If you need to sell a boat that still has a loan attached to it, you’ve got a few options to consider.
Pay Off the Remaining Loan Balance Using the Buyer’s Funds:
- Ask your bank for a 10-day payoff letter. This tells you exactly how much you owe.
- Once you have the payoff amount, use the buyer’s money to pay off the loan and get the boat title.
- Be honest with the buyer about the loan balance and show them the payoff letter.
- The buyer can verify the amount in the letter themselves. This way, ownership transfer goes smoothly.
Buyer Pays the Remaining Loan Balance Directly to the Bank:
Here, the buyer makes two payments:
They pay off the remaining loan balance directly to the bank (based on a ‘10-day payoff quote’). They pay you the difference between the total selling price and the bank payoff amount.
Get a 10-day payoff letter from your bank to know the exact loan balance. Make sure your bank accepts payments from buyers.
Coordinate with the buyer and the bank for a smooth title transfer after the sale.
Pay Off the Loan Before Selling the Boat:
- If you prefer having the boat title in hand before selling, you can pay off the loan first.
- Once the loan is cleared, you’ll have the title ready to transfer to the buyer.
Finding buyers for your boat
Online Platforms:
- Use websites like Boat Trader, Boats.com, or YachtWorld to reach a wide audience.
- Craigslist, eBay, and Facebook Marketplace are also good options for broader visibility.
Offline Methods:
- Boat brokers can handle the sale process for you, though they charge a commission fee.
- Listing your boat at marinas or boatyards where potential buyers frequent can be effective.
- A simple “For Sale” sign on your boat or trailer in a busy area can attract local buyers.
Tips to make your boat listing stand out
- Create an appealing listing with high-quality photos and detailed information about your boat’s features.
- Price your boat competitively by researching similar listings.
- Be transparent about your boat’s condition, maintenance history, and any existing loan.
- Consider paid advertising options to increase your listing’s visibility.
With these options and tips, you’ll be well-equipped to sell your boat, even if there’s a loan involved!
