BBB Tip: Buying a Boat Online

Milwaukee, Wis. – Looking to buy a boat this summer? If you want to avoid driving from marina to marina or visiting multiple dealerships, you should take your search online. Many dealers and brokers now have online showrooms where you can shop their inventory and take virtual tours. Here is what you should keep in mind as you shop around.

How to Buy a Boat Online

BBB recommends the following tips to help you find a sound boat at a good price from a reputable seller:

Set a Budget. Before you start shopping, be sure you have established a reasonable budget for your purchase. Think about all the costs involved, not just the price of the boat. For example, think about how much fuel, insurance, docking, and regular maintenance will cost. In addition, if you plan on financing the boat, you will need to calculate your monthly payments factoring in any interest you will owe.

Research different kinds of boats. Boats are specialized, so you need to determine how you plan on enjoying the water. Will you take your kids waterskiing or will you entertain guests on a sunset cruise? How often will you spend the night in your boat? Do you want something you can put on a trailer and haul? The answers to these questions will help you to narrow your search. Other considerations include how much time and money you can spend on your boat. For example, you can save money on dockage by purchasing a boat with a trailer. However, this means each time you want to use it, you will have to load it up, take it to a launch ramp, and get it in and out the water yourself.

Think about the sellers. Decide what kind of boat you want to purchase and whether you want something new or used. Then, you can determine what kind of seller best fits your needs.  If you want to buy a new boat, many dealers have online showrooms where you can shop their inventory and take virtual tours. Buying new boats from dealers means you can spend less time inspecting the product, but you will still need to do your homework. New boats come with manufacturer warranties, but these vary widely in coverage. It is wise to compare several options before you buy. In addition, you will need to inquire about whether the warranty is transferrable, since this adds a significant amount to the resale value. You can usually speak with online sales managers to get the answers to your questions.

If you are looking for a used boat, some dealers may have used inventory from trade-ins. A second option is to go through an online broker who can help you find the kind of used boat you are interested in. Many individuals also post ads for used boats on local websites, eBay, and Craigslist. However, exercise extra caution as you seek out legitimate sellers with quality products.

Take virtual tours. With most of the variables of your search narrowed down, you can really begin shopping. When you find a boat you are interested in purchasing, spend plenty of time taking virtual tours and inspecting images of the boat. If shopping boats listed with a dealer, browse the rest of their inventory to get a feel for the business. Compare specifications and highlights between similar listings to see what equipment comes standard and how each boat differs. Compare photos between similar boats to see if there is anything the seller hasn’t mentioned on a particular listing. This could be a red flag area. Be alert to boats that include a lot of extras that you won’t use or will need to replace, such as outdated electronic equipment.

Inspect the boat thoroughly in person. You should always inspect the boat in person before you buy – especially when making an online purchase. If you are buying a new boat and it comes with a good warranty, chances are you won’t run into any problems. Still, if you are buying a used boat, plan on seeing the boat in person and making your own inspection as a first step. Keep a close eye on the quality of the hull and gel coat, the deck and fittings, the helm station, the cabin hatches and windows, and the engine and machinery. This isn’t intended to be a thorough survey, but it can give you a good idea about the basic quality of the boat.

If the boat passes your own initial inspection, you should do a sea trial, which is a boating term that means to take a test drive. A sea trial will allow you to test speed, maneuverability, and other boat systems that can only be used in the water. You can also check for suspicious vibrations or noises that could reveal mechanical problems. Keep in mind that sellers generally offer sea trials only to serious buyers and you may be asked to agree to a price before you take the boat out on the water. Still, this test will allow you to see firsthand how the boat runs and may reveal a few flaws that could be deal-breakers or points for negotiating a lower price.

After your sea trial, and especially if the boat in question larger than 30 feet, it is wise to hire a surveyor. Marine surveyors will do an in-depth inspection of the boat and provide you with a detailed report. Surveys generally cost between $15 and $25 per foot, but they can easily pay for themselves by revealing problems that were not apparent during your own inspection. Plus, they give you a firm value from which you can negotiate with the seller.

Complete the sale. After you have determined that a boat fits your needs and is a sound purchase, you must complete a sales contract and pay the seller. Dealerships and brokers will have their own contracts for you to sign. Make sure you take the time to read the entire contract, so you fully understand the conditions of the sale. For new boats, your contract should give you a firm delivery date and a list of all warranties. If you are buying from a private seller, you still need to complete a sales contract. This will provide legal protection for both you and the seller. Make sure the contract is completely filled out and includes the boat’s Hull Identification Number, engine serial numbers, and the serial number of the trailer if it is included in the sale. All terms should be clearly spelled out. If the sale is contingent upon a satisfactory marine survey or sea trial, this must be included in the terms. The contract should also detail what happens to your deposit if the sale falls through. All contracts should state that the boat is free of all liens and encumbrances. If all the terms of the sale are clearly documented and satisfactory, you can then make your payment.

After the sale. Once you have paid, the seller should sign over the boat title. Not all states require titles, so find out what your state’s regulations are ahead of time. Before you say goodbye to the seller, double-check all the paperwork and make sure the boat’s HIN matches the number on the title.

Avoid Online Boat Sales Scams

• Be wary of deals that sound too good to be true. Scammers often trap unsuspecting victims by offering unrealistically good deals. Knowing the general price range of the boat you intend to purchase before you start shopping will help you avoid scams.
• Contact the seller by phone. If you are negotiating online, it is still important to speak with the seller over the phone. If the seller avoids answering specific questions about the boat this is a red flag and you are probably dealing with a con artist.
• See the boat first. Even though you are shopping online, it is vital you see the boat in person and have it inspected before you finalize the sale.
• Avoid unusual payment methods. You should never wire funds, send bank-to-bank transactions, or make payments with prepaid debit cards to a stranger. Legitimate purchases, especially large ones, should be made by check or credit card.
• Don’t make hasty purchases. Buying a boat online requires a lot of research, so take your time. Never let anyone pressure you into buying something you are not sure about yet, even if it means losing out on a supposedly “great deal.”
• Don’t trust a seller who says your purchase is guaranteed by eBay, PayPal, or Craigslist. These sites clearly explain they do not guarantee that people using their services are legitimate. If a seller tells you otherwise, don’t trust them and stop communications.

For More Information

For more information on how to avoid scams, see BBB.org/AvoidScams and BBB Tip: Smart Shopping Online. You can also research specific boat dealers at BBB.org to find up-to-date business ratings and customer reviews. Find boat dealers near you.

For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Instagram and YouTube.

ABOUT BBB: For more than 100 years, the Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2019, people turned to BBB more than 183 million times for BBB Business Profiles on more than 5.8 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. There are local, independent BBBs across the United States, Canada and Mexico, including BBB Serving Wisconsin which was founded in 1939 and serves the state of Wisconsin.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.