Boat Purchase Payment Question
 

I'm looking at a Formula 271 Fastech with 502 Mag and Whipple blower in Michigan, north of Detroit. Cool boat and I think will suit my needs.

Anyway, I'm almost 2500 miles away in northern NV. I have offered to either mail a deposit check or wire transfer $5K deposit. Seller is fine with it as I won't be able to get out there until end of September of first of October and a deposit check will have cleared by then.

He would like the balance in cash ($30K) but I am reluctant to travel with that much cash (civil asset forfeiture, having a mechanical breakdown or accident and keeping cash secure, etc.). My bank (US Bank) doesn't have any branches in Michigan (?). The closest is in Ohio. I was hoping to go with seller to my bank and make the cash withdrawal so he can see the transaction and be assured there are no counterfeit bills. It will be a major pain to have to drive to Ohio to do this. Then we'd have to travel back to Michigan with the cash although it would then be seller's problem.

Seller is going to go to his bank tomorrow to talk to them about it. Anyone have any suggestions on how to handle this?

Wire transfer the balance unless he’s stuck on getting “cash”

1. Domestic Wire Transfer (your bank wiring the sellers bank account) or
2. Certified Check from your bank payable to seller, hand delivered or
3. If this deal fails apart because it must be a cash deal only without any reasonable flexibility in providing secured payment then this is a big red flag of concern.

Maybe he is already having problems with government taxes audit, or, might have to share 50% of all his official revenu so... cash is king!

Can I do a wire transfer if I'm not physically at my bank? Do it by phone?

I recently purchased a Z06 Corvette and did a wire transfer and had to sign a couple documents at my bank.

I need to do a sea trail before I buy (deposit is contingent upon successful sea trial) which means I have to drive to Michigan first.

From what I understand, a certified or cashiers check can have a stop payment put on it so seller might not want that.

Buy a small gun safe and mount it under the back seat of the truck. Some have cables you can just run through the seat pillar on the floor.

It addresses all your concerns about forfeiture etc (requires a search warrant to open a attached safe) Also carry paperwork with you at what your looking to buy. Its not uncommon to carry cash for a purchase. It would be hard to justify a seizure if their is a reason to have it. Generally it will be hid enough and protected against intruders that it would not be worth their time to continue to fight for it. That being said, It doesn't hurt to have your own protection as well.

You will be amazed how little of room $30K burns up. it will easily fit in a envelope or small bankers bag.

I haul boats and have often carried MUCH more money than that. Just remember to be smart, don't do anything stupid/illegally when traveling and don't put yourself in a position to be obvious and you will be fine.

I bank at Wells Fargo, a Domestic Wire Transfer can be done remotely via computer for Wells Fargo, your bank may have a different policy. Confirm your transactional limit such as $25,000 per transfer so if you need to send $30K then get the approval if that exceeds your daily limit.

I did ask how much can be sent using Zelle, the CSR for Wells Fargo said that I cannot send $30K via Zelle ( $3500 is the max for Zelle), but I did explore that possible option which does not seem possible.

A Certified Check or Cashiers check (per Wells Fargo) can have stop payment initiated by the you (the buyer).

Forgive me for poking my nose in this but there are a couple of things to check before
A - sending any money
B - driving all the way to Michigan

Is there a clear title to both the boat & trailer? You should have a picture of both front & back.
Is the title in the sellers name?

A Cashiers check is from the bank to the seller. Stopping payment is a big deal and not so easy.
https://www.thebalance.com/lost-or-s...need-it-315028

However there are countless cases of fraudulent cashiers checks being presented. So I understand the sellers request for cash.
A wire is your best bet. As has been said green cash is a big red flag.

Go to a local branch and see if there is a way to send the wire once you are ready to close the deal.

When i bought my first cigarette in Oklahoma i did all the wire info at the bank ahead of time, like you small bank and no branches out of CA. went and looked at the boat, called the bank and had the wire sent, we went out to lunch then loaded the boat up, by then the wire had gone thru,

also i would have a survey done now before flying out, cheap insurance and worth its weight in gold, saved me huge on a boat that i was going to buy and i knew its history, ( but turns out i didnt know everything)

I know you're asking about the transfer of money. But I have some question for you.
You're looking at a Formula in Michigan and you're 2500 miles away in Nevada? Did you physically look at the boat or by pictures? Because when I look at a boat. I carry a check book for the down payment. With the stipulation, if it's used, it passes a mechanical survey. And with a Blower motor. It's wise to do that.
MBAM brought up some good points....... Me personally, I would pay by check or Cashiers check. If he wants $30K in cash. Tell him to trailer it to you.

Seller sent me a copy of survey done two years ago and everything showed up good. He sent me numerous photos of boat and video of engine running. I figured that should be good and a sea trial should show any other issues. If I find a problem with it the most I'm out is a trip across the country. I'm retired and like to travel anyway.



I guess the guy could be a dick and try to keep my deposit. I will have him sign a deposit receipt clearly indicating the deposit is refundable if sea trial doesn't go well or if anything has been misrepresented. I've talked to him on the phone and he seems like a decent guy.

When I bought the Corvette I had the seller take a photo of the title, the VIN on the car and a bill of sale and text it to me. I'll have this guy do the same for both boat and trailer.

Probably a good Dan. Idea, I have another thread here about a surveyor in the area and got one referral. I'll give him a call and see what he charges.

1. You need to be prepared to lose that $5,000 deposit either way. It is pretty much a must to hold that boat if you can't get there now to buy it, but just be prepared to lose that money and be OK with it.
2. Do not give seller any money on any boat no matter how the pictures look or how comfortable you think you are without taking it on a water test....period. Anyone that buys a boat without physically taking it on the water is nuts.
3. I would not be worried about traveling with $30K in cash. Go get a little fire safe, put it in there and stick it in the center console or under the seat....carry your 9 iron with you and you are good. If too worried, you may be able to take an insurance policy out on that cash for the trip. Not sure about that but my insurance agent will sell me a policy on a piece of dog **** in the back yard so long as I pay for it.
4. H20 Toie has the best advice...set the transfer up and send it after you see the boat. Do the transfer at your bank. Don't do an ACH from your phone or computer. You want as much of a paper trail as possible and do not do the transfer until you see the boat, ride on the boat, accept the boat. My bank did some extra work on mine to verify the recipient identity due to the amount being sent, so I felt more comfortable. It took a few extra days but was worth it for the peace of mind. Grab a hotel and wait the next day for the wire to land in his account. You are putting a lot of trust in the seller, he is putting a lot of trust in you....so make sure you guys have a good relationship and are taking care of each other.

There are a lot of really good people in this boating trade, but there are a lot of snakes too. I found out the hard way. For 30k I think i feel more comfortable with that in my pocket.

I got burned out of $500 deposit few years back on a 25 Magnum in Dauphin Island Al.

i couldn’t get out that way for 3 weeks so I sent a check to hold for me .

owner sent photos etc and I specifically asked for all 4 tires and lugs photograph and asked if there was any issues

only problem was come to find out once I got there (6 hour drive) the photos that he sent to me we obviously taken from another trailer that showed good lugs/ tires when the lugs were completely rusted and tires completely dry rotted .


i had my daughter with me which at that time I believe she was 11/12 .


I was mad to say the least .


Told him you sent me false pictures,etc and it turned into a verbal altercation which if my daughter wasn’t with me would have turned into a physical altercation with me most likely going to jail . In Alabama.

I would not send any money .

But that is just my opinion from the 1 time I sent a deposit on a boat .

I recently bought an RV, person to person sale, and was able to do a wire transfer for the entire purchase via my laptop and the online banking portal. This was with Bank of America.

The best way is with a Wire Transfer. Talk directly to your bank manager, and you should be able to make it work. Different banks have different policies. But if you set up the entire wire transfer in person ahead of time, and then call your bank branch, and talk with the same branch manager, there should be no reason you can't tell them "GO" over the phone, and they send the transfer. You can perhaps even do it with FaceTime for additional bank assurance. Their policies are to protect you, but sometimes they really get in the way.
The seller will be able to see the money IN his account within 20 minutes or so.

I once traveled overnight by train with $26K in cash on my person to buy a truck, and I was a nervous wreck the whole time. It was not one of my smarter moves.

To each their own. I hate giving legitimate business' deposits.
Out of fear of BS non return issues.

But I question.
Why did you offer $5000?
Is the boat an extremely good deal?
If you can't be out there for another month why not say if it's there I'll be out, if not oh well?

I would not offer that much as a deposit. $500 maybe.

Cashier's check. The seller can call the bank shown on the check to verify funds. My credit union does them for me all the time.

If they aren't just fine with that, walk away. While cash is king. I won't carry large amounts like that for reasons you state and more.

So you're looking at pictures, a video, and the survey done by a surveyor hired by the owner of the boat that's 2 years old. You're talking about how to send money ($30K). You're retired but won't spend $600 round trip to physically look at the boat.
Ask how many people on this site got screwed by people that seemed nice. Recently it seems like 1 every 3 weeks. Good luck.

I'd wait until October when you're free to travel to see the boat. Obviously it could sell before than but if it doesn't the owner will probably be more flexible with the transaction since it will be end of the boating season and they're facing winter storage.

I think it is a good deal, otherwise I wouldn't travel so far to get it. Seller asked me what I thought would be a good deposit and I said $5K. I just picked the number out of my hat for no specific reason.

2000 Formula 271 Fastech with 502 Mag and Whipple. Motor internals and Bravo drive were upgraded when blower was installed. 375 hours on boat. Had 352 when seller purchased the boat. Seller had survey done prior to his purchasing it in September 2020. Has Eagle tandem axle trailer. All tires look to be in good condition however they are date coded 2015 so I will buy all new tires before driving it home. All photos sent show it to be a very clean boat. Has Bimini, cockpit cover, full cover and camping cover that makes it like a tent over the cockpit. I guess I have to upgrade my membership here in order to post photos. We agreed on $35K.

I have been looking for some time now. I wanted another 30ish foot boat with twins like my last couple boats but I no longer live on the coast so won't be doing ocean boating. I will be occasionally on Lake Tahoe but mostly on a couple smaller local lakes so decided a 25 to 27 foot boat with a single would better suit my needs. I wanted to spend only $30K but decided I'd go more for the right boat. This appears to be the right boat. A 502 with a blower will keep me from wishing I had twins (I think :D) as it should go pretty well. I had been thinking a 25 Outlaw with a 496HO would work for me. I had purchased one new back in '05 and it was an SST so a very nice boat. The problem is, most of them I'm seeing for sale are asking almost what I paid for mine brand new.

I love my Baja's but I think this Formula is a way nicer boat than an Outlaw. Would consider a single engine Fountain in that range as well. I think it is priced about $10K to $15K lower than other comparable boats which is why I want to move on it. I would attach a link to the add but I don't want any of you to buy it out from under me! :(:eek::D

I've also done multiple wire transfers online via Chase.

I have a bunch of life jackets, one of them is hollowed out and full of cash for transactions like these. I'm broke now but at one time I had over 50k in the life jacket. No one ever wanted to wear it.

Find a national bank with branches near you and near the seller. Open an account and deposit the 30k. If the deal goes through you can get the money out when you pick up the boat, if it doesn't just close the account.
5k is too much of a deposit for an unseen boat. If I saw the boat and paperwork in person and knew for certain I was buying it but needed a few weeks to coordinate the sale / transportation etc. then I'd offer the 5k.