When buying a used boat, it is important to ensure the vessel is in great condition and there are no issues.
Whether buying a pre-owned boat from a private seller or a boat dealership, a boat buyer should know what to look for and be able to inspect the vessel thoroughly.
To buy a used boat:
These instructions apply to a boat buyer purchasing any type of used vessel from sailboats to yachts and pontoons.
The first step of the used boat buying guide is to find a used boat for sale.
To find pre-owned boats for sale:
Choosing the right type of used boat will vary from one buyer to the next. Some buyers will prefer a pontoon whereas others may like a sailboat. It is a matter of preference.
Ensure that the pre-owned boat picked to buy is NMMA certified and within your budget, location, and capabilities.
An NMMA-certified boat is a boat that is built to certain higher standards set by the American Boats & Yacht Council (ABYC). A buyer can find an NMMA-certified sticker on the capacity plate of a boat.
If a boat has this NMMA-certified sticker attached to the boat, it means the vessel is certified. If it does not have this NMMA-certified sticker, it means the vessel is not NMMA certified.
Used boats for sale can be found in under 1 minute on boat classified websites and the Facebook marketplace. Used boats for sale can be found within 2 weeks if ordering a boat classified magazine online.
Boat classified websites, local marinas, boat magazines, boat auctions and marketplaces will offer used sailboats, yachts, pontoons, motorboats, catamarans, dinghies, speed boats, houseboats, etc. for sale for all budgets from $1,000 to over $1 million.
The most popular methods of finding a pre-owned boat to buy are browsing the Facebook marketplace and browsing boat classified websites.
The least popular method of finding a pre-owned boat to buy is contacting your local marina for information on used boats for sale as this is slower and it doesn't usually offer many boat options.
The best method for finding a pre-owned boat is by browsing boat classified websites like boattrader.com or boats.com as there are multiple boat makes and models for sale on these websites and plenty of choices for boat buyers.
The second step of the used boat buying guide is to inspect the used boat thoroughly.
There are two methods of inspecting a pre-owned boat which is to hire a professional marine surveyor or manually inspect the vessel using a marine inspection checklist to follow.
Hiring a professional marine surveyor costs between $15 and $25 per foot. Manually inspecting the boat with a checklist is free to do.
The benefits of hiring a marine surveyor are they are professionals with plenty of experience in evaluating a boat's condition and they will spot potential problems with a used boat faster than someone with no experience.
The benefit of following a marine inspection checklist is that it will help potential buyers to make a preliminary evaluation of the boat's condition for free.
The most popular method of inspecting a used boat before buying it is by using an inspection checklist and manually checking the boat yourself.
To inspect a boat manually, follow a used boat inspection checklist.
Below is a used boat inspection checklist to follow.
| Checklist Item | Information | Completed |
|---|---|---|
| Inspect the hull surface | Inspect the hull surface for osmosis (bubbles/blistering), cracks, scratches, or paint color fading or peeling. Osmosis and cracks can affect the structural integrity of the boat hull. | ▢ |
| Check the condition of the anodes on the hull | Zinc and aluminum anodes on the hull can rust, crack and corrode. Ensure the anodes are in good condition with less than 50% corrosion. | ▢ |
| Check the hull identification number (H.I.N.) | Read the H.I.N. (located usually on the stern). Use the hull i.d. to check the boat history. Compare these boat history details to what is being advertised by the boat owner. | ▢ |
| Check the condition of the boat rudder/propeller | Assess the boat rudder/propeller to ensure there is no damage/cracks or wobbles from the propeller shaft. The rudder/propeller should move easily without being stiff. | ▢ |
| Check the condition of the keel | Inspect the keel and make sure there are no cracks, damage or a large build up of dirt that can disguise any damage. | ▢ |
| Check the bilge and bilge pumps | Inspect the bilge and bilge pump. Ensure the bilge pump is working properly and there is not any excessive amounts of water/oil in the bilge area | ▢ |
| Inspect the boat deck thoroughly | Inspect all of the boat deck for signs of damage, cracks, indentations, stains, or leaks. Ensure the boat deck does not have any issues as it can be expensive to repair after buying the vessel. | ▢ |
| Inspect the boat deck railings | Inspect all of the boat deck railings. Ensure there is no damage, signs of wear, or corrosion. | ▢ |
| Ensure the navigation lights are working | Inspect all the navigation lights onboard and ensure they are in full working order. These navigation lights include stern lights, masthead lights, side lights, and docking lights. | ▢ |
| Inspect the boat engine | Check the boat engine including the condition of the oil tank, fuel tank, engine mount, seacocks, valves, plugs and the external condition of the motor. Ensure there are no signs of corrosion or any leaks or damage. | ▢ |
| Check the transom | Check the transom for signs of wear or damage. Ensure there is no corrosion or rust in the transom area as this is expensive to repair after buying the boat. | ▢ |
| Check the boat motor serial number | Read the boat engine serial number (located usually on the starboard side of the motor, just below the engine powerhead). Input the serial number into a boat motor database. The motor database can be found on the specific brand of motor website. Compare the boat engine database details to what is being advertised by the boat owner and ensure the make, model and horsepower match. | ▢ |
| Check the boat maintenance logs | Ask for the boat maintenance log/receipts and inspect the areas of the boat that have been repaired in the past. | ▢ |
| Check the boat exhaust system | Inspect the boat exhaust system for any damage or leaks. If a marine exhaust system is extra smoky, it could be a sign of internal damage. | ▢ |
| Check all the safety equipment onboard | Check the condition of the liferafts, life jackets, fire extinguishers, lifelines, lifebuoys, flares, etc. Ensure there is no damage or excessive wear on any of the safety equipment. | ▢ |
| Assess the boat anchor | Analyze the boat anchor and make sure there is no damage or cracks in the anchor. | ▢ |
| Check the electronics onboard | Analyze the onboard electronics including VHF radio, chart plotter, compass, GPS, boat horn, plugs, microwave, tv, sound system, electrical panel, air conditioner, heater, bilge pump, wiring, refrigerator, battery terminals, flashlights, and smoke alarms/detectors. Ensure they are functioning properly with no wear or damage. | ▢ |
| Check the mast, mainsail, jib & boom, rigging, lines, shrouds, and stays | Assess the condition of the mast, mainsail, jib & boom, rigging, lines, shrouds, and stays. Make sure there are no signs of corrosion, damage, or bad wear. | ▢ |
| Check the sails (where applicable) | Check the condition of the sails and ensure there are no tears or damage to them. | ▢ |
| Inspect the boat upholstery | Inspect the condition of the boat upholstery. Ensure it is in good condition with no rips, color fading, or UV damage. | ▢ |
| Inspect the boat holding tank | Inspect the boat holding tank for leaks, damage, or signs of bad wear. | ▢ |
| Inspect the condition of the Bimini top and canvas | Assess the condition of the Bimini top and boat canvas. Ensure there are no rips, color fading, or bad signs of UV sun damage. | ▢ |
| Check the stove (where applicable) | Check the stove and ensure it is in full working order with no damage, cracks, or leaks. | ▢ |
| Check the hatches | Ensure all the hatches are working correctly with no damage or corrosion to them. | ▢ |
| Check for warning signals/alerts after boat startup | Check the boat cockpit as the boat is started to ensure there are no alerts on the dashboard. | ▢ |
| Check the onboard ventilation vents | Assess the vents onboard to ensure they are not badly clogged or damaged. The vents are typically found on the walls below the deck in the galley or head area. | ▢ |
| Check the onboard plumbing | Check the onboard plumbing like the sinks, showers, toilets, etc., and ensure they are working properly. Turn on the sink and shower and flush the toilets to make sure there are no issues. | ▢ |
| Inspect the windows | Open all the windows onboard and ensure they open easily without any issues. Ensure there is no damage or cracks on the windows. | ▢ |
| Check for odors onboard | Check the entire boat for foul odors or any strange odors. These odors could be a sign of something damaged onboard and may require further inspection. | ▢ |
| Check all seals and joints onboard | Assess the condition of the seals and joints in areas like the boat deck, windows, hatches, and doors. | ▢ |
| Check the boarding ladder on the boat | Look at the boarding ladder and ensure there is no damage, rusting, or cracks on the ladder. | ▢ |
| Check the boat's legal documentation | Inspect the boat's legal documents including the boat title, maintenance records, warranty certificate (where applicable), parts receipts, and the bill of sale if making the purchase of the boat. | ▢ |
Get a printable boat inspection checklist pdf below.
Use this inspection checklist when assessing the condition of the used boat.
Some items on the inspection checklist can be ignored when they do not apply to the specific used boat being viewed.
The entire boat should be inspected before buying it including the stern, starboard, port and bow exterior and interior. The safety equipment, electronics, and legal documents should be inspected too.
The third step of the used boat buying guide is to perform a sea trial.
A sea trial is taking the boat out on the water to test out its capabilities and ensure it is functioning properly with no issues. It is an important part of the boat-buying process.
To perform a sea trial:
Performing a sea trial on a boat will take approximately 25 minutes to complete. However, this timeframe can vary based on the size of the used boat.
The benefits of performing a sea trial are it lets a potential buyer test the speed, maneuverability, comfort, steering, and sounds, it will highlight potential issues that may have been missed in the initial inspection and it will allow a boat buyer the ability to assess the boat's seaworthiness.
One risk with performing a sea trial is the potential buyer may not be familiar with the operation of the boat they are interested in purchasing so they will not get the full benefits of the sea trial. To mitigate this risk, bring the current boat owner on the sea trial.
A buyer should note that if the boat seller does not want to do the sea trial, this is a major red flag and should signal to the buyer to avoid buying the specific boat.
Performing a sea trial is free to do.
The fourth step of the used boat buying guide is to check the boat title and lien history.
The boat's title is a legal document that proves ownership of a boat. It is necessary for the transfer of ownership from one person to another. The boat title includes information such as the make and model of the boat, the manufacturer, the Hull Identification Number (H.I.N.), the name and address of the owner, and any liens or encumbrances on the boat.
A boat title must be transferred whenever the boat is sold from the seller to the buyer.
A boat lien is a legal claim on a boat as security for a debt. It means that the boat cannot be sold or transferred without first paying off the debt.
To check the boat title of a used boat, simply ask the current owner for the boat title to assess it or get one posted to you from the U.S. Coast Guard.
To check the lien history of a used boat:
The benefits of checking the boat title and lien history are it will provide the buyer with legal proof of who owns the boat and it will ensure there are no outstanding debts on the boat that a new buyer may be liable for.
The most popular methods of checking a boat's lien history are to check the boat title for lien information and check the state vessel records for lien information.
The fifth step of the used boat buying guide is to negotiate the price.
To negotiate the price of a used boat:
The benefit of negotiating the price is a buyer may be able to save money, sometimes 10% and 20% of the original price of the boat.
Negotiating the price of a used boat can take anywhere from 10 minutes to a 3-5 days for more stubborn sellers.
The sixth step of the used boat buying guide is to organize a payment method with the boat seller.
The three main payment methods when purchasing a used boat are:
Paying for a used boat with cash is instant whereas paying by bank transfer or a bank draft can take up to 5 business days to complete.
The benefit of paying for a used boat by bank transfer or bank draft is it leaves a receipt and proof of payment which can offer the buyer payment protection.
Paying with cash does not offer the buyer any payment protection or proof of purchase if something goes wrong.
The most popular payment method when paying for a pre-owned boat is paying by bank draft.
The payment methods that should be avoided when paying for a used boat are paying with cash or cryptocurrency as there is less protection for the buyer if a problem arises using these payment methods.
The seventh step of the used boat buying guide is to draft a bill of sale.
A boat bill of sale is a legal document that records the change of ownership of a watercraft from the seller to the buyer. The boat bill of sale includes buyer, seller, boat and sale information with signatures from the buyer, seller, and a witness.
There are two ways of drafting a boat bill of sale which are filling in a bill of sale template or having a lawyer draft the bill of sale.
The most popular method of drafting a bill of sale is to have a lawyer draft the bill of sale for you.
The average cost to have a boat bill of sale drafted by a lawyer is $350. A bill of sale legal template to follow is free to use.
A benefits of a boat bill of sale are:
Below is a sample bill of sale.
Date: [insert date of sale]
Name: [insert seller's name]
Address: [insert seller's address]
Phone: [insert seller's phone number]
Email: [insert seller's email address]
Buyer Information:
Name: [insert buyer's name]
Address: [insert buyer's address]
Phone: [insert buyer's phone number]
Email: [insert buyer's email address]
Boat Information:
Make: [insert boat make]
Model: [insert boat model]
Year: [insert boat year]
Hull I.D. number: [insert hull ID number]
Registration number: [insert boat registration number]
Sale Details:
Purchase price: [insert purchase price]
Payment method: [insert payment]
Payment terms: [insert payment terms]
Warranties/guarantees: [insert any warranties or guarantees provided]
I, the undersigned, seller, certify that the above information is true and accurate to the best of my knowledge. I further certify that I am the legal owner of the boat described above and have the authority to sell it.
I, the undersigned, buyer, acknowledge that I have carefully inspected the boat and accept it in its current condition. I further acknowledge that I understand and accept the terms of the sale as described above.
Seller's Signature: [insert seller's signature]
Buyer's Signature: [insert buyer's signature]
Witness Signature: [insert witness signature]
Note: This is just a sample bill of sale and may need to be modified to meet your specific needs or legal requirements. It's always recommended to consult with a lawyer or legal expert when drafting important legal documents like a bill of sale. This sample bill of sale should be used as a guide and not a legally binding document.
Below are the most commonly asked questions about buying a used boat.
To protect against fraud or scams when buying a used boat, ensure the seller has a valid boat title when assessing the boat, insist on performing a sea trial, check the boat lien history, thoroughly inspect the boat using a boat inspection checklist or by hiring a marine surveyor and only pay for the boat using a proof of payment method like a bank draft.
Tips for buying a used boat are:
The benefits of buying a used boat are:
The risks of buying a used boat are:
When buying a used boat, avoid:
The questions a buyer should ask the boat seller are:
It is safe to purchase a used boat from a private seller provided the buyer thoroughly inspects the vessel, checks the boat title and lien history, has a proper bill of sale, and uses a safe payment method like bank transfers or bank drafts.
To pay for a used boat safely, pay through a bank transfer or bank draft. Paying by bank transfer or bank drafts leaves a record of the payment which can be used if a problem arises in the future.
Buying a used boat takes from 1 week to 1 month to complete for most boat purchases. However, this timeframe will vary based on the availability of the money needed to make the purchase, the payment method used, and the location of the boat.
The costs associated with buying a pre-owned boat include the cost to the boat itself, the fees for hiring a marine surveyor (where applicable) which is approximately $15 to $25 per foot, banking fees for transferring money from the buyer to the seller bank account which is typically 0.5% to 1% of the purchase price and potential legal fees for drafting a bill of sale and transferring the boat title which is approximately $350.
If the boat is purchased through a boat broker, there will also be boat broker fees which can range from 5% to 10% of the boat's selling price.
The legal considerations to be aware of when buying a used boat are the bill of sale document which acts as a legally binding document of proof of transfer from the seller to the buyer, the boat title document which highlights the current legal owner information, and boat tax obligations when owning a boat which will vary from state to state.
Common scams to be aware of when buying a pre-owned boat are:
The most popular type of used boats to buy are sailboats, pontoons, and motorboats.
The least popular type of used boats to buy are barges and houseboats.
Boat Buying Guide
