Buying a Used Boat: A Step-by-Step Checklist

Buying a Used Boat: A Step-by-Step Checklist

A used boat can get you on the water for much less than a new one. The trade-off is more homework. There's usually no warranty, and with a private sale you have little comeback once money changes hands. Discover Boating, the boating industry's consumer program, calls a private-party purchase a "buyer beware" situation. This checklist runs in the order things usually happen.

Before you start shopping

1. Set an all-in budget. Remember sales or use tax, title and registration, insurance, storage and a cushion for repairs. Many states tax private boat sales the same way as dealer sales, while others exempt occasional or "casual" sales. Look up your state's rule in our State Rules tool, then run the totals in the True Cost tool.

2. Check financing limits on older boats. Some lenders won't finance boats past a certain age. One national bank in our lender data, for example, finances purchases of boats up to seven model years old. Others set different limits or none. If you plan to borrow, ask about age limits before you fall in love with a 20-year-old classic. Our Shop by Payment tool can help you set a target price.

3. Decide on the type of boat. See Choosing a Boat Type.

Finding and pre-screening a boat

4. Talk to the seller by phone. Discover Boating suggests a phone call over a long email exchange, which scammers can easily exploit. Never buy a boat you or someone you trust hasn't seen in person.

5. Ask the basic questions:

6. Check the paperwork early. Ask for:

7. Confirm there are no liens. If the seller still owes money on the boat, arrange the payoff and release through the lender as part of closing, so you aren't buying someone else's debt.

Inspecting the boat yourself

8. Do a walk-around. You don't need to be an expert to spot warning signs:

Discover Boating also points out that for trailer boats, seeing where the seller keeps the boat can tell you a lot. A tidy garage or shop is a good sign.

9. Ask for the engine hours and service history. Compare the hours with the engine manufacturer's service schedule in the owner's manual. Most outboard, sterndrive and gas inboard engines call for basic service about every 100 hours or once a year. Missing records don't mean the boat is bad, but they make a professional survey more important.

Sea trial

10. Always take a sea trial. Run the boat long enough to warm the engine fully. Check that:

For a small trailer boat, meeting at the launch ramp lets you see the trailer in action too. Our Sea Trials guide has a full list.

Marine survey

11. Hire an independent marine surveyor for anything beyond a simple small boat. A condition and valuation (C&V) survey gives you a professional opinion of the boat's condition and market value. Some lenders lend against a boat's surveyed value. One Alaska credit union in our data, for example, lends up to 100% of purchase, retail or surveyed value. So ask your lender and insurer early whether they'll want a survey. Choose the surveyor yourself; don't rely on one the seller picks. Our Marine Surveys guide explains what's covered and what SAMS and NAMS credentials mean.

12. Consider an engine survey on larger or high-hour boats. A general marine survey may not include an in-depth engine evaluation.

Making the deal

13. Make your offer subject to a survey and sea trial. Put it in writing so you can renegotiate or walk away if the survey finds problems.

14. Use a written bill of sale. Even where it isn't required, it protects both sides, and some states do require one for registration and tax. A good one includes:

Some states have their own bill-of-sale form. Texas, for example, asks for a bill of sale showing the sales price for tax purposes. Our State Rules tool links to each state's forms where we found them.

15. Pay safely. Use a traceable method, and don't hand over the full payment until you have the signed title (or documentation transfer) and lien release.

After the sale

16. Title, register and pay the tax. Do it promptly. Many states set a deadline: Florida, for example, requires a title within 30 days for motorized vessels. See our Registration, Titling and USCG Documentation guide.

17. Insure the boat before you use it. Decide between agreed value and actual cash value coverage. See Boat Insurance Explained.

18. Check the safety equipment. It must be on board, serviceable and not expired. Fire extinguishers and flares have dates. See Required Safety Equipment by Boat Length.

19. Get a free Vessel Safety Check. The Coast Guard Auxiliary offers free checks, usually taking 15 to 30 minutes, and boats that pass get a decal.

20. Plan your first season. See our First-Season Checklist.

Printable summary

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