Buying and Selling Making – a Sound Investment In a New or Used Boat

Boat Buying Guide will help you make an informed choice when it comes time to purchase a vessel. First, determine the primary purpose of the boat: fishing, leisure, or sports activities. Consider the size and type of the boat to ensure comfort and safety. It’s also essential to pay attention to the condition, age, and technical specifications of the craft. Don’t forget to take a test drive to evaluate handling and maneuverability.

Choosing the right boat will bring you countless unforgettable moments on the water. Additionally, researching financing options and insurance will further ease the buying process and enhance your overall experience.

Introduction

It has often been said that the happiest day in the life of a boat-owner is the day he buys his boat, and the next happiest day is the day he sells it. Although we would hope that there would be many happy days in between, the fact that there is an element of truth in this statement implies that there is sometimes a bitter-sweet aspect to the relationship between a boat and her owner.

The purchase of a cruising sailboat is one of the two largest financial commitments that most sailors will make in a lifetime, second only to the purchase of a home. But while the decision to buy a particular home may be reached after weeks or months or even years of careful consideration (and a lifetime of experience with houses), the decision to buy a particular boat is often reached after a few hours or a day at the boat show (usually with somewhat less personal experience). Perhaps it is the impulsive-ness with which we tend to buy luxury items (boats, especially) that is responsible for this bittersweet relationship.

Volume V, Buying and Selling does not attempt to deter the boat buyer from acting on his impulses. To do so would dampen the excitement of buying a boat and the joy of owning it. Instead, the purpose of this volume is to temper the buyer’s impulses with the collective experience of many of boating’s most knowl-edgeable authors – to help you to choose the right boat, and to help you to buy that boat right.

We trust that Buying and Selling will help you to achieve the perfect marriage of boat and boatowner, and that you will enjoy the continuing coverage of these topics in The Practical Sailor, from which most of this material was edited.

How and Where to Start Looking

The Boat Buyer’s Dilemma

Of all the queries that The Practical Sailor receives from readers, the most common question is: «What new boat should I buy?» This is never an easy question. The answer depends on the buyer’s budget, his intended use of the boat, his experience level, the area where he will use the boat, and a host of other factors. Invariably, our response includes another question: Why buy a new boat at all? Why not buy a used boat?

Why, indeed? Is a new boat a better buy? Does it have more value? What are the practical considerations, and what are the differences between a new-boat purchase and the purchase of an «experienced» vessel?

In an effort to look at these question objectively, we have divided the basic considerations into four categories:

• condition;
• price;
• equity;
• and something more subjective we call history.

Each is worthy of a detailed description.

Condition. When you buy a new boat you can rightfully expect her to be structurally sound and cosmetically beautiful. With a used boat there will be suspicions about her structural soundness, and there are almost certain to be cosmetic flaws. In the new boat you have paid for the perfection; in the used boat the flaws have saved you money.

Asused here, «structurally sound» refers to the hull and deck structures, interior bulkheads, ballast and rudder attachment, fuel and water tanks, the engine (including the mounts, shaft, and exhaust system), the rig, the steering system, and so forth. Buyers should be less concerned with the condition of deck hardware, electronics, sails, and exterior trim. Although not cosmetic features, they are, unlike serious structural problems, repairable or replaceable.

To determine whether a used boat has structural problems requires a professional survey. What a survey consists of and whether a prospective owner should have one done on a boat he is considering will be covered in greater detail in Chapter 6.*

Unless a survey is required for financing or insurance, however, the rule of thumb we use is that on production boats less than 30 feet, the cost of a professional survey (plus the costs of hauling and relaunching) are probably unwarranted. The history of structural problems with such boats may either be common knowledge or obtainable. Moreover, the relative sim-plicity of smaller boats makes defects more evident. Boats of this size certainly should be examined thoroughly, but the cost of a formal survey is often unwarranted. (The exception to this rule is that an inboard engine should be evaluated in any case, either by a surveyor, a mechanic, or both.)

In general, our advice is not to Reasons Why You Should Buy a Boat and the Financial Sidebuy a boat with structural problems, even if the price seems low enough to permit profes-sional repair. Estimates for the repair of problems such as a fin keel showing signs of separating from the hull, delamination in the hull or deck, or loose tabbing on structural bulkheads and the like, may not approach the final cost of repairs by the time the full extent of the problem is discovered.

By contrast, the cost of repowering, rerigging, or replacing a suit of sails is a predictable expense that can be weighed against the purchase price. Given the difficulty an owner will have in selling a boat with such fundamental but correctable defects, the purchase price plus the cost of replacement may make the used boat a bargain.

Cosmetic problems are another story. Chalky or scuffed gelcoat, weathered wood trim, stained hardware, mildewed lockers, an oily bilge, faded sail covers, and the like create an initial impression that turns off almost any buyer. These cosmetic problems may have turned away a number of prospects before you lookat the boat, a fact of which the seller is well aware. The result is that the price of a rough-looking boat is apt to be reasonable and negotiable.

The good news about cosmetic faults is that most do not need an immediate remedy. As a result, the outlay of money can be delayed if the buyer is already strapped from the outlay of the purchase price. Moreover, improving the appearance of a boat can be to some extent a customizing process; professionally refinished topsides can be a new color, and custom fabrics can give a new look belowdecks.

Although not truly a cosmetic matter, the condition of sails falls into a similar category. Most used boats do not need a whole new inventory of sails. Yet sails do deteriorate faster than any other part of a boat, with the possible exception of outboard auxiliary motors. Working sails more than five years old and racing sails have marginal value, as they will likely need replacement, sooner rather than later. That cost, however, can be deferred and the choice of new sails can be based on some experience with the boat.

There is some validity to the notion thata boat in rough shape cosmetically is a symptom of an owner who has not maintained her properly. If he has not bothered to oil his teak, has he bothered to change the oil in his engine? On the other hand, an owner who has treated his boat like a piece of furniture is apt to price it like a valuable antique. In looking for a used boat, the best course seems somewhere in between these two extremes. Look for the used boat that shows evidence of quality add-on hard-ware, a clean engine, and locker bottoms free of clutter. These are all indications of an owner who has cared about the basic integrity of his boat, even though he may not have been particularly concerned about the general appearance.

Price. The exercise of pricing out a new boat can be a daunting experience for a prospective buyer. With options, (some of which the boat cannot be sailed without), and add-ons (shipping, commissioning, taxes), plus the limited degree to which price can be negotiated by the dealer, merely getting to the bottom line can be something of a marathon.

Pricing out a used boat can be just as daunting, but for very different reasons. A buyer soon learns that every seller quotes a price above what he will take, and few sellers provide an accurate inventory of what that price includes. As a result, the buyer and seller should be prepared to haggle over the details with offers and counteroffers.

Daunting as this may be, it has the advantage to the buyer that he can negotiate at least a fair price – perhaps even a bargain. Often boat sellers need to sell because they want – or already have – a new boat or they face further expense in owning the boat such as insurance, dockage, or yard bills.

Lots of factors affect used boat prices:

• location;
• season;
• interest rates;
• the number of potential buyers,

availability of the same or similar boats on the market, and so on. Most work in favor of the buyer who takes the time and effort to look for the right boat at the right price. That is one key difference between the new-boat buyer and the used-boat buyer; the Buying a Used Boat: What to Look for, Tips for the Buyerused-boat buyer may be surprised at how little he ends up paying for the boat he wants, whereas the new-boat buyer is more apt to be surprised by how much he ends up paying for his boat.

Equity. As important as purchase price is, the matter of equity is more important. It is one thing to get a good deal on a boat; it is quite another to be able to recover the purchase price when the boat is eventually sold.

During the high-inflation period from the mid-1970s to the early 80s, a typical production boat maintained a dollar value approximately equal to her original purchase price. In the more stable economic climate of the mid-to-late 1980s, new-boat buyers have had to expect to suffer some depreciation of the original purchase price. To this must be added the recurring costs of ownership (insurance, dockage, outfitting, etc.), which are, of course, non-recoverable expenses for use of the boat. New gear to upgrade a boat is partially recoverable, usually on a prorated basis. Sails, dinghy, life raft, awning and dodger are examples of expenses that are recoverable to a degree.

Equity is usually better protected in a used boat than it is in a new one, assuming the used boat is well maintained and was purchased at a fair market price. New boats traditionally undergo a marked depreciation their first year or so, often because prospective buyers can get brand new boats for essentially the same price, creating a buyers’ market that depresses the price for such young boats.

By the third year that depreciation should have leveled off and the value of a boat should remain relatively stable. In the meantime, inflation, changes in the design made by the builder, and other market factors may have substantially increased the price for the same boat new.

From the fifth year onward, until styling, performance, and construction methods make the older boat «obsolete», the equity in a boat should hold its own. Eventually it may even improve. The original Pearson Triton sold for $ 10 000 to $ 12 000 when it was new in the late 1950s. In the 1960s, they sold for closer to $ 8 000. In the 1980s, however, despite the fact that the Triton is a «small» 28-footer with indifferent performance and styling, there are buyers willing to pay $ 18 000 for one in good condition because they regard them as classics. The same applies to such other one-time favorites as the:

• Ranger 29;
• the Cal 40;
• the Morgan 30;
• and the C&C 35.

However, such boats are rare and most production boats see a precipitous fall in value after their tenth birthday unless meticulously maintained and upgraded.

To a large degree, the importance of equity depends on the buyer’s plans. Equity is less a concern if the buyer expects to keep the boat for a number of years, and of major concern to a buyer who plans to trade up to a larger boat as soon as possible. The latter should never buy a boat for which there is no ready market and should, apart from scrupulous maintenance, avoid major add-on purchases that may not be recoverable at resale.

In our opinion, the better buy for the long-term may well be a used boat, at least when considered from the standpoint of protecting equity.

History. With the advent of the fiberglass production cruiser in the late 1950s, boatbuilding was revolutionized. Styling, performance, livability, and price have changed dramatically in the last 25 years; construction and function (how the boats are used) have changed little, if any. There is as yet no evidence that boats built in the early days of fiberglass were built any better than production boats today. True, today the hardware is better, the boats are lighter, belowdecks they are more spacious, comfort and amenities are greater, and auxiliary engines are diesel, all of which understandably make them more appealing to buyers looking for a «modern» boat. But there is a nagging feeling that the traditional appearance of the old Vanguard, for example, has helped to maintain her market value, and the more ephemeral styling of modern boats may hasten their decline in value as fashions change.

Don’t however assume that traditional appearance assures retention of value. The Westsail 32 was as traditional as could be, yet many owners lamentably found that the trade-off for such styling was in performance, and the Westsail was soon replaced by better traditional boats such as the Valiant line. Few production boats have suffered the resulting depreciation of the West-sail; theirs is strictly a buyers’ market.

Thus history has a lesson of advantage to the boat buyer. Time has tended to sort out the good boats from the poor. Lines of boats as well as builders have acquired reputations that seem, for the most part, justified. The world knows that the otherwise popular Out Island 41 does not sail to windward worth a hoot, that the Ericson 39 tends to be fragile, that the C&C 35 is a speedster in light winds, and that the Pearson 30 is more comfortable in light air than in a breeze. Time has found the weaknesses and strengths of established designs; they can only be guessed at in contemporary craft.

Buyers expect to find problems with a used boat, but new boats usually have problems too. With a new boat, these problems are called:

• «bugs»;
• the teak toerail has a knot that causes it to split;
• the gelcoat crazes at the corners of the cockpit;
• bottom paint (or the gelcoat) blisters;
• the engine vibrates from misalignment; and so on.

Such troubles are typical of even high-quality boats. The builder’s warranty may or may not cover their correction, if indeed complete correction is possible. Often the owner gives up in frustration before a complete cure is achieved.

Once upon a time, the used boat had the same problems, but someone else suffered through the aggravation of having them corrected. Where problems could not be permanently repaired will be evident immediately to the prospective boat owner. Nevertheless, the flaws are not going to appear one by one as they did to the first owner.

Should You Buy New or Used? As in other aspects of life there are no absolutes in the matter of buying a boat. No one can say categorically that it is better to buy new or better to buy used. Still, certain comparisons are possible:

• It is simpler to buy a new boat. The boat (or a sistership) is set up in a clean, well-lighted place and a salesman eager to sell her hovers nearby to answer any question. There is a reasonable assurance that, at delivery, the boat will be clean and in working order, and what is not clean and working is covered by a warranty. In short, buying new is theoretically an exercise in instant gratification. By contrast, the search for a used boat may entail miles of travel, climbing around boatyards and under boat covers in cold dark sheds. Questions may or may not be answered, Even the price may not be clearly stated; more often than not it is simply a starting point for haggling.
• Used boats are cheaper, and a used boat can be more boat value for the money. The same money that buys a new boat will buy a five-year-old boat that is larger or of higher quality. A used boat can be used to increase equity; spend $ 8 000 to refit a neglected 30-footer bought for $ 18 000, and you may have a boat worth over $ 30 000.
• Financing a new boat is easier than a used boat. Banks, marine finance companies and even boatbuilders want to lend money on new boats. They see the new boat as better collateral and their buyers as good risks. The purchase of a used boat may require a personal loan or a second mortgage, and is likely to require a larger down payment.
• With a used boat, the buyer inherits the problems of the previous owner; with a new boat, the problems belong to the builder or dealer. A used boat is bought essentially «asis». A new boat has a warranty, a dealer, and a builder, all ostensibly protecting the buyer.
• The typical used boat is a known entity, with a history, froma builder with a known reputation (whether good or bad); a new boat is an adventure into the unknown.
• A new boat will never be worth more than the day she sails from the dealer’s dock; a used boat may never be worth less than the day you become the owner.

Factory Boat Sales: Better for Buyers?

The increasing number of «factory outlets», from which boat-builders sell boats directly, doing away with their dealer network, has sparked much interest and concern both with buyers and within the industry. Do such outlets save boat buyers money? Does the opening of such an outlet indicate the builder may be facing financial problems?

Replacing part or all of a dealer network with centralized regional sales centers and factory showrooms is the beginning of a trend that many believe will become popular, perhaps eventually replacing the traditional system of boat dealerships. In brief, the builder establishes (or subsidizes in the company name) a sales center with commissioning and service facilities to handle all sales of its boats in a geographical area. This area is usually larger than would be handled by an individual dealer.

In part, the creation of these sales outlets reflects the changing status of boat dealers. As particular areas become saturated with boats so that dockage becomes less available, sales decline and can no longer support a large number of dealerships. Compounding this problem has been high interest rates. Boat-builders may not insist on immediate payment for a new boat from a dealer for a specified period of time; but after that, until the boat is sold the dealer must pay interest on what he owes the builder. Six months of such «floor-planning» can wipe out much of the commission a dealer can make on that boat.

What Factory Outlets Mean to Builders. There are a number of reasons why boatbuilders may investigate the change in marketing to sales centers. One of these is financial trouble that may no longer permit the builder to «carry» a dealer for up to several months before the dealer must pay the builder. More commonly the reason is that the builder believes he can move more boats more cheaply and more efficiently through his own efforts than through the dealers.

By virtue of size and financial structure, the builder is better able to maintain an inventory, not only of the boats themselves, but of parts, optional equipment, and accessories; all of which, because of volume, the builder can acquire at lower cost. In addition, a builder’s outlet can save on both commissioning and after-sale servicing costs.

For the builder, there are some other advantages to direct sales outlets. A sales center, unlike the Yacht Financing: Your Complete Guide to Funding Your Dream Boattypical boat dealer, handles only one builder’s boats. It is set up to optimize their appeal to prospective buyers. These can also be the latest models in the builder’s line – not boats left over from the previous year still awaiting sale.

In turn, the sales and service staff can be experts on those boats and devote all their attention – and their customer’s attention – to them. The latest information on pricing, financing, specifications, options, semicustom modifications, warranties, and upcoming design changes can all be clearly understood. Sales methods can be uniform. Regional advertising is streamlined. Sales policies such as those dealing with used boats taken in trade and with the schedule of payments on boats being purchased can be standardized.

What They Mean to Boat Buyers. But what about the boat buyer? Are there any advantages to the development of sales centers for those in the market for a new boat? The answer is: There Should be, despite the fact that the traditional system of local dealers has, in general, worked well for buyers. There have been real advantages to buyers dealing with members of their own boating community who may have a personal as well as a vested interest in their satisfaction. Similarly local dealers may have a better understanding of the particular problems of buying and owning a boat in their area. Further, the proximity of a local business may be an advantage in the event of a warranty claim or repair, in contrast with a builder or its sales center at some distance.

In short, the familiar dealer network has had some distinct benefits to buyers that may be threatened as the trend toward centralized selling continues. Yet, as both builder and buyer are aware, there are good and bad boat dealers. History has demonstrated that evena quality line of boats can suffer from a network of poorly qualified or uncaring dealers.

At the bottom line, however, is the question whether there is any cost savings to the boat buyer. Quicker delivery, more efficient commissioning, and better after-sales servicing are all very nice; but does the system save on boat costs? The simple answer is: Maybe, but don’t count on it. Instead of a dealer markup of 15 percent or so, there has to be a builder markup of about the same to cover the overhead of running the sales center.

In discussing the concept of sales centers with the head of a major boatbuilding firm, we came away with the clear notion that customers will be getting better service, but not at a lower cost. The one possible exception is that the sales center may offer a higher trade-in allowance for existing boats from the same builder. The sales center may also offer attractive financing, but not necessarily better than a number of finance plans that are available elsewhere.

To what degree this trend will benefit both builders and buyers remains to be seen. Meanwhile, we think boat buyers should be no more or less cautious dealing with factory direct or factory outlet boat sales than they would with a dealer. Just because a boat is a luxury item is no reason not to treat its purchase as anything but a substantial financial investment.

How to Find a Used Boat

Many people are not really certain where to look for a used sailboat. The tendency often is to proceed as you might in searching for a used car-check with your local dealers and read the classifieds in the local paper.

Of course, local dealers and local classified ads will always be a part of your search for a boat. But for larger boats, it often pays to remember that boats are moveable, and that a 20-percent-lower price at a distant location may easily offset the additional cost of traveling to see it and getting it back home.

Classified Ads. Word of mouth is always a possibility, but to find a boat on your own, you realistically have to go to the classified route – diligently reading issue after issue of newspapers and magazines.

Close to home, classified ads in newspapers and regional sailing magazines are your first place to check. Newspapers are peculiar in that, for a given region, it seems that a single newspaper will often carry most of the active ads for sailboats, usually in the Sunday edition. It is mostly a matter of tradition, but it will pay to ask around. You will find, for example, that The Detroit News has a hundred listings, but The Detroit Free Press has only a dozen; The Chicago Sun-Times has hardly any sailboats, but The Chicago Tribune is full of them.

The same is true for area and regional boating magazines. Some will tend to feature sailboats, some powerboats, and the emphasis of each is often not apparent from the titles or feature stories in a given issue. For example, it takes «local knowledge» to discover that Latitude 38 is a sailing magazine, and that the ads are almost exclusively for Northern California boats.

There is really no newspaper with a nationwide distribution of ads. The New York Times comes closest, but their sailboat ads – always in the Sunday Sports section – are primarily from the Northeastern seaboard, with only a sprinkling of ads from the Midwest, South, and West Coast. Still, at an early point in your boat search, it is worth buying a couple of Sunday editions of the Times as an initial check on the current market.

Among national magazines, Soundings is the first choice for sailboat hunters. Their large classified section will have 20 to 30 pages of sailboat ads, arranged according to overall length of the boats. The emphasis is on eastern and midwestern boats, but there are ads from all over the country. In addition to their classified section, the magazine has a national news section and a regional insert. Some of the regional inserts have additional classified ads for boats closer to home.

The other national magazines are somewhat less useful for the prospective buyer, since the ad space tends to be taken up with charter, gear, and equipment advertising, with relatively few used boats.

Brokers. For many people, searching the classified sections and visiting boatyards is a pleasant activity. However, if you consider such work to be a waste of time, you will have to call on a broker to assist you. A broker ideally will do the hunting that you would otherwise do, along with serving as a go-between, negotiator, and paper shuffler for you and the seller. In return, the broker will get 10 percent of the selling price of the boat.

There is an incredible diversity in the brokers selling used boats. Almost all are also dealers for:

• new boats;
• some are highly knowledgeable boatmen;
• some are diligent and careful;
• but many are either discourteous, incompetent, or both.

The problem of finding a broker is complicated by the general disorganization of the used boat business. Whereas a single realtor can show you virtually all the used houses for sale in your area, the multiple listings of brokers are incomplete and chaotic. A given broken may share a listing with a dozen other brokers in half a dozen other states, but have no information at all on a boat for sale at the boatyard right next to his office.

If you want to know about all the boats for sale in your area, you cannot engage a single broker to find the information for you. You may have to go through as many as a dozen brokers; and, unfortunately, when you find a good one, you may not be able to stick with him, simply because he will not have access to all the boats available.

Like every salesman, the broker wants to make the most profitable use of his time. As a result, he will try to label you and your desires, so as to not waste energy showing you boats you are unlikely to buy. If you know what you want, this is fine; in fact, the broker’s questions can even help you focus in and clarify exactly what sort of boat you should be seeking.

If you do not know exactly what you want, or if you are willing to compromise your desires to get more boat for less money, you have to resist the broker’s attempts to pigeonhole you. Once you ask a broker about a particular boat, he is likely to think only in terms of similar boats. If the broker labels you «heavy traditional cruising boat» or «washed-up IOR machine», you may be kept unaware of other good possibilities.

You can find a broker through classifieds in the magazines and newspapers, through personal referrals, and through phone calls and more phone calls. Regional magazines and Soundings are, again, the best starting points, since most brokers advertise extensively. They do not always list all the boats they have in their ads, so it often pays to ask about others.

You will frequently get identical listings from two or three brokers. Ethics dictate that you should deal with the broker who first lets you know about the boat, but it is obviously preferable to deal with the primary broker, since he or she will make more money off the sale and therefore be likely to give you better service. A secondary broker has to split the commission with the broker who first listed the boat.

In summary, there is almost no way to guarantee a good experience with a broker. If you are lucky, you will run across several good brokers in your search; if you are exceptionally lucky, one of the good brokers will also have the boat you want to buy. Although the odds are against you, in a thorough search for the best used boat, you want to explore all the possibilities, which includes scouring the various brokers’ listings. While a broker can provide valuable service later in the negotiating process, our own conclusion is that they tend to be of little help in locating your boat in the first place. If you depend on brokers only, you may be severely limiting your choice of boats.

Computerized Boat Listings. Computerized boat-listing services have been attempting to break into buying transactions by eliminating the broker and his 10-percent commission from the deal.

Brokers make money by selectively disseminating information. The buyer, in the market for a certain size and price boat, or a certain make and year, goes to a broker who does the looking. It is not to the broker’s advantage to let the buyer know the location, owner, or price of the boat until he has firmly established himself as the middleman in the sale. A listing service operates differently than a broker but uses the same tool – the selective dissemination of information. Unlike a broker, however, listing services get their commission up front, without waiting for a sale to be consummated. They also do not take as big a bite as a broker.

If you want to sell a boat, you pay a fee to a listing service which feeds information that you provide into their computer. That information is included on lists that are sold to potential boat buyers.

If you are shopping for a boat, you pay a lower fee to get a printout of the listing, which includes the phone number of the owners of boats listed. The shopper calls up the seller and ideally the sale is worked out between the two directly.

Since there is nothing in all of this for brokers, they are less than enthralled with the idea of computer listings. One listing service we spoke with does have a program for brokers that operates on the honor system. The broker gets a free listing in return for promising to pay $ 225 when a boat is sold. The broker, of course, has to admit that the computer listing is what got him the sale. While this type of listing does nothing for the buyer (the broker is going to get his commission one way or the other), it might help a seller to move his boat more quickly.

The listing services advertise that they provide «exposure» to an extremely large number of potential buyers. This figure is loosely derived by adding up the circulations of the publications these services advertise in. This exposure figure assumes an awful lot; a prospective buyer still has to see the ad, read the ad, call the listing service, and then be convinced by the sales agent to buy the list. The person selling the boat has to go through the same process, except that he buys a spot in the list instead of the list itself.

The primary limiting factor in any of these services is the number of buyers purchasing the list. This figure is analogous to circulation of a magazine and we think that it is a figure that the services should provide, especially if you are listing a boat for sale. We tried to get this figure from all the listing services we talked with and got answers like: «It fluctuates» or «We’rerunning a new program to get that figure». The number of potential buyers in the system is critical; we believe that any service that expects to be taken seriously has to come up with accurate figures.

Listing services will often divert attention from how many buyers are in their system by quoting a figure for how many boats they list (the number of sellers). It is important to have a lot of boats to choose from if you are a buyer, but if you are a seller, it does not make any difference to you. It is the number of people looking at your listing that is critical; it is for those eyes that you pay your money.

Another limiting factor is geography. If your boat is rare and widely sought after, then national advertising will do you some good. On the other hand, if you are selling a stock 30-footer, it is reasonable to assume that there are few buyers who are going to travel more than 250 miles to have a look at your boat. If you are listing with a national company, then you may be paying for coverage from which you will derive no benefit.

While some companies have legitimate national coverage, others are either intentionally regional or regional by default. Surprisingly, they are all relatively close in what they charge for their services. Whether boat listings in Seattle do much for the Florida buyer or seller, and whether the regional or national services are overpriced, are questions we cannot answer.

The real advantage of a boat-listing system is that it eliminates the broker and his commission. An ancillary benefit is that a seller can assume that someone who is going to the expense of purchasing a list is a serious boat buyer. Until the listing industry starts publishing the number of buyers they have in their systems, however, be aware that you may be buying more sizzle than steak.

Should You Consider an Older Used Boat?

As a boat buyer, you are faced with a dilemma: For approximately the same price, you can buy a «vintage» Cal or a «modern» Catalina. As a boat seller, you must be aware of the buyer’s dilemma: The 10-year-old boat you are trying to sell must compete with newer boats that are more appealing in styling, cosmetics, and familiarity. Let’s look at the perceptions and trade-offs in general terms.

The Years That Make a Difference. There is a popular notion that boats built «back in the old days» (prior to the mid-1970s) were built better than more recent boats. Popular or not, this is a notion that is only half true, at best. The fiberglass hulls of boats built 10 or 15 years ago were no better than ones built in recent years. True, they were for the most part heavier or thicker, but that was largely because less was known about the material, and because the effect of weight on performance was less of a concern with designs of heavier displacement. Moreover, builders were less sensitive to the weight-to-cost ratio than they have been since the mid-1970s.

Otherwise, there seems little to indicate that boats were inherently stronger or built better 15 years ago than they are now. In fact, building materials, fittings, rigging materials, engines, and other components have been improved as time has passed. More significantly, design and engineering techniques, as well as quality control procedures have also been improved. This is one explanation for the rise of boat prices well in excess of the inflation rate during the last 15 years.

Then there is the test of the marketplace. Boats that are unseaworthy, poorly constructed, or of poor quality rarely survive in the marketplace long enough to get built in numbers sufficient to make them a factor in the overall used-boat market.

There are other reasons, however, why a particular boat might not sell in sufficient numbers to warrant a lengthy production run. Asa result, there are many otherwise excellent boats on the market, even though there may have been few buyers interested in them when they were originally built. They may have faced an overly competitive, price-sensitive market, tried to ride the coattails of a fad (offshore one-designs, for example), or boasted a feature the public would not accept at the time. One example is the Pearson 32, introduced in 1979 with an awkward, hence unappealing, fractional rig. The unusual rig, among other features, eventually helped to kill buyer interest, despite the boat’s other virtues.

Similarly, there have been a number of boats that represent innovations. The Freedom and Non such lines are two of the most obvious examples. Innovation does not usually become popular with buyers instantly; boat owners tend to be conservative in their choice of boats, waiting for an innovation to prove itself. If an innovative boat has not gained wide acceptance by the time the boats start showing up on the used market, potential buyers may be hard to find and a fair price hard to realize.

This problem is often compounded by the frequency with which some builders introduce new models intended to fill smaller and smaller gaps in the market for their boats. J-Boats started with an outstanding 24-footer, then went to a 30-footer for those who had outgrown the 24, and followed with a 22, 27, 29, 34, 35, 36, and 41 (and recently, with a 40-foot «cruising boat» for anyone who might have decided to drop out of racing).

One interesting modern development has been the tendency to build light boats and stripped-out performance machines. Whether these boats endure remains to be seen, but indications are that they are more likely to become obsolete for their primary purpose (racing) before they fall apart structurally. The unsuitability of these boats for cruising is sure to cause an eventual glut of used boats and appropriately depressed prices.

The Old and the New. The typical cruising sailboat has changed greatly since the outset of the boat building boom that began in the early 1960s. Changing fads and fancies, the rating rules, new products and new developments have all played a part in this evolution. For the sake of perspective, some of the major changes in boats can be viewed side by side in Table .

In buying or selling an older boat, some of these differences are more critical than others. The modern small diesel engine, for example, is a decided improvement in performance, safety and durability over the gasoline engines of 10 or 20 years ago. Rigs are more easily handled, give better performance, and are more easily maintained. Aesthetics aside, metal and plastic trim is more practical and more durable than wood.

At the same time, some of the features of many of today’s boats may eventually become liabilities, too. Years ago, designers tried to use styling to take advantage of the unique properties of fiberglass. A few of these highly stylized boats of the past (the Tripp-designed Columbias or the Morgan Out Island series, for example) have become attractive today as a form of artdeco, but most have merely become dated, their value severely depressed.

Designers continue to produce highly stylized boats, albeit to a different style than that of a few years ago. Today, the racy «European style» is in vogue, encouraged by the sales success of the likes of the Beneteau First line. It remains to be seen if, as years pass, this styling retains its appeal. If it does not, then the used value of boats in that style will become increasingly depressed. Unfortunately, new-boat buyers have no sure way to predict the durability of styling, any more than did the buyers of such boats in the past.

What are the Trade-Offs? Buying a boat of any vintage entails deciding on priorities, but there are certain crucial concerns for anyone buying an older boat. We think there are three that are foremost:

Performance While performance is a largely subjective and wholly relative term, it is fair to say that the overall performance of modern boats exceeds that of older boats. Less extreme, but just as valid, is the contention that the production boats that have maintained their value have been those that offer performance to go with looks and strength. There have been some notably successful boats that could not boast good performance, but generally such boats had other decided appeals that offset their so-so performance.

Components Older boats with molded fiberglass hatches and locker lids, centerboards, rudders, fiberglass hull liners and the like have components that are (or soon will be) irreplaceable except by expensive custom fabrication. Similarly, by the nature of their construction, the structural members of fiberglass boats (bulkheads, deck coring, engine mounts, mast steps, etc.) are difficult to repair or replace. Detailing such as molded-vinyl rubrails, stem head fittings, prop struts, and tiller heads are likely to entail a search for alternatives—so too will parts for small gasoline engines.

ADDONS Everything on a boat has an expected life, almost all shorter than the hull and deck itself. These «add-ons» (sails, hardware, electronics, furnishings, etc.) contribute to the value of a boat both as an investment in dollars and in enjoyment. There are few used boats (or new ones, for that matter) that can be bought «as is» and immediately launched and used. The task of the buyer is to assess these add-ons, and consider their addition or replacement as part of the value of the boat he is buying. For making this assessment, the following table gives a reasonable representation of the life span of some components:

• Working sails – 7 years;
• Electronics – 5 years;
• Gelcoat – 7 to 10 years;
• Polyurethane coatings – 5 to 7 years;
• Inflatable tenders – 4 years;
• Sail covers, dodgers, etc. – 6 years;
• Halyards (rope) – 3 years.

The degree of owner care and maintenance can affect the lifespan of these items, as can the frequency with which the boat is used.

Other factors to consider include the type of use (daysailing, racing, or cruising), the length of the sailing season, the climate and type of water (fresh or salt water), as well as the initial quality of the components.

Fiberglass: Another Factor. In considering an older fiberglass boat there is one important factor we have not considered that might outweigh many of the aforementioned drawbacks. Unlike a wooden boat, a fiberglass boat is built of a material that even with some neglect does not deteriorate significantly with time and exposure. Fiberglass may blister, chalk, and craze, but it seldom fails structurally. Even when it does it is easier and less expensive to repair than wood. Moreover, cosmetically, it can be restored to a like-new condition at modest cost. In short, unlike many things man makes and man neglects, fiberglass boats can survive well. This is a great virtue indeed, and a strong argument in favor of the practicality of buying an older fiberglass boat of better quality rather than a newer boat of poorer quality, assuming that both boats are in the same price range.

Buying a Boat Abroad

Gordon Benjamin was in the market for a used boat. He was not looking for just any used boat; he wanted a Swan 37. Like many sailboats imported from Europe, the Swan 37 is not sold cheaply in the United States. Benjamin could find only one used boat for sale, but it was located halfway across the country and the owner wanted a hefty $ 120 000 for her.

So Benjamin bought a few British sailing magazines in a nautical bookstore and found what he wanted in their brokerage sections. Shortly thereafter, he flew to England to look at three Swan 37s. He bought one, vintage 1972, for the equivalent of $ 44 000. After paying for shipping, a professional survey, and other odds and ends, the total price was still under $ 55 000. According to the BUC Used Price Guide, 1972 Swan 37s were selling for an average of $ 86 450 in the United States at the time. Although BUC figures are drawn from a limited pool of brokers and therefore of debatable validity, you cannot deny that Benjamin got a good deal. He saved himself close to $ 30 000.

Since Benjamin bought his boat, prices have gone up, but the cost of foreign currency has gone down. He paid about $ 1,90 for the pound; currently the pound is exchanged at about $ 1,70. At the time when Benjamin bought the boat, it was nearly impossible to get financing on the overseas purchase of a used boat. Benjamin was turned down by several marine finance companies; luckily, he was able to get an unsecured personal loan from his own bank. Now there are marine finance companies who are able to arrange financing on overseas purchases.

The prospect of buying a boat at half to two-thirds of what it would cost in the US is enticing, but before you run to the nearest travel agent, recognize what may be involved; a lot more legwork, complications, delays, and hidden costs that could devour all of the savings.

The Type of Boat to Look For. Look for a medium to large boat, which has been distributed in respectable numbers in the United States. You will come across many boats that you have never heard of when you begin to go through foreign brokerage listings; stay away from them. If the boat is not well known in the US, you will have a hard time selling it when you want to move on to another boat. (You also will not know if it is a good deal, because there will be no statistics to tell you what it would sell for on the US market.) Among the more popular imported lines that you might consider are:

• Swan;
• Nicholson;
• Olson;
• Westerly;
• Moody;
• Albin;
• Contessa;
• Contest;
• Fisher;
• Beneteau;
• and Dufour.

Small boats generally offer less potential for savings than larger boats. This is because some of the costs, like traveling to see the boat, are fixed no matter what size the boat is. Other costs, such as shipping, tend to be a slightly higher percentage of a small boat’s worth. This means that you should probably be shopping for a boat larger than 28 feet.

How to Begin. Because of the language barrier with most European countries, you may want to limit your search to British yacht brokers (unless you are fluent in another language). There are two ways to deal with the British broker; either you do it yourself or you have a US broker do it for you. If you do it yourself, you should save about two percent of the cost of the boat. This is because the seller of the boat will probably pay a lower brokerage fee, which will make him more likely to come down from his asking price. If you deal directly with his broker, the seller will probably pay eight percent, but if a US broker does your dealing, then the brokerage fee will jump to 10 percent and be split by both the US and British brokers. The seller may try to recover this two percent by remaining more firm on his asking price. On a $ 55 000 boat, two percent would amount to $ 1 100.

On the other hand, using a US broker can save you a fair amount of trouble. Your broker can help coordinate insurance, shipping or delivery, and can hire a customs broker to smooth the boat’s entry into the United States. Remember, however, that you already have one broker doing most of the paperwork in England, so you will not be lost without a US broker’s help.

If you choose to do all the work yourself, the first step is to write to the larger British brokers found in the back of British sailing magazines like Yachting World, Yachting Monthly and Motor Boat and Yachting. Be specific in explaining what you are looking for.

When choosing a broker, whether American or British, make sure that the firm is large enough to have experience in overseas transactions. We spoke to three British brokerage houses of varying sizes:

• Ancasta Marine (large);
• A H Moody & Son (medium);
• and Solent Yachts (small).

Ancasta had sold 25 boats to Americans in the past two years, and Solent Yachts had sold only one. Only Ancasta and Moody have had much experience with shipping. Solent Yachts had only set up crewed deliveries, and said that they would take a larger commission of 10 percent if they had to arrange the shipping, whether or not a US broker was involved. When writing to a British broker, you should ask him to define the terms of his commission.

Checking Out the Boat. Despite the fact that you should get a boat professionally surveyed before you buy it, most people will also want to see the boat in person. This means a trip to wherever the boat is kept. This cost can be considerable, easily exceeding $ 1 000, and must be considered when computing the total cost of acquiring a boat abroad. Try to see several prospective boats when you make your trip.

In this country, you usually choose a surveyor on the recommendation of an unbiased third party (not the broker). In a foreign country, however, you are not likely to have a contact who could make an unbiased recommendation. You can fly your own surveyor to England, which could be very expensive, or you can hire a British surveyor through the YBDSA (Yacht Brokers, Designers, & Surveyors Association). There is an obvious conflict of interest in an association that contains both DIY Yacht Survey: Hull, Deck, and Below Deck Inspections Explainedbrokers and surveyors, but the association does have standards and is not an «open club».

The YBDSA has several grades of membership for surveyors, starting with «probationary», progressing through «associate» membership, and finally leading to «full» membership after about eight years. Some members specialize in ships, others in yachts. According to Lloyd’s insurance broker Philip Leonard, you cannot go wrong with a full member specializing in yacht surveying. Prices for marine surveys are roughly the same in England as they are in this country. Many YBDSA members will also travel to other European countries to survey a boat.

One of the reasons that you should look at a prospective boat yourself is that European boats are not always maintained in «Bristol fashion». A boat considered to be in reasonable condition in Europe might be slovenly by American standards.

Arriving at a Price. «Most Americans are expecting to get a steal, but it’s not true», says Maureen Queen of the Moody brokerage. The asking prices are more firm than they are in the United States. Bargaining can start at 80 percent of the asking price, but the final price will usually be 85 to 95 percent, according to brokers.

The price will usually be in pounds, so the amount you owe will fluctuate with the exchange rate. Ancasta requires a 10-percent deposit before a survey, which is refundable should the survey find the boat unacceptable.

The best deals are boats on which VAT, or value added tax, has never been paid. When a new boat is sold to a private individual in England, a one-time sales tax of 15 percent is paid. When that individual goes to sell his boat, he naturally tries to recover that tax in the boat’s asking price. This makes the boat more expensive.

However, when a business buys a boat, or a boat is kept out of the country, the VAT is often avoided. Such a boat is listed by a brokerage with an asking price «+VAT», which means that the original VAT is due if a British citizen buys the boat. Boats sold to foreign citizens and shipped out of the country do not have the value-added tax due. This means that an American may be able to buy a boat listed «+VAT» for 15 percent less than a boat which has been owned bya private individual.

Read also: Understanding Boat Berthing Arrangements

Financing. The biggest obstacle to buying a boat abroad has always been financing. Ancasta reports that more than two-thirds of the Americans buying boats from their listings do so without financing. The problem is that US banks are accustomed to using the boat as security for a loan. They do not consider the boat good security until it arrives in the United States. Banks are leery of loosing their money should the boat be lost, damaged, or seized by customs before entering the United States. Banks are becoming more liberal, however.

We asked three marine finance groups, Mystic Marine Finance, Ocean Air Financial Corporation, and Horizon Credit Corporation how they are handling the problem of overseas financing. We learned that marine finance groups often finance the purchase of a new boat from a British manufacturer with a letter of credit from a US bank, payable upon the boat’s clearing of US customs. The conditions of this type of financing protect both the bank and the new owner. While a builder of a new boat might agree to payment upon arrival, the seller of a used boat will not. For the purchase of a used boat, Mystic Marine suggests that you try to secure a loan with collateral other than the boat you are trying to buy, or apply for an unsecured personal loan if you have established credit with your bank.

In the very near future, Horizon Credit Corporation expects to be able to arrange letters of credit payable upon the shipping of the boat, not the arrival in the US as has been traditional. This would be far more amenable to the seller, as he would get his money before the boat leaves England.

Ocean Air Financial Corporation says that it has been successful in arranging financing for used boats that is payable upon the closing of the sale. The only requirement is that the boat is insured for all aspects of delivery, including loading and unloading, and any trucking. Such an insurance policy should be written by a Lloyd’s insurance broker, they say.

Getting the Boat Home. There are two arrangements that must be made before a boat can be brought home; shipping and insurance. The first decision you have to make is whether to ship the boat to the US ona freighter or have her sailed home by a delivery crew.

Delivery is less expensive than shipping by freighter, but the wear and tear on the boat can be excessive. The cost of a delivery depends on the number of crew needed, airfares, provisions, and the time of year, but it can be half as expensive as having a boat shipped via freighter.

If you want your boat to arrive in one piece, you are better off having her shipped. The chances of her weathering a storm unscathed are much better on a freighter than on her own bottom. However, there are other ways that a boat can be damaged during the process of shipping. First, she must be hauled out of the water and loaded on a truck, and then driven to the port. Boats are commonly trucked from the south coast of England to the port of Liverpool several hundred miles away. The boat is then unloaded and may sit in the port for weeks waiting for a ship. The longer it sits there, the greater the chance of vandalism.

Despite the fact that the prospect of damage is real, both Ancasta and Moody say they have never had an insurance claim. Nevertheless, insurance is a must for your protection, and will probably be a requirement of your financing. Shipping companies offer insurance for an extra charge, too, but we imagine that it would not be easy to collect on these foreign policies.

We recommend getting your own insurance that covers every aspect of the boat’s trip home, including loading and unloading, shipping, and trucking. If you hire a delivery firm, you should buy your own property insurance, and require the firm to produce proof of personal liability insurance, especially if any of the crew are US citizens. Lloyd’s of London will carry an «open marine cargo» policy that covers all aspects of shipping. You can get such a policy written through any US affiliate of a Lloyd’s insurance broker. Ocean State Marine Group gave us a quote of $ 700 for an open marine cargo policy on a Beneteau 35 insured for $ 90 000.

The cost of shipping depends on the final destination, and how soon you need your boat. If you can wait for a ship that is desperate for cargo, you can save money. To ship a 35-footer to New York can cost from $ 9 000 to $ 13 000, according to Ancasta. To Ft. Lauderdale, Florida, add another $ 1 500; from Germany or The Netherlands, subtract $ 1 500. To the West Coast, you are looking at a total of $ 20 000 or more.

Most yachts are shipped in an open cradle on the deck of a freighter. Boats under 35 feet can sometimes be carried below-decks, but the extra cost of that option is rarely worth the extra security of having your boat protected from the elements.

There are other costs connected with the shipping. The boat must be packed; $ 500 for a 35-footer, according to Ancasta. A cradle must be built; $ 1 200. If the boat must be trucked any distance in England, add $ 700; and if you want it trucked from the US port to your home, add another $ 1 000 or so. This can give you a grand total of $ 12 000 to $ 16 000 or more to get a boat to the East Coast – enough to wipe out most of your savings. The cost of shipping a boat to the West Coast of the US is usually prohibitively expensive.

When She Gets Here. Shipping is arranged by either the broker or a shipping agent hired by the broker, so this is not a hassle that you should have to worry about. Once the boat gets here, however, you have to make sure that a trucking company is standing by as the boat is off-loaded, and that customs inspects the boat promptly. If the boat is off-loaded onto the docks instead of onto a truck, then it must be lifted again when the trucker arrives.

The import duty on a boat worth over $ 15 000 is 2,8 percent, or about $ 1 500 on a $ 55 000 boat. It is based on the amount you paid for the boat, exclusive of any gear or hardware that was manufactured in the US, and deducting any damage that occurs during transit. The duty must be paid before the boat can leave the port. Most buyers of used boats are present during the landing, and accompany the customs officials on his inspection. Most businesses that import new boats hire a customs broker, however, who coordinates the trucking company with the boat’s arrival and posts bond on the duty owed. Customs brokers are very affordable.

According to Bill Salvo of John Alden Yacht Brokers, the apparent savings when shopping abroad is «largely illusory… Most people look just at the asking price and the exchange rate. They forget that the boat is likely to be poorly kept up and ignore the added costs».

Certainly, there are some good deals to be had on European boats, but buying a boat abroad is not for everyone. And remember, too, that there are many good deals to be found on used boats in this country as well.