Private purchase

[dcmoore21]

Thank you all so much for your input. I think I will be able to find a workable solution. I hope at least- I'll keep you updated with what I figure out.

One final question/scenario:
I cannot see the actual title (held by the lender/Yamaha); however, I have seen the title application filled out at the time of purchase from the dealership. On that application, the HIN starts YAMA-xxx. But the actual HIN on the boat is YAM-xxx (no A). Is this going to be a problem? Has anyone seen this before- was a mistake made by the dealership?

Thanks!

 

[BigBlueJeep]

I think the 2nd 'A' (4th character) is just the 1st character in the serial number which can be alpha and numeric but now that I re-read your post maybe they accidentally added the A. If they added a character I think that will mess up the title application because it's looking for a certain number of characters.

Hull Identification Numbers - BoatUS Magazine

The boat's model year is contained in the hull identification number, which is a label permanently affixed to the boat …

www.boatus.com

.

There's another number I've been seeing on Yamaha Finance statements that ID's the boat. It's 19 characters long and starts with what looks like the year of manufacture. Have you or others come across that and do you know what it's called and if it's located on the boat.

 

[Sidney1982]

I'm in the same boat with Yamaha and the state of Maryland. I'm waiting on MD to send to yamaha the info to change the title and reg to Texas. I have the ability to pay off the boat but no one knows when I will get the title. I have been dealing with Yamha since late March for this info. I have several people interested in buying my boat but this has been the biggest hangup.

 

[FLJetBoater]

I’m going through this process right now. Seller is financed with Yamaha. My financing company sent the cheque directly to Yamaha with a prepaid return envelope for the title to be returned. They had the seller sign forms to authorize the title be sent to my financing company. The lender seems very well prepared to deal with Yamaha. Once seller confirms that Yamaha has been paid (should be tomorrow) they will release the boat to me. Minimal risk since they will never actually see the title once the loan is paid.

Added: Asked my lender....the key is getting the seller to sign a power of attorney for title matters and proper bill of sale/sale agreement. This is the way to get Yamaha to send the title to someone else.

 

[Sidney1982]

What happens if the buyer is paying cash?

 

[FLJetBoater]

What happens if the buyer is paying cash?

I would imagine something similar...have the buyer sign the form, send the form along with payment to Yamaha and instruct them where to send the title.

The text of the letter looks something like this

I _____ who resides at _____ hereby duly authorize xxxxxx, address, and/or its
agents to act as agent to sign all papers and documents that may be necessary pertaining to the sale
and subsequent title transfer of the items listed below, including, without limitation, any title, title
transfer document, reassignment, lien placement, or odometer disclosure statements as required by
federal, state, or local law and/or to act as Limited Power of Attorney with respect to the execution of
such papers and documents, with or without expressly designating such authority in any executed
documents.

Lists the items to be transferred

List of agents at lender

Seller further agrees to guarantee and save the authorities of any state requested to process such
transfer of title from all responsibility with respect to this Title Clerk Authorization.

then signed, notarized, etc. Some states require notarization, some don't.

They said they have, perhaps luckily, not run into any issues with Yamaha following this procedure...

 

[dcmoore21]

I bought the boat paying cash to Yamaha to pay off the sellers loan. They are extremely hard to work with if you are not a bank and paying cash. They will NOT send the title to anyone but the seller (they made this very clear). We (seller and I) are still waiting on the title. Once I receive it I’ll explain how it all went down. I think the process we came up is the best option for those looking to not use a lender.

 

[BigBlueJeep]

I bought the boat paying cash to Yamaha to pay off the sellers loan. They are extremely hard to work with if you are not a bank and paying cash. They will NOT send the title to anyone but the seller (they made this very clear). We (seller and I) are still waiting on the title. Once I receive it I’ll explain how it all went down. I think the process we came up is the best option for those looking to not use a lender.

Curious how long you've been waiting. I'm at about 2 weeks. Got proof the loan was paid off now just need Yamaha to send the title to the prior owner who will send to me.

I'm in FL so have to register the boat within 30 days BUT trying to get an appt at the tax collector/dmv is more the 30 days out and no walk-ins due to COVID so don't think they are enforcing it too much. Prob come up on the trailer more then the boat since no tag but I drive around with all the paperwork.

 

[Sidney1982]

I would imagine something similar...have the buyer sign the form, send the form along with payment to Yamaha and instruct them where to send the title.

The text of the letter looks something like this

I _____ who resides at _____ hereby duly authorize xxxxxx, address, and/or its
agents to act as agent to sign all papers and documents that may be necessary pertaining to the sale
and subsequent title transfer of the items listed below, including, without limitation, any title, title
transfer document, reassignment, lien placement, or odometer disclosure statements as required by
federal, state, or local law and/or to act as Limited Power of Attorney with respect to the execution of
such papers and documents, with or without expressly designating such authority in any executed
documents.

Lists the items to be transferred

List of agents at lender

Seller further agrees to guarantee and save the authorities of any state requested to process such
transfer of title from all responsibility with respect to this Title Clerk Authorization.

then signed, notarized, etc. Some states require notarization, some don't.

They said they have, perhaps luckily, not run into any issues with Yamaha following this procedure...

I told that in Texas the new owner would not be able to use the boat until the regsitration/title work is completed. Between Maryland Texas, the turnaround time seems to be months.

 

[Ronnie]

I financed the purchase of my Current boat which I bought off a private seller. As @ZGhost mentioned the bank handled all the paper work to make sure we had clear title when all was said and done. As I recall, before I went to see and pick the boat up my lender sent me two checks, one to pay off his lender and the other for the residual balance to my seller. The instructions were simple, if I liked the boat after the test ride sign the forms, give up the checks and take the boat home. If I decided to pass on the boat send the checks back.

 

[HangOutdoors]

@Ronnie That sounds very clean and simple. Great Lender.

 

[dcmoore21]

Curious how long you've been waiting. I'm at about 2 weeks. Got proof the loan was paid off now just need Yamaha to send the title to the prior owner who will send to me.

I'm in FL so have to register the boat within 30 days BUT trying to get an appt at the tax collector/dmv is more the 30 days out and no walk-ins due to COVID so don't think they are enforcing it too much. Prob come up on the trailer more then the boat since no tag but I drive around with all the paperwork.

We are approaching 30 days without a title. Yamaha told us on the conference call they wouldn’t send it prior to 30 days after sale and there was nothing we could do to speed that up. They did not offer a reason. I am convinced Yamaha is trying to make the process as difficult as possible so folks are stuck with these eye gouging loans. The seller had owned the boat for 5 years and still owed $3k more than fair market value on it.

I am supposed to register boat within 15 days of purchase but I don’t have a title so nothing I can do. I think it will all work out though. Stay tuned.

 

[HangOutdoors]

Huh, doesn't seem very nice. Perhaps they want you to buy a new $$$$$ boat instead.

 

[dcmoore21]

So everything worked out well and I am now officially the proud new owner of a registered, titled boat in my name. As promised here are the details:

-Found a boat on Facebook marketplace I liked. We agreed upon a purchase price (which was way less than listed price).
-Relative drove and inspected the boat. Took pictures of VIN, motor and all associated documents (registration cards, loan payments, etc). Found it to be in good condition and as advertised.
-We agreed to purchase the boat contingent on a sea trial. I sent them a draft purchase agreement from BoatUS that stated as such and we both signed.
-We then conference called Yamaha finance together. I started the call so I knew the number was correct. Seller stated his info and made Yamaha aware I was on the line and granted permission for me to be so. I then asked all the questions I wanted- what was the balance of the loan, what would the pay-off amount be, etc. They stated I could use a checking account to pay off the loan and all I needed was the checking/routing numbers. I asked about receiving the title and they said it could not be sent to anyone but the seller, and it would not be sent for 30 days after closing the loan. I asked if this could be expedited. “No.”
-I then drafted a bill of sale using the form from the US Coast Guard, and then also filled out the form for the transfer of title for the state the boat would be registered in (boat titled in IL and transferring to new owners/new title in KY- this will obviously vary by state).
-The purchase price was less than the loan pay-off amount. Seller was to bring the difference PLUS an additional $500 via cashiers check to the closing. I opted to do it this way because if I asked them to pay down the loan to the purchase price + $500, they may not have done it, or Yamaha could have not received the payment, and then I would have driven all that way for nothing.
-We met at a notary first and then signed AND notarized the purchase agreement, bill of sale and the title/registration paperwork. The purchase agreement had the following language “Sellers to send notification of release of lien from Yamaha Motor Finance corp within 1 week of sale. All sellers to sign title immediately upon receipt and send via certified priority mail to buyer. Sellers to inquire with Yamaha Motor Finance Crop as to status of this and request it be expedited. Buyer will return $500 check via mail to sellers upon receipt of title.” We did this first because if there were hiccups a sea trial would not have been necessary.
-We then conducted a satisfactory sea trial.
-We then again conference called Yamaha using the same procedure as above. I confirmed the pay-off amount was what I was told previously and that the lien would be released upon receipt of payment. I gave them my checking account and routing numbers and they confirmed payment.
-I then took the boat and trailer., all their supporting paperwork/registration, and cashiers check which was cashed immediately.
-This occurred on a Friday and the cash was withdrawn from my account on the following Tuesday
-Seller called Yamaha that week and notified me that the loan had been paid.
-Date of sale was June 26th. Seller received the title from Yamaha July 28th. I received the signed title July 31st and registered the boat the same day (was supposed to be within 15 days of sale but no one ever brought that up). I will receive title in new state (KY) in 3-4 weeks.
-I mailed $500 check back to sellers. All parties happy and feel fairly treated.

This was a journey and more complicated than I imagined. It would have been WAY easier to just get a loan from a bank and have them do it all. But for me I was never going to be comfortable financing a toy like a boat- it was something I saved for and paid with cash- no amount was ever going to go to fees for a bank. I hope this is helpful to others hoping to purchase from a private seller who has a loan from Yamaha (which by the way the lien is held by Synchrony Bank in Minneapolis). Happy to provide any additional details that could be helpful!

 

[Canuckjetboater]

Hello all,

New to boating and looking to purchase a used Yamaha in a private sale. The one I’m looking at has few hours and the price is right. The seller has his original loan from the Yamaha dealership and the purchase price is essentially to pay off his balance.

I’m trying to figure out how logistically to make this purchase. I assume Yamaha has his title. What I am worried about, which I would hope would never happen, would be to pay him for the boat and then he never pays off the loan. I’m left with a boat with a lein on it with no title in hand.

How does one do this? Can we do a conference call with Yamaha and I wire them the money and then arrange for them to send me the title? I also don’t want to have to rely on the seller to send me the title once the loan is paid off. Or should I just ask Yamaha to transfer the loan to me and then pay it off immediately? I’d rather not do that because I’m sure they’d charge some fees to do so.

Anyone have experience with this? I would imagine this isn’t a novel scenario.

thanks!!

@dcmoore21 ......your concerns are 100% justified. Many have been hurt by such transactions. My friend did such a transaction using a lawyer who double checked the lien, held the money in escrow, liaised with the bank and handled the title - smoooooth as butter for approximately $350.00. IMO well worth it. If I remember correctly it took about 4 days and my friend received a call from the lawyer who said pick up your boat, the title is in the mail. I sold a boat and used a yacht broker - she handled everything - including holding my title until she received the money AND ensured it cleared with my bank. AWESOME! Another possibility for you.

 

[BigBlueJeep]

Hopefully this will help someone if they search the forum but here is my 'journey' to buying a boat.

Finally got the title today. After Yamaha received the overnight UPS with loan payoff cashiers checks it took 29 days to get the release of lien letter, and then 45 days to receive paper title. When I bought the boat:
- Lien was a prior Synchrony loan
- The seller and I agreed on a price and told him I would pay cash
- He knew his loan balance would be more and he agreed to pay it off
- Yamaha would not take wire transfers, only physical checks or would transfer funds from seller bank account, meaning I would have to wire money to seller (not ideal). We agreed on cashiers checks.
- I confirmed on 3-way call with Yamaha the load payoff. I don't think Yamaha would send a payoff letter, only verbal
- I wrote contract detailing step-by-step process and had breach contract clause outlining stuff like if someone stops payment on check, re-directs UPS letter, loan payoff not correct, or re-directs funds at Yamaha then that party was in breach of contract ...
- After water test and agree to purchase we went to my bank, got cashiers check, then went to sellers back and got his cashiers check.
- Went to UPS store and I purchased overnight to Yamaha and mailed checks
- Each got copy of UPS tracking #, cashiers checks, purchase agreement/contract, and drivers license
- I gave seller pre-paid UPS letter to send me title when he received
- I got the boat
- Kept in touch and seller updated me when account was paid off, when he got lien release, and when he got and sent title.

At the end of the day I think you need a good contract and cover the scenarios where someone would clearly screw up the deal and agreement. Would it hold up in court? I feel like it would but who knows. I thought of it in terms of risk exposure - yes it would suck if deal went south but how much was on the line and could I handle it, also, I was in procession of the boat. I was prepared to walk at any time but getting to know your seller/buyer and a little bit of trust helps too, at least with piece of mind. Overall worked it worked out and the seller was a good guy that held his end of the deal. What a ride ... who knew Covid would hit, the boat market would blow up, and buying a boat would be so hard, but got to say the family and I go out every weekend and love the boat!