Let’s Make A Deal
A written contract clearly spelling out the terms of the sale is the best way to protect your interests, since handshake agreements are difficult, if not impossible, to enforce.
Most boat dealers use standard contract forms, but handwritten documents are also acceptable for private-party sales. When in doubt, have a lawyer review your contract.
Read both sides of the contract and ask questions about any terms that seem unclear. Don’t feel pressured to sign a contract if you are in doubt. A price that’s good today ought to be good next week.
Don’t hesitate to cross out terms that seem inappropriate or add contingencies geared specifically to your deal. Always draw a line through blank spaces. Changes must be dated and initialed by both parties. Be sure to obtain a copy of the final signed contract.
Don’t enter into any contract that requires you to make the final payment or begin loan payments before the boat is delivered.
If you are financing through a dealer, don't sign the contract until you verify that the amount financed equals the balance due on the contract.
Detailed information about boat buying strategies can be found in the BoatU.S. Guide to Buying & Selling A Boat.
The best line of defense when buying a used boat is a pre-purchase inspection by a marine surveyor who can judge whether the boat meets safety and manufacturing standards.
A survey gives a snapshot of the condition of the boat’s visible components and accessible structures at the time of the inspection. Although this is no guarantee against future problems, it will help identify existing defects, how they can be repaired and for how much. A knowledgeable surveyor will also know if that make or model boat has any history of major problems.
Buyers are responsible for all pre-purchase survey costs, including haul-out and launch fees. Survey fees are based on a per-foot price, the complexity of the boat and on the amount of time spent preparing the written report. Obtain permission from the owner or broker before boarding or inspecting the boat. Destructive tests are usually not part of a pre-purchase survey. Boats should be surveyed both in and out of the water.
Most surveyors do not evaluate engines, so plan to hire a marine mechanic for a separate inspection. If you are buying a sailboat, ask the surveyor how he will inspect the standing rigging because most surveyors do not go aloft. If there are any doubts, consider hiring a rigger.
Before making the final payment, insist on a sea trial to make sure all systems are working properly and the boat performs to your satisfaction. Bring your surveyor along to evaluate the boat underway.
• Do not hire
a surveyor referred to you by the seller or broker! And, do not rely upon
a survey report prepared for a previous owner, even if it was done recently.
• Surveyors are not regulated or licensed, so virtually anyone can
call himself a surveyor — and many unqualified people do. Check
references and for professional affiliations with the BoatU.S. Technical
Information Exchange, National Association of Marine Surveyors (NAMS),
Society of Accredited Marine Surveyors (SAMS) and the American Boat &
Yacht Council (ABYC). For the names of reputable surveyors, contact BoatU.S.
(800-283-2883 or www.boatus.com/surveyors),
NAMS (800-822-NAMS) or SAMS (800-344-9077).
• An in-depth written survey report evaluates the boat according
to U.S. Coast Guard regulations, as well as ABYC and National Fire Protection
Association (NFPA) standards.
• Get a written repair estimate for correcting problems identified
in the surveyor’s written report. This can be used to renegotiate
the sales price or back out of the deal altogether if needed repairs are
too expensive or complicated.
• Attend the survey inspection. It’s a great way to learn
about your new boat.
Operating your boat-to-be on the water is the best way to see how well it handles and whether the engine provides adequate power for your needs. You can also test all operating systems and electronic gear during a sea trial.
Most dealers won’t allow customers to sea trial boats without a deposit, but if your sales agreement contains a contingency for a satisfactory sea trial, you should have no problem getting your deposit back if you’re not satisfied.
