Enter the World of Boat Dealers and Brokers

When Mariner Exchange saw boat dealers and brokers join our online marketplace, a lot of memories bubbled up among team members. Remember the excitement you felt when you purchased your first boat? Well, it’s even more exciting to upgrade to a boat that’s larger and filled with all the things you decided you can’t (or prefer not to) live without now – a cabin with a bed, electronics, twin motors, a platform for fishing and all the other options available today. Some people just like owning the newest technology in everything from canvas top material to air conditioning to a state-of-the-art inboard engine or outboard motor. Then there are others who don’t like fellow fishing men and women in their fancy speedy bass boats being able to beat them to the best fishing spot on the lake.

Whether you’re buying your first boat or your fifth boat or selling a boat, the best approach is to find a boat dealer or find a boat broker near you. They not only buy and sell boats, but they offer a host of other services – repairs, parts, accessories, storage and more. Let’s talk about the difference between boat dealers and boat brokers, the points to consider to choose the best option, the types of parts, accessories and services offered and the negotiation process.

Types of Boats

The variety of boats today is nothing short of remarkable. They range from the old classic wooden Chris Craft to the large luxurious high-tech yacht. Boat dealers and boat brokers handle:

  • Bass boats
  • Cabin cruisers
  • Cuddy cabin
  • Deck boats
  • Saltwater fishing boats
  • All-purpose lake and stream fishing boats
  • Cabin cruisers
  • Center console boats
  • Race boats
  • Boats for watersports like skiing
  • Boats designed for fishing and skiing
  • Pontoon boats with flat decks
  • Sailboats
  • Yachts
  • Houseboats
  • Small boats
  • Jet boats

This isn’t even a complete list. Most boat dealers and brokers also offer a variety of other products and services. They include:

  • Selling other marine related items that include outboard motors and boat accessories
  • Engine repair
  • Engine tune ups
  • Computer diagnostics of engines and electrical systems
  • Fiberglass repair
  • Rigging replacement
  • Installation or repair/replacement of a ship’s system, including electrical, hydraulics, and plumbing
  • Installation, repair and upgrades of electronics
  • Boat cleaning and waxing
  • Diving services for underwater hull cleaning, inspections and underwater repairs
  • Canvas installation or replacement

Difference between a Boat Dealer and Boat Broker

Boat dealers and boat brokers are businesses with professionals who are deeply involved in the boating industry and often the local communities. The difference between a dealer and a broker is basically the difference between what they sell, but nothing in life is quite that simple. For example, some businesses sell both new and used boats.

Boat Dealer

A boat dealer sells specific brands of boats and motors, parts and accessories. If you want a brand new, shiny Sea Ray, Bayliner, Boston Whaler, Mastercraft or any other particular brand, a boat dealer is a good place to start. If your heart is set on a particular boat, the boat dealer knows the ins-and-outs of the brand. You can learn about:

  • Styles available
  • Design qualities
  • Special features
  • What is coming down the line from the brand’s manufacturer
  • How it compares to other brands
  • Buying a boat equipped and powered to fit your needs
  • Available used boats (usually they are trade-ins)

The boat dealer can also order a customized boat from the manufacturer that is built just for you. Many dealers specialize in more than one brand. One of the advantages of relying on a boat dealership is that your transaction can happen quickly because of the professional’s expertise and knowledge.

Boat dealers also sell used boats, many taken in on trade. Since the boat dealer is in the business of selling boats, he or she will have good knowledge of any boat they sell. However, selling used boats is usually not the dealer’s first line of business. If the used boat is a brand the dealer sells as new, then count on talking to a very knowledgeable person. If the boat dealer is selling a used boat that is not the same brand as the manufacturer they work with, a high quality dealer will get you answers to questions he or she can’t answer on the spot.

The exception is questions like, “Will this boat help me catch fish?” or “Will this boat make my friends jealous?” It’s all in boating fun!

Like vehicle dealers, many boat dealers can help secure financing. If accepting used boats, the dealer is likely to market them and do many of the other transactions listed under broker.

Boat Broker

The boat broker is someone who either works for a brokerage house or works as an independent. Brokers are considered the most broadly knowledgeable agents in the boat sale and trade industry because they are familiar with the features of a variety of brands in the market. Brokers handle new and used boats of all sizes, but some brokers are experts at handling yachts and other large boats.

Brokers help people buy or sell their boats, and earn a commission for handling the details of either transaction. One of the nice things about using a boat broker is that the person will take care of all the transaction details. They include:

  • Assessing the boat’s fair value
  • Lifting out of the water via davits or cranes to inspect the hull and props
  • Designing and placing ads in print and online publications most likely to attract buyers or sellers, and posting online video advertising on social media like YouTube
  • Conducting e-marketing campaigns and social media advertisements
  • Showing the boat to prospective buyers
  • Managing sea trials
  • Managing marine surveys
  • Securing financing
  • Preparing the appropriate paperwork
  • Closing the deal

A marine survey is an assessment of the boat that identifies any repairs or upgrades necessary to ensure the boat is in safe operating condition. The survey also is used to determine the actual value of the boat. It gets a little complicated because surveyors work for the buyer, not the broker or owner. However, the broker can often recommend a boat surveyor to the buyer and will regularly communicate with the surveyor.

There are professional marine surveyors who are experts at objectively assessing the boat’s operating condition and whether it meets minimum requirements. The surveyor looks at boat systems and components like the following:

  • Meets minimum requirements for safety equipment
  • Navigation lights
  • Condition of electrical system
  • Engine condition
  • Fuel system
  • Signs of moisture in compartments or areas that should be dry
  • Signs of wear in hoses or belts
  • Hull condition, looking for cracks, wear and tear, spider webbing, etc.
  • Rigging inspection on a sailboat

There are two organizations that have standards and codes of ethics for boat surveyors. One is the Society of Accredited Marine Surveyors (SAMS). The other is the National Association of Marine Surveyors (NAMS). It’s up to you whether you insist on a surveyor accredited by one of these organizations.

Selling by Dealer, Broker or Sale-By-Owner?

Some people try selling their own boat, and many of them end up getting professional help. There’s a good reason boat dealers and brokers exist. It’s time consuming to try and buy or sell a boat without professional help. If it’s a smaller boat, that may work out okay. It’s a different story if it’s a mid-size to large boat. The main challenge is that selling a boat requires some knowledge of the boat market, so you know how to reach the people likely to be interested. There are also the matters of sales paperwork, marine surveys and sea trials.

Using a boat broker or a dealer who is willing to help you sell your boat, is always a better option for larger, customized or specialized boats. Since the broker is the expert in selling used boats, we focus on the advantages they offer. A broker:

  • Can quickly reach interested buyers in the marketplace and may have clients who are waiting for a boat just like yours
  • Gets a better price than you could on your own
  • Takes care of negotiations with interested buyers
  • Shows the boat to multiple prospects, saving you time
  • Manages all the responsibilities mentioned earlier – marketing, communicating with surveyor, conducting sea trials, etc.

Some dealers will help boat sellers without getting too involved. You could ask if the dealer will allow you to pay a fee for letting the boat sit on the dealer’s property with a for-sale sign. There may be other ways a dealer is willing to help for a reasonable fee, but in reality, the dealer wants to sell new boats and motors. If a dealer helps a seller, it’s probably because the dealer hopes you will buy a boat from him or her down the road (or should we say down the water?)

Buying a Boat that Meets Dream Expectations

Buying a boat of any kind is so exciting. You dream of cruising on the lake or out on the open water, fresh air, exploring Mother Nature, fish jumping, anchoring for a swim off the platform, skiing and so much more. People often make new friends, and many use their boating time for connecting with family members.

The different elements of the dream is precisely why you must be sure to buy a boat that meets your needs and expectations. If cruising the open sea to catch the “big one” is your idea of perfect, then you need a larger boat with plenty of room for multiple people tossing lines out. If you want a boat you can comfortably live on for long periods of time, then you want living quarters for comfort.

Buy the boat you need to avoid disappointment. Some of the factors to consider when buying a boat include:

  • New or used boat – A dealer is happy to sell you a new boat. When you buy a new boat, you can get just what you want. You will also get the latest technologies and design. A used boat may not have everything you want, but they do cost less and are use-tested. However, buying a used boat always comes with the risk that something is about to break down.

  • Boat purpose –These are the kinds of points to ask yourself. What is the real purpose of the boat – fishing in freshwater, saltwater or both; water sports; sailing; cruising during the day or overnight; or some mixture. Etc. Think about how you plan on using the boat.

  • Boat hull design – Boats are made with a variety of hull designs. The top three are:

    • Planing hulls – designed to rise up on top of the water and smoothly glide through the water at high speeds; flat bottomed and vee-bottomed hull shapes
    • Displacement hulls – designed for safe and smooth cruising at slower speeds; plows through the water rather than riding high; wide and deep hull shape
    • Semi-planing hull – designed with a mix of both features of planing and displacement hulls

    Are you going to boat on calm lakes and streams or off the coast? Do you need to be able to safely manage choppy waters, big swells, shallow waters, or mostly calm waters? Each type of boat hull is designed to perform in a certain type of water. A deep vee semi-planing hull can better handle offshore cruising. Flat bottom boats are good for slow cruising around the lake. If you want a lot of space and a very stable boat for your children, then a pontoon boat is a good choice.

    The rule of thumb is that a shallow or flatter hull is good for shallow fishing and lake boating. A deeper hull is better for off-shore fishing or deep water because it offers more stability.

  • Boat Size - Boats come in all kinds of sizes, from the small dinghy to the glorious yacht. People need different amounts of living space. For comfort, the 25-26 foot boat is a very nice size because it can accommodate several people and handle bigger waves and swells. Will the boat need to be easily trailered because you plan on taking it out of the water after every use? If so, a boat under 20-21 feet is a better choice. Consider where you will be using the boat, how many people it should be able to comfortably accommodate and its main purpose. If you intend on boating into shallow coves to access river beaches, then a yacht is not a good choice!

  • Features – Are you spending nights on the water so need sleeping quarters, a galley, shower and toilet? Are you a serious fishing person and want a center console boat for space reasons? Other features to consider include a swim platform, air conditioning, fuel capacity, electronics, live wells for bait, stereo system, radar, solar energy, etc.

  • Engine or motor – How much horsepower do you need? Do you want one or two outboard motors? Do you prefer an inboard engine? Outboard motors cost less, weigh less, are easier to maintain and can achieve higher speeds. All new outboard motors and engines are now high-tech, and the dealer ensures the outboard motors or engine suits the size of the boat, the desired speed and the boat’s use (cruising a river or lake, racing, tackling the open waters, etc.).

It should be noted that most of today’s boat manufacturers have NMMA certification. NMMA is the acronym for the National Marine Manufacturers Association. The NMMA Boat & Yacht Certification means the manufacturer has built their boats to American Boats & Yacht Council (ABYC) standards. Certification program participants must certify all recreational boats manufactured and marketed in the U.S. meet compliance standards for certified design. The only exception is racing craft for which there are other standards.

Negotiating for After Purchase Care

When buying a new boat from a dealer or broker, issues will come up. You may look at a boat, fall in love with it and then think, “What happens if something breaks down?” That’s a good question. There are some things to consider to ensure you are happy with your boat until ready to buy a bigger and better boat (okay, yes, it is inevitable).

Buying a used boat

If you’re buying a used boat, there are some things to specifically look for. It’s often easy to look at a boat and determine right away if it’s been taken care of by previous owners. Some of the items your broker or dealer will help you assess include:

  • Condition of the upholstery
  • Electronics work
  • Cracks, spiderwebs or bubbling in the fiberglass
  • Engine or outboard board motor(s) start and sound good
  • Service record
  • Seats are not loose
  • Appliances work
  • Boat history
  • Performance during a sea trial
  • Condition of the canvas
  • Past problems and repairs
  • Remaining warranty

You won’t be able to go back to the seller when you buy a used boat, should something break down. Often, the broker also offers a variety of services you can access after purchase, i.e. engine repairs and repair parts, weatherization, storage services, etc. It just depends on the business owner. There are brokers who operate full service marine operations and brokers who only bring buyers and sellers together to earn a commission. Ask questions up front so you know what to expect once the deal is completed.

Buying a new boat

When buying a new boat, you’ll rely on the dealer for a variety of post-sale services. Points to consider include:

  • The length and terms of the warranty
  • Customization options
  • Recommended maintenance schedule
  • Maintenance services available after purchase
  • Whether the maintenance services are onsite at the dealer or are at the marina
  • Availability of OEM parts and accessories
  • Pickup and delivery services
  • Qualifications of the technicians, i.e. certifications like ABYC and Marine Mechanics Institute
  • Haul out services
  • Weatherization services
  • Storage services

Dealer and Brokers, Oh My!

Boat brokers and boat dealers make boat buying and selling easy. It really is exciting to buy a boat, and it really doesn’t take long before you’ll want to upgrade. You’ll want a larger boat, more horsepower, additional amenities or a newer boat. At Mariner Exchange, we know this for a fact. It’s why we make it easy for you to access the most qualified marine services across the country. Bottom line: Life is always good when boating.