Best Method of Payment for Used Boat Purchase?

[WakeGirl]

I've never done an international deal, but I have done a couple of long distance deals. A couple of things that I've learned:

~ Never take a personal check. I don't care what anyone here says, it's far too easy to get burned doing that & it has nothing to do with where you live. Any banker will tell you that.

~ Don't take a cashier's check unless you personally watch it drawn up at that bank. Again, most banks will tell you that it's incredibly easy to fake a cashier's check these days - they see a lot of it. Even if you watch it drawn up & then take it to your bank, the funds will not be instantly accessible since it can take up to 2-3 weeks for funds to clear.

~ Funds transfers are good, but can be a bit of a risk if you're not giving those numbers directly to a bank employee.

~ If there is a lien on the boat, it's a good idea if possible to complete the purchase at the institution that holds the lien. They can complete a bill of sale & transfer of title for you in many cases on the spot. That gives you some reassurance that things will be processed properly, although it may require a little more legwork for both the seller & buyer to make all of that happen (IE, going to your bank to draw funds then going to the lienholder). If you can do it with AMEX, that streamlines that process.

When we sold ours last year, we were selling out of state to a person coming in from another state. So to make it easiest on all of us, we both set up accounts with a bank that existed in the area that we met at (happened to be Bank of America). We met at a mall across the street from the bank, completed the transfer at the bank with no cash changing hands & everyone was happy. Since the transfer was done from & to accounts at the same bank, the funds are instantly accessible & "posted" - that's the key, & it gets around the issues of state to state regulations involving funds transfers. The buyer gave me a deposit that cleared well ahead of time, so if the deal didn't work out my travel expenses were covered. It was easier than some since we had a clear title & there was no lien holder involved.

[rodman]

If you're with RBC you can set up a US Bank account and just transfer the funds into that account. You can transfer the funds online while you're in the states or do the wire transfer way that rodman described. Although in my experience the funds don't go in instantly? Is there a special way of doing it to get them in instantly rodman?

Let me clear this up. If I would tell my bank to wire you the money DEPENDING on your bank it will be there when My bank hangs up the phone. It all depends on how your bank handles these types of transaction, most of the time it is the managers that take care of these. If the manager is busy it will take a while to get it done. A wire transfer is just THAT a wire transfer it is instant. Small banks process different transactions differently.

I just bought a antique car last week at a auction. The owner and I stood together he herd me call my bank, to sent the money. He called his bank twice within ten minutes, after the second call and it was in his account.

I have done this with smaller with smaller banks and they wait hours to clear the transaction.

[TheKiwi]

Ah I see, so maybe it would be a could idea to do let your branch manager know that a transfer is coming in, and if he could process it when you call him and have him call you back or something that would work.

[rodman]

Ah I see, so maybe it would be a could idea to do let your branch manager know that a transfer is coming in, and if he could process it when you call him and have him call you back or something that would work.

Yep exactly that. I am a business owner and have a outstanding relationship with my bankers. Maybe that is why my transactions are so smooth for me.

[rodman]

I've never done an international deal, but I have done a couple of long distance deals. A couple of things that I've learned:

~ Never take a personal check. I don't care what anyone here says, it's far too easy to get burned doing that & it has nothing to do with where you live. Any banker will tell you that.

~ Don't take a cashier's check unless you personally watch it drawn up at that bank. Again, most banks will tell you that it's incredibly easy to fake a cashier's check these days - they see a lot of it. Even if you watch it drawn up & then take it to your bank, the funds will not be instantly accessible since it can take up to 2-3 weeks for funds to clear.

~ Funds transfers are good, but can be a bit of a risk if you're not giving those numbers directly to a bank employee.

~ If there is a lien on the boat, it's a good idea if possible to complete the purchase at the institution that holds the lien. They can complete a bill of sale & transfer of title for you in many cases on the spot. That gives you some reassurance that things will be processed properly, although it may require a little more legwork for both the seller & buyer to make all of that happen (IE, going to your bank to draw funds then going to the lienholder). If you can do it with AMEX, that streamlines that process.

When we sold ours last year, we were selling out of state to a person coming in from another state. So to make it easiest on all of us, we both set up accounts with a bank that existed in the area that we met at (happened to be Bank of America). We met at a mall across the street from the bank, completed the transfer at the bank with no cash changing hands & everyone was happy. Since the transfer was done from & to accounts at the same bank, the funds are instantly accessible & "posted" - that's the key, & it gets around the issues of state to state regulations involving funds transfers. The buyer gave me a deposit that cleared well ahead of time, so if the deal didn't work out my travel expenses were covered. It was easier than some since we had a clear title & there was no lien holder involved.

Just a few more ideas it is safe to take any check, as long as the writer of the check understands that it must clear before releasing any property.

Cash is starting to be a big issue one because of the fact of having so much in your hand and two they are counter fitting 100's faster than you can count them.

Some of the biggest issues with boats and trailers are the (Titles, Pink Slips, Registrations, Bill Of Sales' Ect) There are no standards between states with boats and trailers. I live in PA I have a title for the boat and trailer good all over the world and is iron clad documentation.

It is not uncommon that boats are financed all over the country. It is very common you are in one state buying a boat from another state and bank is in yet another.

YOU NEED to pay off the bank that is holding the loan. This is done very simply you call that bank with the loan number and get the pay off amount to the exact day (it makes a difference). This is done with a wire transfer and you can call them back in 10 minutes so they can verify to the owner that the loan is satisfied.

This gets complicated with so many different circumstances that I could not explain them all. I have been doing this for 35 years and have never been burnt. You can e-mail me if you wish and I will send you down the right road.

[WakeGirl]

Just a few more ideas it is safe to take any check, as long as the writer of the check understands that it must clear before releasing any property.

....

Of course, that goes without saying. But the problem with long distance transactions such as what the OP is asking for help on is that you have to really have that one planned out, literally weeks in advance since the buyer will want to take the boat when you meet. You can't just take a check on the spot & hand the boat/title over. And the problem with the buyer sending a check in advance is that they have placed an incredible amount of trust in the seller.

And yeah, taking cash is a bad idea for those reasons, as is expecting a seller to take cash. As a seller, I wouldn't unless we were at the bank to have it verified.

You're right about the number of possible scenarios, but there are some good thoughts in this thread that should help both buyers & sellers protect themselves while expediting the process.

[Bill_AirJunky]

What about meeting at the bank the check is drawn on?

I bought a pair of ATVs a few years ago. We test drove them & told him we were thinking about it. A couple days later we met him at Bank of America. We gave him a check & walked into the bank together. He cashed it & we did the deal in their waiting room.

[WakeGirl]

Yup, that works. When we sold my Audi last year that's what we did. They test drove, we decided on a price & we all went to their bank to watch them draw up the cashier's check.

[rodman]

Of course, that goes without saying. But the problem with long distance transactions such as what the OP is asking for help on is that you have to really have that one planned out, literally weeks in advance since the buyer will want to take the oat when you meet. You can't just take a check on the spot & hand the boat/title over. And the problem with the buyer sending a check in advance is that they have placed an incredible amount of trust in the seller.

And yeah, taking cash is a bad idea for those reasons, as is expecting a seller to take cash. As a seller, I wouldn't unless we were at the bank to have it verified.

You're right about the number of possible scenarios, but there are some good thoughts in this thread that should help both buyers & sellers protect themselves while expediting the process.

Again I sell antique car's and every circumstance is different. This is why I said to contact me and I will walk them through it.

I just sold and shipped 2 cars to a man in Australia for over 75000.00. The owner that bought the cars never seen them only pictures. He wired the moneys into my bank 6 different times. Something about to much at one time, and the money exchange difference. This transaction took 1 week to get done.

As far as title if the deal is handled correctly if you are asked to take a check then they will have no problem with you holding the title to the boat and trailer. But a lot of states don;t title trailers and boats that causes a problem.

So if you did your home work right and your buyer or seller checks out properly things go smoothly.

Just some FYI it is a Grand Theft Auto if you right a bad check and transport over state lines.

Oh about the cash anything over 7500.00 now gets turned into the IRS now you need to explain where the money came from.

Edited June 12, 2010 by rodman

[TheKiwi]

Hah, I have a 1991 Acura NSX in mint condition and 1992 AMG 500SL Hardtop/soft top if you'd like to buy those? Or know anyone that does?!? Heheh...

[rodman]

Hah, I have a 1991 Acura NSX in mint condition and 1992 AMG 500SL Hardtop/soft top if you'd like to buy those? Or know anyone that does?!? Heheh...

To new for me but will keep them in mind the NSX has value.

[CrystalSurf]

Thank you everyone for your replies. I thought I'd follow up on this to tell you how it ended. Last week I bought a boat down in the U.S. from a private seller. It took me about three weeks of back and forth with the seller to figure out a way for the transaction to occur that was safe and secure for both of us. When all was said and done...I paid cash.

We looked at all options...bank drafts from either US or Canadian banks, wire transfers, paypal, depositing in canada and withdrawing in the U.S., etc., etc. The issue was that even if we did a bank draft or a wire transfer and his bank and my bank spoke on the phone and verified the funds while we were in the bank, there was still a possibility it would not be an instantaneous transaction and that there could be a 1-5 day hold on the funds. His bank advised him that he should not release the boat unless the cash was in his account. To me, this seemed overly cautious as the banks would have verified the funds and I would not have had any recourse on the money. So, it looked like we were at a stalemate as I was very hesitant to pay cash due to the hassle of the border crossing and security purposes.

Since the boat was exactly what I wanted and the price was right, I decided that I would pay cash. However, I did it only after checking out the seller. While I didn't know him, after three weeks of back and forth talking about the transaction, I started to get a good feeling about how he operated. I also searched him out on the internet. I spoke to his marina. Finally, the marine surveyor I used to check out the boat spent some time with the seller at his house and on the water with him in the boat. His feedback was positive.

At the border, you have to declare any cash over $10,000 and fill out some forms. They counted the cash and searched my truck. They also wanted to know what I was buying, how I found the boat, etc. I had the listing and some of the emails as proof. I also had the withdrawl slip from the bank.

In the end, everything turned out fine. The seller was a very nice gentleman. After spending five hours with him driving to his lake, doing a boat test, going through the paperwork, etc. he said he didn't feel the need to count the cash...although his wife counted it (i would have too!) I'm not sure that cash was the most secure way for the sellers...I could easily have given them counterfeit bills.

Most importantly...the boat is great! It's a 2003 Sunscape 21 LSV. Very happy.