Category Archives: Buying a Boat

This area of Oasis Yachts will show you how to safely and successfully buy a boat in the USA. Take advantage of currently favorable foreign exchange rates. Learn how to find your dream yacht out of thousands of deeply discounted boats available in the USA. The current economic climate in the United States offers you the opportunity to purchase a yacht and ship her home for a lot less than buying the same boat at home.

Ensure Your Money is Safe

This article is relevant to you as a boat buyer whether you reside in the USA or another country. There have been a number of bank failures and bank takeovers in the United States in recent months. This information may help ensure that your money is safe when you decide to buy a boat in the USA.

To purchase a boat in the USA you are typically asked to put down a deposit. On pre-owned or brokerage boats the deposit is 10 percent of the total purchase price with the balance paid upon your Acceptance of Vessel. If you are not a resident of the USA you need to be aware that Letters of Credit are generally not accepted. Nor are cashiers checks or bank checks. Any reputable yacht broker representing a seller will not accept an offer on a vessel unless that offer is accompanied by a deposit in the form of a wire transfer of funds into that broker’s escrow account.

Several states in the USA including Florida and California have very strict regulations governing the use of escrow accounts in the yachting industry. Those regulations can be found here. Make yourself familiar with the use of escrow accounts in the state you are purchasing your yacht. The laws and general practice in the use of these accounts may not be the same as they are in your own country.

Use some caution and investigate the yacht broker you are choosing to employ to purchase your boat. Even with the regulations and laws in place to protect your deposit funds caution is always advised. We will address choosing a US based broker in another article but for now it is up to you the buyer to ensure that the broker you employ is reputable. Seek referrals if you can. You have no obligation to choose as your broker the person who has the listing on the yacht. Commissions are customarily split in this industry between buying and selling brokers and you will not save any money by electing to have one person handling both ends of the transaction. In fact logic would tell you that there is a conflict of interest if your chosen broker is representing the seller as well.

Another option is to instruct your broker to have your deposit funds managed and put into escrow by a law firm that practices admiralty law and also specializes in yacht transactions. I recommend Alley, Maass, Rogers & Lindsay, P.A. in Palm Beach, FL only because of personal experience. You can find them here. They handle US-based as well as international transactions. And they will be happy to work with your legal firm at home or to refer you to a firm in another state if appropriate.

That brings us back to the escrow account and how to determine if your money is secure during the purchase process. You should ask your broker or lawyer the exact name of the bank that handles their escrow account. This is particularly relevant with the turmoil happening today in the financial markets. Here are two excellent sources you can check yourself from home and for free.

The FDIC or Federal Deposit Insurance Corporation in the United States is an independent agency of the federal government. It is funded with premiums that it collects from the banks that they insure. They directly examine and supervise banks that have been chartered by the states or by the federal government. Their website offers reports of the banks that they insure for free. Click on View Reports, and then click on Uniform Bank Performance Report.

Another method is using Bauer Financial, Inc. All U.S. banks and federally insured credit unions are rated by Bauer Financial. No bank pays for this service, nor can they elect to avoid it. They have the ratings on their website here and it’s free!

It is safe to purchase a boat in the United States even in these tumultuous times. Just make sure you do your homework before you part with your hard earned money.

Call me or send me an email if you have any questions.

How to Buy a Boat in the USA

If you are interested in buying a boat in the United States then this article is for you. There has never been a better time to buy a boat in the USA. There is excess inventory available. Prices are lower than they have been in years. With the strength of other currencies versus the US Dollar you can purchase a boat in the USA, pay for shipping the boat home and import duties, and realize a substantial savings over buying the same boat in your country.

Take a look at this example. As I write this 0.68 Euros will buy 1.00 USD. Translated into real buying power consider that a yacht valued at:

· $100,000 USD can be purchased for 68,449 Euros.

· $500,000 USD can be purchased for 342,245 Euros.

· $1,000,000 USD can be purchased for 684,490 Euros.

http://www.xe.com/ucc

Now take into consideration that this example only reflects taking advantage of current exchange rates. New and used boats are now discounted by 20 to 30 percent or more from normal market value or standard retail prices in this country. That means that you can often purchase a boat in the USA for more than 50 percent off what you would pay at home.

Is it worth it for you to learn how to find the perfect boat for your needs that far away from home? You bet it is! You can save a lot of money and get the yacht of your dreams with not much more effort than buying off a dealer or broker in your home town.

I will be giving you step by step instructions on how to buy a boat in the United States and save a huge amount of money. You will learn how to do the search painlessly from home for no more than the cost of your Internet connection and possibly a few phone calls. You will know how to transfer money safely and securely. You will understand the logistics and the legal aspects of arranging export and shipping your new purchase. And I will give you tips on navigating the importation of the boat into your country.

I encourage you to subscribe to this blog and watch for updates. Feel free to contact me by email or phone.  david@oasisyachts.com or (954) 614-1663.

Until next time enjoy your time on the water!

David Tomen CPYB

Good News for Boat Sales

Boat unit sales in 2007 dropped to the lowest number the National Marine Manufacturers Association has recorded since the mid-1960’s.

Spader Business Management is a company that surveys this kind of stuff. They found that the boat dealers that they polled this year reported an average decline of 61 percent in net profit over their performance last year.

What does this mean? It’s a heck of a time to buy a new boat right now in the USA.

They also report that brokerage sales have dropped dramatically and that even their listings are down in number. It seems that folks that want to get rid of their boat now are aware of this market downturn and are not even attempting to sell.

This is good news for you if you are ready to sell your boat and are flexible in price. There is less competition and that should result in more inquiries on your boat.

Perhaps you have had your boat on the market for awhile, dropped your price and still no takers. Here’s a new idea. Sell her to somebody who doesn’t live here!

Every single yacht that I have sold for my clients over the last 10 months have been to foreign buyers. Why?

Have you ever traveled to another country from the USA when our dollar was strong against other world currencies? Remember when it felt like a bargain getting clothes, hotel rooms, booze, everything for what seemed like half price once you exchanged your money? That is how foreign boat buyers view boats for sale in the United States. They come here looking for a boat to take home because even after paying for transport it is still a lot cheaper than buying the same boat at home.

How do you track down that foreign boat buyer and get him to take a look at your boat? Stay tuned for our next episode of Boat Sales During This Financial Crisis!

And if you can’t wait you can contact me for a little personal advice.

Until next time – cheers!

David

Boat Sales During This Financial Crisis

Hi!  I’m David Tomen and am a Certified Professional Yacht Broker in the yachting capital of the world – Fort Lauderdale!

This is my new domain called Oasis Yachts which will hopefully be a full blown Website and blog within the next few days.  I hope you come back often or better yet subscribe to a feed for updates.

Oasis of the Seas

Incidentally, Royal Caribbean introduced “Oasis of the Seas” in Lauderdale the day I was starting this blog on MySpace last week.  Oasis is about to be the largest cruise ship in the world.  I would like you to think that Royal Caribbean and Oasis Yachts (me!) orchestrated that but alas – I cannot…

My intention with this blog is to help you improve your chances and sell your boat faster while all the other boats for sale languish forever on Yacht World or Boat Trader. If you are outside of the United States and looking for the secrets to getting a great boat deal in the USA during our current lagging economy – you too have come to the right place!

If you are a seller you will learn where the buyers are and how to reach them.  You will know what buyers in this kind of market expect when shopping for a boat.  You will get step-by-step instructions on preparing your boat for sale, how to do your own simple market research, and how to price your boat.

If you are boat buyer searching for bargain boats for sale come back to this sight often for ideas. Especially if you live outside of the United States and want to learn how to buy a boat in the USA to take home – you have come to the right place.

Welcome to the Oasis my friend! The door is always open for you and I look forward to being your host.

Cheers,

David