Boat Buying Guide And Encumbrance Check

Buying a boat is a significant purchase, and one of the easiest ways to protect yourself is also one of the cheapest: an encumbrance check through the Personal Property Securities Register (PPSR). This guide covers the sensible steps to take before you buy, and why skipping the encumbrance check is a risk that isn't worth taking.

Before buying any boat, work through five checks: confirm the boat suits your intended use, compare its price against similar boats on the market, arrange finance approval if needed, get an independent survey for used boats, and run a PPSR encumbrance check to confirm there's no money owing on it. Only once these are clear should you sign a Sale and Purchase Agreement.

Start With Your Own Requirements

Boat selection starts with knowing what you actually need. Determine what you want the boat to do and in what conditions it will operate, then choose a vessel suited to that use. No single boat perfectly suits every activity, so you'll either need multiple boats or be prepared to compromise on some features. Compromise on price if you need to, but avoid compromising on safety.

Research Before You Buy

Whether it's your first boat or your fifteenth, research your potential purchase carefully. Building your knowledge and experience over time increases both your enjoyment and your safety on the water. Thankfully there are many sources of boat buying information including:

• The Internet
• Boat magazines and books
• Boat Brokers and Dealers
• Boat manufacturers and designers
• Other boaties.

Sensible Steps Before You Commit

As with any substantial purchase, apply common sense before you sign anything:

• Know the value of comparable boats on the market
• Arrange boat finance in advance if you'll need it, so you know your budget before you start negotiating
• For a used boat, pay for an independent inspection of the hull, engine and accessories from a qualified marine surveyor
• Check whether there's finance owing on the boat through a PPSR encumbrance check
• Execute a legally binding Sale and Purchase Agreement that lists all accessories and any warranty terms
• Stay alert to common boat-buying scams

Why An Encumbrance Check Matters

Buying a boat comes with risk, and a $2 search on the PPSR is one of the cheapest ways to reduce it. The check tells you whether the boat, jet ski, tinny or other watercraft you're buying has a security interest registered against it, which could mean money is still owing on it.

You can run this check online through the Personal Property Securities Register (PPSR). The purpose of the PPSR for boats is to protect purchasers from unnecessary financial loss. If you buy a boat without knowing it's financially encumbered, it could legally be repossessed after the sale, and you would lose your investment along with it.

A little diligence before you buy, knowing comparable values, arranging finance early, getting a survey, and running a PPSR check, can save you from a very expensive mistake. It's a small amount of effort for a lot of peace of mind.

Ready to start looking? Browse current boats for sale on Boats Online.

Frequently Asked Questions