Deposits
Dealers typically insist on a 10% deposit before writing contracts on new or used boats. Don't leave a deposit without signing a purchase agreement stating that the deposit is completely refundable if the contract terms can't be met.
If you back out of the contract without cause, by law the seller has the right to keep all or a portion of your money — but only after giving a written statement of his expenses. Be sure to review the tips about contracts and buyer's contingencies.
When buying a boat from a dealer, the deposit should be kept in an escrow account stipulating that the funds can be applied only to the purchase of your boat. The escrow funds shouldn't be released until a new boat order is placed with the builder or until a used boat purchase is completed.
Negotiating The Price
Unlike automobiles,
dealer invoice prices for new boats are not published. Ask for quotes
from several boat outlets or visit boat sale sites on the Internet to
get a realistic idea of fair prices. When making an offer, keep in mind
that dealer mark-ups are normally 10% to 15%, but may be even higher.
If you are trading in a boat to buy another, negotiate the price of the trade-in separately from the new boat price. That way you’ll get the best deal. Make sure these prices are included in your written purchase agreement.
Boat show prices leave little room for negotiation because dealer mark-ups during these events are pretty slim. You may be able to sweeten your deal a bit by bargaining with the dealer for some extra options or accessories.
Most dealers and brokers rely upon used boat price guides for establishing values on used boats. BoatU.S. established a free online “Value Check” service to estimate the fair market value of your current boat, or another used boat. “Value Check” is available online at www.boatus.com/buyer.
