Buying a new boat - what happens if the agent goes bust?

Quite.

Apart from the financial worries, I've never yet met an owner of a new boat who didn't experience hassle - sometimes considerable hassle - before getting his or her new pride and joy into the condition which he or she thought was being paid for.

Given that the current supply of second hand boats appears to be significantly larger than the number of potential owners, we have a strongly biased buyers' market which only gets worse with each new boat bought. Which should be a concern to the prospective new boat buyer, because the day will come when he (or, again, she) will eventually want to sell it. If he (or, yet again, she) were to buy a used boat instead, it would be a small step towards redressing the balance.
 
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Why should the buyer have to finance the build of a standard boat anyway?

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Boats are costly items and take a little while to build. Its like construction if a builder finances the work until completion you pay for the money he borrows and the inflation risk.

If you do stage payments that match a builders cash flow he can give you the cheapest deal - simple really!

In addition a deposit is a sign of intent. What boat builder wants 40 boats in stock that were ordered during a nice summers day at the boat show yet without any financial commitment cancelled on a cold winmters day!
 
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Why should the buyer have to finance the build of a standard boat anyway?

[/ QUOTE ]

Boats are costly items and take a little while to build. Its like construction if a builder finances the work until completion you pay for the money he borrows and the inflation risk.

If you do stage payments that match a builders cash flow he can give you the cheapest deal - simple really!

In addition a deposit is a sign of intent. What boat builder wants 40 boats in stock that were ordered during a nice summers day at the boat show yet without any financial commitment cancelled on a cold winmters day!

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Whilst I agree that stage payments that improve the builders cash flow situation wll minimise the headline price in the curent finacial climate I would suggest that any oulay which did not have a matching guaranteed equity in the WIP is potentially lost cash.

In a finacial climate where no agent or builder is guaranteed to survive from placing he order till delivery of the goods any deposit or stage payment that is not in some way protected against non delivery of the boat is potentially lost moey. Caveat Emptor.
 
From an HR price list

Bank guarantee: Can be arranged on deposits made before delivery.
Cost: € 30,- per guarantee +0.6% yearly charge.

My understanding is that a bank guarantee is supplied by the builder's or agent's bank. In the event that the yacht is not delivered because of business failure, the bank undertakes to return the money.

If the bank has confidence in its customer then the cost of a guarantee is low. If it has low or no confidence, then a guarantee will not be available, or it will ask a very high fee.
 
Quote: Don't buy new boats!
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We can do a little better than that I think. When I got into negotiations with a UK agent a few years ago, I was amused at the terms thrown across the table: we take this and that and that..

In today's climate, almost any climate, such attitudes are for the birds. Agents can ask for up front money for two key reasons - to show the purchaser's good intentions, and to fund the build.

Funding the build covers the first in fact, so why put yourself at risk by fattening the agent's margins - he's getting money from the sale anyway.

It's not hard to find out what the builders demands from agents when an order is placed - 10% on order, then 25% increments etc. But new build these days for regular boats is not a 6 month job (it was) A large manufacturer will complete within 2 weeks; right now it would be from stock! So no stage payments are necessary.

So why is there up front money at risk - there shouldn't be!

In my case, when faced with this silly demand for funding..I just went abroad, paid a 5% deposit and the rest only on satisfactory delivery in the water. I say: if the UK agent won't perform realistically go elsewhere, don't give in to illiterate fiancial practices, and that includes large sums on deposit in worthless "client accounts" for no discernable reason!

Good time to buy new, I'd say...

PWG
 
As someone who has lost 5 years of very hard earnt savings + all our dreams ..... thanks to a british boat builder putting themselves into receivership earlier this year (and not for the first, second or third time!!!).... I wouldn't advise anyone to hand over a penny more than they can afford to lose right now.

A significant part of the marine industry is run by people who are passionate about boats and much less talented at running businesses.

What made it all the more painful was my realisation that it was inevitable just a few weeks after handing over the money..... The legal advice I received confirmed I was pretty much screwed having handed money over. All you can do is sit back and hope the worst doesn't happen.

Another lesson learnt .... maybe one day we will be back on the water.
 
I feel for Fastjedi. The UK boat industry is absolutely littered with a history of builders and agents going bust and consumers losing money.

If you looked at an early 1980s PBO and listed the yachting manufacturers and brokers, barely one or two are in existance today. Many, if not most, have gone into receivership owing somebody something.

I speak from experience in that until a couple of years ago part of our business involved importing a range of overseas yachts into this country. One of the reasons we stopped was the fear of the credit risk at a number of stages. We reckoned that if history was anything to go by, with a downturn looming at some stage it was very possible we would be owed boats by a foreign company having handed over customers money. We withdrew in a very controlled manner with everybody smiling and happy.

It wasn't the only reason we stopped but it was a big factor. Very glad we did so now, dealing with the public can be a nightmare!
 
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