Ethics on Boat Sale

[Cacia]

So...curious how others see this.

We decided to sell our power cat becuase we were going to be gone so much, etc., and had a guy make a good offer. So..he shows up with a lot of cash (20 K or so) in twenties, to tie it up while he gets his loan. (I am thinking danger, danger...but the good ol boys are makin the deal) They like each other and are working on the handshake method.

So..anyway, the check is deposited in the account and the title is about to be released to new owner, several weeks have gone by.

Then we get a call, that the new owner has taken a mechanic from the dealer down to check out the boat (never any probs...we have had to replace an impeller, a tach, that is it) Taken it across to Maui, etc.. The guy says that the mechanic told him that we have fuel in our hulls and it is a miracle we never blew up out on the water...he does not want to have his wife and kid on the boat, etc. The mechanic did not put his assessment in writing or show any evidence. he said "this year had these issues"..but we never could find any evidence of that on the internet or from any experts.

JB says okay..I will give you the money back. (what a PITA) We are shocked.

So..then we all start thinkin.(new owner included, he had been shopping new identical models as well) Not many boats sold at said establishment that we have seen in over a year. (rumor...inventory in the lot) Things are getting kinda tight. (The detailer had told us the dealer was buying up used boats like the ones they sell. I am thinking "why" because the market is soft on new boats with periodic used same ones for sale?)

Anyway, we get this stellar renowned mechanic down there who has had maintained the boat it's entire history (previous owner a commercial pilot on the Guam route, and a maintenance freak). He says not ANYthing wrong with the boat, after checking it all out that it is just not true. So...guy buys the boat and all is good.

The deal was almost queered by an unethical person, in my view.

What would you do? Nothing? report this to someone (corporate?)

It all ended well, but if JB had resisted giving the money back...well, transactions can be touchy and things can go downhill fast.

Do dealer mechanics moonlight..is that common? because I would think that would be frought with "issues" and conflicts of interest.

 

[Nemrod]

Get a survey by an independent and bonded professional inspector, a Marine Surveyer, at your expense---NOW-- before you give him the money back. This could be BS. The individual who bought the bought may well be honest and operating on BS info. You need to determine if the boat is not as you represented it to him. If the boat is fine, tell him adios, if it in fact is damaged, well, in my opinion you have a problem. You will have to return his money minus some use of the bought if he used it. The buyer, on the other hand should have gotten a survey, the ball was in his court to do so, it was his responsibility, some will tell you to tell him --too bad--bye.

You should have gotten a survey before you bought it, I think I told you to. Did you? What did that report say? If the boat had a clean bill of health then, hhmmmm?

What does he mean, gas in the hulls, in the bilge, tell him to soap it out, part of owning a boat OR do you think he means gas inside the laminate/foam structure?

N

 

[sea nmf]

Nemrod,

You missed the part where the sale eventually went through because of the steller mechanic who maintained the boat the entire time.

She is wondering about the ethics of the guy who almost sunk the sale because of the lie told by the buyer's mechanic.

 

[Cacia]

yes, we did get the survey.

And, the deal is now closed, as the guy bought the boat after an independent mechanic went over it all.

So..it all worked out fine. Just a close call, and I was trying to sort out the issues.

I guess proceeding in an orderly way, like a house transaction would have put us in a better position. (he basically had the inspection done after money was transferred but not the title)

There is no fuel leak in the hulls, that has been confirmed. I just wonder what to do about the dealer mechanic that said that about our boat, based on nothing, while he was moonlighting.

 

[Nemrod]

I see that and I will stay with what I said, you cannot second guess a third party's intentions (ignore them at this point) but just to be sure for yourself, someone should have gotten a survey. If all is well and everyone is happy, then let it slide. What if he comes back in two weeks with a similar complaint? Surveys before a sell put at least some of the onus on the professional surveyer. The buyer should have gotten a survey or requested one from the seller. N

 

[Cacia]

yes, not enough due diligence on both sides.

 

[TSandM]

Well, it was kind of a funny order of things. At least with the two boats we've bought, we had the survey done before we put any money down on the boat. (Or maybe we put down a small deposit -- I just don't remember -- but it wasn't much.)

As far as reporting it to anyone goes, if this "mechanic" works for a boat shop or dealer, I'd call the dealer and tell him what happened, and maybe suggest that he keep an eye on this guy's work, since he doesn't appear to know what he's doing. If it's the dealer who wanted the sale to fall through, it won't accomplish anything, but if the mechanic himself had an interest in it, maybe his employer doesn't know what he did.

BTW, we run into this with horse sales all the time. Client comes and looks at horse, likes it, has the vet go over it, and then shows results to her trainer. Trainer isn't going to get any commission on the horse, and either knocks the horse's quality or training, or finds something in the vet report she doesn't like, so she can sell the client a horse SHE has that she'll get a commission on. It's not ethical, but it sure is common.

 

[Cacia]

BTW, we run into this with horse sales all the time. Client comes and looks at horse, likes it, has the vet go over it, and then shows results to her trainer. Trainer isn't going to get any commission on the horse, and either knocks the horse's quality or training, or finds something in the vet report she doesn't like, so she can sell the client a horse SHE has that she'll get a commission on.

Oh yes, great example.

I always felt I had to do whatever the trainer said, or my life would be miserable.

I feel that when a buyer waives his right to an inspection, or chooses not to get one, that window of time needs to be clear.

On the other hand, the handshake sympatico they had going on (to my horror) kind of worked for them in the long run. It had the potential to be a real mess. I mean, they did not even count out the cash, I was queasy.

Ahh..the psychology of transactions.

 

[Nemrod]

Well, I am just glad you were able to sell it for what you wanted so quickly in a down market and hopefully now that the third party is exposed all will be well and happy.

Yes, mechanics often work on their own, moonlight or whatever you call it. There is nothing wrong with that IMO. If he was trying to ruin your deal or make the buyer feel bad (more likely) then he is a person to avoid in the future as a person of low character.

I have been hired to look aircraft over and their records for buyers outside of my employer. It is my license, it is my name on the line, not theirs. Whenever you purchase a large ticket item get an expert to look it over, when it is a boat, get a survey. Now, obviously, if it is just a little boat and not a large capital outlay or a known fixer upper then a survey is just a waste of money most likely. Big dollars, you got to cover yourself, going and coming. N

 

[Cacia]

Whenever you purchase a large ticket item get an expert to look it over,

Funny, I am always careful BUYING...I just was not so careful selling. You can end up just as screwed. (You give up other buyers, you leave the island...)

And, I told JB, I like to have Plan B or buyer number two waiting in the wings. Don't cut everybody loose so fast. And never deposit a check against a loan before it is nailed down.

Somebody should do a thread (Nemrod)..."steps buying a boat" "steps selling a boat"

In the end, I admired how they worked through it together. They stayed cool.