Used Boat Buying Advice

Boat Classifieds

I like boats, most all boats and there lies the problem. It's easy to get caught up in boat buying mode. With so many choices and price ranges where does one start? Often, common sense slips away when you have to balance desire with what you really need. Needs verses Desires ... been there done that ... I can hear you say as I write this. Smart money knows how to balance these emotions. So here are a few questions that might help you outline what you need in a boat. After all if it doesn't fit your needs you won't be happy for long.

Needs vs. Desires

What is the primary and secondary use of the boat? ( For example: Cruising vs. Fishing, Skiing vs. Fishing, Entertaining vs. Floating Cabin that sort of thing.)

Where do I plan on using and keeping the boat? (distance, location, and the cost of storage)?

Should you go with a boat that you can trailer? (The bigger the boat the harder to trailer, but it's great to have that flexibility.) (Don't forget about having the appropriate vehicle to tow that trailer.)

What size and type boat would be appropriate for the weather and water conditions I will most likely experience? (This could involve some research. Your safety is the most important thing.)

How many people should it seat comfortably? (Take the gang or leave them behind?)

How important is an inside cabin with a head or port-a-potty? (Women will really appreciate that one.)

How easy is the boat to single handle? (If it's a pain to move around it will sit.)

How important is fuel usage? (How green is your mind set or how fat is your wallet?)

How Big Is The Used Boat Market?

Here are some interesting statistics I got from an article in Boat US magazine concerning year 2004.

Based on the above numbers I think it's safe to say you can find what your looking for in a used boat.

Affordability

Affordability of a boat is directly attached to ones own income. Income that you can afford to throw at a boat specifically. Even Donald Trump felt his yacht cost way too much to maintain. How to minimize the amount you are willing to loose in exchange for the joys of boat ownership is the key to affordability. I'll cover the 2 most important aspects of affordability:

RULE #1 BUY USED. (The only way to go really) New boats cost big money and depreciate very fast. On top of that you have the sales tax you paid plus yearly tax's and insurance on a new expensive boat. Then if you financed this new boat, which most likely you did. You have all those finance charges and payments to deal with.

Ever notice when dealing with banks they hold all the cards. They tell you they will lend you money and charge you interest based on the risk they accept. Then they make you purchase insurance to cover that risk for them and on top of that charge all kinds of paper work fees and whatever else they can think up while you pay for all of it. I was told its the golden rule! Those with the gold make the rules!. If you want to keep your gold be careful how you use banks. Be smart you can get way more boat for your dollar used. Take advantage of depreciation rather than being the victim of it.

RULE #2 PAY CASH   I have a rule that I would recommend you follow. Do not finance a luxury item. Unless your living on that boat it is a luxury item. It is not an investment. I know a lot of you out there are saying ya right who has that kind of cash laying around. Well not that many...but if you can pay cash you will save money. There are plenty of sellers out there that are tired of people who want the boat but can't get a loan approved. If you show up and say I want to negotiate a cash deal. I don't need any bank financing your prospects of getting a better deal just increased. Negotiation tip: Lets say you find the boat you want. The seller wants $20,000. Don't run up to the seller and say hey I can pay cash for that. You don't want to come across as a person looking to throw cash away. A better way to approach the buyer is to say that if you can reach an agreement on price you would be able to pay cash. Negotiating a deal is something not all of us is prepared for. The best advice I can give you is to decide what the boat is worth to you. If you feel that boat is worth $10,000 to you but the owner wants $20,000. You simply need to tell the owner what you feel the boat is worth to you. It is up to the owner if he accepts or declines the offer. The owner may be thinking I felt it was worth close to $20,000 but I have not had any offers near that. I would be willing to go down to $15,000 to get it sold. Then the buyer may be thinking you know I've been looking for a long time and no one has accepted my $10,000 offer on this type of boat. Perhaps I should think about that $15,000 it is a very nice boat. That my friends is how boats get sold. A fair deal with compromise on both sides.

(For all those fortunate millionaires and billionaires out there feel free to omit the above paragraphs. Buy New, Buy Big and remember to list it on this site when your ready to sell.)

Here ar 2 more good tips.

Evaluating A Used Boat

If you are not familiar with boat construction, I would recommend you bring in a marine surveyor to check the boat out. I know this is an added expense but one that will often pay off. The reason being a good surveyor can outline problems the boat may have that you have never thought about. If problems are found you have that knowledge to negotiation a better deal on the boat to help repair whatever needs done. To learn more about how boats are put together and what makes one better than the other I recommend you go visit http://www.yachtsurvey.com. This site is full of good advice from David Pascoe. A marine surveyor who really knows what quality boat construction is all about. I have read 2 of his books and I highly recommend him.