Show and Tell

Sellers must disclose information about defects that affect the value, use or safety of boats, but they don’t have to volunteer information about less dramatic problems unless they are asked directly.

Be suspicious if a “new” boat shows wear and tear — worn carpeting, stains, more than 10 to 15 engine hours — or if it is a leftover model a few years old. It might be a demo boat or one repossessed from a former owner or another dealer. Call the boat and engine manufacturers to learn the vessel’s repair and warranty history. Have the Hull Identification Number (HIN) and engine serial number(s) handy to help identify the model.

A Word About “As Is”

Most private party sellers and a good many boat dealers sell used boats in “as is” condition. “As is” boats are not necessarily a problem, but as a buyer you should go into such deals with your eyes open. If a serious defect becomes apparent later, be aware that they have virtually no recourse against the seller. Federal and most state laws absolve sellers from liability in “as is” sales.
Terms such as “in working condition” or “fully commissioned” imply that the boat will operate. But, don’t assume that it is problem-free.

Buying directly from the boat’s owner can mean substantial savings because the purchase price does not include a dealer commission. Although such deals are fairly informal, do not make the mistake of relying on handshakes and promises. Get all the terms of the purchase in writing. Private sellers are not held to as high a standard as professional boat dealers when it comes to transactions.

• A marine survey inspection is essential when considering the purchase of a boat or marine engine sold without any guarantees. The surveyor can identify damages and needed repairs on used boats. If the seller agrees to make repairs before the boat is sold, put this in writing.

Contingencies

Contingency clauses written into the sales contract can protect the buyer if a boat is defective, delivered late or if the boat is substantially different than represented at the time of negotiations. Think twice about doing business with a dealer who’s unwilling to include contingencies in the contract.

Common contingencies are:

• Satisfactory sea trial and survey inspection of boat and engine; essential for used boats;
• Acceptable boat loan terms, including interest rate, duration of loan and estimated monthly payment;
• Ability to obtain insurance;
• Clear title, free of liens and encumbrances; essential for used boats.

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