Selling a boat in installments

[Nestor Espinoza]

Hello,

 

Someone is interested in buying my boat, but can only do a 30% down payment and six monthly installments. The guy seems alright and I don't think he'll run away (at 4mph!) without paying. However, better safe than sorry, does anyone have a sample contract I could use? Do I just add a paragraph to the bill of sale? Funny thing is that in over 10 years in the UK I've never bought anything in installments.

 

I guess hire-purchase agreements don't work as my boat is not insured or licenced for hire, I am looking for the best way to protect myself. So I'll make a copy of his passport, verify where he works, get a witness, anything else I should do?

 

Thanks in advance,

 

Nes

 

 

 

[mrsmelly]

Be very very very very carefull. Posetion is nine tenths of the law ( well it isnt realy ) but try getting boat back if he doesnt pay. Having said that I sold a boat a few years ago to a mate who gave me ten grand on the day and said he would pay me as agreed the other 13 grand within 3 months. He paid within six weeks but he was a mate not just someone I didnt know. If it were me and I talk as a risk taker I wouldnt do it however many agreements or solicitors were involved.

 

 

Tim

[Naughty Cal]

Tell them to find a boat within their budget and stop wasting your time.

[Paul C]

I think there's a very good chance that he'll pay 30% then you'll never see him again. He might be the nicest guy in the world, but a bit short of money.

 

The best way to protect yourself would be to sell it and received 100% of the money before handing over the keys etc. I don't think you can legally sell less than 100% and then expect the rest of the money, since its basically offering credit (albeit at 0% APR) for which you need a licence.

[Jo_]

What will happen if something goes wrong with the boat during this time? There was a similar thread a while back - someone wanting to buy a boat over a period of time I think. And all the arguments against such an idea were well made then. Can't remember any words that would help me search and would give you a link to the thread but maybe there are people around with better memories than mine!

[Sabcat]

Tell him you'll take the 30% as a deposit and he can can pick the boat up in 6months when he's raised the rest of the cash.

[Delta9]

You might be better off giving him a private loan of 70% of the value of the boat paid directly to yourself for the purchase.. This can then be drawn up as a legal document and you can sue him if he doesn't meet the terms. It is better that he owes you money than a percentage of a boat.

[zenataomm]

30% down payment and six monthly installments? ....... what could possibly go wrong?

[boathunter]

If he can raise the monthly payments he must have a very good income? So tell him you're not a bank and to come back with the all money.

[churchward]

Hello,

 

Someone is interested in buying my boat, but can only do a 30% down payment and six monthly installments. The guy seems alright and I don't think he'll run away (at 4mph!) without paying. However, better safe than sorry, does anyone have a sample contract I could use? Do I just add a paragraph to the bill of sale? Funny thing is that in over 10 years in the UK I've never bought anything in installments.

 

I guess hire-purchase agreements don't work as my boat is not insured or licenced for hire, I am looking for the best way to protect myself. So I'll make a copy of his passport, verify where he works, get a witness, anything else I should do?

 

Thanks in advance,

 

Nes

 

 

 

Don't do it.

 

All the risk is pretty much with you if you do. If he defaults on payments what are you going to do even with a good contract getting the boat back or any more money will take an age and will be very stressful for you.

 

He needs to find a finance company to loan him the money to pay you in full. That is the only way I would sell the boat. If he won't do that or he can't get a finance or bank to loan him the money why should you?

 

Did I remember to say DON'T DO IT!!!

Edited February 28, 2015 by churchward

[John Williamson 1955]

If a bank won't trust him enough to lend him the money, should you?

 

There is an earlier thread where we looked at this from the other side, and the disadvantages listed there still apply. You might be willing, if the paperwork such as insurance, licencing and BSC can be done correctly, to rent him the boat for 6 months at the agreed payment, and then sell it to him for a pound at the end of the rental period.

 

To reinforce what others have said, don't do it. You take all the risk, and it wouldn't be hard for the purchaser to repaint the boat modify a couple of windows and sell it on, forging the hull number if there is one. If he's in rented accommodation or living on board, how do you trace him if he defaults? Knowing his passport details won't help. Keeping his passport might, if it wasn't so easy to get a replacement for a lost or stolen one.

Edited February 28, 2015 by John Williamson 1955

[Ray T]

Hello,

 

Someone is interested in buying my boat, but can only do a 30% down payment and six monthly installments. The guy seems alright and I don't think he'll run away (at 4mph!) without paying. However, better safe than sorry, does anyone have a sample contract I could use? Do I just add a paragraph to the bill of sale? Funny thing is that in over 10 years in the UK I've never bought anything in installments.

 

I guess hire-purchase agreements don't work as my boat is not insured or licenced for hire, I am looking for the best way to protect myself. So I'll make a copy of his passport, verify where he works, get a witness, anything else I should do?

 

Thanks in advance,

 

Nes

 

 

 

 

Boats have been stolen altered and re painted in days.

 

Not so long ago a boat was stolen, in the North Midlands I believe, and a week later it was found in Ely direction, I think.

Even at 4mph a boat can be taken quite a distance. If the boat you're selling went would you know which direction it went?

 

http://www.canalworld.net/forums/index.php?showtopic=73970&hl=%2Bstolen+%2Bboat

 

http://www.canalworld.net/forums/index.php?showtopic=62918&hl=%2Bstolen+%2Bboat

 

http://www.canalworld.net/forums/index.php?showtopic=57249&hl=+stolen+boat&page=1

[Peter X]

DON'T DO IT!

 

Not only is it a near-certainty that you'll face having to expend a lot of time and/or money on a court action to get your hands on any money which isn't handed over prior to releasing the boat, but I suspect that merely by creating such a deal you'll be committing a criminal offence under the Consumer Credit Act 1974:

http://en.wikipedia.org/wiki/Consumer_Credit_Act_1974

As has been said, if the buyer really is good for the money he or she will be able to get a loan from a bank.

[bottle]

Just to add, as others have DO NOT, DO IT, sorry to shout but it needs shouting.

 

If he wants the boat tell him he can have it when he gives you 100% deposit (cost of boat) and nothing owing, over six months, interest free.

 

If he cannot do it then his credit is bad and others with more money than you are not willing to take a risk, why should you.

If he can afford it in six months then tell him to come back then with all the money and if it has not sold in the meantime it is his.

[pete.i]

Tell them to find a boat within their budget and stop wasting your time.

Yep I agree wholeheartedly. My boat was up for sale, I have taken down now, but I had one person wanted to do a lease to buy and another wanted to pay installments. No way was I going to do either of those ways of paying me.

[FadeToScarlet]

I know someone who did just this- took 50% of the value of the boat, with the rest to follow.

 

The buyer then lost their job and the boat was broken into and damaged inside.

 

It's now a major headache for the vendor and the buyer.

[Cloudinspector]

NO NO NO NO NO!!!!

Think I would be telling him to come back when he has the cash.

Or take the 30% and tell him he can take possession of the boat when the balance is paid.

I can imagine the reply I would have got from Dominic at rugby boats if I'd made the same offer when we bought our current boat.

[Texasboater]

How about if the guy sells it on before paying you the balance and disappears?

[dccruiser]

I would tell him to put his deposit in a high interest account along with any of the payments, then once he can afford it , if it isnt sold he is welcome to buy it, if it is, he then needs to look elsewhere.

 

 

Rick

[Wanted]

I am not going to recommend doing this as its a personal choice, but this is exactly what we did to buy our boat. There are more nice people in the world than not so you may be OK.

 

I am really busy right now but will try and forward a sample contract when I get into my office next week.

 

But please, heed others warnings as well and make an informed choice.

[FadeToScarlet]

You might be better off giving him a private loan of 70% of the value of the boat paid directly to yourself for the purchase.. This can then be drawn up as a legal document and you can sue him if he doesn't meet the terms. It is better that he owes you money than a percentage of a boat.

This seems very sensible to me.

[pearley]

How about if the guy sells it on before paying you the balance and disappears?

On London Facebook page last week there was exactly this.

 

On knock on the boat and someone standing with a court order wanting to take the boat. The names on the order meant nothing to the boater as he had bought the boat in good faith.

[Theo]

Even if nothing goes wrong then he is asking you to forgo the interest that you could earn on 70% of the purchase price. I think that is unreasonable.

 

Nick

[chubby]

Just tell them to go to the bank , secure a loan for the agreed price & once he & the bank have made thier agreements he can return with the cash or organise a bank transfer to your account .

 

Easy .

 

Except , if for one reason or another the bank won t lend him the money then it means financial professionals don t consider him worth the risk .

 

So why should you consider him any different ?

 

Its not a heartless or vindictive attitude to take but simply a pragmatic one .

 

Mind you , if it were me , i'd would probably have laughed in his face & told him to get off my boat .

[MtB]

I am not going to recommend doing this as its a personal choice, but this is exactly what we did to buy our boat. There are more nice people in the world than not so you may be OK.

Seconded.

 

We bought our first boat this way. I was amazed the seller trusted us but we stood by the agreement and paid as per our commitment. Never occurred to us not to.

 

MtB