Help!!! My Malibu dealer went bankrupt!

[Catch]

Hi Gang,

Unfortunately my Malibu dealership in Quebec, Canada (UltraSport Marine) is going bankrupt. For the next short while they are being run by the banks and their lawyers until all the dust settles. Bad news for me is that they are the only Malibu dealership within 300 miles of me.

It appears that my dealership did not store my boat properly either for our cold Canadian winter. When I got my boat, I noticed that the wakeracks, tower speakers and chrome pylon head on the tower, all on my new 2008 Wakesetter VTX, were all corroded. Turns out he stored my boat with no shrink wrap and just kept it outside with my regular Sunbrella cover as the only protection from the snow and cold. Nice ehh! As well, due to the possibility of water being in my bilge over the winter and freezing, I am now worried about hidden stress cracks in the hull.

And now the kicker... the night before he was to deliver it to my cottage, the boat was vandalized while still in his lot and the thieves stole all my audio equipment. Inside job anyone? Not the start to the 2009 season that I was looking forward to!

Malibu tells me that any service work I have done on my boat will have to be done by a certified dealer... however they don't have any around to offer me. Have any of you experienced situations where you had to get service from another dealership that wasn't Malibu certified.

Any words of wisdom that any of you have to offer, I am open to them. I have to admit that I am now getting reluctant to continue on with this same boat as the winter damage may not become apparent until well after the fact. My 1 year old boat now looks like it is going on 10.

Sorry to vent here on the forum, but I am hoping you might be able to guide me through this stressful situation I am going through. Thanks in advance.

Edited June 2, 2009 by Catch

[Chia]

as far as the theft, their insurance should cover that even if it is being run by the bank.

i wouldn't be as worried about water in the bilge as whether the engine was properly winterized.

If you have concerns, i would take it to another boat dealership and get a written appraisal for any repairs it may need and then contact Malibu for a resolution. Asking questions about what if's isn't going to go anywhere.

get the facts first.

sorry to hear about your trouble.

[68Slalom]

OK, first thing I would do is inspect what you can personally on your own your own and as Cervelo stated have it checked by another marine repair shop that shows professional aptitude. I'm sure if you look around you can find an approved dealer for your repairs.

[the_dude]

Water in your bilge is not going to damage the hull from freezing. It would have to be in a spot that is confined and doesn't allow the water to move as it freezes.

[MalibuTime]

Not positive, but I am pretty sure any certified Indmar repair can do warranty work on the engine, if the need arises. Inside job on the stereo, sure looks that way. In the states, you will need a police report typically to get any insurance payout for that type of claim. I feel for you, that really stinks. Best thing to do is get the boat fixed up and on the water to take your mind off of it.

Edited June 2, 2009 by TheBlackPearl

[mikkee1]

Bear in mind that the Malibu reps are pretty reasonable. Call them for direction on what to do next. The rep I spoke with with my issues (Jesse) was pretty good. I would be REALLY worried about water in the block...If you search this site you'll find a great winterization guide. It'll tell you what should have been done. If the engine drain plugs are still installed, I'd be concerned...

Once you get it back on the water, finding a dealership is a headache. Mine is 3hrs away. The malibu reps always offer to send me parts to install myself (and/or talk me through it on the phone), but you have to pay for the parts yourself for anything major, plus there would be no warranty. One example was the recall on the shifter. I asked them to send it to me instead of towing the boat 3hrs. They did - it was 4 screws and a connector. Even a primate like me can handle that!

Basically, start reading and get smart on your boat and it's systems. The more educated your assessment of boat problems, the less chance you'll tow it 300 miles only to watch a tech tighten a bolt and fix it (eliminating the problem, and your manhood, at the same time)...Each year, make a list of gripes at the end of the season and take that with you to the nearest dealer, then just store it there for the winter. That way, the pain only comes (hopefully) once a year...

Any time a problem crops up, such as a prop strike, you'll just have to weigh the pros and cons of a long drive to warranty work, or just get some local guy to fix it...Thankfully, these are good quality boats so hopefully ownership won't be too painful.

[Catch]

These are all very helpful replies, thank you to all of you. One piece of good news to come recently was that Malibu announced another replacement dealership about 5 mins away from the old one. Hopefully this will solve a lot of my problems.

My insurance company also sent out a marine consultant to assess the damages. Fortunately no damages to hull or motor, so that is a relief. Still kinda worried though about water damage to my seat cushions. Boat kinda stinks from being damp for 8 months and I am worried that mould might be a factor.

[Baddabboumm]

Buddy Ballast,

Your story isn't a surprise to me. I'm from St-Nicolas, Qc (south shore of Quebec City) and I also had a very bad experience with the former Ste-Agathe dealer. After I sold my Glastron this spring, I purchased a 2009 Wakesetter LSV from them, but as of today I'm still boatless. Although I've been quite lucky to make my deposit via Visa, I recovered it without any problem when I found out about their financial problems.

Pendant l'aventure, j'ai communiqué avec le siège social de Malibu à Merced, California et ils m'ont immédiatement mis en contact avec le Dealer de Peterborough, ON. Malibu a aussi honoré le prix que j'avais à Montréal et je me rends à Peterborough le 18 juin pour prendre possesion. Le siège social semble vraiment prendre au sérieux les plaintes des clients. Thanks to Garry Morrisson.

My advice : In my mind, Malibu is a well known and trusted brand. They doesn't seem to appreciate bad publicity. Call directly the head office and speak with a rep. It worked for me, might work for you too !

P.S. Good news for Aquasport Marine, we'll have service closer then Peterborough.

Baddabboumm, who can't wait any longer to ride his brand new 2009 Wakesetter 23 LSV.

[RTS]

Pendant l'aventure, j'ai communiqué avec le siège social de Malibu à Merced, California et ils m'ont immédiatement mis en contact avec le Dealer de Peterborough, ON. Malibu a aussi honoré le prix que j'avais à Montréal et je me rends à Peterborough le 18 juin pour prendre possesion. Le siège social semble vraiment prendre au sérieux les plaintes des clients. Thanks to Garry Morrisson.

Pourquoi le Français pour simplement vous exposer s'est appelé Malibu dans Merced ? On vous a dit de vous le conserver un secret ou quelque chose ?

[coz]

Turns out he stored my boat with no shrink wrap and just kept it outside with my regular Sunbrella cover as the only protection from the snow and cold. Nice ehh! As well, due to the possibility of water being in my bilge over the winter and freezing, I am now worried about hidden stress cracks in the hull.

I'd be more concerned about water in the engine freezing and cracking the block, very very commom in the cold areas.

[Baddabboumm]

USE OF FRENCH

I used French because it's a lot faster for me to write in french. My first language is french and it's might be the first one of catch too.

It is not a secret that I called the head office in Merced while my dealer was trying to scew me. And I'm proud I did, it saved my deposit !

In conclusion, I used french for the same reason you are using english : because that our respective language. I didn't mean to offend anyone !

Baddabboumm ! Which used to be the Québec Nordiques (NHL Team) mascot before they moved to Colorado to win the cup the year after.

[RTS]

No offense taken at all, and the reason I replied in French was I was using a nifty translation program I found to see if I could figure out what you typed, and then to see if I could 'write' something in French and have you read it I was just horsing around

[Catch]

Another update. After 6 months of waiting around, I finally got the final report from my insurance company.

6 months later they have decided to not cover me for the portion of damages that were snow and ice related. Exclusion from my insurance contract they say. I reply that applies to negligent consumers that leave their boat in the lake over the winter or sitting in the driveway. Not a guy like me that brough it into his reputable Malibu dealer for professional winterization and storage services.

Take up with them they say. Ha! My former Malibu dealer has been bankrupt now for 5 months. How do you go after an entity that no longer exists?

I have been in touch with Malibu head office and the reps there. I really hope that they own up to some of the responsability that falls on them too. Why a guy that just bought a brand new Malibu boat and brings it back to his certified Malibu dealer 3 months later for winter storage should get screwed is beyond me. As things stand right now, I stand to lose $25 000. This is the amount of repairs that my insurance company will not pay for but that my boat requires to bring back into the shape it originally was when I brought it in.

Insurance companies... I hate 'em!

Catch

[Bobby Light]

Another update. After 6 months of waiting around, I finally got the final report from my insurance company.

6 months later they have decided to not cover me for the portion of damages that were snow and ice related. Exclusion from my insurance contract they say. I reply that applies to negligent consumers that leave their boat in the lake over the winter or sitting in the driveway. Not a guy like me that brough it into his reputable Malibu dealer for professional winterization and storage services.

Take up with them they say. Ha! My former Malibu dealer has been bankrupt now for 5 months. How do you go after an entity that no longer exists?

I have been in touch with Malibu head office and the reps there. I really hope that they own up to some of the responsability that falls on them too. Why a guy that just bought a brand new Malibu boat and brings it back to his certified Malibu dealer 3 months later for winter storage should get screwed is beyond me. As things stand right now, I stand to lose $25 000. This is the amount of repairs that my insurance company will not pay for but that my boat requires to bring back into the shape it originally was when I brought it in.

Insurance companies... I hate 'em!

Catch

$25,000 in repairs for what?

[Chia]

I don't understand. You got your boat out when it was still a viable business or when the bank was running it (based on your original post).

The now bankrupt company had insurance at the time you got your boat. In Canada you have 1 year to make a claim. So even though they are out of business, If they had insurance at the time your boat was in their care, you can still make a claim.

This is, of course, dependent on the damages to your boat being covered by said insurance.

[Mike00LXI]

I don't understand. You got your boat out when it was still a viable business or when the bank was running it (based on your original post).

The now bankrupt company had insurance at the time you got your boat. In Canada you have 1 year to make a claim. So even though they are out of business, If they had insurance at the time your boat was in their care, you can still make a claim.

This is, of course, dependent on the damages to your boat being covered by said insurance.

Not necessarily true. Many commercial policies have a bancruptcy provision that will void the policy. If the bank forclosed on the the property then the commercial policy for the dealer would have expired on the date the bank perfected it's right to posession. More than likely the bank assumed coverage after that date under a foreclosed property/liability under the insurance program for the bank but it would have very resitrictive coverage and exclude items such as theft or vandalism.

BTW, I insure banks for a living....but not in Canada.

[Chia]

I don't understand. You got your boat out when it was still a viable business or when the bank was running it (based on your original post).

The now bankrupt company had insurance at the time you got your boat. In Canada you have 1 year to make a claim. So even though they are out of business, If they had insurance at the time your boat was in their care, you can still make a claim.

This is, of course, dependent on the damages to your boat being covered by said insurance.

Not necessarily true. Many commercial policies have a bancruptcy provision that will void the policy. If the bank forclosed on the the property then the commercial policy for the dealer would have expired on the date the bank perfected it's right to posession. More than likely the bank assumed coverage after that date under a foreclosed property/liability under the insurance program for the bank but it would have very resitrictive coverage and exclude items such as theft or vandalism.

BTW, I insure banks for a living....but not in Canada.

So it comes down to when did he get the boat out of the dealership, before or after bankruptcy?

Edited October 23, 2009 by Cervelo

[MalibuTime]

I think you need an attorney involved to chase down the deep pockets.

[Baddog]

Another update. After 6 months of waiting around, I finally got the final report from my insurance company.

6 months later they have decided to not cover me for the portion of damages that were snow and ice related. Exclusion from my insurance contract they say. I reply that applies to negligent consumers that leave their boat in the lake over the winter or sitting in the driveway. Not a guy like me that brough it into his reputable Malibu dealer for professional winterization and storage services.

Take up with them they say. Ha! My former Malibu dealer has been bankrupt now for 5 months. How do you go after an entity that no longer exists?

I have been in touch with Malibu head office and the reps there. I really hope that they own up to some of the responsability that falls on them too. Why a guy that just bought a brand new Malibu boat and brings it back to his certified Malibu dealer 3 months later for winter storage should get screwed is beyond me. As things stand right now, I stand to lose $25 000. This is the amount of repairs that my insurance company will not pay for but that my boat requires to bring back into the shape it originally was when I brought it in.

Insurance companies... I hate 'em!

Catch

What insurance company?

[davemac]

What insurance company?

..and how did you arrive at $25,000 in sustained damages????

[Catch]

The estimate included repairs for damage to my carpet i.e. mold , windshield out of position, moldy vinyl, stolen stereo parts, ripped sunbrella cover, etc.

My insurance company has upped the amount that they have offered me. However they still do not want to cover all damages. They claim that a lot of the damages are a result of faulty parts that were sold with the boat i.e. Metcraft products. They claim that the corroded wake racks, speakers, billet glove box, corroded dash should all fall under warranty.

Working with Malibu now to resolve the whole situation. Malibu is proving to be extrememly helpful with my particular situation. My hat off to Mike Sanchez at head office for his cooperation.

For you Quebec Malibu owners out there, you may want to think twice before giving your business to Lussier Assurance and their Global Nautik insurance product. 6 months of the year here in Quebec we have ice and snow present. However according to Lussier, that type of damage is excluded . Would have been nice to know beforehand...