As a boat buyer your
challenge was to get the best deal in terms of price and quality.
Once the boat is delivered, you have a few more things to attend to. As a boat owner, you may have new opportunities to deal with marina operators, repairers and mechanics, marine insurers and equipment suppliers.
Lay careful groundwork and you will reap the rewards. Let’s start with the boat itself.
Manufacturer’s Warranties
A written warranty is a legally binding promise that a manufacturer will correct specific problems that arise during a stated period of time, typically one to three years for marine engines and five or more years for hull structures.
Warranty coverage is included in the purchase price and, unlike an extended warranty, does not cost extra (see service contracts).
New boats are sold with two main written or express warranties, one from the boat builder and another from the engine maker. Boats also come with a host of warranties for accessories, electronic gear and galley equipment. Unlike an automobile, boat manufacturers do not cover these items.
Federal laws governing written warranties spell out both consumers’ rights and manufacturers’ obligations. For example, companies can warrant only certain parts of their products while excluding coverage for others.
Most marine warranties are limited, which means that the manufacturer can impose certain conditions on coverage. Consumers may bear some costs associated with warranty repairs or have to take certain steps to obtain service. For example, the owner may have to pay to transport the boat for service.
Manufacturers cannot, however, make it prohibitively expensive or difficult for consumers to get their boats repaired.
Federal warranty law permits companies to make a “reasonable number of repair attempts” before replacing boats or providing refunds. Since it’s the policy of many companies to provide copies of warranty repair invoices, owners should keep a written log of all problems they experience with their boats, along with data on the boat’s performance, handling ability and fuel consumption. This record will help, should a chronic problem persist.
To avoid hassles:
• Read your
new boat’s warranties carefully and send in all warranty registration
cards to the manufacturers as soon as you take delivery.
• Follow the boat and engine manufacturers’ maintenance schedules
carefully.
• During the “20-hour check” your dealer will test the
boat to make sure everything is functioning and adjusted properly. Be
aware, however, that you will pay for routine chores like oil changes
and bottom painting.
• Obtain the manufacturer’s authorization before going ahead
with the project. If you break down far from your homeport, call the manufacturer.
They should be able to arrange for warranty work at a nearby facility.
• Some manufacturers’ warranties may be transferable to second
owners. Call the boat manufacturer to find out. Most manufacturers charge
a fee to transfer warranties.
Dealers and brokers sometimes give 60- or 90-day guarantees on the used boats they sell, but coverage is often limited to mechanical breakdowns. Also, owners may have to pay for labor. Unless specific warranty terms are in writing, it’s unlikely that you will get much help (see Sales Agreements). Don’t put any faith in oral promises.
State laws create another kind of warranty that covers all products sold through commercial transactions. These legal protections are called implied warranties and are based on the common law principle of “fair value for money spent.”
Two types of implied warranties are of special interest to consumers. The first is the implied warranty of merchantability, which is the seller’s promise that the product will do what it’s supposed to do and that there’s nothing significantly wrong with it. For example, the 20-ft. runabout and 175hp outboard you just bought will run and its hull will stay afloat.
The second type, the implied warranty of fitness for a particular purpose promises that the product will actually perform a specific task. For example, a ski boat must be fast enough to pull an average person up out of the water and permit them to ski behind the boat.
If products are not merchantable or fit for a particular use, consumers can sue for the purchase price and other out of pocket expenses. Consult with an attorney to see how your state’s laws may apply.
