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Trading a Boat


scott51580

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I have ordered a new vlx from my dealer about a month ago and am trading my current malibu in on it. My dealer wanted $5,000 down and to have my boat in his possession before ordering the new one. Is this normal? Has anyone else ever had to do this? I am still having to make payments on it until I get my new one and I am boatless for a while.

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I don't understand the dealer's reasoning either. The fact that the boat is setting on his lot means little if it's still titled to you.

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If you are still making the payments on the old boat, I'm guessing you still own it (you and the bank, who is probably holding the title). The dealer can not sell a boat he doesn't have title to, so I don't see why he would have to have it in his possession.

Sounds a little odd...so he has your boat now?

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I have ordered a new vlx from my dealer about a month ago and am trading my current malibu in on it. My dealer wanted $5,000 down and to have my boat in his possession before ordering the new one. Is this normal? Has anyone else ever had to do this? I am still having to make payments on it until I get my new one and I am boatless for a while.

My only comment about still making payments on the old boat is that won't this just be that much less you have to pay off on your current loan once you get your new boat? So you will owe the bank less money at one time, and you can then turn and put that money towards the new boat.

Also, did the dealer give you a quote on your old boat already? If so, I can see him wanting the boat so that you don't put hours on it, damage it, stuff like that, and then wonder why he gives you a lower quote when you get your boat than what he quoted you before.

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I have ordered a new vlx from my dealer about a month ago and am trading my current malibu in on it. My dealer wanted $5,000 down and to have my boat in his possession before ordering the new one. Is this normal? Has anyone else ever had to do this? I am still having to make payments on it until I get my new one and I am boatless for a while.

My only comment about still making payments on the old boat is that won't this just be that much less you have to pay off on your current loan once you get your new boat? So you will owe the bank less money at one time, and you can then turn and put that money towards the new boat.

Also, did the dealer give you a quote on your old boat already? If so, I can see him wanting the boat so that you don't put hours on it, damage it, stuff like that, and then wonder why he gives you a lower quote when you get your boat than what he quoted you before.

If that's the dealer's reasoning, he needs to go ahead and write a check and buy the boat, so you don't have the associated payments (with interest) to make while you are waiting on the new one...and boatless

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I thought about this a little more...guys like this really pi$$ me off. Mad.gif

I'd go get it and use it. If 5k down can't get a new boat ordered, the dealer should pack it in. I could see him asking you to prove the boat insured or something like that, but this is ridiculous.

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Even if the boat is unisured and you run it into a bridge, it's of no concern to the dealer..it's not his boat. You've put 5K down, that should be enough to assure him you are not going to back out of the deal.

If you trash the old one between now and when the new one gets here, I'm sure the dealer is under no obligation to pay you what he previously quoted you on the boat.

Has he already given you a trade in figure?

I agree with TomSawyer...go get your boat and use it until the new one gets here

EDIT: Since you owe on the old one, I'll assume the bank is requiring that is be insured, which is another expense you don't need to pay if the dealer has your old boat hostage

Edited by rts
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I thought about this a little more...guys like this really pi$$ me off. Mad.gif

I'd go get it and use it. If 5k down can't get a new boat ordered, the dealer should pack it in. I could see him asking you to prove the boat insured or something like that, but this is ridiculous.

Does anybody else know if there is a difference between trading in a boat and selling a boat all by itself. If it's easier to do a trade in, that could be why he won't just cut a check. Then it wouldn't be a trade in, it would be two separate sales. Also, if the dealer wrote in the cost of the trade in on the contract, then he would be obligated to give you that money when your boat get's here. He could get out of it, but keeping the boat until then makes it easier for him. If he told you this before you signed the contract on the new boat, then you can't blame the dealer.

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I thought about this a little more...guys like this really pi$$ me off. Mad.gif

I'd go get it and use it. If 5k down can't get a new boat ordered, the dealer should pack it in. I could see him asking you to prove the boat insured or something like that, but this is ridiculous.

Does anybody else know if there is a difference between trading in a boat and selling a boat all by itself. If it's easier to do a trade in, that could be why he won't just cut a check. Then it wouldn't be a trade in, it would be two separate sales. Also, if the dealer wrote in the cost of the trade in on the contract, then he would be obligated to give you that money when your boat get's here. He could get out of it, but keeping the boat until then makes it easier for him. If he told you this before you signed the contract on the new boat, then you can't blame the dealer.

Can't blame the dealer?

The dealer took advantage of the OP because he didn't know any better. That's why he's here asking us if this is normal, and, I think it's already safe to say that the consensus is that it's not. The longer the dealer drags his feet, the more money he makes. Why? Because he can sit on the 5K and earn interest until he feels like actually ordering the new boat and paying for it.

I think sometimes the dealers enjoy too much power. When we can't choose our dealer, it put's the dealer in a strong position to take advantage of us (and I'm not saying every dealer does.) Whatever happened to the customer coming first?

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Can't blame the dealer?

The dealer took advantage of the OP because he didn't know any better. That's why he's here asking us if this is normal, and, I think it's already safe to say that the consensus is that it's not. The longer the dealer drags his feet, the more money he makes. Why? Because he can sit on the 5K and earn interest until he feels like actually ordering the new boat and paying for it.

I think sometimes the dealers enjoy too much power. When we can't choose our dealer, it put's the dealer in a strong position to take advantage of us (and I'm not saying every dealer does.) Whatever happened to the customer coming first?

Either I'm reading it wrong or you are, but I'm under the impression that he gave the 5k, his boat, and the dealer has already ordered the new boat. He is just waiting on it to be built and take delivery.

My point of, you can't blame the dealer now, is that this question should have been raised with the dealer before the boat was left with him. Ask the dealer, "Why do you want to keep my boat until the new one get's here?" I'm going to bet that the reason the dealer wants to boat there right now is that it's spring. People are buying their boats now. He probably wants it on their property so that he can get someone to look at it. If he waits a month until the delivery of the new boat has happened, then he has missed out on all those customers that could have purchased that boat.

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I think the answer depends on the dealer's intention. Most dealers want at least 10% down to order a new boat. That is normal. So, the $5k down seems right to me.

The dealer might want your boat to try to sell before the summer gets into full swing. I'm sure if he is taking it in trade, he is going to pay for the boat when you bring it in. If not, then I agree with everyone else that something isn't right.

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IMO...The dealer made the deal based on the $$ down AND the condition of the trade in at the time. If the deal was made for the trade in at the time of delivery, that would be different. I think the dealer is protecting himself and the customer by having the boat in the same condition now as when the new boat is delivered. As far as the dealer knows, the customer might put 100 more hours on the boat before the new one gets here making the boat worth less $$. I do not agree with the customer making payments on the boat after he delivered it to the dealer unless the final papers weren't signed and the deal is where the customer can back out.

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Take the time sell it. I order my new 247(hopefully in next week) 8 weeks ago. I put my old boat in the boat trader (online and magazine), I didn't get a call for three weeks. Fourth week, my phone didn't stop ringing, sold it to the first guy who saw it. I got what I was asking, which was several thousand more than trade-in value. I'm still getting calls even though it's out the ad.

Moral of this- It's prime time to sell your boat, as long as your not asking for a ridiculous amount, you should have not problem doing so. My Malibu dealer to me the factory has sold out for the year. Should help the used market. Good luck.

P.S.- If you haven't already, take the time to detail it, and change oil, plugs, filter, etc. Have it ready for the next owner to enjoy. It will go far in the sale, worked for me.

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If you sell it outright, make sure to check the amount of taxes in the difference between trade in and selling. With the trade, you will owe taxes on the difference between the two boats. On an outright sale, you'll owe taxes on the full amount of the purchase of the new boat. Some dealers will do what's called an "In & Out" where the dealer handles the sale for the customer to the buyer.

Also expect the price of the new boat might go up some because the dealer will not have the $$ to be made on his sale of the old boat.

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I don't think it is a conspiracy on the dealer's part. If his customer can live without the boat, why not get it on the lot during the hot sales period. If he sells it, he pays off the bank note and the title transfers. If the buyer agreed upon a trade value/deal, it makes sense to get the trade on the lot as soon as possible.

I think it is fair to ask for something in return (discount, etc) because the dealer has not tied up any capital in the buyer's old boat until the new boat arrives and the old boat has not sold. Another option is for the dealer to list trade for sale on a board (picture) on the sales floor and let the buyer keep it. Then show the boat as interested buyers come about.

There is always a risk that the boat could be damaged prior to the arrival of the new boat. I would set some limits on the trade if I were the dealer (hours, condition, etc) to protect the deal.

In my opinion, you are always going to do better selling it yourself. But there is something to be said for the ease of a trade-in transaction. In a trade situation, I try to work with the dealer to get the boat sold as fast as possible and expect something extra for my cooperation. The dealer does not want to tie up working capital in a large stock of used boats.

Good luck.

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Can't blame the dealer?

The dealer took advantage of the OP because he didn't know any better. That's why he's here asking us if this is normal, and, I think it's already safe to say that the consensus is that it's not. The longer the dealer drags his feet, the more money he makes. Why? Because he can sit on the 5K and earn interest until he feels like actually ordering the new boat and paying for it.

I think sometimes the dealers enjoy too much power. When we can't choose our dealer, it put's the dealer in a strong position to take advantage of us (and I'm not saying every dealer does.) Whatever happened to the customer coming first?

Either I'm reading it wrong or you are, but I'm under the impression that he gave the 5k, his boat, and the dealer has already ordered the new boat. He is just waiting on it to be built and take delivery.

My point of, you can't blame the dealer now, is that this question should have been raised with the dealer before the boat was left with him. Ask the dealer, "Why do you want to keep my boat until the new one get's here?" I'm going to bet that the reason the dealer wants to boat there right now is that it's spring. People are buying their boats now. He probably wants it on their property so that he can get someone to look at it. If he waits a month until the delivery of the new boat has happened, then he has missed out on all those customers that could have purchased that boat.

Remember that money is usually the motivator. If the dealer has your boat on his lot and sells it before you take delivery, he will not be out of pocket any money while waiting for a buyer after delivery. IMHO I would hang on to it until the new boat is ready for delivery, Maybe even run an add while you wait. The boat is as good as cash and I would want to maintain control and keep my options open. Just my $.02

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If you sell it outright, make sure to check the amount of taxes in the difference between trade in and selling. With the trade, you will owe taxes on the difference between the two boats. On an outright sale, you'll owe taxes on the full amount of the purchase of the new boat. Some dealers will do what's called an "In & Out" where the dealer handles the sale for the customer to the buyer.

Also expect the price of the new boat might go up some because the dealer will not have the $$ to be made on his sale of the old boat.

This doesn't hold true in some states. CA for example, you pay the sales tax on the new vehicle/boat - trade in does not matter.

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If you sell it outright, make sure to check the amount of taxes in the difference between trade in and selling. With the trade, you will owe taxes on the difference between the two boats. On an outright sale, you'll owe taxes on the full amount of the purchase of the new boat. Some dealers will do what's called an "In & Out" where the dealer handles the sale for the customer to the buyer.

Also expect the price of the new boat might go up some because the dealer will not have the $$ to be made on his sale of the old boat.

This doesn't hold true in some states. CA for example, you pay the sales tax on the new vehicle/boat - trade in does not matter.

Scott lives in Texas, I'm not sure about other states (not too sure why anyone would live in another state for that matter) Tongue.gif

(j/k) no flames please...

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O.k, I will do my best to answer all the questions asked, but let me first say that I am not bashing the dealer at all, they have been good to work with and really nice people. Maybe I am overreacting.

My boat is at the dealer now and has been for the past month and I have given them $5,000 down and signed and order for the new boat. The reason I traded it in is because they gave me close enough to what I needed to get for it and the difference in the sales tax I will have to pay made up the difference. The dealer did give me an amount he would give me for my boat at the time we signed the order paper work. The dealer cannot actually do the trade until my new boat comes in, so I am still making payments on it and it is still insured. By the time it is all said and done I will have made 2 boat payments and 2 insurance payments and will be out another $1,000.

I guess I should have thought it through a little better before I made the deal and left my boat there to continue making payments on it. What bothers me the most is that they said they would not start marketing my boat until I had my new boat. They said they were going to park it in the barn and leave it there until the new boat came in, but several buddies of mine have gone by the dealership (the dealership is in a different town from where I live) and my boat is now sitting out in front of the dealership and they are marketing it at my expense and of course asking way more than what they said they were going to price it at. I guess it would not bother me as much if they had called and asked if they could start marketing my boat, while it is still mine.

Thanks for the feedback everyone!

I DO LIVE IN THE GREAT STATE OF TEXAS WHERE YOU ONLY PAY TAXES ON THE DIFFERENCE IN THE TRADE. :) Thanks Ronnie

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The reason I traded it in is because they gave me close enough to what I needed to get for it and the difference in the sales tax I will have to pay made up the difference.

The dealer cannot actually do the trade until my new boat comes in, so I am still making payments on it and it is still insured.

These are the two keys to it....

Your trade in does not cover the required down payment on the new.

If you were rightside up on your boat, I would have an issue with the 5k...but that does not seem like the case.

Dave

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I dont have an issue with the 5,000, its that they have my boat too.

I agree...I would think if they had your boat on the lot, they would want to be able to sell it, hence they would want to own it, freeing you up from paying a payment and insurance on the thing.

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