How To Avoid Getting Scammed When Buying a Private-Party Boat

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.

Do Your Research

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.

Verify the Seller's Identity

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. 

Get a Boat History Report

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:

  • Boat specifications: make, model, year, length, engine type, etc.
  • Ownership history: number of previous owners, duration of ownership, and current owner.
  • Title information: clean title, salvage title, rebuilt title, etc.
  • Accident history: reported accidents, severity, and extent of damage.
  • Engine hours: recorded usage over time.
  • Service and maintenance records: history of repairs and regular maintenance.
  • Recall information: any manufacturer recalls associated with the boat.
  • Registration history: states where the boat was registered and renewal dates.
  • Flood or fire damage: records of reported flood or fire damage.
  • Theft records: if the boat was ever reported as stolen.
  • Structural damage: reported major structural issues.
  • Inspection records: dates and results of previous inspections.

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.

Inspection and Sea Trial

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:

  • Modifications should be noted on the vessel history report and diligent sellers should have receipts. Check that all modified systems work as described.
  • To avoid stolen boats, check that the HIN, make, model, and year match those on the boat history report, physical HIN tag, and boat title.
  • Engine hours should increase over time across all available documents. The number of hours on the engine should be higher than on the title. The boat’s general condition should match its purported usage.
  • During the sea trial, listen and feel for unmentioned signs of wear or dysfunction.

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.

Check the Paperwork

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.

Use a Bill of Sale

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.

The Most Common Boat Buying Scams

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.

Misrepresentation Scams

Some sellers lie about the boat’s condition or features:

  • Upgrade misrepresentation: False claims about boat upgrades or modifications to charge a higher sale price than the boat is worth.
  • Mechanical misrepresentation: Sellers hide significant mechanical issues to make their money back selling you a bad boat.
  • Hours misrepresentation: Sellers tamper with the hour meter to show less usage so you’ll pay more than the boat is worth.

 

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.

Fake Listings

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.

Vessel Identity Laundering

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.

Escrow Scams

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.

How To Spot Red Flags When Buying a Boat

When purchasing a boat, be on the lookout for these red flags.

Suspicious Seller Behavior

  • Reluctance to allow in-person viewing or inspection of the boat
  • Pushing for a quick sale without allowing proper examination
  • Creating a false sense of urgency (e.g., claiming multiple potential boat buyers)
  • Refusal to communicate via phone or video call
  • Use of frequently changing or generic email addresses
  • Poor grammar or language inconsistent with the boat seller’s claimed background
  • Generic responses that could apply to any boat listing

Listing and Documentation Issues

  • Lack of clear, recent photos of the boat
  • Reluctance to provide the boat’s registration or title information
  • Inconsistencies between the listing details and actual boat specifications
  • Refusal to provide maintenance records or vessel history

Payment-Related Red Flags

  • Insistence on unconventional payment methods (e.g., gift cards, cryptocurrency)
  • Pressure to use unfamiliar payment or escrow services
  • Requests for deposits before allowing an inspection

Unusual Requests or Circumstances

  • Seller asking for unnecessary personal information (e.g., SSN, ID copies)
  • Complicated transaction proposals involving multiple parties
  • Requests to purchase and ship the boat sight unseen
  • Elaborate backstories explaining the urgent need to sell

Inspection and Sea Trial Concerns

  • Refusal to allow a professional marine survey
  • Reluctance to permit a sea trial before purchase
  • Attempts to rush through or limit the inspection process

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.

DealNow: Your Best Defense Against Scams

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. 

  • Bank-level security: Your funds are protected with advanced encryption and held in an FDIC-insured account.
  • Verified sellers: No more worrying about fake listings or fraudulent sellers. DealNow’s verification process guarantees you’re dealing with real, legitimate boat owners.
  • Escrow-like protection without risk: Our digital bill of sale process provides escrow-like safeguards without the danger of fake escrow services. Both parties must complete the process before the deal is final.
  • Secure communication channel: Our private dealroom feature lets you communicate with sellers safely, reducing the risk of phishing attempts or identity theft.
  • Protection for remote purchases: Buying from an out-of-town seller? DealNow’s secure platform makes long-distance boat purchases as safe as local ones.
  • Title verification: Optional title check confirms the boat’s ownership is legitimate and there are no liens against the watercraft.

After you’ve used DealNow, you’ll never want to buy a boat any other way.

Boat FAQ

What is the best way to pay for a boat?

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:

  • No dealer fees: Skip pesky documentation charges that cost hundreds of dollars.
  • Skip the middleman: Dealerships and yacht brokers buy low and sell high. With private sales, you’re cutting out the dealer’s take.
  • More choices: From barely-driven luxury boats to well-loved classics, private sellers offer a range of options.
  • Better prices: Whether your dream boat is a pristine new model or a fixer-upper, private sales typically mean lower sales prices.

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.

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