buying used from a private owner

Im looking into buying a used cc boat from a private seller, if im wanting to finance something say around 15k how does that work?? Most individuals are cash only and first come first serve I would think. Doesnt the lender usually appraise the boat before purchase??

It works very nice. The actual time people buy things with dollar bills is rare. Over $10,000 there are IRS forms and all that. Checks and even certified checks are often held for several business days before the seller gets access to it. When we do financing, we wire funds all the time. If there is a lien the money goes to the lien holder (lender) first to pay off the existing lien. Anything over the payoff amount can go to the seller. We can even wire on the spot once the boat is inspected and the final OK is given.
NEVER hand a check or dollars to a seller before you know the lien situation. Sometimes when sellers are all fixed on getting cash, there is a reason. Look at the ownership papers, either titles or MSO's. Even in non-title states there are ways to cover yourself. With used boats loan amounts are based on NADA values if that is what you mean by "appraise".
Let us know how we can help.
Thank you,
Ken

Ken call me! Left you a message at your office.....

Sorry but I don't see a note on my desk. Our office phone is (517)543-6921 or my cell is (517) 930-2721. I take a text on the cell number as well.
Ken

My first boat was a cash deal from a private individual. I asked him to accompany me through the transfer process and I'm glad I did. The dealer that sold him the boat did not title the trailer to him and when we went to do the transfer, there was an amount on the trailer that I would have had to pat had he not been with me to take care of it. I think most sellers are honest, but why take a chance.

I'm trying to buy a boat Tuesday. How fast could Rec lending run credit and wire funds. The boat is 36,500 and its in Alabama.

Some of the time frame will depend on if it's from a private seller or a dealer. Some dealers we work with or have worked with can deliver things very quickly. If it's a private seller, most want to be paid before the boat goes down the street. Generally it is about a 4 - 5 business day process OF THINGS MOVING. For example, if it takes 3 days to get VIN pictures from the seller, now it's 7 - 8 days. Some things for time frame are beyond our control. If there is a payoff involved, we have waited 3 days before trying to get a lien payoff from the sellers lender.

Most deals run smooth and quick, but some do take some time based on other factors.
Let us know how we can help.
Ken

How do you know if there is a lien on the boat? Is there a way to look this up? Or is it just the name on the title?

When you look at his title, it will have a "lien released" signature line with a signature and date.

One of the steps in the loan process is us contacting the seller. We ask for title or MSO copies. Even in non-title states the old owner should have some sort of ownership document. If there is a lien, we have the seller get a payoff from the lender. Something on a letterhead showing payoff, some sort of ID that a boat is getting paid off and wire instructions. If there is a lien we NEVER send full funds to the seller. We wire the payoff and the balance between payoff and selling price can go to the seller. Some states allow title searches but not many. Texas in fact is one that has a process for that.
We have also found that SOMETIMES when sellers jump up and down about "I only take cash" there is something else going on. A wire gives the seller instant access to the funds and provides a nice trail. Even if no lien, we still wire funds.
Let us know how we can help.
Thank you,
Ken

I bought from an individual, financed through Reclending and it could not have been smoother. Give them a shot.

Help me out here as I'm a first time boat purchaser.

From reading other posts on this forum, I'm understanding that a separate Title is issued for each of the Hull, Motor and Trailer. Is this correct?

Any other tips I should be aware of as I will purchase from a private owner that has an existing Lien on the boat?

Aside from getting the Lien cleared, what other due diligence and steps should I look for before deciding to purchase a used boat or not?

Thanks for the help.

Sorry but just seeing this. What titles are issued is based on the state you live in. If you are in TX, boat and motor and titled. The trailer is only titled if GVWR is over 4500#. We have seen this go either way in some states but most bass stuff is under that.
NEVER GIVE $$ TO A PERSON WITH A LIEN. MAKE THE PAYOFF AT THE BANK AND GET THE RELEASE. We always get the payoff from the lender on a letterhead with wire instructions. If your seller is in TX, we can even check online using the boat and engine VIN to check for liens.
Once your money is gone, it's gone. Always be sure of the details.
Let us know if we can help.
Thank you,
Ken

I’m kind of like a guy up the post a little way, I’m looking at buying from a private seller who isn’t too fond of working with a “financial institution” but I am. How does this play out?

I would think as long as they get the amount of money that we agree on, it shouldn’t matter who it comes from...I like the guy’s boat but I don’t know if it’s more headache then it’s worth.

good info Ken, i know who to call when ready to buy a boat

Each seller is a bit different but that's fine. We wire funds and track down loans against the boat being sold. I can't explain why someone would rather take a check from a stranger than a wire. A wire is real and automatically accessible. Some banks hold checks for 5 + business days to see if it clears. Once in a while we get a seller that is hard and fast "cash" as in dollar bills. We find that in those cases, there is often more to the story. Paying off liens of the seller, getting title or lien work done for the buyer is something that is a must. Handing dollars to a stranger and not knowing about any liens is very short sighted. Having the keys and the boat does not mean you really own it.
Let us know if we can help.
Thank you,
Ken

Thanks for the reply Ken, I’ll definitely let you know when/if I get ready to pull the trigger with this guy...we’re still in the early stages of the deal right now.

Out of state can be difficult, but in state is pretty simple and most banks will wire the money on site. Anyone that’s dead set on a “cash only” buyer is going to dramatically decrease potential buyers. I can’t speak to reclending, but city credit union has always been extremely easy to work with.

I can speak for RecLending - we are really easy to deal with. (might be a bit bias).
Just as an added note - even dealing instate can be challenging. We often find sellers do not have correct or proper ownership docs. Just because you are in the same state, don't lower your guard. Being sure your seller has correct ownership docs helps to insure your trip to the state office is simple. What ever your state requires you to have titled or registered, expect your in-state seller to have the same exact things.
Ken

I can speak good also of RecLending, as a seller.
I sold a boat to a young man that didn't have a long credit history. RecLending was VERY easy to work with, wired funds direct to my account, & everything was completed in 5 working days. Easy Peasy!!!
That young man fishes 2-3 days per week & is VERY happy with his new to him rig.