Buying a secondhand boat should not be difficult or stressful – provided buyers follow a few simple guidelines.
Some readers may remember the story of a former New York property developer who forged documents to sell an indebted yacht that was subsequently repossessed, reported in the NZ Herald, November 2022.
With over 20 years’ experience in boat insurance, Aaron Mortimer of Mariner Insurance has heard of many nightmarish scenarios, from costly mechanical failures right through to gut-wrenching repossessions like the one above.
In a recent video Aaron shared several tips tailored specifically for Kiwi secondhand boat buyers to help them buy with confidence – scan the QR code opposite to view.
HERE ARE HIS RECOMMENDATIONS.
Avoid ‘too good to be true’ deals
Aaron highlights the importance of assessing the seller’s credibility. Those after quick sales, those with reluctance to meet at their home, or those unwilling to provide genuine ID should raise red flags and be treated with extra caution.
Watch out for stolen goods
Boats are hot commodities for thieves, but it is not just boats! Aaron recalls a spate of incidents where crooks chained boats to trees and drove off with the trailers stolen from right underneath them. To avoid falling into such traps, he suggests checking CarJam or MotorWeb online. These will usually flag a boat trailer that may be stolen.
Beware of hidden debts
Owning a boat with outstanding debts can lead to some seriously unpleasant surprises. In a recent case widely-reported in New Zealand, a woman’s yacht was seized due to a previous owner’s outstanding debt. Unfortunately, after she had purchased the yacht for $400,000, it was repossessed. After its seizure she subsequently had to repurchase the boat, paying an additional $202,000. She also incurred additional costs to bring the yacht up to international sailing standards. This illustrates the risks involved in purchasing secondhand boats without thorough checks, especially regarding any outstanding debts or encumbrances on the vessel. Aaron advises checking outstanding finances using the Personal Property Securities Register.
Establish a boat’s quality
A well-maintained, modern engine is very reliable. However, Aaron warns against deferred maintenance, which can turn your dream boat into a costly project. He recommends professional inspections and discussing service records with the seller. Sea trials are also crucial, and Aaron advises bringing an engineer with you if you’re not mechanically inclined. Networking online with other owners of similar boats can also provide valuable insights into the pros and cons of a particular model.
Use Sale and Purchase Agreements
Aaron strongly recommends using Sale and Purchase Agreements – formal agreements setting out what both parties want and are required to do. Mariner Insurance provides a sample Sale & Purchase Agreement buyers can use as-is, or as a basis for their own versions. See: www.datocms-assets.com/93388/1681948669-sale-and purchaseagreement-sample.pdf
Trauma-free boat buying
With good background research, a fair degree of caution in your dealings, and professional advice, buying a boat in New Zealand should not be difficult or stressful. By following these few simple guidelines, you will end up with a valuable asset that will provide years of on the water enjoyment for the whole family. Says Aaron: “Take care, get good advice, and you are sure to find the right boat. And once you do find your ideal boat, reputable marine insurance companies like Mariner can help with the right level of boat insurance to keep it ship-shape.” BNZ www.mariner.co.nz
