Buying a new boat

[Gary Peacock]

After a bit of a debate over contracts and payments we have decided to increase the number of payment stages from the traditional 4 to 6.

 

 

 

This should allow the payments made on a boat to better reflect the actual value of the boat to the current stage of build.

 

 

 

Hopefully a few more builders will also follow suit.

 

 

 

Not only should this provide more security for the customer but should also help the cash flow of smaller builders.

 

 

 

Remember when making payments on a new boat-

 

 

 

Don't be tempted to pay in advance for products or services you have not received!

 

 

 

If you choose to ignore this then you can end up loosing a lot of money even if the builder is working in good faith but something out of the blue just happens to go wrong.

Edited July 20, 2006 by Gary Peacock

[anhar]

Hello Gary

 

My boat on order has four stage payments:

 

10% deposit on order - not refundable

40% on the shell being received - built by another firm

40% on completion of build when boat can be taken

10% 72 hours after delivery on satisfaction

 

It's a standard BMF contract as far as I'm aware. The only stage where payment has been made with nothing to show is therefore the 10% deposit.

 

regards

Steve

[Richard Bustens]

Gary what % and when are you working to?

[Gary Peacock]

The only thing that would worry me about that is you will have paid 50% of the total value of the boat on the shell being received, does that reflect the actual value of the shell?

 

 

 

The main problem with the standard BMF contract is that in the days when it was conceived the hull and engine reflected very much the most expensive elements in the build, unfortunately when we're building things these days that is often no longer the situation.

 

 

 

We take a refundable (Up to 8 weeks prior to commencement Less admin charge) deposit of £2k for fully fitted boats.

 

 

 

On a fully fitted boat the first payment is on delivery of steel followed by a second payment on completion of the hull and these payments should approximate to the list price of a bare hull. The following 4 payments will be staged to reflect the value of the work completed sailaway, lineout etc.

 

 

 

On a bare hull we take a £500.00 deposit for hull with full payment on completion on hull.

 

 

 

 

 

Unfortunately the best solution of full payment on completion and handover will never really be possible when you consider the value of our work in progress is around £750k and we definitely can't finance that kind of outlay.

[anhar]

It's a fully fitted standardised production boat at the lower priced range and therefore the shell will represent a greater proportion of the final price than a more expensive boat such as your company builds. But you are right, the bare shell is not likely to represent as much as 50% of the final price and to that extent I will have paid something in advance at that point.

[blackrose]

I know a guy who's buying a sailaway from Tim Tyler and has only been asked for a £200 deposit and the balance on completion! A rather good arrangement as far as he is concerned.