Boat buying nerves

[jakew009]

Am I the only one who still gets a bit nervous when buying a boat and sending large sums of money to someone's bank account

Sold my rib 2 weeks ago
Started looking for Merry Fisher 805 2 weeks ago
Viewed Merry Fisher 805 last Sunday (left Devon at 4am, on boat in Essex by 9am, deal done by 11am, left Essex lunchtime, home by 5pm)
Signed bill of sale sorted this morning, insured this afternoon.
Transfer half the balance tonight, remainder tomorrow (Lloyds 25k limit)
Boat lifted out tomorrow, collected by haulier on Friday and delivered to North Devon on Monday (if all goes to plan)

Let's hope the seller doesn't do a runner with the money and the boat

 

[Mr Googler]

Sometimes……just need a bit of faith

itll all go grand I’m sure.

Some one paid me many thousands for a boat they had never seen in person….then didn’t collect for another 3 months! It was the worst as I was worried about that, the boat I no longer owned would get damaged so checked on it constantly. Far more than when I owned it

oh…the buyer was well chuffed and has had another off me since!

There are far more good people in the world than bad….sleep easy

 

[Tranona]

Presumably a private deal so always a risk. If you don't want to take that sort of risk then do the financial side through a reputable broker. Takes longer but is secure.

 

[Bigplumbs]

Presumably a private deal so always a risk. If you don't want to take that sort of risk then do the financial side through a reputable broker. Takes longer but is secure.

A costs a lot more

 

[Boat2016]

I would only ever buy/sell through a reputable broker, there’s no way I would be trusting a stranger with large amounts of money with the amount of scammers about now, theres also a lot of boats out there now that don’t have correct documentation with them which will end up costing the owner in the end.

 

[petem]

A costs a lot more

Only 1%

 

[philipdawsonladds]

At 1% or even 3% no question but at 5-8% + VAT not so sure. Where can you find 1%? Privately hold back part or full payment until keys and bill of sale signed over.

 

[jakew009]

At 1% or even 3% no question but at 5-8% + VAT not so sure. Where can you find 1%? Privately hold back part or full payment until keys and bill of sale signed over.

The way I have done it on this boat was to get the seller to sign the bill of sale first and he sent it to me.

I then sent him 1/3rd of the boats value (10k) and insured it.

Today the boat will be lifted out of the water, the boat yard will take the keys and I will transfer him the remaining balance.
On Friday morning the boat will be on transport back to me.

I’m sure there are lots of ways this could go wrong but having done my research I was comfortable with the deal.

 

[petem]

At 1% or even 3% no question but at 5-8% + VAT not so sure. Where can you find 1%? Privately hold back part or full payment until keys and bill of sale signed over.

I'm talking about using a broker to do the final paperwork and money exchange (once a buyer has been found privately). Many brokers offer this service.

Or use Ward & McKenzie.

 

[ari]

The way I have done it on this boat was to get the seller to sign the bill of sale first and he sent it to me.

I then sent him 1/3rd of the boats value (10k) and insured it.

Today the boat will be lifted out of the water, the boat yard will take the keys and I will transfer him the remaining balance.
On Friday morning the boat will be on transport back to me.

I’m sure there are lots of ways this could go wrong but having done my research I was comfortable with the deal.

Out of interest, when you're selling, are you happy to sign over your boat to the buyer before receiving even a penny from him?

 

[jakew009]

Out of interest, when you're selling, are you happy to sign over your boat to the buyer before receiving even a penny from him?

Well, some would say possession is 9/10ths of the law.

I am 300 miles away from the boat, so whilst I technically ‘own’ it, you and me both know that enforcement would be impossible and it would end up in court.

 

[jakew009]

I'm talking about using a broker to do the final paperwork and money exchange (once a buyer has been found privately). Many brokers offer this service.

Or use Ward & McKenzie.

Can you give me details of the broker who would assume all risks of the transaction for £310 incl vat?

 

[petem]

Can you give me details of the broker who would assume all risks of the transaction for £310 incl vat?

Ah, sorry, I'm talking about £100k+ stuff.

You could probably find a broker who would do it for £1,000 though.

 

[ColleyV8]

I'm half way through buying a boat, 100k, was advertised with Parker Adams so I thought great, buying through a broker, however turns out the now have a marketing plan, where they advertise and take the deposit, but don't provide the conveyancing and due diligence that entails

Was pulling out of the sale until the seller got the broker to provide a full service, checking ownership, finance etc

I wouldn't buy privately.

 

[jakew009]

Ah, sorry, I'm talking about £100k+ stuff.

You could probably find a broker who would do it for £1,000 though.

It would be interesting to know if a broker would even do it for £1000 incl vat on a 100k transaction, seems a lot of potential risk for them relative to the profit.

 

[Lightwave395]

I'd make the effort to get up at 0400 again and be there when the transport is due, make the payment while you're there, find a cafe while you wait for payment confirmation then watch it being loaded onto your transport ?

 

[paradave]

A costs a lot more

Like a lot of things, it depends.

When I sold my last boat, I listed it on ebay for £36k and had a few enquiries but nothing that gained any traction. Spoke to a broker who then listed it at £44k (achieved £42k) and charged £2k for the process and took care of all viewings, arranging of surveys, lift outs, sea trials etc. Money very well spent.

 

[paradave]

Good luck Jake, I'm sure you've done your due diligence and all will be well!

 

[Tranona]

The way I have done it on this boat was to get the seller to sign the bill of sale first and he sent it to me.

I then sent him 1/3rd of the boats value (10k) and insured it.

Today the boat will be lifted out of the water, the boat yard will take the keys and I will transfer him the remaining balance.
On Friday morning the boat will be on transport back to me.

I’m sure there are lots of ways this could go wrong but having done my research I was comfortable with the deal.

Do you have a written contract covering these arrangements?

You are not following the normal procedure - the Bill of Sale comes last, not first. What governs the transaction is the contract and while your payment arrangements are reasonable and your handover process sound it seems all verbal and reliant on you being able to check that the boat is indeed loaded onto your transport before you transfer the balance.

As already suggested many brokers will handle just the "conveyancing" side - due diligence to check the boats paperwork and handling the transfer of funds through their client account. He would hold your final payment and when the seller has met his side - that is the boat is loaded onto your transport release the funds to the seller. You would then get all the paperwork including the Bill of Sale.

It is actually more common for a seller to go down this route because he has the most at risk of you failing to complete, although in this case he has your substantial deposit to defray any costs should you not complete. The lack of a written contract though leaves both of you vulnerable if there is a dispute.

In a straightforward transaction like this a broker's charges would be in the hundreds, not thousands.

Hope it all goes well.

 

[SimonD]

I completely understand your concern. I bought my present boat privately (first time I've done it) and fretted a lot. I spoke with the broker who sold my previous boat and he offered to handle the transfer. We didn't talk about a fee but I didn't think it would be excessive. In the end, I went ahead myself. Mitigating factors were: the boat was in Poole Yacht Club marina and had been for some time; the owner was a long time member and well known in the club; he seemed like a decent chap. We did exchange a contract I drew up from the RYA although no deposit was asked for or paid. I got as comfortable with the exchange as I could, but there's always a nagging doubt. If the doubt is too much, you should use a broker.