Buying a boat

[gixxer01]

Is it true there is no sales tax when buying a used boat from a private seller? What about if I need to finance it?

[mamohr686]

When buying a used boat, you will only pay tax on the value of the trailer when you register it.

It really helps if you have a bill of sale that lists the serial numbers, make, model, and year of the boat, motor, and trailer. Also assign a value to each of them. You can google bill of sale to get great templates off the internet.

You will need the previous registration card, bill of sale, and a title (if your buying from a state that titles boats) to register the boat and transfer the title to your name.

As far as financing a used sale, you will need to go through your bank or credit union. usually they will need all the same information I mentioned in the bill of sale do dertermine the loan value of the rig. It a good idea to get pre-approved for a boat loan before you decide to buy. That way you will be able to budget the boat and any accessories you may want to add to it.

[DooWap]

Gixxer,

I actually just went down this same path this summer and purchased a used boat from a private party. Mamohr is right, you only need to pay sales tax on the trailer when you transfer the title. I just went into the DVS office and told them the trailer was $500, cost me about $70 with all the title transfer fees and sales tax.

I also financed my boat and one thing you're going to run into with a lot of banks is the age of the collateral. I'm not sure how old the boats you're looking at are but most banks I talked to weren't willing to finance a boat that was older than 6 years which surprised me. I thought it was funny how they would just turn away a potential customer with a great credit rating over something as silly as that. Check out a lot of your local credit unions instead of the big banks and you're more likely to get a better interest rate and a bank that is willing to lend you money.

[Raider4ever]

All of above is true IF you are buying a boat from a private party in MN. Found a great boat in Hastings a few years ago. Got the going RV rate from my Credit Union (excellent rate I still believe). Afterwards, I went up to the county office with a wad of cash to pay taxes on the sale. The VERY NICE lady at the counter said they only tax the trailer and asked how much the trailer was worth. I told her what the trailer booked for when we were looking everything up at the Credit Union (too shocked to "fudge" the value). Paid 80-something dollars (the registration was still good), looked at all my "left-over" money, went out and had a VERY NICE lunch. A tax on the total package would of been in the $700 range. NEVER buying a new boat or used from dealer again. It took over a year to find the boat I really wanted, but was in no hurry. Somebody has the boat you want. It just takes a little digging and patience.

[gixxer01]

Thanks for the responses guys.

You're right about having to be patient. The two days it took for the credit union to work out the pre-approval was enough time for the three boats I was interested in to sell. UGGGGH!

So, is the value of the trailer up to the buyer's discretion, or is there an NADA book for them too? I think you know what I'm asking!

[Brad B]

Thanks for the responses guys.

You're right about having to be patient. The two days it took for the credit union to work out the pre-approval was enough time for the three boats I was interested in to sell. UGGGGH!

So, is the value of the trailer up to the buyer's discretion, or is there an NADA book for them too? I think you know what I'm asking!

NADA does have a section on boat trailers. depending on the trailer most will be in the $500 to $1000 range. this is your standard single axle no brakes trailer. dual axles and brakes would add value. age of the trailer is also a deterimining factor. the older the trailer the lower the value.

[Pat K]

Thanks for the responses guys.

You're right about having to be patient. The two days it took for the credit union to work out the pre-approval was enough time for the three boats I was interested in to sell. UGGGGH!

So, is the value of the trailer up to the buyer's discretion, or is there an NADA book for them too? I think you know what I'm asking!

I know a person who the state upped the value on the trailer after the registrar turned in the paper work. He had claimed something like $75. for a 6 year old Ranger trailer. He had to pay sales tax on the value the state put on the trailer.

I think if the number is looks at all reasonable there is no problem.