There comes a time in every boater’s life when they’re faced with the decision of upgrading their boat. Just like our cars and homes, what worked for us at one point may not continue to work for us in the future. Shopping for new boats is exciting. There are new features, better layouts, more storage, and depending on what you’re looking for you may even be upgrading to a larger option. However, the one downside to buying a new boat is having to sell your old one.
Trade-In Your Boat
An alternative to going through the process of selling your boat is to trade it into the dealer you purchase a new boat from. There are many benefits to upgrading with a trade-in.
One of the best advantages of boat traders is that they remove the headache of going through the entire sale process. First, you get to pick out your brand-new boat that meets all of your needs and more. Then you simply gather your belongings, trade in your keys, and get back on the water. The dealer then handles all of the aspects of selling your boat. They will decide the price, market, take people on test drives, negotiate, draw paperwork, and register the sale.
One of the things people mention when talking about trading in a boat is that you get a lower sales price. Because a boat trader has to go through the process of selling your boat you may receive a lower price when you trade it in than on the open market. Although this may seem like a negative it actually does a couple of things. As discussed above, it eliminates the need for you to handle all of the tasks required to sell the boat. And more importantly, it gives you some tax advantages.
Every time you purchase a new boat, you’re required to pay taxes on the purchase price. However, when you decide to trade in your existing boat, you only pay taxes on the difference in price. This offsets the lower price you receive while trading in a boat and you still get all of the benefits of not having to go through the sales process on your own.
Selling with a Broker
Another alternative to a DIY sale is to sell your boat through a broker. This is really the middle ground between selling yourself and going for a trade-in. The benefit here is that you can expect a higher sales price from your boat without having to handle the sale yourself. However, you lose the tax benefits and pay a commission once the boat sells.
Because using a broker tends to be a happy medium, it is a popular option. Brokers have access to list your boat on the best sites and can sell to anyone from anywhere in the world. They know boats, know the market, and know what value you should expect to receive. And because they are paid on commission, they work hard to get you the best price possible. They handle all of the details for you, you just have to sign the paperwork, and pick out your new boat.
How to Choose a Broker/Boat Trader
When looking at companies to deal with boat traders and brokers are no different than any other service provider. You have to do your research, find a reliable company, and make that connection.
Online reviews are one of the best ways to see what boat trader is best to use. Repeat clients show that customers were so happy with their service that they chose to come back to the same place for following trades.
When looking at a boat trader or broker that you want to work with it’s important to make sure that they sell the type of boat you’re looking for. Before you begin this process, you may want to narrow down some options that would work best for you. Then make sure that whatever company you look at is able to sell you that type of boat.
When dealing with such a large purchase and sale it’s important to have a genuine connection with those that you’re dealing with. This interview process involves communicating with the broker and seeing how that interaction works for both of you. This can be through email; do they respond quickly? You may want to go in and have a quick conversation about your needs. This gives you a good idea on how attentive they are and how well they understand you and your lifestyle.
We would love to be able to discuss with you both the options of trading in your boat or using us as a broker to sell through. There are benefits to both and depending on your situation, finances, and needs we can help you decide which option is best for you.