Having a boat is an incredible feeling. Just think about how you can run into waters without depending on anyone else. Whether it’s just a hobby or if your life depends on it, there is no match to owning a boat.
But what if you’re looking for a new boat and want to trade your existing one for it? Well, trading a boat is not a problem at all. You need to understand the basics, and you can get started with your new boat in no time.
What Prompts a Boat Trade
Trading a boat doesn’t need a reason. You may have a love for the latest models, technologies, etc., or you might have worn out your current boat and want to make the most of what remains. Moreover, you might like to extend functionality and switch with someone who doesn’t want it.
In a nutshell, it’s just your will to move on to something new.
Trading is a Great Option
Trading is a much better option than buying a new boat. Moreover, you can trade your current boat for a new boat as there are certified dealers. It doesn’t involve too much paperwork, so it’s an easy way out for you.
Save Some Taxes
Moreover, you only need to pay the reduced sales tax with the new boat purchasing price in some states. So, there is a definite advantage in terms of money too. All you need is a certified dealer who deals in trading boats. Hence, you will also save time on prepping documents.
Save on Transportation
While trading a boat, you don’t need to coordinate with the buyer. So, you don’t have to arrange for boat transportation either.
The dealer is most likely to include the prep cost, survey, and trials in your trade-in deal. So, you don’t need to do anything extravagant for it. However, if you can perform cheap cleaning jobs on your own, it can give more value to your boat.
The Downside of Trade-In
The only downside of trading a boat is that you can get a better price if you sell it or hire a broker. Moreover, you can encounter some unknown problems in your new boat, which the dealer may be unaware of.
Starting a Trade Deal
It’s quite simple to start a trade deal. Just focus on the following aspects to make a smooth boat trade.
Reliable Dealer is Must
First, you must find a dealer. However, finding a reliable dealer can be a bit tough, so you should take as much time as you need. Thankfully, certifications make it easier to choose the right one. So, search for a certified dealer in your locality.
Make sure that your access to the dealer is convenient. Often, there will be inspections and surveys, so it’s best to find someone nearby.
Get Your Papers Ready
Although paperwork is minimal, there will be some documents to present. Firstly, you must have the title for the boat. Also, keep all the receipts of maintenance and repair for better transparency.
In most states, improper paperwork can lead to problems for making a deal, so it’s better to keep everything ready beforehand.
Prep Your Boat
A clean and maintained boat will always appeal to a dealer. This way, you can also add more value to it. You can start with a waxing job to give a shiny look to the boat. A smooth and shiny outlook can have a significant impact on your boat’s worth.
If your boat has accessories, then there is a decision you must make. Either you trade the boat with the accessories, or you remove them to install on the new boat. In my opinion, it’s better to switch with the accessories because it adds to the value.
Dealers Have Conditions
Although most dealers have similar terms and conditions, some dealers play it safe and may have additional requirements. For instance, not all dealers will accept a boat of any age or condition. A dealer may prefer a vessel less than five years old because the older ones may not offer much profit.
How You Save on Taxes by Trading In
As I mentioned earlier, you can save some tax money if trading is a part of your new boat purchasing deal. For example, if you wish to buy a boat worth $40000 and your current boat values at $15,000, you will pay the sales tax for the difference of amount, i.e., $25,000 instead of the actual new boat price.
Now, even if the sales tax is just 5% of the price, you will pay a sales tax of $1250. If the trade-in weren’t happening, you would be paying $2000 in taxes.
Some Frequently Asked Questions
Although I have covered most things, here are a couple of questions boaters often ask some common questions. Here is a quick look:
How is trading different from brokering?
In a trade deal, the dealer is effectively your buyer. He will take full ownership of your boat to sell it further. On the other hand, the broker will try and strike a deal between the two parties. He doesn’t take ownership of your boat.
Can I trade my boat Online?
You can search for a trader in your locality. But many online platforms also perform reliable dealership jobs. Just tell them your boat type, and they will find a suitable deal for you. It makes it more convenient for both the seller and new buyers.
Can I trade for a Different Vessel Type?
It depends on the dealer, whether they can get you a different type of vessel. However, if you share your needs and preferences, you will most likely get your preferred boat.
Nothing feels better than getting your hands on a new vessel. Moreover, if you can smoothly switch from one boat to another, it’s the icing on the cake. Because trading for a new boat can prevent several issues, so it is a much preferable option compared to selling your boat privately.
The only motivation for making a private deal is to get more money. However, it has drawbacks as you will need to satisfy the buyer, be there for boat surveys, arrange for transportation, and deal with the brokers.