Category Archives: Featured

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

Preparing Your Boat For Sale

So now you have decided that it is time to sell your boat. You have done some research on the Websites that you clicked through to in the last blog. You have discovered that your beloved boat is not the only boat for sale. As I write this there are 120,569 boats for sale on Yacht World alone. Clearly you have some competition. If you want your boat sold first we have some work do.

With the universal acceptance of the Internet over the last few years, the Web is the first place most boat shoppers go to see what used boats are available, the new models that boat dealers have in stock, current asking prices, and other relevant information to help them make an intelligent boat buying decision. If they do not know how to access that information they ask one of their kids to do it for them.

By the time a client shows up at my office and tells me that they want to buy a boat they often know much more about a specific model than I do as a yacht broker and practically anyone else in the industry. They know what boats are available, what condition the boats are in, what current asking prices are, and what that specific boat model has sold for in the last six months. You have access to the same information and need to use that market intelligence to formulate your selling strategy.

In my next blog we will talk about pricing and begin getting your boat ready for sale. Have a terrific day on the water and I’ll see you next time after you have done your homework!

See you soon!

David

(954) 614-1663