If you’re buying a private-party boat, beware of scammers and arm yourself with knowledge and the right technological tools to do the deal safely.
We’ll show you how to steer clear of boat scams throughout the boat-buying process, discuss the most common boat scams, and show you how to spot seller red flags. We’ll also introduce you to the safest way to buy your dream watercraft.
Before diving into listings, familiarize yourself with the type of boat you’re interested in. Research average prices, learn the boat’s common features and options, and read reviews from other boat owners to understand potential issues.
Armed with knowledge, you should be able to spot red flags more easily, identify misrepresentations, and avoid a bad deal.
Scammers hide behind aliases. If you verify your seller’s identity, you’ll avoid many scams. Pair that with the other advice in the article and you’ll avoid close to 100% of them.
It’s awkward to ask for a seller’s ID when initially shopping boats; they may think you’re a scammer trying to steal their identity.
It’s better to use an identity verification service. Few boat marketplaces verify the identity of their users, though.
When you buy via DealNow, we verify the seller’s identity so you know you’re not dealing with an alias.
A boat history report can uncover scams, misrepresentations, and valuable insights into the vessel’s past. Fraudsters rely on potential buyers skipping this important step. To get a boat history report, you’ll need the boat’s hull number (sort of like the VIN of a car). Walk away from sellers who make excuses to avoid sharing the hull identification number.
A typical boat history report includes:
When you purchase a boat with DealNow, you’ll be able to order a boat history report from your dashboard with a couple of clicks.
While most boat sellers are honest, some may try to hide or gloss over defects. A thorough inspection is your best weapon against misrepresentation or omissions on the seller’s part. Unless you’re a boat expert, you may want to hire a professional marine inspector (also referred to as a marine surveyor). You probably won’t notice the sorts of details that a professional would.
A boat inspection dovetails with a sea trial, where you drive the boat on the water and see how it performs.
In addition to driving the boat and checking out all its systems and features, pay attention to the following:
When you arrange your sea trial meetup through DealNow, you’ll have the option to order a professional boat inspection through the DealNow interface. We save you the effort of three-way coordination: the inspector is notified and arrives at the correct location at the correct time.
If you are buying a boat remotely—for example, if the boat is in another state and you don’t want to travel to it—DealNow streamlines the process. Your inspector can act as your agent on the ground to help you get the deal done seamlessly. Oh, and you can also order boat shipping so your new watercraft arrives at your doorstep without you ever needing to leave the house.
The boat should have a clean title in the seller’s name, valid registration, all the supporting maintenance records, and title information that matches the history report and the physical HIN tag on the boat.
The maintenance records and boat history should tell a coherent story about the boat. Look for discrepancies and discuss them with the seller. Require the seller to address inaccuracies on the title before moving ahead with the sale.
If you’re set on a credit card payment, expect to cover Stripe’s $2k cut. There go any cashback rewards you were aiming for.
Private-party transactions have an inherent trust issue. You don’t know the seller well enough to send payment without a guarantee that they’ll give you the boat, and the seller doesn’t know you well enough to sign over the title without getting paid. You’re stuck in a catch-22.
Some people turn to escrow services for a solution. Escrow companies hold your money until the boat is in your possession. Escrow solves the catch-22, but it also adds inconvenience, cost, and time to the transaction.
A faster way to overcome the catch-22 is a bill of sale. It’s a legally binding document that records the transaction details (boat information, buyer/seller information, selling price, etc.). Both parties sign and countersign two bills of sale before exchanging money. In case the seller is a fraud, you have a legal defense that will hold up in court.
DealNow makes this step simple and stress-free. You and the seller each sign the digital bill of sale in the DealNow mobile app, and then you send payment. Not only is this faster than printing two copies, but if the seller is a truly bad guy, your copy is saved on the cloud, protecting it from theft, loss, or destruction. With our identity verification, you know the seller is signing the document under their legal identity (an alias renders the bill of sale worthless).
Once the bill of sale is signed and countersigned, you’ve got the green light to send payment. DealNow allows you to send any amount of money with no transaction fees, and the seller gets the funds instantly. This means you get the deal done on the spot and go home with your boat.
We’ve talked about the steps you can take to dodge scammers. Now, let’s look at the most common scams fraudsters are trying to perpetrate on boat buyers.
Some sellers lie about the boat’s condition or features:
Misrepresentation scams are the most common types of fraud in boat transactions. Never buy a boat without a marine history report and a thorough inspection.
In these online scams, criminals create attractive fraudulent listings for non-existent boats. They use pressure tactics or sob stories to convince buyers to send a deposit or pay for the boat sight unseen. After payment, the seller disappears with the money.
Criminals steal a boat and disguise it using the hull identification number and registration of a similar, legitimate boat. They might do this to dodge import taxes, commit insurance fraud, or hide the boat’s history. Buyers of laundered boats risk losing their money and the vessel when the theft is discovered.
The seller suggests using a seemingly legitimate (but fake) escrow service. Once you send your money to the fraudulent company, the scammer disappears with the funds, leaving you with no boat and no recourse.
When purchasing a boat, be on the lookout for these red flags.
One or two of these red flags might just mean the seller doesn’t know what they’re doing. Trust your gut, and don’t be afraid to walk away from a deal. Remember, there are plenty of other fish in the sea.
Picture a transaction platform that protects you from boat-buying scams without sacrificing convenience or speed. We created DealNow to be the ultimate transaction solution for high-value boat transactions.
After you’ve used DealNow, you’ll never want to buy a boat any other way.
DealNow is the safest and most convenient payment method for boat purchases. It combines instant transfers with escrow-like safeguards, protecting both buyers and sellers. Unlike cash transactions, which carry inherent risks, or checks that can be forged, DealNow gives you secure, verified transfers for boats of any value.
Buying a boat from a private seller is often better and cheaper than buying from a dealership. Here’s why:
Bottom line? Private sales let you stretch your boat-buying dollar further.
Sometimes dubbed the “cold weather buying season,” the best months to purchase a boat are September, October, and November. Colder weather marks the end of boating season, and the boat market sees less demand, which pushes prices down. Private sellers in northern states are motivated to sell their boats to avoid winterizing them.
DealNow is the easiest way to close your own vehicle deal, anytime. It’s the safe and simple way to avoid fraud, sign documents, and instantly transact, all in one app.
