Used Power Boats - American Marine, Boat Sales of Newburyport, MA - North of Boston

Buying a pre-owned can be an adventure in itself. The more you know about the process, the better prepared you’ll be and the happier you’ll be once you own the boat.

1. Determining The Kind of Boat You Want

First, ask yourself these questions:

Do you want a small boat?
Do you want to water ski? Wakeboard? Fish? Cruise?
Do you want a boat you can pull on a trailer for use on lakes and inland waterways?
Will you keep your boat at home or will you rent storage space or a slip?

Or maybe a larger boat?
Do you want a larger boat for entertaining, extensive cruising, ocean fishing or diving……maybe a boat that has some tax advantages in owning?
Do you plan to berth your boat in a marina? Larger boats are not usually trailered.
Do you plan to live on the boat?..... Many people do. They're called "live-aboards."

How often do you plan to use your boat?

Will you use it seasonally or year-round?
Will you cook and sleep aboard it?
Who will use the boat with you….and how often?

What are your boating skills?

Are you an experienced boater - or just starting out?
Do your boating skills match the boat you want to buy….or do you need instruction?

How much do you want to pay?

What is your price range? Give yourself a wide spread…it’ll help your broker find you that perfectly priced boat (ie. $15,000 to $30,000; or $50,000 to $100,000).

What will your marine insurance cost? (American can help you find the right insurance at the right price.)
How much will you spend for annual boat maintenance and bank financing?

Do you have a boat to sell?

Many times boat buyers have a boat that they want to sell or must be sold prior to buying a new boat. American Marine & Boat Sales can sell your boat for you. We sell over 250 pre-owned boats each year and can sell your boat quickly to give you that “cash down” that you may need or eliminate you from becoming a two boat owner. Also, you may be able to trade in your boat towards a new pre-owned boat.

2. Finding the Right Boat- Browse over 150 quality pre-owned boats

Once you’ve determined what type of boat you’re looking for, it’s time to select a boat broker. Brokers, like American Marine, specialize in helping you find the right boat for you. Their extensive networks of listings and dealing with other brokers nation-wide can provide you with the most complete choice of boats.

Boat brokers have access to hundreds of types of boats made by various manufacturers, and are not dealers for one or two specific brands. This allows them to be objective and guide you to select and compare boats from all manufacturers.

The benefits of using a broker

The right broker helps by:

(a) Listening to your needs and recommending types and manufacturers of boats that potentially meet them, and

(b) Finding the actual boats for sale.

There are literally thousands of models by hundreds of different manufacturers, and most people are aware of only a small percentage of them. A broker has seen and been on more boats than even the most dedicated buyer. This experience enables the broker to suggest options you might not be aware of.

Determining the most suitable boat is only half the battle--you still need to find a clean example of your dreamboat to buy. Brokers, such as American Marine, have knowledge that you probably don't regarding what's on the market, or what's coming on the market. Also, remember we're looking for a CLEAN example of your chosen boat. A broker can eliminate much frustration by screening out those boats that are poorly maintained or that look good on paper but after closer inspection reveal hidden problems.

Yacht brokers are like real estate agents in that they don't own the boats they're selling. They are “match-makers”, bringing buyers and sellers together and representing both parties fairly throughout the transaction.

Also like real estate agents, brokers have access to multiple listing services; YachtWorld has become the internet-based service of choice for most brokers. Regardless of how or where you find your dreamboat, your broker can make an offer on your behalf. Since you're not limited to any one broker's listings, find a broker you're comfortable with and work with him or her and stick with them.

Choosing the right broker

Most people solicit recommendations from fellow boaters, and this is a great place to start. If you're new to the area, you can call one of the local marinas for references, search the Web, or even contact a boating association such as Yacht Brokers Association of America (YBBA), or Massachusetts Marine Trade Association. These organizations are like the "Better Business Bureau" of the boating industry and will let you know if a broker you are considering is a member in good standing with their organization and in the boating community.

Once you've identified several prospective brokers, go to their office and chat with them. Do they seem professional? Are they in professional offices….willing to spend time with you…..or are they trying to slam you into buying a boat that you really don’t want or need. Remember, dealing with a professional boat broker should be relaxed and tension free.

Make certain the broker is a member of The Yacht Brokers Association of America (YBBA). YBAA is an 80 year old association that enforces high standards of integrity, honesty and professionalism in all it’s members. Remember…it’s best to always deal with a YBAA member when shopping for a pre-owned boat.

The best advice is to find a broker who listens to you and with whom you work well, then stick with them. Assuming they are actively working on your behalf and can work with other brokers to find the right boat for you. There's little advantage in working with multiple brokers.

What should you expect from a broker?

Brokers should work in complete honesty.

For undocumented boats, brokers must understand certificates of ownership, certificates of number, security agreements, bills of sale and other documents required to register, number and transfer title.

For documented boats, brokers must understand that the transfer of title will comply with federal law as the U.S. Coast Guard administers it. Brokers must also understand maritime and admiralty liens, as well as mortgaging and transferring title to documented vessels. In addition:

They must understand purchase and sales contracts, as well as listing and deposit requirements.
They must have a general knowledge of the equipment legally required to be on boats.
They must understand their legal and ethical obligation to buyers and sellers.
They must have a general knowledge about boats.

Making an offer to purchase

After you decide on the boat you want to buy, your broker prepares an offer to purchase for your signature. (Your broker can also assist you in deciding what offer to present.) You also make a good-faith deposit on the boat, (usually 10 percent of the purchase price). Your deposit goes into an escrow account that the broker administers. By law, your money can't be spent and your offer to purchase should always depend on your satisfaction of a sea trial and survey. (See step four for details).

3. Getting a Boat Loan and Marine Insurance

Securing a loan is fairly simple if you have a good credit history and can make a down payment, usually 10 percent of the boat's total delivered price. Brokers work with companies specializing in boat loans and marine insurance and can coordinate financing and insurance for you.

Marine insurance: How much does it cost?

Your costs depend on several factors, such as:

1. How much boating experience you have,
2. Whether you have previous insurance claims,
3. What kind of navigational equipment your boat has,
4. Where you will use your boat, and;
5. The boat's value.

(Expect to pay more for insurance if you're going to own a high-performance boat or a wooden boat, or if you plan to live aboard or cruise offshore)

4. Getting a Sea Trial and Survey

When you’re considering buying a pre-owned boat (or any boat that has no warrantees), whether it’s from a private party, a dealer or a broker, it is essential that you hire a marine surveyor to protect your interests. You should make certain they are members of the National Association of Marine Surveyors (NAMS) (800-822-6267) and/or Society of Accredited Marine Surveyors (SAMS) (800-344-9077).

A marine surveyor will inspect various aspects of the boat you are considering buying including but not limited to the hull, electronics, wiring, accommodations, overall condition, engines, outdrives, etc.

Always use an independent surveyor, and always survey the boat in and out of the water. Marine surveyors inspect the boat in your interest and the interests of your lender and insurance company. Often your lender will designate a marine surveyor, and brokers have lists of marine surveyors approved by lenders and marine insurance companies. In addition to your survey, you’ll want to schedule a sea trial so that you’ll have the opportunity to see firsthand how the boat handles and ask specific questions.

Marine surveyors serving Boston North, New Hampshire & Maine

The following are several surveyors that you may want to contact to survey your boat along with sources for additional surveyors. Call and chat with a surveyor…you will find out their availability, costs and if the chemistry is right between the two of you. We recommend that you attend the survey personally to learn firsthand the condition of the boat and it's the best time to ask the surveyor questions. Keep in mind that American Marine & Boat Sales does not promote one surveyor over another and the list below is just for your convenience:

Captain William Brindamour, AMS
Marine Logistics Co., LLC
159 Woodland Road
Hampton, NH 03842
Phone/Fax: (603) 926-0214
Cell: (603) 770-7711
capt123@aol.com
http://www.marinesurveyor.com\mlc
Member: S.A.M.S. / A.B.Y.C. / I.A.M.I.

Captain Robert P. Gallagher, AMS-E, USCG Master License
Captain N. L. Leblanc & Associates, Inc.
106 Liberty Street
Danvers, MA 01923
Phone: (978) 774-5060
Fax: (978) 774-5190
Pager: (508) 780-0766
bgallagher@attbi.com
Member: S.A.M.S. / A.B.Y.C.

Rob Scanlon, CMS/MMS/ACMS
Accredited & Certified Marine Surveyor
P.O. Box 87; on the Waterfront
Nahant, MA 01908 (USA)
781-595-6225 (24-hour office)
781-593-2711 (24-hour fax)
yacht1ship@aol.com
COMPUTER ENGINE ANALYSIS & COMPRESSION TESTING
http://www.mastermarinesurveyor.com

Captain Kevin Duchak MMS
Duckak maritime Services Inc.
3 Bradford Lane
Danvers, MA 01923
Phone: 978-777-9700 & Fax: 978-777-9700
duchakmaritime@msn.com

Additional boat surveyors can be found at:
The Boating Yellow Pages
National Association of Marine Surveyors (NAMS)
MPC “The Official Boater’s Directory"
Society of Accredited Marine Surveyors (SAMS)

What to do with your sea trial and survey results
One big reason for the survey is to find out the current condition and market value of the boat you want to buy. If the results reveal flaws and problems, the sea trial and survey may give you the opportunity to back out of a contract without penalty - or to negotiate repairs on the boat.

But be advised: If you're buying a boat at a rock-bottom price, or if the seller is in distress and is selling for below his market price, the sea trial and survey will not give you leverage to negotiate. The seller might not have funds for repairs and is selling as is, where is. The seller may insist that you pay any repair costs.

Your broker usually gives copies of the survey report to your lender and insurance carrier for their review. They'll want to know the boat's condition, its replacement value and the surveyor's determination of the boat's market value. Keep in mind, though-surveys are no guarantee against hidden or undetected defects.

5. Sales Agreements and Contracts

The cardinal rule is - get it in writing. Your broker will outline the terms of the sale in writing to protect your interests. That includes spelling out obligations that you and the seller have agreed to, and when these obligations will be fulfilled. It's a legally binding contract of each party's intentions. American Marine takes pride in the time that they spend with all their customers to explain all aspects of the sale from the offer to registering the boat. If you don’t know or don’t understand…just ask us….it’s our job to make boating a pleasurable experience.

What your sales agreement and contract should contain
A description of the boat and engine (if it's outboard powered), including the make, model, year, Hull Identification Number and (outboard) engine serial numbers. You can get the equipment list from the survey and the written specification sheet from your broker. This should include:

The purchase price, including any deposits you have paid and how you will pay the balance - by cashier's check, for example
Details about when and where the boat will be delivered and the sale finalized
Language specifying that the sale depends on a satisfactory survey and sea trial-and your ability to get acceptable financing and marine insurance
A statement confirming the boat is free of liens and encumbrances that might block the sale-the seller should also take responsibility for debts incurred during the seller's ownership

Who pays the broker?

The seller pays the commissions that a licensed yacht and ship broker earns, not the buyer. But that doesn't mean a broker works exclusively for the seller.

Brokers have a legal duty to buyer and seller alike in every transaction. Brokers work as trustees. They must work justly and in good conscience in the interests of both parties. They're duty bound to act in good faith.

One thing brokers can't do is guarantee the condition of the boats they're brokering. That's another important reason to get a sea trial and survey.

Browse over 150 quality pre-owned boats

6. Be Safe

Know how to boat safely. The Coast Guard provides free boating safety information and classes. In addition, you can usually reduce your insurance premiums if you take boating safety classes. To find out about classes near you, call the Coast Guard Boating and Safety information line at 800-368-5647 or visit the following websites:

U.S. Coast Guard Boating and Safety

U.S Coast Guard Auxilary

U.S. Power Squadrons