How to manage payment for large purchase?

H

hiestaec1

New member
I just sold my Trimaran yesterday so more serious than ever to find a C-dory. Up to this point all my boat purchases have been below 10k so payment was always done in cash. Wondering how you guys have managed to pay for and getting paid for with much larger amounts. I appreciate hearing about your experiences.
 
Although Cashier's check was once thought to be secure--and still can be used, I prefer wire transfer. I usually arrange to have the wire transfer done "upon my command"--(harder to find a bank who will do that these days). You go to the boat, do sea trial and survey. If all is good, and purchase price agreed, then you call the bank and have the wire transfer arranged to proceed immediately. This will take and hour or so. Have a drink or meal with the seller, and then verify with his bank payment is transferred.

Cashier's check can work the same way: Have cashier's check in hand (I usually will have enough cash to bring to the asking price--but in case an issue is found to decrease the sales price, you have a buffer. (For example my last 25 didn't really have a full camper back as advertised--only screens. So we agreed on a price reduction by $2500. We went to the seller's bank, who then wanted to verify the cashiers check. That took about 45 min (his bank didn't call the person I told them to call. If done correctly, should only take 5 minutes). Sale done.
 
Like the idea of a wire transfer, do you write up a contract or agreement just in case something happens and seller receives the money and doesn't release boat? I know that is long shot but just trying to be safe.
 
yes, today it is easy to make a contract. There are some on line. Generally you write out the purchase price, the deposit, and that the sale is dependent on inspection, survey and sea trial. (You spell out you want a certified mechanic to do certain tests on the engine). The 10% deposit is subject to the conditions of sale.

The payment after sea trail survey etc.

If you don't trust the seller, then you can do an escrow account with a mutually agreeable attorney. Boat US used to do escrow--but I don't see it on the web site.

Sometimes you have to be creative: In one instance, I had a trusted friend check out the boat. Myself and the seller had contacts thru the same banking service, which held the loan. I got a letter authorizing me to pay off the loan and receive the title to the boat. I then drove up to bring the boat back from VA.
 
When I sold my airplane, and years later when purchasing my C-Dory, just went to a branch of my bank together with the seller/buyer and had them make up a a bank check. This way the seller knows its a good check. This works well with regular commercial banks that have many branches.
 
Wire transfer is the way to go. You get instructions in advance and set it up with your bank. Then when I'm with and seller the boat, and have inspected the titles and feel confident in the deal I call the bank and release the funds. Then there's a waiting period, but its usually less than an hour. When the funds go through hook up the trailer and drive away. During the last purchase of the c-dory, the boat was located in North Carolina and we needed a notary as part of the sale, so that added an extra step but the transfer was the same.
 
Nice thoughts are

* I can get the boat I want* and
** a contract will protect me**

Well, I've learned nice thoughts are not always realistic, so

*The (more expensive) boat you want will end up, in the long run, costing much
more than you originally think. Thus, the old saying about boat costs: "If you
have to ask, you probably can't afford it." This applies to most; not those with five
zeros ($ X00,000.), or more, bouncing around in their check book.

**The nasty truth about most contracts is they are only as good as the people who
make them.

It's nice to be positive all the time but real learning comes from making mistakes,
problems and getting burned a few times.

Not happened yet? Just wait.

Aye.
 
Try buying a boat on a holiday weekend! Sometimes it happens. When I purchased my new boat, I ended up overnighting a cashiers check as a deposit. The seller asked for a wire transfer, but my credit union was somewhat against that due to financial safety. (So guess even a wire transfer is not necessarily the best either.) My bank suggested they could over night a cashiers check and that would protect me financially. The seller agreed. Then prior to the actual sale, I had a loan all ready set up and ready to go. The transaction took place on a business day, Monday. Once the seller and I agreed to the purchase, I called my credit union up to finalize the loan and they again overnighted a cashiers check to the seller. Since they emailed him directly a copy of the check along with tracking information, and he had already dealt with my bank overnighting the deposit, he was comfortable signing the title over to me at that time and letting me take the boat. So all worked well. As for being the seller with my earlier boat, there was some stress involved. Buyer paypaled me a deposit, which other than a small fee from paypal, worked out well. However, because buyer was coming for the boat on a holiday weekend, I asked for a cashiers check to be premade thinking they were suppose to be pretty safe. All good for the sale, so the title and cashiers check were transferred to each other. Deposited it on Tuesday after the holiday and got a call from my bank on Wednesday asking lots of questions as they investigated the check. The problem was it did not look like a typical cashiers check they usually see. The bank person did say it's probably ok, but I shouldn't plan on spending any of it yet, just to protect my account...I started doing some research on the internet and found that particular bank did have some fake checks with it's name, but the check I remembered had what was posted as valid notes. Yeah, just a little bit of stress there. It's now been about 9 business days without any further ado, so the assumption is all is well. But in the future I may require any transactions to take place during a business day so that a call to the bank to confirm the payment can be made. This may add a limitation in situations where folks have to travel to purchase and the time off work presents a situation where weekends and holidays work better. Colby
 
The purchase of our CD22 started in Dec 2002, when I made the trip from Wyoming to Vancouver, BC with cashier check in hand from my credit union, which was the method of payment the seller originally requested. When the seller & I went to his bank to make the deal, his bank recommended him not taking the cashiers check, as they said, I could have it cancelled once I crossed back into the US. His bank wanted me to open an account at their bank & have the purchase money wired to this account. I did not have the time to wait there, so returned home & then drove back again to Vancouver, BC, in early Jan 2003. This time with the money in my account there, when I arrived. All then went smooth with a quick transfer from mine to his account within the bank & his lawyer drawing up the Bill of Sale. The wintery trip home didn’t go so well. The engine on the Astro Van died beyond repair near the Tri Cities in Washington state, so bought a new pickup in Pasco, Washington to get the boat home. The last 100 miles was through near blizzard conditions & -15 degrees F when I finally arrived back home in Cokeville, Wyoming. This telling is the short version as it was quite the purchase process of which, I’ve never regretted for a second thereafter.

Jay
 
I ordered the boat on the phone from Alaska for $10000 w/o an engine. I had a new one in my garage in Alaska.

The family and I drove to Kent, Wash to pick it up. The company owner, Mark Toland took my personal check for it and said drive carefully back home.
A simple transaction that both of us had a good feeling about.

Jack in Alaska
 
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