Buying a new boat: Escrow account for deposit?

[Resolution]

Not saying that all transactions with all dealers go well, but in my view it takes two parties to make a good contract that delivers and it is not always the other party that causes problems!

As always, the voice of sanity!
You won't read here of the number of occasions when buyers default on the terms of their contracts, typically when they fail to make the final purchase instalment on time. But it does happen.

 

[JumbleDuck]

Number of misconceptions here. First it is a dealer, not a broker you are buying from. He may well also be a broker but not in the transaction of selling you a new boat. He is, like you risking his own money as he has to buy the boat from the factory.

Several people here have reported paying the factory direct, which is how it is done with gliders and seems eminently sensible. Since it appears that most dealers only buy the boat from the factory after they have got their hot little hands on the purchaser's money, the risk to them would appear to be minimal.

If he had actually risked his own money to buy the boat, there would be no reason to demand payment before handover day.

This has been discussed on a number of occasions, but why should dealers and brokers who act honestly have to finance a scheme that is of no benefit.

And why should they go to the trouble and expense of running client accounts, eh?

Certainly not, in my experience. Looking back, I was very lucky to escape losing a 6-figure sum to a load of sharks!

It all makes sense if you imagine that, unless proven otherwise, all brokers and dealers look like Terry-Thomas.

 

[ip485]

This has been discussed on a number of occasions, but why should dealers and brokers who act honestly have to finance a scheme that is of no benefit.
Read more at http://www.ybw.com/forums/showthrea...account-for-deposit/page8#q7f5ms9VU5bPdOGR.99

I think because lack of regulation in any industry involved with large sums of money ultimately leads to loss of confidence of "clients" who seek all sorts of tortous remedies to reduce the level of risk (as we have seen here). Ultimately I doubt that is good for any industry. However us Brits are surprsingly tolerant and maybe that is why it has survived that way so long.

 

[Sticky Fingers]

Excellent! So, go on, tell us what you're buying...

Deal now done and contracts signed.

We wanted a spacious boat about 40' LOA, with reasonable sailing performance and it needed to be easy to sail and manoeuvre for an aging couple. My wife wanted a light and airy saloon, two good sleeping cabins, two heads, a decent cockpit for lounging around and good safe galley with plenty of stowage. Short listed the Jeanneau 41DS and Bavaria Vision 42 and settled on the Bavaria, with options including bowthruster, cruising laminate sails, heating, uprated engine, elec WCs (wifey), leather (wifey) and elec winch upgrades. The cost difference in favour of the Bavaria was a significant factor.

Clipper Marine is the dealer and CGI the finance providers. They've both proved very responsive and flexible in putting the deal together, and I'm very happy with the price too. So that's all very good so far.

Delivery end of June / ready end of July we hope.

http://www.bavariayachts.com/en-uk/sailing-yachts/vision-line/vision-42/highlights/

 

[pvb]

Lovely boat! With my recentish experience of a new Bavaria, can I suggest you get as much equipment as possible factory-fitted, rather than dealer-fitted? The factory does a far better job than the dealer will, partly because they can access everything more easily before they put the deck on.

 

[Sticky Fingers]

Yes we've done that. There are some dealer fit things that we went for because either the factory didn't offer what we wanted (eg rope cutter) or the spec of their option wasn't what we wanted (eg elec heads).

 

[ip485]

Electric heads, fresh water flush, really pleased to have those as well, and would recommend this option. Are you having keel coolers for fridge and feezer? I dont know how well Bavaria insulate the fridge and freezer but another area where it is well worth considering a higher spec from new.

 

[Heckler]

I'm amazed at how clunky and amateur the whole boat dealership set up often seems to be. I've never bought a new car - if I did, would I be expected to hand over the full purchase price to the dealer well before getting my hands on it?

https://beta.companieshouse.gov.uk/company/05837682/charges

 

[ashtead]

Graham
Many congrats on new vessel. Pleased all addressed by Clipper who having sold our Bav through found very reliable . Maybe though they should move into the modern world and embrace the concept of separately designated client accounts. You can imagine the uproar if an insurance broker went bust and people were left with no cover as the premium had not been paid to the insurer hence the need for regulation if brokers won't voluntarily introduce a scheme of protection. The costs would be modest compared to revenue generated on any sale so I am sure if a few larger brokers launched such a fund others might follow the lead .it might not thankfully affect many but protecting the customer interests should mean brokers embrace such thinking or are made to introduce protection before the next Opal situation arises.

 

[pvb]

https://beta.companieshouse.gov.uk/company/05837682/charges

Gosh, there are a lot of charges listed! And some of them weren't paid off for 2 years, would these have been stock boats perhaps?

 

[Sticky Fingers]

I'm sure they're all either stock / demo boats, PX boats, or boats like mine where they are funding it for a period. I'd also expect that the Companies House register of charges is not a live feed, probably sluggish to update.

This doesn't worry me. It means they currently have an strong line of credit; if there were defaults, or only very old ones, might be more of a concern.

 

[ip485]

As with so many brokers you would have to say not a lot of meat on the bone there and if the stock had to be written down even a little .. ..

 

[dunedin]

As with so many brokers you would have to say not a lot of meat on the bone there and if the stock had to be written down even a little .. ..

Yes, yacht dealer/broker is not an easy way to make a fortune, me thinks - and Clipper are one of the biggest and most successful I would expect. 2015 was a good year for the industry due to Euro strength, but perhaps not typical. These guys typically have to work hard for their living - perhaps more lifestyle choice.

But it does re-emphasise why as an industry (not just this one dealer, who seem to be pragmatic and helpful when pushed by a smart buyer) they need to find some way to give more security to people laying out lifetime savings to a complex chain of suppliers in an economic market which is risky and uncertain.
Browsing a few other accounts not sure I would be happy to buy any new boat without rigorous safeguards - which this thread has shown can be difficult to achieve.