Everything you need to know about trading in your boat or yacht
The questions owners ask us before a trade: the paperwork, the payoff letter, negative equity, and what a damaged boat is worth.
What is the process of trading in your boat?
The process of trading your boat involves a few steps. The first thing we need is the information — year, make, model, hours and power. We will need to know if you owe any money on the boat. After the initial evaluation based on the information you gave us, there will be an inspection of the vessel to confirm its condition and soundness.
What documents are needed when trading in a boat?
If the boat has a loan on it we will need the account information. We refer to this as a payoff letter. You must request this payoff letter directly from your bank who has the lien on the boat, and then have them fax or email it to us. We will need any titles that are in your possession for the vessel, and/or transferable registrations in states that do not have titles. If the deal is consummated, we will pay off the outstanding balance on the trade from the proceeds of the sale.
Why trade in your boat?
Trading in your boat can save money on sales tax in those states that do charge it, because you are only charged tax on the cash difference between the trade value and the boat you are purchasing. It also affords you the convenience of not being a two-boat owner while you are waiting to sell your existing vessel.
Can I trade in a boat that I owe more money on than it is worth (negative equity)?
Yes. Either the negative equity can be absorbed in the deal if the numbers work out, or you can simply send the difference to us and we will make the payoff for you.
Would it be a better idea to sell my boat privately or to trade it in to a dealer?
Most of the time a buyer needs to get out of one boat to get into the other — because of credit requirements, because they need the equity from their trade, or because they just do not want the expense of being a two-boat owner. Also, in states that collect sales tax, the transactions would need to happen simultaneously in order to secure the sales tax credit.
Is it possible to trade in a boat that may be damaged?
It is usually possible to trade in a boat that has been damaged. Contact us to discuss.
Should I get my boat detailed before the trade-in inspection?
It is up to you, but it is always smart to present your trade in the best possible condition that you can, to maximise value.
When is the best time to trade in your boat?
When you have found your new boat and are ready to move on, or when you want to get out of your existing boat as soon as possible.
How can I get the best value trading in my boat?
Make sure your vessel is in good running order, clean, and ready to be looked at by a marine inspector.
Boat trade-in form