seller actually owns the boat. The document should show his name and a description of the boat and its HIN (Hull Identification Number). Make sure the HIN on the boat (located on the starboard side of the transom) matches the one on the seller's records.

2. Boat insurance policy listing the owner's name and boat description.

3. Boat's certificate of title and/or state registration.

A purchase agreement should include:

• Date

• Name of purchaser and (if applicable) co-purchaser, their address and phone number

• Name of seller and co-seller, their address and phone number

• Broker (if applicable) If a broker is used, they will provide the purchase agreement

• Description of boat, including: Manufacturer, Model, Year, Length, Hull #, Engine #

• Trailer Documentation # (manufacturer, model, year, and serial number, if applicable)

• Location of boat

• Selling price and terms/conditions of purchase

• Deposit received $ _______ and date the deposit was received _______

• Closing date

• Liens of encumbrances (the boat is sold free of any liens, bills unless otherwise stated and agreed to. The owner warrants that he has a marketable title and the lawful right to sell the boat (and trailer if appropriate) and will deliver all the necessary documents for the transfer of title.)

• Additional terms and conditions: Transaction is subject to acceptable survey; acceptable sea trials and (if applicable) financing; the boat must be insurable; the deposit is refundable in full to the purchaser if any of the above items are unsatisfactory; copies of current state title and registration and current certificate of documentation (if applicable) should be attached to this agreement.

If you have all the proof of the seller's ownership and everything looks fine, get out that checkbook and buy that beautiful boat!

After The Sale

At last, the boat is yours! Before you hit the water, here are some things to consider:

1. Get an insurance quote. All marinas require insurance.

2. Take a boating safety class. If you are a new boater or a seasoned captain, you can benefit from a boating class. find a list of classes near you or available online.

3. Have the United States Power Squadron or the U.S. Coast Guard Auxiliary perform a Vessel Safety Check, a courtesy examination of your boat, to verify the presence and condition of certain Safety Equipment required by state and federal regulations.

Get Out On The Water!

You've found the right boat, done your digging, hired a surveyor, taken a sea trial, negotiated a great price, signed the papers, and taken a helpful safe boating course. Now what? Launch that beautiful boat and enjoy. Congratulations on finishing your homework assignment with flying colors. Just remember, boating is a lot more fun than algebra.