BOAT BUYING PROCESS

OK, so after months and months of searching, doing research, getting financing in line, I think I found the boat I'm going to purchase. I am curious how the initial process works now. Specifically, here's some things I'm curious about.

1. Since he still owes money on the boat, and therefore doesn't have the title, does he get the money, or does it go directly to the company that holds the lien?

2. How does sales tax/registration work? I live in California, so how much do I have to pay? Any way to get a break on sales tax?

3. Should I get insured before I bring it home?

If there's anything else you think I should know about the exchange process, please feel free to share. Thank you in advance everybody.

1) If he owes less then you are paying they will most likely issue two checks. One check to the finance company and one check to the seller. The finance company will then send the title to you. Depending on where you live this may be a problem because you will still need the original owner to sign off on the title which caused some back and forth mail for me.

2) Sorry, don't know.

3) I would. Most insurance companies give you a 30 day grace period but if something happens in that first few days it looks a little shady when you call up asking for coverage while you are making your first claim.

What are you buying?

Sales tax varies in every state based on if the boat is new or used, bought from private party or dealer, and if its an in state or out of state transaction.

Patrick,

1. If you can, go to the bank that still holds the note on the boat and do the transaction there.
2. The DMV website has the sales tax breakdown, only way to reduce is to say you paid less for the boat than you actually did
3. Like evilone said, go get insurance, it makes towing it home for the first time less stressfull

Congrats and good luck

1. If possible, have the current owner pay his loan off first. then you can get the title directly from him. If not, joe's idea is the next best.
2. don't know.
3. yes.