USED BOAT BUYING 101

Chapter 1 - Don't be in a hurry!

Being in a hurry can cost you a lot of money.

An acquaintance of mine, a ships Chief Engineer that worked 6 months on and 6 months off, would sometimes take up to 18 months to buy a boat. He'd find three or four models of the brand he wanted that were advertised locally, then just before he was due to be shipped out again he'd go look at them one at a time and make ridiculously low cash offers that were so low the sellers would run him off. Six months later when he got ashore again, he'd go back to the same owners to see if they still had the boat for sale, most of the time they did. Now it's 6 months later and when he made a second offer that was a little lower than his first one, he was usually treated with a little more respect, if he wasn't, he'd wait 6 more months and then go back again. He always got what he wanted at his price. Most often it needed work of one sort or another, but this was a kind of second job for him. He'd buy low, fix it up on his 6 months ashore and resell at a much better price.

In other words, the longer a boat owner holds out waiting for his price, the more it costs him in moorage/storage, insurance and utilities. Something to remember when you get ready to sell the boat you haven't bought yet!

The biggest mistake

The biggest mistake that first time boat buyers make is to go out and buy a boat from a private party and not have a complete marine survey done first. I'm not sure why first time boat buyers seem to buy from a private party, but it seems they do.

If the first time buyer makes an offer on a boat that is being offered by a broker, the broker will usually instruct them about the steps involved. And the first step is a marine survey by a recognized professional. The resulting "Report of Marine Survey" is something that insurance underwriters and lenders want to see before they bind insurance or loan money.

The second biggest mistake

The second biggest mistake I've seen made is getting emotionally involved in a boat before she's surveyed. I guess it's kind of like love at first sight.

Not long ago I surveyed a vessel for a couple getting ready to retire. They had this life-long fantasy of living on a boat and cruising around doing and seeing the things they had dreamed of for so long. They had located what they thought to be the perfect boat. A 42 footer with lots of room, very clean inside, and out, and it came with a permanent moorage slip. The trouble was they didn't know anything about boats. I was even a little impressed with it on first sight. It turns out that the couple that was selling the boat had been living aboard for the prior 7 years. And while the wife kept the boat spotless, the husband didn't do any maintenance above the minimum and had installed and modified some of the electrical and plumbing himself. In short it needed a huge amount of work and would have not been a good choice for my clients.

When I gave my clients the survey report they were visibly shaken. They had both been so captivated by this boat and thought that it was so perfect for them that they had already moved aboard in their minds.

In the process of buying your first boat you'll find some disappointments along the way. Don't be discouraged. Remember, besides the best deal you also want the best boat for your needs. Take your time, and be ready to look at a lot of different kinds of boats with an open mind. When you think you have it narrowed down to something that is just right for you then look at four or five of the same model and year. You'll find that there are many different pieces of optional equipment that people have installed, some of which is good and some of which don't belong on a boat. Your marine surveyor will help you make that distinction.

Beater boats

If you think that buying a beater boat and fixing it up is a good way to save money. Don't do it! Research has indicated that for every dollar you put into fixing up an old boat you only get 25 cents back when you sell it ... unless you're a professional that owns your own boat yard. And even they lose money sometimes.

A much better idea is to find an older boat that someone just dumped a bucket of money into and now needs to sell it. Boats like this are harder to find and tend to sell rapidly so you have to be actively on the hunt, and be able to distinguish between what simply looks good and what really is good. A fresh coat of paint and some shiny brass on an old wood boat can look pretty good, until you start digging into the keelson, and garboard plank, or under the shower, and toilet, which is the surveyor’s job.

What is a Marine Surveyor?

A Marine Surveyor does just about the same thing that a home inspector does when you buy a house, except that marine surveyors have been doing it for about 300 years. You normally can't get insurance on a used boat without a report from a marine surveyor. There is an exception I'll cover in Chapter 9.

At one point I stopped doing surveys for people that had purchased a boat without having a survey done first. It was too depressing. I would usually find so many deficiencies that in order to qualify for insurance the new boat owner would have to spend several thousand dollars in repairs or modifications to a boat he had paid too much for to start with, and still not used because he couldn't get it insured without a survey.

Don't let it happen to you.

Captain's Corner is a series of columns by Professional Marine Surveyor and US Coast Guard Master Dick Thorsen.

We invite you to send us particulars and a photo of any stolen vessel, engine, trailer, marine equipment or recreational vehicle. We will post it on our page at no cost to you. Please ensure to update us with the status of the items you send us.