Using a Broker
When you come to sell your boat, you do have a choice; whether to let a professional do it for you, by using a Boat Builder's Dealer or an independent Broker, or whether to handle the sale yourself. As always, there are upsides and downsides, whichever way you choose, it's more a question of knowing what they are and then deciding what best suits you.
The Benefits
The benefit of using either a Dealer of a particular boat brand or an independent Broker is that they make the job of selling your boat comparatively easy and worry-free for you. They will manage the sale from beginning to end.
They'll deal with the advertising, sea or river trials, liaise and assist with surveyors, arrange any rectification work, assist with negotiations and deal with all the paperwork; they're usually insured for fraud, so you won't even have to worry about the credentials of the buyer. And in some cases, they'll even berth or store your boat at their yard free of charge, to enhance their display of boats for sale and make it easier for them to show potential buyers your boat. This can mean that you can save mooring fees or storage costs, whilst somebody else looks after your boat! It can also mean that once you've handed over your boat to the Broker or Dealer, you'll probably never see your once pride and joy again.
Cost of using a Broker or Dealer
Typically a Broker or Dealer will charge a sales commission of between 6%-10% of your boat's eventual selling price, plus VAT. The percentage charged principally depends upon your boat's value; the lower the boat value, the higher the percentage charged. But as a guide, for every £1,000 that your boat ultimately sells for, you can expect to pay between £70 and £120 per £1,000.
In addition to this, you may incur charges for storage, cleaning, maintenance, a contribution towards advertising, sea or river trials (if only the fuel, but possibly the cost of a skipper) as well as underwrite surveyor costs. All of this, together with the sales commission percentage, needs to be negotiated and agreed in writing with the Broker or Dealer concerned.
They will usually provide you with a standard written Agreement for you to sign. If they do, this Agreement may well include clauses concerning insurance, their 'exclusive' rights to sell your boat during the term of the Agreement and how you can cancel the Agreement. Read these clauses carefully as well as the other terms of the Agreement and be sure that you understand and accept the terms stated, before signing. If you don't understand any aspect of the Agreement, seek advice.
Choosing a Broker or Dealer
Throughout this Guide you may have noticed that there has been a deliberate distinction between a 'Broker', that is an independent business, not aligned or tied to any particular boat brand and a 'Dealer', that is a business that represents the brand or brands of differing boat manufacturers but who also sells used boats as well. The reason for this distinction is that there are trading differences between the two types of businesses that can affect you as a seller of a boat and, for that matter, as a buyer.
Choosing a Dealer that represents a boat manufacturer to sell your boat
If you choose to sell your boat with a Dealer who represents the same brand as your own boat there can be significant benefits.
Firstly, potential buyers will tend to be attracted to their adverts first; they're usually the 'glossiest' and there is an assuredness of dealing with a boat builder's representative of the brand that interests a buyer. Secondly, these Dealers may be in a position, depending on the age of your boat, to offer a warranty to a prospective buyer on your boat. Thirdly, Dealers tend to value used boats higher than Brokers, to preserve the perceived value for money of the new boats that they sell and because they offer a higher level of assuredness to buyers.
All of this means that if you are able to use a Dealer to sell your boat, although the charges will be the same as a Broker, they may sell your boat more quickly and at a higher selling price.
However this may not be the case. Many new boats are sold to buyers who were originally intending to buy used. Some Dealers therefore use their used stock to attract enquiries from potential buyers that they can then try to convert to new sales. This means that your boat could be used effectively as a 'sprat to catch a mackerel' so beware the Dealers who are offering remarkable terms to sell your boat!
Tip - See our list of Authorised agents to help find a dealer for a specific make.
Choosing an Independent Broker
The benefit of using an independent Broker is that they only earn money from selling boats like yours and if it doesn't sell, they don't earn. So the success in selling your boat rests upon how much the Broker spends to advertise your boat, whether they're used to selling your kind of boat, how good a quality their adverts and internet sites are and how professional they are in dealing with enquiries.
So when deciding which Broker to use, these are the aspects, together with their terms of business that you need to check upon, with a range of Brokers, before making a decision.
Our Locate a broker facility will give you the names of many leading brokers. Study their adverts, check out their web sites, form an opinion as to how professional they appear to be and see if, through what's advertised, you can spot how quickly they appear to sell boats. Also, you could telephone as a prospective buyer, maybe about a boat that you really would be interested in, if you're upgrading from your existing boat and see how professionally they deal with you. Finally find out what commission each of them charge and what their other terms are. Then you can make that decision.