Guide To buying a Boat in Europe

A Guide to buying a boat in Europe
Buying a boat should be an exciting and enjoyable experience and with our guide to take you through the purchase process it should be as painless as possible.
 
So you’re going to buy a boat
For most people the first port of call will be a trip to a boat show. This is where you will find different types of craft, makes and specification enabling you to select the yacht or boat that best suits your needs. Also the different dealers will also be able to help and guide you, but be warned it is their job to make sure you buy their product.
One way of searching for your perfect boat without the sales pressure is to source boat tests in magazines and websites.
If your choice or budget means a second hand boat this can be a more complex option with many more options available. There are three main ports of call, yacht brokers or dealers, magazines (classified or directory), and websites. Choose your yacht broker well a good one can help you through the whole purchase process.
Check out the www.worldmarineguide.com Yacht Sales Classified and Directory sections.
 
Proof of title
Unlike a house or a car, whose ownership is centrally recorded, a boat is usually only “registered” if the owner chooses. This is because a boat is regarded as a chattel rather than property (like a house). If using a broker he will make sure that the boat will come with invoices and successive Bills of Sale proving the vendors ownership. He will also check that there are no outstanding loans or bills on the boat. Of course, if you’re not using a broker these checks will have to be done by yourself.

Don’t forget the VAT
If you don’t have the copies of the original documents that prove the VAT on the vessel have been paid, you risk falling foul of the customs in the UK and especially in EU countries. Without this proof this could mean that the VAT is payable there and then. On certain boats built before 1985 and based in the EU before 31st December 1992in theory this proof was less important, but get proof that the VAT was paid and avoid the worry.
 
More paper work “The Recreational Craft Directive” (RCD)
In June 1985 the RCD became law meaning every new boat in the EU from that date should have a RCD Certification, a plaque with the CE mark attached to the boat and the HIN number marked on the hull. Every post RCD boat has to be able to supply a builder’s certificate.

Put your money where your mouth is....
So you’ve finally decided and it is time to stump up the money. Normally a deposit is required to secure the sale while a survey is undertaken. (You could forego a survey and rely on your own assessment) If you use a surveyor make sure he is an AMYDSA, MYDSA or FYDSA. (Associate, Member or Fellow of the Yacht Designers & Surveyors Association). Check they have the exam qualification and Professional Indemnity insurance.
 
When the surveyor has reported and all is well the balance can be paid once you are satisfied that all the paperwork is correct. This is where a broker earns his crust! Make sure that the sale comes with a Bill of Sale. If the yacht is in the very expensive category it would be advisable to use a solicitor expert in marine law. If the surveyor threatens to scupper the deal with a bad report either the vendor and purchaser reach an agreement to solve the problem or the deposit is repaid.
 
How to put your money where your mouth is....
There are four main methods to finance your dream boat; a Marine Mortgage, a Personal Loan, a loan based on the Equity of an Asset or the king “Cash”.
Typically the maximum Marine Mortgage would be around 80% of the boats value over a period of time usually 10 years being the maximum. An important point with marine mortgages is that unlike with property a boat is unlikely to increase in value over the years except in exceptional cases.
There are some finance companies that offer personal loans repayable over a maximum of 10 years, but usually will not take the boat as collateral. Check on any fees that may be payable for early repayment (either partially or wholly).
Withdrawing equity from your house mortgage (or other mortgage) means you do not have to rely on the value or the security of the boat. This can be an advantageous way of financing as home loans are often the most competitive loans on the market.
If the method of payment is cash then in most cases there is the possibility of “a deal” and in the case of negotiation a reduction of the final price. Remember paperwork is essential and the values on the paperwork will prove invaluable in future voyages abroad, dealing with customs or when it comes to selling the vessel!
 
Anything else
Survey – This will be needed if the boat is more than 1 year old and you require a mortgage or a loan.
Fee’s - Some lenders charge for arrangement fees, set up costs, document charges etc. Ask before you sign!
Insurance – You will need this but most lenders will insist on it and require that their interest in the vessel is documented.
Registration – Part 1 registration is usually required on mortgages over 50,000 euros and applies to new and 2nd hand boats.
 
So thats it!
Don’t be put off by all the rules and paperwork this will long be forgotten when you are finally sailing your dream boat. There are many publications that offer help, the RYA “Buying Your First Sailing Cruiser” or “Buying Your First Motor Cruiser” are a good source. Of course now you’ve got your boat the next question is “where to put her” Fortunately you are in the right site to help you!