What To Know When Financing The Purchase Of Your New or Used Boat
When buying through a dealer or broker, expect to be asked for a deposit, which may be non-refundable if you back out of the transaction. So be sure that you want to buy and have the funds available before you commit. If you require finance, dealer and brokers may be able to introduce you to alternative sources of borrowing (for which they may receive a commission, so bear this in mind when negotiating).
MGM waive their commission in lots of cases, according to Salmon. "In the current fiscal climate where finance companies are looking at every detail, it's more important to have the client get finance for the boat they want."
With a marine mortgage, you can normally obtain up to 80% of the purchase price secured against your boat. Before granting a marine mortgage the finance house will require a full, out-of-water survey and valuation on boats other than brand new boats. The lender will also check that there is no finance outstanding on a new boat. Dealing with a private individual is slightly more complex. They are not professional sellers and will not necessarily know how to formalise the transaction to help protect not only themselves but you as well. So it is as much in your interests as theirs to ensure all potential purchasing disasters are avoided.
