Financing process

[Opresso]

Hi all,

So Im looking to buy a boat from a private seller out of state. I plan on doing my due dilegence of having the boat given a once over by a cert. mechanic and doing a test ride. The problem comes in here though. If I meet the owner half way (4 hrs away), take a spin, and confirm that all is good, how does process go from there?

I've got a preapproval for the full cost of the boat from my bank (USAA). But I'd want to pay for and take possession from the boat that same day. Im not looking to make two trips here.

I plan on asking my bank tomorrow but they're closed today and I rather hear from someone thats btdt.

Hopefully that makes sense and yall can square me away before I start chasing my tail.

Jon

 

[Rob9550]

I just used USAA to purchase my boat. If you agree on the price they will cut you a check and mail it overnight. You should also get a bill of sale ready for signatures when you arrive. USAA will give you all the info you need. I am not sure what would happen if you decided not to purchase the boat after the test ride.

 

[robert843]

I have not used USAA for a loan but I have sold a motorcycle and a SUV to people who have and they both traveled to see the vehicles but as mentioned in the above post a price was agreed upon before hand and both times the buyer showed up with a check in hand from USAA so I do know they will give you a check before you go to see it. Also as mentioned both my deals went through so I have no clue how the process works if the deal doesn't go down but I'm assuming you just mail them the check back. I do know when I bought my boat it was a similar situation and I had to travel 4 hours to get the boat but once again they gave me a check before I left and the loan officer said if for some reason the deal did not go through just to bring the check back.

 

[Opresso]

Sounds like I shouldn't have any issue. Thanks

 

[itsdgm]

Make sure the seller is willing to take a check before you go through all of that

If I was to go that route, I'd have the check made out for a few thousand less. That way you would have room to negotiate the price down if something didn't look right. If everything looked good I'd just pay the additional in cash.

 

[robert843]

Make sure the seller is willing to take a check before you go through all of that

If I was to go that route, I'd have the check made out for a few thousand less. That way you would have room to negotiate the price down if something didn't look right. If everything looked good I'd just pay the additional in cash.

I meant to say this as well I had the check made out for 5K less the the price that was discussed just for this reason in case any issue arose but wasn't big enough to stop the purchase but deserved some money coming off the price.

 

[veedubtek]

I've used Farm Bureau for my last 4 purchases now. Each time, they give me essentially a blank check, that is good for *up to $xxxxxxx*. I fill in the blank when/if we strike a deal. I cannot recommend them highly enough at this point.

 

[itsdgm]

I've used Farm Bureau for my last 4 purchases now. Each time, they give me essentially a blank check, that is good for *up to $xxxxxxx*. I fill in the blank when/if we strike a deal. I cannot recommend them highly enough at this point.

That's awesome. It's always difficult when theirs lei holders involved.

Btw @Opresso i forgot to mention. I would NEVER make the check out to the seller if there's a lein holder on the title. You would have no way of making 100% sure that the seller would follow through and pay the loan off. Make the check out to the lein holder on the title. That's the only way to guarantee that it gets paid.

 

[MattFX4]

Good luck, I just went through something very similar. I can tell you it is going to be tough to get the $, go look at boat, and take possession all in one day. I had to make two 5.5 hour trips to get the deal done. First trip I went and looked at boat, and worked out details of the deal. Then I got financing done the following week. My bank sent the sellers bank a check, and there was a few day waiting period for the check to clear. I really doubt the seller is just going to hand over the keys, and the boat when you give him a check. I wouldn't anyways. There is too much fraud going around these days even with cashier's checks. It will take several days for the check to clear, and the receiving bank to give the OK to the seller that the funds have been moved. Does the seller have a loan on the boat? If so, it complicates it even more.

 

[jarozi]

Went through almost same thing, same drive, bought used from private seller and used USAA. My seller didn't want to release the boat until he had the funds in his bank account (his loan paid off) so there was a bit of trust on my part. I had the place he bought it new do the marine survey, and I did a test drive before even applying for the loan. So I had to make 2 trips. I did draft up and we both signed a sales agreement. The place that did the survey kept the boat until I could come get it, they also transferred the balance of the YES warranty into my name. Will be tricky to do in one trip. But our deal was further complicated by the fact he had to pay off his loan. But ultimately things went relatively smoothly.