Boat Buyer's Toolbox In today's world when boat manufacturers are struggling to keep up with demand and dealers have wait lists, many potential buyers are turning to the used boat market. Boat Buyer's Toolbox is the first of three articles from BoatU.S. to assist you in choosing the best and most sound boat for your money. Look for "Buying a Used Boat" in April and "What Your Surveyor Wants You to Know" in May.
By Charles Fort For BoatU.S.
A boat may look nice at first glance, but a survey can shed light on any hidden problems.
E
ver wonder just how popular boating is? In the United States, one in three American adults participates in boating every year. That translates to a lot of boats, and a lot of people buying boats. In fact, 1.5 million of us buy a new or used boat every year. Whether you’re a first-timer or an old salt, there are things you can do to ensure that your next purchase goes off without a hitch. BoatU.S. Consumer Protection has been helping people navigate the sometimes choppy waters of boat buying for more than 40 years and can guide you through finding a boat, warranties, service contracts, inspections, financing, insurance, and the necessary paperwork to make it all legal. If you’re in the market for a new boat (and who isn’t?), here’s what you need to know. Shopping for a Boat: Once you’ve decided on how much you can spend, you get to dive into the fun part, actually searching for your dreamboat. New-boat buyers will want to find a dealer for the brand they’re shopping for in their area. Ask around and do some research to find a quality dealer. New boats come with manufacturer warranties that vary widely in their coverage, so compare them before you buy. Look for multiyear warranties for hull and engines. Find out whether the warranties transfer to subsequent owners, which can add substantial resale value. One advantage of buying from dealers is that they can also take trade-ins, but keep in mind that as with cars, you won’t get top dollar because dealers have to make a profit on reselling your boat. Selling it yourself will usually bring in more money. Used-boat buyers have a couple of choices. Larger boats are often sold by boat brokers, who operate like real-estate agents. Buyers can hire a broker to help them find a boat, and the commission is usually split with the seller’s broker, so there’s no cost to the buyer. Smaller boats can be found online at such sites as eBay and craigslist, but remember that these offerings carry the risk of fraud. There are many unscrupulous “sellers” who’d like to separate you from your money. Be wary of sellers who insist on using a specific online escrow service – it may not be legit. Ask to see ownership documents to verify that the seller really owns the boat. If the boat isn’t local,
hire a marine surveyor in the area, or have someone you trust verify that there really is a boat and that the seller has the title and registration. Go to www.boatus.com/expert-advice/expert-advicearchive/2016/january/new-boat-selling-scams to learn more about potential scams. Marine Surveys: Too many complaints to Consumer Protection start with “The seller said everything worked fine, but when I launched the boat, I found all kinds of problems!” Unless you’re looking at a simple, inexpensive boat, hire your own expert to inspect it. A condition-and-valuation survey is a snapshot of the condition and value of a boat; think of it as an independent document that speaks for the boat. Marine surveyors will check the condition of AC and DC electrical systems, plumbing and through-hull fittings, deck hardware, propane and fuel systems, steering and controls, and safety equipment. A proper marine survey will be an in-depth written report that evaluates the boat according to U.S. Coast Guard regulations and to American Boat & Yacht Council and National Fire Protection Association standards. A knowledgeable surveyor will also know if a specific make has a history of major problems. A survey is a useful tool for buyers to negotiate a price based on what repairs or upgrades the boat needs. Surveys are sometimes required for insurance and financing, but most buyers should get one even if it’s not required – it can easily pay for itself by uncovering potentially expensive repairs, and it gives you a firm value from which to negotiate. Surveys cost from $15 to $20 per foot. Sales Contracts: Once you’ve determined that the boat you want is sound, the next step is to complete a sales contract, then pay for the boat. Dealerships and brokers should have their own contracts, but make sure you go over them well. Consumer Protection has had complaints about dealer contracts that had missing or incomplete information, leading to disputes after the sale. If you’re buying from a private party, go to boatus.com and search consumer affairs to download a sample sales agreement or bill of sale. Fill it out completely, and don’t forget to list the boat’s Hull Identification 24
Southern Tides Magazine March 2022
