Protecting a trade-in agreement

[baz]

Subject: Protecting a trade-in agreement

Currently I have a quote from RT for the new 2018 R-27 which has been ordered with a down deposit. The quote paperwork includes an agreed trade-in value for my R-21EC.

At this time the R-27 build/assembly/delivery is estimated to be around late July or early Aug. This of course could change and move to a later time.

My concern is that if something awful happens that causes damage to my R-21EC that this could affect what RT's trade-in value is today and my quote could be compromised.

The "late July or early Aug" is about a 2 month waiting period.

I've will be asking Andrew what are my options with regards to my concern.

1) Should I have RT pickup my R-21EC ASAP to secure the quoted trade-in value ?
2) Should I take the risk or hope that nothing compromises my quoted trade-in by not using it and keeping it at my moorage ?
3) Should I haul the R-21EC out of the water and transport it to my home for safe keeping ?
4) Should I ask RT to buy my R-21EC today for the trade-in value so that I can have the cash in my hands when finalizing the new 2018 R-27 delivery in "late July or early Aug"
5) This is kind of like trading in a car. The dealership will want the trade-in car as soon as you sign the papers for the new vehicle to cover against there being any mishap to the trade-in car. Yes, I haven't sign ALL the papers for the new 2018 R-27, but RT has given me a hard copy quote for it that includes my R-21EC trade-in value and my down deposit that has now been cashed.

Advice needed. Thanks... 🙂

 

[Crewdog]

The thing that comes to mind is when I traded my old Prius Plug-in for a new Prius Prime that had yet to arrive, I parked the car in the garage for a couple of weeks and used the diesel truck; just put on the miles between the dealership and home and back so the trade-in would stay the same, AND I wouldn't have to wash it again.

 

[baz]

Bill:

We must be kindred spirits as two days ago I traded in my mule that I used for towing my R-21EC for a new 2017 Toyota Prius 4 loaded with goodies.

The Toyota dealership was adamant that in order for me to drive the new Prius off the lot they wanted/insisted that I leave my trusty mule with them. 😱 I was a little taken aback, but understood their position and had to remove all my personal items from the mule hastily as the dealership was closing shop. I did my best, but left 3 personal items behind; my wife's IoM (Isle of Man) touring car badge, Granddaughter's school parking sticker and my WA HOV windshield placard that allows me free access to Toll Lanes in my area. Later that night I panicked because of me having not remembered to remove those 3 items and because the Toyota dealership had told me they already had a buyer for my mule. Luck would have it that next day with a quick call to the Toyota dealership the 3 items were removed for me and I picked them up today. Wife will now not scold me for having been so remiss about forgetting her IoM touring car badge. :lol:

 

[SGIDAVE]

Hello Barry,

Yes...there is some downside RISK as you detail in your initial post. Short of delivering your 21EC to Ranger prematurely, you cannot escape the risk.

On the other hand...you could let the 2 month "wait" be to your advantage and use that time to SELL your 21EC for MORE than the trade in allowance.

Regarding auto dealers I'm jaded...when they want your trade-in NOW, it's so that you can't back out of the proposed purchase arrangement so easily. They ALWAYS "have a buyer" for your trade-in...it's called an auction.

GL with your new boat - the 27 OB looks great!

dave

 

[S. Todd]

This seems like purely a personal matter of how important it is to you to be boating the next two months and what risk you are willing in incur to do that. I do not think it should be any more risky than last year when you owned the boat and intended to keep it as your boat for a long time to come. You used it because you loved boating. If something bad happened to it, that was the purpose of insurance and the price you pay for owning a boat and getting the enjoyment out of boating. You could avoid all risk and cost by sitting on the couch and never having purchased the boat in the first place, or you could live life to the fullest.

Unless you believe the dealer you are trading with is unscrupulous and going to make up wear and tear and damage issues that are not there (which I strongly suspect you have determined is not likely in your dealings with Andrew), then keep boating. If your calendar is such that you have no ability or plans to use the boat for the next two months, then I would trade it in now, why let it just sit there in your slip or at home while you pay for insurance. On the other hand, if you can and will use it, the risk of damage to your R21 EC is minor compared to the risk of damage to what you will face the day you take your new R27 (at 3 or 4 times the cost) out of its slip the first time. And I suspect you will take the new boat out of its slip with a big smile on your face while you do so!

How are you going to tow the new 27 footer home with you at night for safe keeping with a Prius ?

 

[mcphersn]

Yep, I worried about this until I took my trade out for a day. It didn't feel like my boat any more, so I towed it over to the dealer. YMMV.

 

[JamesTXSD]

The value of a boat is in its use. If you put a few hours on it, and Ranger gives you a bit less for it, you got something for that money: the use of the current boat. If you damage the boat in any way, you would do exactly what you'd do if you were keeping the boat forever: make things whole again.

You have history with Ranger Tugs, and know they have never taken advantage of you. If you aren't going to enjoy your current boat (for any reason), give it to them so they have more of the summer season to sell it. If you would enjoy using the current boat until the new one is ready, well, there's your answer. This isn't just about the dollars on the sales agreement, but in HOW you will enjoy your boat time.

Trade it now and be without a boat for a couple months, or trade it later and enjoy the current boat, but understand that each hour of boating time has a cost... just like it would if you weren't trading the boat.

 

[baz]

OK.... I chatted with Andrew and this is what I've decided to do to minimize my risk to my trade-in value for the R-21EC.

1) I do have insurance on the R-21EC so that's comforting.
2) My WA annual registration is due by end of June.
3) Andrew has agreed to take my R-21EC trade-in prior to delivering the new 2018 R-27 to me that's estimated to be late July to early Aug.
4) I will setup a date/time with Andrew for RT to pickup my R-21EC as close to end of June as possible thus allowing me to avoid paying the WA annual registration. The new R-21EC owner whomever that may be will have the responsibility for their state registration. Andrew will provide paper work that shows the trade-in has been completed prior to the R-27 delivery.
5) I will cancel my R-21EC's insurance the day RT takes ownership of the R-21EC by end of June.
6) I will offer my marina covered slip for use from July 1st to when my new 2018 R-27 is delivered to my marina.

This minimizes my risk, means I have use of my R-21EC to end of June, means I lose use of the R-21EC for at least a month (July), save on the WA annual registration fee, save one month of boat Insurance and potentially get a 30-day or less daily credit for my covered slip to offset my July/Aug moorage fee. I estimate all of these items could provide me some $600 in savings.

As an aside, I realize I paid $800 for a 5 yr extended Volvo Penta D1-30 warranty that's good to Aug 2020. I wonder if this is transferable to the new R-21EC owner or if I can request a prorated refund for unused term of some 3.5/5 x $800 or some $560. If so, then my total savings could be as much as $1,160 😱

P.S. The Volvo extended warranty is transferable to a new owner, but does not offer the current owner (me) a prorated refund if I were to cancel it. Ar well, maybe I get a 5 yr warranty on the R-27's 300HP Yamaha.... 😉