Boat Purchase

[mcbean7]

Hi All,

I apologize if this question has been brought up before.

I'm getting ready to buy a used boat in another state and am wondering what is the best way to go about the transaction that will protect both parties. There is no leins on the boat. I bank with a small/local credit union. I know cashier's checks/money orders are not good since they are easily counterfieted. I have been told that wiring money from one bank to another is the safest way to conduct this transaction. I wanted to see what others thought or have done in the past.

I'm meeting the seller halfway to pick up the boat so I would like to get the finances ironed out ahead of time.

Thanks in advance.

[Malibudude]

When I sold my boat it was out of country but my method still applies. The wiring of money is the best way but can take 10-14 days to be verified, most buyers aren't going to release that amount of money before they have the product. I sold my boat w/ American Express Travelers checks. At my bank when we met, they called and verified that each check had been issued by the bank(buyer), then called American Express to verify that each check was a legit check number and verified the bank sale. This took about and hour to complete if the check numbers are in order. I would go this route if you feel the buyer is trust worthy, I did after spending many months talking to this individual and his commitment to travel 14 hrs to pick it up. Again wiring the money to your bank and waiting for it to clear is the best most secure route, otherwise the traveler’s checks seemed to be the next best option.

[edgeski1]

We typically hold the title until the check clears, then fedex it where a signature is requided to verify that you got it. It's not perfect, but works pretty well.

Then of course there's the fun way, CASH. I've only ever seen this once, $50,000 to boot. I had my marker ready and it took awhile

Edited February 27, 2009 by edgeski1

[barefootpaul]

I paid for my bu with a cashiers check. Apparently that may have been risky for the seller but as an honest buyer it worked well.

It may work well if you opened an account at a chain bank like Wellsfargo. Make the deal at the bank and the seller can watch them print the check.

[mcbean7]

barefootpaul,

I'm thinking that's the easiest and safest way to go. I'm planning on opening up an account with a major bank (BoA), depositing the money into that account, then meet the seller at the bank at delivery site and transfer the funds or draw up a cashier's check. That way, the bank can verify funds right there.

The one thing I don't like about this route is it puts the all the risk on the seller. Since I'm meeting seller halfway, seller has to lug boat all this way "hoping" seller will show up.

What can I do to gaurantee/assure seller I will be there?

[hattric73]

barefootpaul,

I'm thinking that's the easiest and safest way to go. I'm planning on opening up an account with a major bank (BoA), depositing the money into that account, then meet the seller at the bank at delivery site and transfer the funds or draw up a cashier's check. That way, the bank can verify funds right there.

The one thing I don't like about this route is it puts the all the risk on the seller. Since I'm meeting seller halfway, seller has to lug boat all this way "hoping" seller will show up.

What can I do to gaurantee/assure seller I will be there?

A somewhat significant non refundable down payment should do the trick...

[LS-One]

I took a cashiers check for a boat I sold but, he didn't take delivery until the the check cleared.

[MalibuTime]

Hi All,

I apologize if this question has been brought up before.

I'm getting ready to buy a used boat in another state and am wondering what is the best way to go about the transaction that will protect both parties. There is no leins on the boat. I bank with a small/local credit union. I know cashier's checks/money orders are not good since they are easily counterfieted. I have been told that wiring money from one bank to another is the safest way to conduct this transaction. I wanted to see what others thought or have done in the past.

I'm meeting the seller halfway to pick up the boat so I would like to get the finances ironed out ahead of time.

Thanks in advance.

Well, since you are buying the boat, I would be more concerned with valid and clear title, as opposed to whether my own cashiers check is good. Wiring the money would (maybe) allow for more definitive recourse if the title proves a problem (at least you would have the sellers bank/account info).

With that said, I would ask for the title number and see if you can call the sellers state dept. of licensing and validate it is an authentic title. If that works, bring a cashiers check or wire the money. Arrange to wire the money while you are taking possession of the boat (if it works that quickly) and then the seller can call his bank and verify.

Make sure you get the title for the boat and trailer, they are seperate titles, and make sure the hull ID number matches the title and the trailer serial # matches the title also.

Also, I would check your state regs, you may need inspections, or to pay a sales or use tax when registering a new vehicle / transferring title.

Edit - I would also ask the seller to verify the title numbers all match up ahead of time, so that if there was any problem, he could get them ironed out ahead of time. I could see and occasional typo on a serial number really messing things up. Plus, he will know you are going to check before you take delivery, which should help.

Edited February 27, 2009 by TheBlackPearl

[MalibuTime]

barefootpaul,

I'm thinking that's the easiest and safest way to go. I'm planning on opening up an account with a major bank (BoA), depositing the money into that account, then meet the seller at the bank at delivery site and transfer the funds or draw up a cashier's check. That way, the bank can verify funds right there.

The one thing I don't like about this route is it puts the all the risk on the seller. Since I'm meeting seller halfway, seller has to lug boat all this way "hoping" seller will show up.

What can I do to gaurantee/assure seller I will be there?

Tell him you'll call his cell phone when you leave, and status update along the way as to your location to coordinate meeting up. I would think if you have a little bit of repoire going and he doesn't think you are a schmuck he would appreciate to know you are actually on the road.

Edit - I wouldn't give any money until I see the boat in person. Obviously you are expecting to tow a new boat home, but it is just good practice to see the hardware first.

Edited February 27, 2009 by TheBlackPearl

[radioman]

Have you bank issue a draft that becomes good after title clears. If buyer doesnt like that fur get it.

[TheKiwi]

Have you bank issue a draft that becomes good after title clears. If buyer doesnt like that fur get it.

Excellent idea. Even a postdated/authorised cashiers cheque would be good. Let your branch manager know he will be calling to verify that you cheque is in fact authentic, and when the title is changed into your name he can bank it. Either that or just when the title is in your name, you can call your bank manager/whoever and ask them to authorise the cheque and he can go straight to the bank and deposit.

[robbieredlight]

I just completed a transaction where I purchased my 1998 Sunsetter from a private party in CA.

These were the initial steps I followed:

• Independent Marine Survey (Recommended by Crew Members)
  
• Notarized Identity Check of Seller (W/Drivers License and Bank Info) Free @ Sellers Bank
  
• Notarized Copies of Clear Titles (Boat/Trailer) Faxed/Emailed
  

After these items checked out and we agreed on the price I wired funds and the seller overnighted the title. Note: I offered to pay the seller from a Gold Money account but he declined.

You can request the seller considered an independent party (Local Malibu Dealer) sell the boat on a consignment basis and split the fee. Part of that fee can include a PPI.

Shipping: I had the boat shipped (open trailer) from California To Chicago and it cost me less than $950 using uship.com.

Good luck with the purchase.