Our Used Boat Buying Checklist

A used boat checklist is a fantastic resource to have when you’re looking at buying a pre owned boat, regardless of whether you’re on your way to an inspection or just beginning to research your purchase. While there is obviously an immense range of boats you could buy, from 10-foot tinnies to 50-foot sport fishing yachts, there are a few constants that every prospective boat buyer should keep in mind, no matter what they’re looking at.

In this guide, we’ll walk you through the key things to look out for when you’re buying a used boat, so you can steer clear of the lemons and give yourself an edge when it comes time to negotiate. These will set you on the right path whether you’re dealing with a private seller or working with boat dealers. Read on for our tips, and don’t forget to bookmark this page to return to throughout your search!

Conduct a Thorough Inspection

If you’re at the stage where you’re inspecting a boat, you’ll want to make sure you take your time. Start by examining the boat’s overall condition, paying close attention to the hull and looking for signs of damage such as cracks, repairs, or abnormal wear. These signs not only indicate how well the boat has been maintained, but will also give you an idea of whether or not certain areas are likely to cause you problems in the future.

Moving onto the engine, you want to ensure that it starts easily and runs smoothly without any odd noises or smoke. Some smoke is to be expected upon startup, especially for outboard motors, but shouldn’t persist for longer than 5 or 10 seconds – if it does, it’s a sign that the engine isn’t in very good health. If possible, check the engine’s service history to ensure it’s been properly maintained, although it may not have this if it’s an old boat.

Once you’ve checked the engine runs smoothly, it’s time to check for engine wear. Remove the cover (for an outboard) or open up the engine hatch and visually inspect all the components and seals, including the spark plugs. Check for signs of corrosion or recent repairs on all parts of the engine, which might suggest past problems or ongoing issues. It is a good idea to have a small flashlight or pen light with you when you’re inspecting the engine, so you can peer into all the nooks and crannies.

Ask Questions

This is one of our biggest pro tips: While you are inspecting the boat, ask lots of questions. This is such an expensive purchase, don’t be shy.

• Has the boat had regular and professional services from a certified marine technician? Ask to see the service and maintenance record so you can verify that it has been serviced annually.
• How many hours does the engine have on it?
• Has the boat ever had a major structural failure, like a leaking hull?
• How many previous owners have there been? What does the current owner know about them?
• How old is the fishing and safety gear, if it’s being included?

Be on the lookout for red flags and listen to your gut. Anything from misleading photos to obvious signs of wear and tear that the sellers aren’t acknowledging can be reasons to pass on second hand boats.

Inspect Electronic Systems and Onboard Technology

Unless you’re buying a dinghy, almost every boat will have electronics of some form or another in it, whether that’s for navigation, safety, or even just raising and lowering the motor. For some boats, the amount of onboard electronics might take a whole day and the presence of a marine electrician to check, but for the most part you can do all the checks yourself.

The easiest way to do this is to test them the same way you would a light at home: flick them on and off. If they work, then you’re in the clear. The main things you want to check are the nav and running lights, the radio, and the pumps. If the boat has an outboard control, ensure that it can raise and lower the motor smoothly and without too much effort. It’s also a good idea to do a quick visual inspection of any wires and connections running throughout the boat, to make sure they’re not frayed or perished.

Next, pull out the battery and give it a really good looking over. Although marine batteries are built to withstand more punishment than a regular car battery, they still degrade, with the terminals usually being the first spot to corrode. If you’re satisfied that the battery is in good condition, check the battery case for any cracks or signs of leakage, and then do the same thing for the area where the battery is stored, to make sure that no water is infiltrating and running the risk of wrecking the battery.

Verify Legal Documentation and Compliance

Now that you’ve gotten the physical checks out of the way, it’s time to check the paperwork. Start by ensuring the boat is not financially encumbered by checking the Personal Property Securities Register (PPSR), which can reveal any financial holds or disputes over ownership.

Registration

Verify that the boat and its trailer (if applicable) are properly registered with the relevant state authority. In Australia, boat registration is managed by your state’s Departments of Transport, and the registration documents should be current and in the seller’s name.

Insurance

Ask the seller for a copy of the current insurance policy to ensure the boat is covered up to the date of purchase. This will also give you an insight into what risks the boat has been insured for in the past, what it will cost you to insure it should you decide to make the purchase, and will give some indication of the boat’s exposure to potential issues.

Warranty Documents

Warranty coverage will very much depend on the age of the boat, so if you’re buying anything more than 5 years old, you can probably assume it won’t be covered. However, if it’s younger than that, make sure that all the warranty documents are transferred to you to make future claims easier.

And even if the boat isn’t still covered under warranty, get the documents anyway – they’re good to have on hand, and will form a more complete picture of the boat should you decide to sell it on down the line.

Safety Certificates

Depending on which state you live, you may require specific safety certificates for the electrical system or the gas system, particularly if the boat has an onboard kitchen or heating system. If the boat you’re looking at does have these, ensure that they are still valid and that you won’t have to pay to have the boat certified once more after you take ownership.

Proof of Ownership and Bill of Sale

Finally, make sure that the seller has a clear proof of ownership, as you don’t want to be on the hook for a stolen boat. If you have any doubts, or if the owner is giving you the run around when it comes to providing proof of ownership, don’t be afraid to walk away. There are a million boats out there, and you’re better off bailing on the sale and finding one of those than getting involved with someone that can’t prove that a boat is really theirs to sell.

But if everything has gone well and your seller isn’t a dodgy sort, then it’s time to finalise the sale. When closing the deal, a bill of sale should be prepared that includes the boat’s details, the sale price, and the terms of the sale. Both you and the seller should sign and date the document to authorise that the sale is final, and prevent anyone from coming back with a complaint if they’ve changed their mind.

Evaluate Its Suitability

Now that we’ve gotten the paperwork out of the way, it’s time to start thinking critically about your potential purpose. Although you’ll undoubtedly have been looking for a specific type of boat, you need to ask yourself if this boat fits the bill.

Think about how it will be used: does it have the space, features, and equipment to meet your needs? If you’re after a fully equipped fishing boat, are there enough rod holders and bait wells, and does it have easy access to the deck?

Make sure the layout and facilities support the purpose you’re buying it for, both now and into the future. You might find that the boat is perfect in every way but one, which isn’t necessarily a problem, unless that one thing it lacks is something that will bother you for the rest of the time you own it.

Check Fittings and Safety Equipment

Once you’ve done your structural inspection, check things like the upholstery, deck, and any installed features for signs of excessive wear or neglect, in case you need to replace them. Teak decks in particular are known to require regular maintenance and upkeep, and are famously expensive to replace once they’ve degraded, so be sure to check this thoroughly if the boat has a teak deck.

Additionally, check that all of the boat’s safety equipment, such as life jackets, fire extinguishers, and flares, are present, in good condition, and meet regulatory standards.

Inventory of Included Extras

Before you finalise the sale, determine exactly what is included with the purchase. Items like navigation systems, trailers, covers, and even additional fishing gear can provide substantial added value, however the seller may want to keep them or sell them separately. Knowing what is included can help you understand the overall worth of the boat, allow you to make a more informed offer, and help you figure out what additional expenses you may need to prepare for.

Consider Hiring a Professional Boat Inspector

If you’ve done everything we’ve outlined so far but you’re still feeling unsure, you should consider hiring a professional to inspect the boat and give you total peace of mind. This is particularly advisable if you’re new to boating or if the boat is older and may have issues that you’re not expecting.

It should also go without saying that if you’re going to be spending a lot of money on the boat – and we’ll leave it up to you to determine what ‘a lot’ means in your circumstance – then you should absolutely hire a professional marine technician to take a look and even take a test drive.

A good inspector will not only perform a detailed check of all mechanical, electrical, and structural aspects, potentially saving you from expensive repairs and issues after purchase, but they will give you the confidence to move forward with the purchase knowing you haven’t missed anything.

Start Your Journey to Boat Ownership with Credit One

If you’ve got your eye on a second hand boat and are ready to take the next step, get in touch with a member of the Credit One team today.

With a range of financing options available, including secured boat loans, private sale finance, and used boat finance, we make it easy to buy the boat of your dreams. Compare our boat loan options, use our boat loan calculator to find out just how affordable finance can be, and get ready to start your journey to boat ownership with Credit One!