Buying Tips
As the old joke goes, there are two great boating
days - the day you buy your boat, and the day you sell it. Many people have rued their purchase, the never ending maintenance, cleaning and hidden costs. They just wanted a nice lifestyle, and our Aussie weather and boat ways should afford us that opportunity!
Like many significant purchases, you want to do some research first, and friends can be a help. The Internet is also a great place to get the feel for the market, prices and what is on offer.
But in the end, you have to know what you are looking for, what options you have and what to look out for.
ARE YOU READY?
Boating is a lot of fun. It can be relaxing and a great way to get away from the stress of everyday life. There are plenty of good reasons to boat. But there is another side of boating.
Beware: most first time boat buyers sell their boat after two years. Why? They have either upgraded or (more likely) quit boating.
Boating is hard work. Boating can be expensive. Boating is time consuming.
Are you prepared to spend as many hours maintaining your boat as you do on the water? Do you want to pay the recurring monthly expenses involved in boat ownership (payment, insurance, storage, fuel, mechanical maintenance?) Ask other boaters (or former boaters) about this.
Does your work and family situation allow you to spend several days each month on the water? How will you feel if your limited free time is devoted to boating and not your other interests?
You rarely meet people who can both golf and boat.
NEW OR USED?
If you have the money and intend to keep one boat forever, then buying new is a good option. Most first time boat buyers might be on a tight budget and are not sure if they are going to be passionate about it, so may opt to buy used.
Practically speaking, a new boat can lose half its value in two years.
A previous owner may also have fixed all the "shake down" problems that come with a new boat.
Pre-owned boats generally haven't been "used" very much. Boats sit most of the time. It's not like buying a used car. You're not necessarily buying someone else's problems. It's easy to find boats with less than a couple of hundred hours of engine time. For comparisons sake, imagine how many hours are on your car's engine.
Used boats usually come with lines, life jackets, a spare prop, a VHF radio, safety equipment and other nice add-ons. New boat owners may have to shell out several hundred dollars for this stuff.
Used boats already have scratches, dings and stains. You won't feel as bad when you inevitably add a few of your own!
Used boat buyers should leave an extra $2000-$5000 to outfit the boat and make repairs that aren't apparent at time of purchase.
After three years, most first time boater buyers have upgraded to a larger boat or stopped using their first boat altogether.
Boating magazines are beholden to boat manufacturers (the magazines' major advertising customers.) They're not editorially objective. Boating magazine writers have never seen a new boat they didn't like. Magazines will always encourage you to buy new and unfairly discourage you from buying used.
Of course the risks you take with used boats are structural/mechanical condition and whether the previous owner did proper maintenance. Prior to purchase you must get a used boat surveyed (including a sea trial) to be assured that it's in reasonable condition. You must also willing to absorb mechanical repairs over time (the same is true when a new boat goes out-of-warranty.)
FINANCE OR PAY CASH?
Boating is a hobby. Unlike the roof over your head, it might not be worth going into debt for. This is especially true for the first time buyer who is unsure about the hobby.
It might be worth scraping together your recreational dollars, sell a few things and save for a while. Meantime, study the boat market. When you've got $5,000-$25,000 together,
then it's time to buy.
Don't spend all of your money just on the boat itself. At purchase time you will need enough money for a survey, taxes, registration, storage, insurance, towing insurance, gas, minor repairs and equipment.
If you must finance, think about using a home equity loan. Beware of boat show financing.
CHOOSING A BOAT
Start by buying a copy of the Trade-a-Boat and look at online sites. This will tell you the types of boats available and what you should expect to pay.
A few things will become obvious:
- Boats of the same size, make and year can vary in cost by 100%.
- A newer small boat costs as much as a 10-year-old bigger boat.
- Some boats are not "seriously for sale." The boats may be advertised, but their owners just want to see if they can get a high price so they can purchase a different boat.
Overall, the used boat market can be a wild place... with pricing that isn't necessarily logical.
Remember that boats are purpose specific. A good boat for offshore fishing may not be good in shallow inland waters. A fun ski boat may be a poor choice for cruising. A nice lake boat may not good in salt water.
The type of boat that best meets your needs:
- It is affordable (including all of the additional expenses previously mentioned.)
- It is big enough for the number of passengers you want to carry.
- It is small enough for you to handle given your current skill set.
- It has a design (draft, hull configuration, deck layout, power train) matches what you want to do with it.
- It has a design that's consistent with the water conditions in geographic areas where you plan to cruise.
Some examples of various boat types and what they are best used for:
| Centre Console |
Offshore ocean fishing |
| Bowrider |
Water sports, fun day trips |
| Cuddy Cabin |
Water sports, overnight trip. Better in the rain. |
| Jet Boat |
Water sports in shallow water areas |
| Express Cruiser |
Weekend trips, entertaining |
| Deck/Pontoon Boat |
Day trips for large groups/limited water sports |
| Trawler |
Long distance cruising, live aboard |
| Sportfish |
Serious offshore fishing and overnights |
| Flats Boat |
Fishing in shallow water |
| Rigid Inflatable Boat |
Shallow water play and transportation |
Most first time recreational boaters enjoy 18-24 foot trailerable bowriders, deck boats, cuddy cabins, walk arounds and centre consoles. Determine if you want an outboard engine or an inboard/outboard drive.
Check out the waterways where you live. What type of boat is most common? The most common type will have better resale in your particular area.
A good way to find the right boat type is to rent several different models. Try them before you buy.
BUYING STRATEGY
It's best not to get emotional and "fall in love" with one particular model and year. Instead, select a category of boats and determine all of manufacturers that make that kind of boat. Look at a large pool of boats. Determine all the models and years that are acceptable to you.
Begin to make phone calls and email sellers. Have a list of questions that you ask each seller (a sample list can be found below.) Make several copies of your list, one for each boat you're considering. This way you will be able to easily review all of the information on each boat. Use the phone/email to narrow your pool to a half dozen top choices.
After you see several boats that meet your needs, begin to make offers.
If all of your offers are rejected, you now know that none of the sellers are in a position to give you that "deal of the century" you are always hearing about. You took your shot at a remarkable deal. Now it's time to get serious. Determine a "reasonable" price for your top choice and try to negotiate it with the seller. Do not
spoil an otherwise solid deal over a couple of hundred dollars. You can always wait a few weeks for new boats to come on the market (they always do). Using the Internet you can also broaden your search to other
places nearby.
Money is not the only thing that can be negotiated. Consider the trailer and equipment as items to trade off during the deal making process.
QUESTIONS TO ASK DURING THE FIRST PHONE CALL
Tell me about the boat:
Condition of engine and outdrive?
How was the boat used (Inshore? Offshore? Fishing? Pleasure? Freshwater? Saltwater?)
How many hours on the engine/outdrive?
Has the boat ever sat unused for any length of time?
What repairs have been done?
What things require repair or maintenance right now?
How was the boat maintained? Do you have all of the maintenance records?
Condition of deck, upholstery and interior?
How is the hull and exterior cosmetics?
Are there any blisters or dry rot?
Does it include a trailer (condition of trailer)?
Is it all original fiberglass and graphics?
Has the boat ever been left in the water on a regular basis? (stored at a marina, dock or at anchor?)
Does it have bottom paint?
How has the boat been stored?
Why are you getting rid of it?
Has the boat ever been in an accident?
Why kind of canvass does it have?
What types of electronics does it have?
What other accessories are included?
Do you have clear title to the boat?
Are you the boat's only owner or are there partners?
Has the boat ever been safety inspected? If so, when?
What else would you like me to know about the boat?
Note name of person that is speaking with you and the date:
Good luck - and enjoy your boat buying experience - but more so, enjoy your boating experience!
And do let us know how you are getting on...
|
