CYBA Alert for Anyone Planning to Sell their Boat

Despite the year starting out with slowing registrations for new boats compared to 2022, the 2023 year has picked up steam in recent months, and is aligning with forecasts of a busy season for boat manufacturers.

(GrandView Research)

Here are some highlights:

• 40% OF PRIVATE BOAT SELLERS REPORT INTENT TO UPGRADE VESSELS

• Online buyer interest shifts for the first time in three years

• The global average boat value is up 29.5% compared to 2019

• Boats sold in 2022 total over $11.4 billion globally

• Rising interest rates drove smaller loan amounts

Vice president of marketing at Boats Group, Courtney Chalmers, said that “The effects of the demand and supply chain disruption during the pandemic are also still very apparent. Boats continue to move off the market faster and sales remain higher than before the surge."

While the higher demand is expected to increase competition and lower costs, it is offset by the rising interest rates and prices due to inflation. What this means for many boat owners is that it is hard for them to replace their boat for what they paid for it, while it is also a pricey time to upgrade a vessel.

Planning on Selling a Boat?

The CYBA issued the following alert:

Yacht Owner Alert

"The California Yacht Brokers Association would like to alert all boat and yacht owners with a vessel on the market. A risk exists that they might be contacted by persons or groups offering options for purchasing their boat that are outside the usual process, or recognized norm of having a licensed broker list your boat, find a qualified buyer, and handle the negotiations and transactional details for the sale of your vessel. Suspect or questionable offers could be made that include a request to purchase your yacht or boat with little or no money down, and to then have you the owner provide the financing for a period of time. While seller financing can sometimes be appropriate, it is best done with the involvement and counsel of your yacht broker, an attorney, and possibly other entities such as your lender and insurance provider, who together can help advise you and help structure a program for you and your buyer that will protect both of you, your assets and your investment.

Countless other scams and rip-offs have existed for quite some time. Recently, we have seen numerous attempts by less than scrupulous individuals, to try to defraud the public. Some examples are:

1. Offers to purchase boats for the full price, including freight, where the freight is to be refunded and payment is made by a bogus Cashiers Check.

2. Purchases with bad bank checks.

3. Offers to purchase from Overseas Buyers using Bank Drafts.

4. Buyers requesting that Sellers produce phony Bills of Sale to defraud the Banks.

Chances are your broker, and most certainly the CYBA, have heard of or have had experience with these scams and others, and can quickly move to prevent you from entering in to a suspect transaction. If you have any doubt or questions about the terms being offered or even the legitimacy of an offer to purchase, contact your yacht broker or a CYBA director and we will assist you in determining if this opportunity is a safe one for you to consider.

Please remember that it is always good business and good sense to utilize the services of a California-licensed yacht broker or salesman when selling or buying your vessel. With usage of the CYBA’s internationally acclaimed yacht sales forms, with representation from a CYBA member who adheres to the broadest and most comprehensive Code of Ethics, your are positioning yourself to have a smooth and safe transaction. With the high values of today’s pleasure boats, and the complexities of doing business in a litigious society, protect yourself and your vessel by making sure you have the best representation. Ask your broker about his/her involvement with the CYBA; ask him/her about their participation in ongoing education such as the CYBA’s Law Seminar or the Certified Professional Yacht Broker (CPYB) program. The current procedures for a yacht sale, in a good or a tough economy, are sophisticated, multi-faceted endeavors. Ask questions of your broker and visit the CYBA website @ www.cyba.info for more information on how to protect yourself."