Attn: Catalina owners who have ordered new boats.

Joe · May 9, 2013

When you buy a new car do you get to use it before you pay for it?

When your buy a house you don't get to move in before the loan is funded and the deed records....

When you buy a boat from a dealership, just as a car, the dealer services the problems while it is under warranty.

Joe · May 9, 2013

Doug4bass said:
Man....you are way off, Joe.......third NEW Catalina for us..........you??
Who said anything about USING it before we close??
Plus a month and a half before we take possession....Sharon???

Never bought a new boat, but I've sold and purchased a lot of used ones, also homes and cars and a contract is a contract. Your original post asked the question

Is it normal protocol to seal the deal before an acceptance sail?

So it sounded like you were asking opinions on whether your issue was normal or not. You didn't say that your previous Catalinas let you make final payment after a sea trial.... were they bought off the lot, or did you order them from the factory also..... just curious, there may be a difference with something already made as opposed to ordering a specially made product.

I didn't mean to piss you off, just trying to make a comparison with other contractual type purchases I've made in the past... apparently a boat is different.

onecoolair · May 9, 2013

Trust issues here ?

Doug4bass said:
Recently ordered a new 385 which has been completed in Largo. We have paid a sizeable down payment plus are preapproved for the balance.
The dealer just informed us today that we must pay the full amount before
they will ship from Largo. The dealer will installl all electronics plus a few other
things. This blindsided us. We found out from the bank.
Is it normal protocol to seal the deal before an acceptance sail?
Not sure about paying for a new boat sight unseen.

This sounds kind of "hinky" to me.
So you say....You gave large down payment to dealer... which should have been presented to bank and held in trust. Bank has approved or guaranteed your loan and paying of funds to manufacture. Manufacture as already built boat. But will not ship to dealer unless it as been paid in-full first. Hmmm??... that would make me, suspicious of Manufactures cash flow viability or for some dubious reasons Manufacture does not trust dealer or bank. This does not sound like normal business procedures. Is there some bad history about the dealer you do not know about yet causing the manufactures mistrust?
You need to find out if the money is actually still being held in trust at the bank. Wanting to actually touch/inspect and verify product of such value before closing does not sound unreasonable. Your bank also as a steak in this transaction also. Maybe a trip to the factory were the new boat is sitting is in order... And if a trip is necessary then why pay a middle man which is the dealer. These kind of complications would really worry me and make me want to run the other way.
I hope your bank can some how step in and make the manufacture feel more secure about the transaction.

hewebb · May 10, 2013

I would bet that onecoolair has got it. I think it is time to visit with the factory. I would bet there is a problem between the dealer and manufacturer.

duality · May 10, 2013

marquette wisconsin?

Jackdaw · May 10, 2013

Doug,

Its been my experience that a boat never leaves the boatyard without SOMEONE paying for it in full.

A new boat at a dealer was bought by the dealer on speculation. They sell it to you.

If you order a new boat via a dealer normally you make a 10% deposit and pay in full (to the yard) before the truck leaves. They write the dealer a commission check.

If the boat is highly customized or the yard is smaller you might make a bigger down-payment and/or step-completion payments, like when the hull is done, deck attached, etc.

In any event its a good idea that someone should look the boat over before it leaves the yard.... you or your dealer.

You might be able to arrange some sort of hold-back or escrow to make sure everything is OK, but most yards will object to that. Once that last payment is delivered and the paper is signed it is 100% YOUR boat. It could fall off the trailer in their parking lot and its your insurance company that gets the first call.

Old Skool Neil · May 11, 2013

The first thing I'd do is dig out the original sales contract, the one that was executed at the time of deposit, and read the fine print. It should have included, among other things, how much was due and when.

Any discrepancies from that original document should be presented to the dealer. If he is unable to stand by the original agreement it's time to contact Catalina directly.

Aside from what's going on here (if anything), at Islander we had a financing system in place for our dealers called 'flooring.' It benefited all parties: end line customers, dealers and the factory. I don't know the finance rate but considering the term was extremely short it could not have been much. Here's how it worked. The factory was paid in full by the flooring company when the boat was loaded on the truck, the dealer would repay the flooring company when the customer paid him. The customer would not be required to pay in full up front, apparently the case here, until their new boat was commissioned by the dealer and delivered. The customer was not out a bucket of cash, nor was the dealer or factory. It truly was the piece of the puzzle that made it all work. Of course, it required all parties to be in good financial standing.

I'd be surprised if Catalina didn't have something similar. It's nothing new, we were doing this 35 years ago.

FastOlson · May 11, 2013

Speaking of buying a new 38 footer, I wonder if the original contract had an "subject to survey" clause. If I were buying a boat in that size / price range I would certainly have my surveyor go over the boat when it was being finished up at the factory.

Modern production boats have those ABYC stickers plastered prominently on them... make sure that the boat and its many systems are actually constructed to the standards that the ads brag about.

And, as Neil states, it's past time to Carefully... read the original contract ...again.

NC-C320 · May 12, 2013

In 1999, I ordered a new Catalina 320. I paid 20% downpayment, and arranged bank financing on a significant portion of the balance. The factory delivered the boat to the dealer when it was completed, but boat was not off loaded until the driver had been given a certified bank check for the manufacturer's selling price of the boat and transportation. The bank's agent passed the check to the truck driver, and I assume the dealer's mark-up and commissioning costs to the dealer. I signed papers accepting ownership of the boat and financial papers reflecting bank's interest in the boat. Commissioning took about 3 weeks (delayed by a hurricane). Surveyors were not involved, nor needed as far as I can see. The manufacturer has a warranty on the boat and a responsibility to fix any defects. As I see it, when a buyer signs a purchase contract, the buyer is committed at that point.

Old Skool Neil · May 18, 2013

What was the final outcome Doug?

jimmcgee · May 20, 2013

Doug, best of luck with her. The 385 is a VERY nice boat.