Boat Buy Sell Guide

8/14/2019 Boat Buy Sell Guide

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Buying& SellingA Boat

A BoatU.S.

ConsumerGuide

BoatU.S. Consumer Protection Bureau880 South Pickett St.

Alexandria, VA 22304Phone 703-461-2856FAX: 703-461-4674

my.BoatUS.com/consumer

With over 650,000 Members,Boat Owners Association of The United States(BoatU.S.) is the nations largest organization

of recreational boat owners. For over 40 years,BoatU.S. has provided its Members with over26 essential benefits and services, includingthe Consumer Protection Bureau. For more

information on how to join BoatU.S.,call or write:

BoatU.S. Member ServicesWashington National Headquarters

880 South Pickett St.Alexandria, VA 22304

703-461-2866BoatUS.com

Rev. 12/06TS010

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1 2

Introduction

Buying & Selling Guide TABLE OF CONTENTS Page

Buyers Guide: 3-16

Finding The Boat That Fits 3New or Used 4Pricing 5Defects, Manufacturers Recalls 6Surveys and Sea Trials 7Boat Manufacturing Standards 8Manufacturers Warranties 9

Boat Financing and Marine Insurance 10Sales Contracts 11-12Deposits and Trade-Ins 13Transferring Ownership 15Manufacturers Statement of Origin 16

USCG Minimum Requirements 19-20

About BoatU.S. 22Sellers Guide: 24-30Boat Condition Checklist 25-26Should You Sell It Yourself

Or Use a Broker? 27Advertising and Marketing Strategies 28

Sellers Obligations 29Sales Agreement 30

Consumer Information: 31-34Registration and Documentation 31Boating Safety 32About the BoatU.S.

Consumer Protection Bureau 33-34

Boat Owners Association of The United StatesWashington National Headquarters880 South Pickett StreetAlexandria, VA 22304BoatUS.com

Caroline Ajootian, Writer

Michael Sciulla, Editor

Buying or selling a boat is a lot like purchasinga home. The monies involved are substantialand your emotional tie to a boat could affectyour judgement. The process can be madeeasier if you take some time now to review the

information contained in this booklet.

The BoatU.S. Guide To Buying and SellingA Boat... will help the novice navigateunfamiliar waters and remind the seasonedboat owner of landmarks to steer by and shoals

to avoid when trading up or selling. In theGuide, you will find sources for informationabout defects and recalls, advice on workingwith dealers, brokers and manufacturers,pointers for writing consumer-friendly salescontracts and lots more.

Being a smart consumer can save you moneywhen buying a boat and protect your interestswhen it comes time to sell your pride and joy.

HOW TO USE THE GUIDEBuying & Selling A Boat, prepared by theBoatU.S. Consumer Protection Bureau, containsseparate sections for the buyer and the seller,including a Boat Condition Checklist, informa-tion about Coast Guard equipment require-ments, registration and boating safety practices.The easy-to-use checklist format makes theGuide the perfect companion when shoppingfor a new or used vessel.


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3 4

Personal finances are often a key factor in thedecision to buy a new or used boat. However,other factors should be considered.

After-sale service or lack of it.The retail cost of a new boat includes the cost

of providing warranty service. When a usedboat is sold as is, the only thing thats guar-anteed is that the buyer will pay to fix anyproblem that crops up.

Financing.New and used boats are treated equally interms of interest rates and down payments.However, expect some extra financing hurdlesif youre buying a boat over 15 years old orone that requires a lot of repairs.

Depreciation.Depreciation on new boats is at its highestduring the first season of use. However, depre-

ciation on a used boat kept in good conditionshould level out with proper maintenance andequipment improvements.

Beauty may be only skin deep.Cosmetic flaws caused by age and wear arehard to hide when a boat hasnt been properly

cared for, but structural defects and mechanicalproblems are harder to detect. Ask the ownersmechanic for the repair history. Have the boatsurveyed (see page 7). Similarly, the owner ofa new boat could also be testing unchartedwaters. Dealers say an average of a dozenproblems, both big and small, crop up on every

new boat they sell.

Finding the Boat That FitsStanding in a dealers showroom or strolling theaisles at a boat show, with fully-loaded displayboats at every turn, can be overwhelming if youare not prepared.

Before you buy, make sure that the boat youreconsidering will serve your purposes. Where willyou be boating? Some boats are designed forocean use, while others are more suitable for aquiet lake.

What are your familys interests? Do youwant to water-ski, fish, or simply gocruising?

Will you be happy with a large boatkept in one homeport? Or, do you wantthe freedom to explore different boat-ing areas with a small trailerable boat?

Where will your boat be stored? Willyou be allowed to park your trailered boatat home?

Does your previous boating experiencematch the skills needed to operate theboat you want to buy?

Finally, dont rush the buying process,especially if youre a novice boater.Boating involves much more than simplyturning on the key and pulling awayfrom the dock. Its a different environ-ment and the more time and effort youput into the proper selection of a boat,

the more you will get out of it.

Boat Buyers

Guide

Buying Guide

New or Used?

Buying Guide


4/18


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The buyers best friend when it comes toinspecting and evaluating the condition andseaworthiness of a boat is a competent marinesurveyor, well versed in boat construction, aswell as safety and manufacturing laws, require-ments and practices.

Hire your own surveyor to be sure the inspec-tion is done with your interests in mind.BoatU.S. Members can call 800-283-2883 orgo to Boatus.com/surveyors for a referral.Dont use a surveyor recommended by the selleror rely upon a survey report provided by theowner. It could pre-date existing conditions

that need repair or gloss over problems thatare expensive to fix, even downright dangerous.

Boats should be surveyed both in and out ofthe water. Haul-out and other fees are at thebuyers expense. Engines should also be inspect-ed by an independent marine mechanic.

Follow up the survey inspection with a sea trialto see how the boat handles underway. Arethere performance problems that make theboat unstable? Does all the gear work properly?All electronic equipment should be tested foraccuracy.

Surveys and sea trials that turn up flaws orproblems can either allow you to back out ofthe contract without penalty (see page 11-12)or can be used to renegotiate the purchaseprice of the boat. A survey costs an average of$15-$20 per foot, depending upon the size ofthe boat, but are not a guarantee against latentor undetected defects.

Most recreational boats sold in the U.S. mustmeet the following minimal federal manufac-turing standards, some of which dont apply tocanoes, kayaks and inflatables, sailboats withoutgas engines, or to diesel-powered boats.

Hull Identification Number (HIN).Identifies builder, model and year. Cannot bealtered, aids in identifying lost and stolen boats.

Maximum Passenger, Weight andHorsepower Capacities. Applies to boats under20 ft. Exceeding these capacities will make theboat unsafe to operate.

Flotation Standards. Ensure that aswamped/capsized boat under 20 ft. will remainpartially afloat.

Fuel Systems. For fuel tanks, hoses, pumpsand fills, to decrease risk of fire/explosion ongas-powered boats.

Electrical Systems. For electrical compo-nents, wires and conductors, to decrease risk ofshock, fire and explosion on gas-powered boats.

Ventilation Systems. Requires powered andnatural venting to decrease risk of fire/explo-sion on gas-powered boats, including outboards

with installed fuel tanks.

Call the U.S. Coast Guard at 800-368-5647 or visittheir website at www.usgboating.org for moreinformation. In addition, industry advisory groups likethe American Boat & Yacht Council have establishedmore far-reaching voluntary standards incorporatedin the NMMA certification program.

Surveys & Sea

Trials

Buying Guide

Boat Manufacturing

Standards

Buying Guide


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Written

Warranties

Buying Guide

Boat Loans &

Marine Insurance

Buying Guide

It might not have the appeal of bright chromeand shiny gel coat or have the exhilarating kickof a high-horsepower engine, but the manufac-turers written warranty can make or break thenew boat experience faster than a fish-findercan spot a school of blues.

Simply put, the warranty is the manufacturerspromise to stand behind its products by provid-ing service and repairs after purchase.

Since marine warranties vary widely in theircoverage, comparison shop before you buy.

Look for multi-year warranties for hull struc-tures and engines, as well as coverage forosmotic blistering, a common, but expensive-to-fix problem on fiberglass boats. Check alsoto see whether the warranty transfers to subse-quent owners a strong selling point when itcomes to used boats.

Remember:Written warranties must be made available

to you before you buy. Call the manufacturerfor a copy if the dealer wont provide one.

The limited warranties on most boats andengines mean that you may end up paying forsome part of the repair costs. Read the fine

print to avoid surprises later on.New boats come with separate warranty

coverage from the engine and boat manufac-turers, as well as the makers of other majorcomponents.

Fill out and return warranty cards to besure youll get service when you need it.

Financing a new or used boat is a fairlystraightforward process if youve got a goodcredit history and the 15-25% down payment.You may even want to pre-qualify for a loanbefore you go boat shopping to give yourselfsome extra leverage when it comes to negoti-

ating prices with dealers.

On a new boat, the Manufacturers Statementof Origin certifies that it has had no otherretail owner. With used boats, lenders checkfor a clear title or record of ownership. Inaddition, information about pending liens or

unpaid debts may be recorded in the countycourt where the boat is kept or where theowner resides.

For larger boats, lenders usually require marineinsurance coverage and federal documentation(see page 31) as conditions for loans.

Basic marine insurance includes Hull Coveragefor damages to the boat whether it is on landor in the water and Protection and IndemnityCoverage (also called P&I coverage or personalliability insurance) for property damage claimsand claims for injuries to your crew or those ona boat you may have damaged.

Insurance costs are affected by length of boat-ing season, area of navigation, previous insur-ance claims and boating experience. Expect topay more if you own a muscle boat, a wood-en boat or if you live aboard or cruise offshore.


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Sales Agreements

& Contracts

Buying Guide

Basic Contract

Terms

Buying Guide

Whether you buy a brand new boat from adealer or a used boat directly from the owner,outlining the terms of the sale in writing is thebest way to protect your interests, since oralagreements are good only as long as both par-ties agree.

A written agreement will eliminate or minimizequestions and problems that could later turn asweet deal at the dock into a sour one in court.By spelling out the obligations of both thebuyer and the seller, as well as the time framein which the sale is to take place, you have a

legally binding, written document of the par-ties intentions.

Its not necessary to have a lawyer write thecontract, although this should be considered,especially if you are buying a high-ticket boator are having one custom-built for you.

Most dealers use contracts printed with theirname and address, but "fill-in-the-blanks"contract forms found in stationery stores willsuffice. A handwritten agreement will alsoserve the purpose. Regardless of the form,both parties must sign the contract. If the salesagreement requires the signature of both the

salesperson and an officer of the dealership,make sure both spaces are signed.

Sales agreements or contracts should include thefollowing minimum information:

Complete names and addresses of buyerand seller.

Complete description of boat and engine,including make, model, year and HullIdentification Number and engine serial num-ber(s). A complete equipment list is a must.

The purchase price, including a descriptionof any deposits (see page 13) paid by buyer andhow the balance will be paid (for example, certi-

fied check, etc.). It should also describe thetrade-in boat, if any, and its exact value.

A firm delivery date describing when andwhere the boat will be delivered and the dealfinalized.

The boats condition at the time of delivery,including a complete list of the accessories anditems that convey with the boat.

A full description of any warranty from thedealer or manufacturer. When boats are sold inas is condition, recourse may be impossible ifproblems arise.

Buyers contingencies: Spell out that the sale

hinges on a satisfactory survey and sea trial andthe ability to obtain acceptable financing andmarine insurance.

A statement that the boat is free of all liensand encumbrances. The seller should also assumeall responsibility for debts incurred during hisownership.

For other tips see pages 29-30


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Deposits &

Trade-Ins

Buying Guide

DepositsMost brokers and dealers require a 10% cashpayment on a new boat but a nominal depositis enough to get the dealer to write a con-tract. Often, the deposit is placed in an escrowaccount, but this is less common with private

party sales.

The seller may have a right to keep all or a por-tion of the deposit if the buyer backs out ofthe deal without cause. As a buyer, you shouldinclude as many contingencies as necessary toprotect your interests, including satisfactorysurvey and sea trial, clear title, and ability toobtain financing and insurance. On new boats,a written delivery date is crucial.

Trade-InsDealers are often willing to apply the value oftrade-in boats against the cost of a new boat,but be aware that you will probably not get

top dollar on the price, since dealers stick closeto the maxim buy low, sell high. In addition,dealers may scrutinize your old boat far morecritically than a private buyer, since part oftheir profit margin will be based on how easy atrade-in boat is to sell.

With this in mind, have your boat in top condi-tion when you bring it to the dealer.

In some states, a benefit of a trade-in arrange-ment is that you pay sales tax only on the priceof the new boat, less the amount of the trade-in. Check with your states boat registrationagency.

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Manufacturers

Statement of Origin

Buying Guide

Transferring

Ownership

Buying Guide

Youve found the boat of your dreams, theprice is right and youve paid the seller, so theboat is yours free and clear or is it? Well, itisnt until the seller signs over the title or pro-vides other legal proof of ownership. In statesthat dont require titling, ask to see the sellersbill of sale from his seller. Other documentsthat help confirm ownership are insurance pol-icies and boat registration cards. Crosscheck theboats Hull Identification Number (HIN) againstthe numbers listed on the sellers records tomake sure its the same boat.

Search the boats title and registration withthe state in which the boat is registered. If the

boat is documented, call the U.S. Coast Guardsdocumentation division, 800-799-8362, to see ifany liens have been recorded.

Vessel documentation is a national form ofregistration. To be documented, a boat mustmeasure at least five net tons most boatsover 27 feet long will meet this criteria and

must be owned by a U.S. citizen. If the boatyou want is documented, ask the seller tocomplete a U.S. Coast Guard Bill of Sale (CG-1340), a copy of which must be submitted withan application for Documentation (CG-1258).Information about documentation is availableat the Coast Guards web site, www.uscgboat-ing.org, or by calling 800-799-8362.

A nationwide Vessel Identification System(VIS) is in the works, but at present there is nonational clearinghouse for state title and boatregistration information. This makes it difficultto track boats that cross state lines when own-ers move or when thieves "launder" stolenboats from another state.

The Manufacturers Statement (orCertificate) of Origin (MSO or MCO) thatcomes with each new boat contains the boatsHIN and engine serial number(s). It showswhen the boat was built and transferred tothe retail dealer for resale purposes. You willneed the MSO when you register or docu-

ment your new boat. If the boat is financedwith a loan, the MSO will be transferred tothe lender, otherwise it will be included inthe boats papers given to you at the time ofpurchase.

You or your loan company should receivethe MSO when you take delivery. If not, con-

tact the boat manufacturer at once. Withoutthe MSO you may be unable to register theboat and may have trouble meeting insur-ance requirements.

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U.S. Coast Guard Minimum Equipment Requirements

The U.S. Coast Guards free pamphlet, Federal Requirements for Recreational Boats, gives more complete details onhow many and what types of equipment you must have aboard your boat. Call the Coast Guard, 1-800-368-5647 orvisits their website at www.uscgboating.org to obtain a copy. Many state requirements go beyond Coast Guard require-ments. Call your state boating office for information on local safety requirements.

At least one B-1 type Coast Guard-approved hand portablefire extinguisher. Not required on outboard motorboats lessthan 26 ft. long and not carrying passengers for hire if theconstruction of such motorboats will not permit the entrap-ment of explosive or flammable gases or vapors, and if fueltanks are not permanently installed.

At least two B-1 typeapproved portable fireextinguishers; OR atleast one B-2 type.

At least three B-1 typeapproved portablefire extinguishers; ORat least one B-1 typePLUS one B-2 type.

Must carry approved visualdistress signals for night-time use.

Must carry approved visual distress signals approved for day and night-timeuse. For pyrotechnic devices (handheld or aerial red flares, floating or hand-held orange smoke, and launchers for aerial red meteors or parachute flares)a minimum of 3 required, in any combination that totals 3 for daytime and3 for nighttime use. Three day/night devices will suffice. Devices must be inserviceable condition, dates not expired and stowed accessibly. Exceptionsare open sailboats less than 26 feet long and not equipped with propulsionmachinery, and manually propelled boats; both required to carry only night

signals.

Every vessel less than 12m (39.4 ft.) must carry an efficientsound-producing device.

Every vessel 12m long, but less than 20m (65.6 ft.)must carry a whistle and a bell. The whistle mustbe audible for 1/2 naut. mi. The mouth of the bellmust be at least 200mm (7.87 in.) diam.

At least 2 ventilator ducts fitted with cowls or their equivalent for the purpose of efficiently ventilatingthe bilges of every closed engine and fuel tank compartment of boats constructed or decked over afterApril 25, 1940, using gasoline as fuel or other fuels having a flashpoint of 110 F or less.

At least 2 ventilator ducts for the purpose of efficiently ventilating every closed compartment thatcontains a gasoline engine and fuel, every closed compartment containing a gasoline tank, exceptthose having permanently installed tanks vented outside the boat and containing no unprotectedelectrical devices. Also, engine compartments containing a gasoline engine with a cranking motormust contain power-operated exhaust blowers controllable from the instrument panel.

One approved device on each carburetor of all gasoline engines installed after April 25, 1940,except outboard motors. Device must be marked to show compliance with SAE J-1928 or UL 1111

Standards.

Recreational boats must carry Coast Guard approved Personal Flotation Devices, in good and serviceable con-

dition, and of appropriate size for the intended user. Wearable PFDs must be readily accessible, not stowedin bags, locked or closed compartments or have other gear stowed on top of them. Throwable devices mustbe immediately available for use. There must be one Type I, II, III or V PFD for each person on board or beingtowed on water skis, etc., PLUS one Type IV throwable device. Throwable, Type IV PFDs may no longer be sub-stituted for wearable types on boats less than 16 feet. State laws on mandatory PFD wear may vary.

PersonalFlotationDevices

(Life Jackets)

FireExtinguishers(Must be Coast

Guard- approved)

VisualDistressSignals

Bell,Whistle

Ventilation(Boats builtbefore 8/80)

Ventilation(Boats builtafter 8/80)

BackfireFlame

Arrester

EQUIPMENT BoaTslEssThaN 16 fT.

16 fT. TolEssThaN 26 fT.

26 fTTolEssThaN 40 fT.

40 fT. TolEssThaN 65 fT.

Placards Every vessel 26' or larger must display oiland garbage placards.


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Boat Sellers

Guide

Selling Guide

Like fishing, there are two approaches to sell-ing a boat. A blind optimism that a big onewill take the bait in time for supper is riskybusiness. Careful consideration of just what kindof bait and lure will work usually pans out best.

Since success depends not only on price, butalso on appearance, condition and seaworthi-ness, take a long, critical look at your boat andbe honest about the things that need to bespruced up or fixed.

The BoatU.S. Boat Checklist for Buyers andSellers on pages 25-26 will help pinpoint majorareas to inspect. Decide whether to makerepairs or reduce the price accordingly. For fairmarket values, contact BoatU.S. Value Check atBoatUS.com/buyer.

Check classified ad listings to see what similarboats are selling for. And check BUC, NADAand ABOS used boat price guides found at boatdealerships and in the reference section ofsome libraries.

A marine mechanic or surveyor can help youput a price tag on repairs.

Based on loan pay-off amount, if any, andimprovements you may have made, establisha minimum price you are willing to accept for

your boat.

Many sellers set the asking price 10-15% higherthan rock bottom so theres room for negotia-tion, but be prepared for the hard-bargainbuyer who offers half what youre asking. And,keep in mind that when it comes to used boats,some boats hold their value better than others.

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BoatU.S. Boat Checklist for Buyers & Sellers

valuating a boats condition before pur-chase makes it easier for the prospectiveowner to say good buy or good bye

to a deal. Likewise, an objective eye for prob-lems that need to be corrected makes it easierto prepare a boat for sale.

Use this checklist to make a preliminary evalua-tion. We suggest using a scale of 1 to 5, where1 = poor and 5 = excellent. Take a good hardlook at what shape the boat is in. Is it clean?Are there signs of rust, hull blisters, peelingpaint or varnish, previous repairs, cracks or

corrosion? Dont forget to check operating gearlike winches, steering systems, running andstanding rigging on sailboats, lights, head andgalley equipment, electronics and instrumenta-tion. Start up the engine and take a sea trial.Check for compliance with U.S. Coast Guard safe-

ty equipment requirements listed on pages 19-20.This checklist is NOT a substitute for inspectionsby a competent marine surveyor and a marineengine mechanic. For information about pre-

purchase inspections, see page 7.

EXTERIOR 1-5 INTERIOR 1-5

Bottom surface Water Tightness

Hull Finish Cabin Security

Deck/Cabin Upholstery

Helm Station Molding/Trim

Hull-to-Deck Joint Locker Space

Molding, Trim Galley Equipment

Hardware Head

Cushions Lighting

Hatch(es) Bilge

Portlight(s) Air Conditioner

Windshield Other:

Liferail/Pulpit

Navigation Lights

OPERATING 1-5 SAIlBOATS 1-5GEAR ONly

Engine Mast(s)

Steering System Boom

Shifting System Sail(s)

Propeller Running Rigging

Battery Standing Rigging

Wiring, Connections Keel/Centerboard

Bilge Pump(s) Rudder

Fuel Tank(s) Other:

Fuel Lines, Vents

Gauges

Seacock(s)

Lines

E

You may want to keep shopping if your evaluation has 10 or more scoresof 2 or under.Make copies for each boat you evaluate.

HoldingTank


15/18

27 28

Should You Sell

It Yourself?

Selling Guide

Advertising &

Marketing Ideas

Selling Guide

Broker commissions on used boats are typically10%, a good incentive for selling a boat yourself.

Selling it yourself has drawbacks, however. Youwill be responsible for keeping the boat in sell-ing condition. And, since most boat shoppingoccurs on weekends, expect to be tied downduring your time off. Finally, like many oth-ers, you may simply dislike negotiating. Boatbrokers lighten the sellers burden by handlingsome of the paperwork, they know how to findbuyers and they advertise on a regular basis.

If you decide to use a broker, check references

from past customers. Most states do not requireany form of boat broker licensing. Its best tokeep agreements short-term in case the bro-ker isnt successful. Ask for frequent progressreports. Remember, like a realtor, a boat brokerrepresents thesellers interest, not the buyers.Brokerage agreements may take any one of thefollowing three forms:

An openlisting, in which the owner can sellthe boat himself (commission-free) while listingthe boat with a number of brokers.

An exclusive listing, which is given to asingle broker who can earn a commission even

if the owner sells the boat.

A central listing, which splits the commis-sion between the listing broker and a brokerwho actual manages the sale.

Multiple listing services are another option but these computerized sell-ing outfits dont give guarantees and they wont tell you how many buy-ers have made inquiries.

Getting your boat shipshape in terms of cos-metics and repairs is the first step towards get-ting her sold.

Getting the word out is the next step.Classified ads in local newspapers are an obvi-ous choice, but dont overlook national boatingpublications, like BoatU.S. Magazine, as well asyacht club bulletin boards and class associationnewsletters. Word of mouth, brochures and fly-ers are also effective.

Prepare a complete list of the accessoriesthat will convey with the boat.

Be prepared to show prospects your origi-nal bill of sale, certificate of documentation orstate title, as well as maintenance and repairrecords. Buyers may also be interested in yourinsurance costs, so they can estimate their ownexpenses.

Post For Sale signs on your boat but beaware that some marinas will automaticallycharge you a commission if you sell your boat.Check your slip or storage agreement.

Be there for buyers! Answering machinesare handy, but a live person is better when itcomes to selling. Return messages promptly.

Keep records of who you talk to and follow upon inquiries.

BoatU.S. Magazine reaches nearlyOne Million Readers. For classified adinformation, call 888-282-2628 or go

to BoatUS.com/classifieds


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The Sellers

Obligations

Selling Guide

The SalesAgreementGet It

In Writing!

Selling Guide

A serious buyer will want to have your boatinspected by a marine surveyor and possiblyhave the engine looked over by a marinemechanic. This will involve haul-outs and seatrials.

These expenses are normally borne by the

buyer and any destructive testing forexample, scraping bottom paint to look forosmotic blisters must be repaired by thebuyer.

Ordinarily, there is no obligation on the sell-ers part to volunteer information the buyerdoesnt ask for, but this doesnt give the sellercarte blanche to withhold information abouta known defect or condition that renders theboat unsafe.

Remember, there is a fine line between passivefailure to disclose information and active con-cealment. If an accident occurs later, previousrepair records or complaints to the manufac-turer may come back to haunt you.

This is also true for liens and other debt encum-brances that might cloud the transfer of title orownership.

Selling your boat in as is condition may beprotection against nitpicking later on, but it

may not protect you if a serious problem arises.

BoatU.S. Members can contact theBoatU.S. Consumer Protection Bureau

to discuss specific questions andproblems with boat sales.

Selling your boat can be a relaxed, positiveexperience, but dont rely upon a handshakeand a gentlemens agreement when it comesto finalizing the deal.

First, write a sales agreement, outlining theterms of the sale and the obligations of thebuyer and seller. Refer to Sales Agreementtips on pages 11-12 for more details.

Ask for cashiers or certified checks for boththe deposit and the final payment. Stick to anagreed-upon closing date.

Be prepared to renegotiate the sales pricewhen it comes to items that need repair orwhen the boat has a less-than-satisfactorymarine survey.

If you agree to make repairs prior to the sale,for your own protection, spell out your obliga-

tion in terms of exactly what is to be done andhow much you will spend. Written estimatesare helpful.

Do you have personal items on the boat theships clock thats been in your family for gen-erations, for example that you dont plan toinclude? Attach to the sales agreement a list of

all the accessories that convey and have bothparties sign it.

Unless you can afford the loss, dont offer tofinance the boat! The risk involved is not worththe often small amount of interest you stand togain. And, if you have a boat loan outstanding,the lender may not permit this arrangement.


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Boat Registration,Titling &

Documentation

Consumer Tips

Boating Safety

Consumer Tips

Every engine-equipped boat operating in U.S.waters, as well as many other types of boats,must be registered with a state boating agencyor with the federal government. An estimated 12million boats are currently registered in the U.S.

Registration numbers consisting of a two-let-ter state code and a combination of letters andnumbers are displayed on both sides of thebow. Registration is usually renewed every yearor two.

Boat registration is similar to car registration.In most states, registration fees pay for the

enforcement of navigation and pollution rules.Registration programs also aid in identifyinglost or stolen boats. Fees collected usually fundstate boating programs. Not all states requirethat boats be titled, so ownership can also beestablished through boat registration records.

Federal documentation is a national form ofregistration administered by the U.S. CoastGuard for boats over 5 net tons (usually about27 ft.). Its chief benefit is that mortgages, billsof sale and liens can be registered at the fed-eral level, making them easy to trace. Lendersfavor this approach and may require it forlarger boat loans. Only boats owned by U.S.citizens qualify for documentation.

For more information about documentation,contact the U.S. Coast Guard, 800-368-5647 orwww.uscgboating.org.

Fun, speed, freedom and escape arethe catch phrases often hyped by boat advertis-ers who rarely use the word safety. But safetyis just as important since the marine environ-ment can be unforgiving.

Safe boating means being prepared for emer-gencies, having a thorough understanding ofhow your boat operates, having proper safetyequipment on board and observing these basicsafety rules:

Alcohol, drugs and boating dont mix!

Know navigation Rules of the Road and

how to read a chart. Go to www.navcen.uscg.gov for more rules and much more

Know how to operate your boat. Makesure your partner knows as well.

Keep proper safety gear accessible andknow how to use it.

Wear life jackets.

Stay alert to changes in weather and seaconditions; check the marine weather reportfrequently.

Learn first aid.

Take a Boating Safety Class!Call the BoatU.S. Foundation

800-336-BOAT or go toBoatUS.com/courseline fora boating course near you:


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About the BoatU.S.ConsumerProtection Bureau

How theBoatU.S. Consumer

Protection Bureau

Can Help Members...In addition to a regular feature appearing in each issueof BoatU.S. Magazine, the Associations bimonthly news

journal, the BoatU.S. Consumer Protection Bureau offersAssociation Members four significant services.

Consumer Information The Bureau is a one-stop

source for information about state and federal con-sumer protection laws and boat safety standards, as wellas contact names, addresses and phone numbers formarine manufacturers and much more.

Complaint Database The Bureau maintains theonly national database devoted solely to problemsinvolving recreational boats, marine engines and relatedproducts and services. BoatU.S. does not rate or evalu-ate marine products, but our complaint files provide anoverview of problems and how companies handle them.

Dispute Mediation The Bureau operates the onlynationwide informal dispute resolution program forboating complaints. Our involvement can help bothsides in a dispute reach an amicable settlement withoutthe expense of going to court.As a matter of policy,BoatU.S. does not become involved in complaintsalready in litigation, nor can we represent Members inlawsuits.

BoatU.S. Safety Alert RegistryIf your boat isrecalled, you need to know about it. But owner recordsare sometimes incomplete and marine manufacturersmay not be able to contact you with important safety

information. BoatU.S. has established an easy way forboat owners to be notified when defect recalls occur.Simply register your new or used boat with theBoatU.S. Safety Alert Registry at BoatUS.com/recall.BoatU.S. will do all the rest by making your informationavailable to the manufacturer of your boat. At the samesite, BoatU.S. posts new recall notices as the U.S. CoastGuard publishes them.

1 When a problem with your boat arises, filea written complaint with the manufacturer orcompany, stating the nature of the problemand how you would like it resolved. Includesupporting information such as repair invoices,

marine survey reports and photographs.

2 If the company doesnt respond to you in asatisfactory way, send the Consumer ProtectionBureau copies of your correspondence. Includeyour complete name and address, as well asyour BoatU.S. Member number, and a complete

description of the product or service with whichyou are dissatisfied.

3 Once BoatU.S. receives your complaint, wewill contact the company on your behalf, keep-ing the lines of communication open until areasonable response is received.

All complaints and comments from consum-ers are entered into the Consumer ProtectionBureaus database. Many Members contactBoatU.S. to learn about consumer problemsand about how companies respond to com-plaints.

For more information about our mediationservice, call 703-461-2856 or [email protected] and ask for acopy of the Bureaus brochure Take Charge.

Documents

Boat Buy Sell Guide