NEWS From BoatU.S. - Boat Owners Association of The United States

all boat buying season is here. Whether you will be buying new - with a bank loan - or have the cash and want a deal on a used boat with a "FSBO" - For Sale by Owner, BoatUS Boat Financing has a couple of tips for both kinds of buyers.

"Buying a boat, especially mid- or large-sized boats, is very much like buying a home," said Charm Addington, vice president of the BoatU.S. Financing division. "If you'll be using a loan, getting pre-approved is a helpful first step."

Addington says that you don't have to know exactly which boat you want, as pre-approval confirms only the buyers ability to secure financing. "Then it's up to you to go shopping," she said. Most pre-approvals are good from 30-60 days. 

Addington also noted that "While interest rates are still near historic lows, they undoubtedly will go up. Getting pre-approved lets you act more quickly if you have to." BoatU.S. offers easy online pre-approvals at BoatUS.com.

For boat buyers who won't need a loan and will be paying in cash, Addington recommends using a settlement service, which ensures there are no liens, the boat has a clear title, previous loans are paid off and the transfer of ownership is complete. 

"Most buyers completing a cash deal - without a broker involved - have no idea what's needed to ensure their purchase goes smoothly. Like a closing that takes place when you buy a home, buyers need to ensure that the boat will be theirs without any strings attached." Addington adds that a settlement service is usually included with purchases made with bank loans because lenders require it. And, she says, most cash buyers using settlement services elect to also have their boat federally documented with the U.S. Coast Guard. 

The cost for BoatU.S. Settlement services range from $350 to $500. BoatU.S. will also hold payment checks to ensure the transaction's requirements are met before funds are transferred. For more information go to BoatUS.com and click on "Boat Buying."

BoatU.S. - Boat Owners Association of The United States - is the nation's leading advocate for recreational boaters and provides its 550,000 members with a wide array of consumer services including a group-rate marine insurance program that provides over $7 billion in hull coverage; the largest fleet of more than 500 towing assistance vessels; discounts on fuel, slips, and repairs at over 700 Cooperating Marinas; boat financing; and a subscription to BoatU.S. Magazine, the most widely read boating publication in the U.S. For membership information visit BoatUS.com or call 800-395-2628.