Top Tips When Buying a Used Boat: What Every Buyer Should Know

In 2018 alone, over 970,000 used boats found new owners, a testament to the bustling market for pre-owned vessels. With new boats depreciating significantly in their first few years much like cars, buying a used boat can be a financially savvy move. Plus, with some late-model used boats still carrying a transferrable factory warranty, you could score both reliability and value.

Buying a used boat is an adventure in itself, from assessing what you need to asking the right questions before purchase. Alongside tips for buying a boat, I'll help you navigate the essentials—from understanding the costs to the perks of purchasing a used boat—and what to look for to ensure you're making a sound investment.

Assessing Your Boating Needs

Assessing your boating needs is crucial before diving into the market for a pre-owned vessel. Here are key points to consider:

• Boating Activities and Usage:
  • Determine your primary boating activities. Are you interested in cruising, fishing, swimming, or water sports like skiing and wakeboarding?
  • Factor in the number of passengers you plan to accommodate regularly to ensure comfort and safety.
  • If engaging in water sports, a strong low-end torque is essential for activities such as skiing or wakeboarding, whereas entertaining a larger group may require more horsepower to carry the load.
• Type and Size of Boat:
  • Decide on the type of watercraft that aligns with your lifestyle. Options include sailboats, powerboats, fishing boats, pontoons, and more.
  • Consider the size and age of the boat. Larger boats offer more space but can be more challenging to handle and maintain.
  • Non-negotiable characteristics: Identify must-have features and preferred brands known for reliability.
• Maintenance, Location, and Budget:
  • Maintenance: Reflect on whether you're willing to perform maintenance and repairs yourself or if you'd prefer to pay for professional services.
  • Storage: Contemplate the boat's location—will you trailer it or dock at a marina? Remember, trailering requires a suitable vehicle and additional equipment.
  • Budget: Set a spending limit that includes not only the purchase price but also accounts for repairs, insurance, mooring/storage fees, and ongoing fuel/maintenance expenses. It's wise to reserve 10-15% of the boat's cost for maintenance and repairs, plus 5-10% for insurance.
    
    When considering these factors, ask yourself pertinent questions such as the types of waterways you'll navigate, the boat's purpose, the type of water (saltwater vs. freshwater, calm vs. rough), and how often you'll use the boat. Keep in mind current market trends, as prices may be influenced by external factors like the pandemic. Remember, a well-informed decision will lead to countless enjoyable days on the water.

Understanding the Costs Involved

Understanding the various costs involved in buying a used boat is essential to ensure you're making a wise financial decision. Here's a breakdown of what to expect:

Initial and Ongoing Costs

• Purchase Price: The price of a used boat varies based on size, type, age, and condition. Remember, a used boat can be 28% to 34% less expensive than its new counterpart, but it's crucial to research the market for price comparisons.
• Maintenance and Repairs: Set aside approximately 10-15% of the boat's purchase price annually for maintenance and repairs to keep it in good condition.
• Storage: Costs for marina or dry stack storage can range from a few hundred to over a thousand dollars per month, depending on the location and type of storage.
• Insurance: Annual boat insurance may cost several hundred to over a thousand dollars, varying by state and coverage.
• Operation: Fuel, equipment, and accessories add to the running costs. Aluminum fuel tanks may need replacement due to corrosion, unlike poly tanks.
• Certification and Registration: Budget for necessary boating licenses, Pleasure Craft Operator Card, and other certifications.
• Depreciation: Boats depreciate over time, affecting their resale value.

Financing and Budgeting

• Loans and Financing: Explore boat loans, personal loans, or dealership financing to manage costs effectively.
• Budget Planning: Include insurance, repairs, delivery, trailer costs, and slip fees in your budget to prevent overspending.

Additional Considerations

• Inspection: Hiring a mechanical inspector, especially for high horsepower engines, can prevent future costly repairs.
• Accessories and Extras: Account for the cost of water sports equipment and other add-ons.
• Professional Appraisal: Consider a professional appraisal for an accurate estimate of the boat's value and future repair costs.
  
  By carefully planning and accounting for these expenses, you'll be better prepared for a financially sustainable boating experience. Remember to factor in the long-term ownership costs that can accumulate and potentially exceed the initial purchase price.

Inspecting the Boat's Condition

When buying a used boat, inspecting the boat's condition is a critical step to ensure you're making a sound investment. Here's what to look out for:

Structural Integrity and Exterior Check

• Transom: Verify the transom is solid by checking for rot, especially where the outboard motor mounts.
• Hull: Look for dents, dings, and loose rivets. Pay close attention to the hull below the waterline for signs of damage or repair.
• Deck: Test for soft spots by walking around and pressing down with your foot, particularly in high-traffic and wet areas.
• Gelcoat and Paint: Examine for blemishes and inconsistencies, which could indicate patch jobs or previous damage.

Engine and Mechanical Inspection

• Engine Start: Run the motor to check for water pumping, unusual noises, and smoke in four-stroke motors.
• Fluids: Inspect the gear lube color in the lower unit for water contamination, and check engine oil for metal particles.
• Mechanical Operations: Ensure smooth raising, lowering, and steering of the motor. Listen for abnormal sounds from the trim pump.

Interior and Electronics Evaluation

• Electronics: Confirm that all installed electronics are operational.
• Upholstery and Deck Carpet: Check for rips or mold, which can lead to more costly repairs.
• Safety Equipment: Verify the condition and expiration dates of safety gear, including fire extinguishers and life jackets.

Trailer and Additional Equipment

• Trailer: Assess for rot, severe rust, and the condition of tires and bearings.
• Maintenance Records: Review these records to gauge regular upkeep.
• Appraisal: Consider a professional appraisal for a comprehensive evaluation.
  
  Remember to have a mechanic inspect the motor if you're not equipped to do so, and always consider hiring an accredited marine surveyor for a detailed inspection. Keep in mind the cost of any necessary repairs when negotiating the purchase price.

Conducting a Sea Trial and Getting a Marine Survey

Conducting a thorough sea trial and obtaining a marine survey are indispensable steps when buying a used boat. These actions are not merely formalities; they are your best defense against purchasing a vessel with hidden problems that could lead to costly repairs down the line. Here's how to approach each:

Sea Trial

• Performance Testing: Take the boat out on the water to test its performance. Pay attention to the engine's operation, speed, maneuverability, and any vibrations. This is also the time to test all onboard systems that can only be assessed while the boat is in use.
• Real-World Conditions: Bring along family or friends to simulate typical usage. A boat that performs well with a light load may handle differently when fully loaded. As both driver and passenger, assess visibility, comfort, and how the boat responds to turns and rough conditions.
• Detailed Checklist: Prepare a list of items to inspect during the sea trial, including:
  • Engine startup and idling
  • Responsiveness to throttle and gear shifts
  • Handling in various sea conditions
  • Effectiveness of onboard equipment
  • The boat's behavior when shifting weight or planning

Marine Survey

• Professional Assessment: A marine surveyor will provide an objective evaluation of the boat's condition, using a standard checklist to ensure nothing is overlooked. This includes the structural integrity, mechanical systems, and safety equipment.
• Value and Condition: The surveyor can also offer an estimate of the boat's value and suggest potential repairs, which is invaluable for price negotiations.
• Financing and Insurance: If you're financing the purchase through a bank or boat loan, a marine survey is usually required. It's also often necessary for insurance purposes.

Pre-Purchase Inspection

• Mechanic's Approval: Before finalizing the deal, have a certified outboard mechanic drain the gear case, pressure check it, and give their approval. This step could save you from future headaches.
• Captain for Hire: If you're not experienced, consider hiring a captain for the sea trial. They can provide valuable insights, help with docking tips, and familiarize you with the boat's features.
  
  By adhering to these steps, you'll be in a strong position to make an informed decision on your boat purchase. Remember, a sea trial and marine survey are about more than just a test drive; they're about ensuring the boat you're considering is both a joy and a safe investment for your future on the water.

Negotiating the Purchase and Final Considerations

Negotiating the purchase of a used boat requires a strategic approach to ensure you get the best value for your money. Here's how to navigate the final steps:

Preparing for Negotiation

• Research Market Value: Start by looking up the NADA book value and recent sales histories for the boat's year and model to understand its market value.
• Initial Offer: Make a respectful yet low initial offer, considering the cost of any necessary repairs and the value of unwanted accessories.
• Mechanic's Approval: Insist on a conditional agreement pending a certified outboard mechanic's inspection to avoid future costs on unforeseen repairs.

During Negotiation

• Cash Advantage: If possible, offer cash to leverage a quicker sale and potentially lower the price.
• Extras and Accessories: If the price won't budge, negotiate for extras to be included or for a discount by removing unwanted accessories.
• Emotion Control: Maintain a calm demeanor and avoid showing too much attachment to the boat to keep the upper hand in negotiations.

Finalizing the Deal

• Documentation: Ensure all paperwork is in order, including a clear title, purchase agreement, and registration following legal requirements.
• Insurance and Warranties: Check with your insurance for coverage and discuss any available warranties or service contracts.
• Written Agreement: Once a price is agreed upon, document the final price, agreed repairs, upgrades, and delivery date in writing.
  
  Remember, being prepared to walk away is a strong negotiation position. Consult the comprehensive post on buying a used yacht for additional insights and ensure a worry-free purchase.

Buying a Used Boat Checklist

Before you finalize your decision to purchase a pre-owned boat, it's essential to conduct a comprehensive checklist to ensure you're making an informed and safe investment. Here's a detailed checklist to guide you through the process:

Documentation and Legalities

• Registration and Title: Check that the boat's registration and title accurately reflect the seller's name and address.
• Hull Identification Number (HIN): Confirm that the registration numbers align with the boat's make, model, and HIN.
• Trailer Legality: Verify that the trailer's inspection sticker or placard is up-to-date.
• Sales Documentation: Review the bill of sale, insurance papers, and ensure there are no outstanding liens or money owed.
• Engine and Kilometers: Match the engine hours and kilometers with the details mentioned in the sales contract.
• Warranty: Inquire about any existing warranty and obtain the relevant documentation.

Mechanical and Structural Integrity

• Engine Check: Listen for unusual noises when starting the engine and have a mechanic confirm engine hours with a scan tool.
• Battery Inspection: Ensure the battery is securely anchored and check for any signs of damage or corrosion.
• Electrical Systems: Test all electronics, including radios, GPS, radar, and lights, and inspect wires for damage or corrosion.
• Seacocks and Intake: Examine levers on every seacock and inspect the raw water intake and strainer for blockages or damage.
• Hull and Deck: Tap the fiberglass/laminate for hollow sounds, check for scratches, cracks, and inspect the condition of the zinc anodes.

Interior and Safety Equipment

• Upholstery and Appliances: Check seating for mold or tears, test all appliances, and ensure they are securely mounted.
• Lighting and Navigation: Test interior and exterior lights, navigational equipment, and ensure the marine radio functions properly.
• Safety Gear: Inspect life jackets, flares, the heaving line, lifebuoy(s), and first aid kit for condition and expiration dates.
• Fire Extinguisher: Verify that the fire extinguisher is within its expiry date and properly charged.
• Bilge Pump: Test the bilge pump to ensure it's operational and free of blockages.
  
  By meticulously following this checklist, you'll be better equipped to assess the value and condition of the pre-owned boat you're considering. Remember, it's always beneficial to consult with professionals, such as accredited marine surveyors and certified mechanics, to conduct a thorough inspection and fluid analysis test, especially for larger vessels. This due diligence will help you navigate the complexities of purchasing a used boat with confidence.

Is a Pre-Owned Boat Right for You?

Deciding whether a pre-owned boat is the right choice for you involves weighing various factors, including budget, preferences, and the value you seek from your investment. Let's explore the considerations that can guide your decision-making process:

Budget and Value

• Budget Considerations: With a budget of around $20,000, like Nick, you're positioned to explore a range of pre-owned boats. It's essential to remember that used boats are generally priced 28% to 34% below the cost of new boats, potentially offering more boat for fewer dollars.
• Cost vs. Age: Preferring a boat no more than 5 years old could lead to a higher price tag but may also provide you with newer technologies and fewer maintenance concerns.
• Warranty Benefits: Look for warranties that transfer to the second owner and aren't pro-rated, as this can offer additional peace of mind and potential cost savings on repairs.

Dealer Advantages and Concerns

• Reconditioning: When buying from a dealer, like Nick intends to, inquire if they recondition trade-ins and disclose any broken items. This transparency is crucial to avoid unexpected repairs.
• Test Drives: Ensure the dealer allows test drives, which are vital to assess the boat's performance and identify any issues not apparent during a dry inspection.
• Undisclosed Issues: To mitigate concerns about traveling and finding undisclosed problems, ask for detailed reports or video walk-throughs before visiting.

Comparing New vs. Pre-Owned Boats

• New Boat Appeal: Buying new means enjoying the latest technology and innovations, a clean history, and the thrill of being the first owner. A manufacturer's warranty offers additional security.
• Pre-Owned Boat Advantages:
  • More boat for fewer dollars and less cost per year of ownership.
  • The initial depreciation hit has already been absorbed by the first owner.
  • Existing wear can reduce the worry about adding the first scratch or ding.
  • Any initial bugs or issues are likely already identified and addressed.

Professional Assistance

• If you're uncertain about navigating the used boat market, professional services are available to help find a pre-owned boat that meets your specific needs and expectations, including:
  • Identifying potential vessels that fit your criteria.
  • Arranging inspections and surveys.
  • Assisting with the negotiation process.

In summary, while a new boat offers the excitement of the latest features and a warranty, a pre-owned boat can provide significant savings and value. Consider the trade-offs and decide which factors—whether it's budget, technology, peace of mind, or something else—hold the most weight for your boating aspirations.

Conclusion

The journey to owning a pre-owned boat is laden with important considerations, from understanding the nuanced costs involved to scrutinizing the vessel’s condition, and finally to the strategic negotiation for purchase. These collected insights aim to arm potential buyers with the necessary tools to make an informed and judicious decision that aligns with both their maritime dreams and practical realities. Remember, the wisdom in picking the right boat extends beyond the initial thrill; it's about long-term satisfaction and smart financial planning.

As we anchor our discussion, let us reaffirm the empowerment that knowledge and preparation provide when embarking on the adventure of buying a used boat. With a checklist in hand and an eye for detail, the vast seas of opportunity await. For those ready to set sail towards finding their perfect pre-owned vessel, explore your options with us. Let your newly acquired expertise guide you to smooth waters and fulfilling voyages or reach out to us here to help point you in the right direction.

FAQs

What should I look for to determine if a used boat is a good purchase?

To assess whether a used boat is worth buying, you should follow a thorough inspection checklist, which includes:

• Examining the transom for good condition and no rot, especially where the outboard motor is mounted.
• Testing the strength and condition of the boat's floor.
• Inspecting the hull for any damage or issues.
• Running the motor to ensure it operates smoothly.
• Checking the lower unit for any problems.
• Evaluating the motor tilt and trim functions.
• Testing the boat's lights and any other miscellaneous components.
• Researching the boat's price to ensure you're getting a fair deal.

What common errors should I avoid when purchasing a used cruiser boat?

When buying a used cruiser boat, try to avoid these mistakes:

• Not thoroughly assessing the boat's overall condition and the amount of work it may need.
• Overlooking a detailed inspection of the engine and transom.
• Underestimating the importance of the hull's integrity.
• Misjudging the condition of the deck.
• Not checking the controls meticulously.

How can I protect myself during the purchase of a used boat?

To safeguard yourself when buying a used boat, consider the following steps:

• Always get a written contract, as it's easier to enforce.
• Arrange for a pre-purchase survey to inspect the boat's condition by a professional.
• Conduct a sea trial to test the boat's performance on the water.
• Be cautious about purchasing a boat "As-Is."
• Set a clear budget for your purchase.
• Review any warranties that may come with the boat.
• Consider service contracts for future maintenance.

What are the initial steps to take when considering the purchase of a boat?

When you're in the market for a boat, start with:

• Researching to understand your needs and budget, and look for the best loan rates if you need financing.
• Shopping for the boat, keeping your requirements in mind.
• Taking your top boat choices for a sea trial, which is essentially a test drive on water, to see how they perform.