What could be problems with buying a new boat made by a manufacturer that filed chapter 13?

Question

Would it keep you from buying the boat, if it was a good deal? What if a warranty is offered by the boat dealership?

(Manufacturer filed for bankruptcy.)

Answer 1

boats are pretty good today i would be more concern about the engine   if it was a good deal i would buy it

Answer 2

So much for warranty> Unless some 1 buy up the company> Beside the quality of the boats being made in the 11 hour of business would be in question> I would pass>

Answer 3

If I understand your question correctly... This is a brand new boat...  the manufacturer filed bankruptcy... but the Dealer has not... and the "Dealer" has offered you a warranty.

I would say that if the manufacturer otherwise had a good reputation for building quality boats... and you feel you are getting a really good deal... and the Dealer himself is backing the deal with his own offer of a waranty... then... if the Dealer has been around a long time and has a good reputation... then... go for it!

Also, as a word of caution... boat dealers make it their business to sell 3rd party warranties...

So make real sure they are actually providing you with a "free" warranty...  and not actually "selling" you one under the covers... so to speak.  They often do this when the "finance" person gets you in that little room to handle the boat loan and your closing....  They are real good at selling you all kinds of stuff in there... boat insurance, life insurance, warranties, extended warranties, towing, emergency service... etc... and they "hide it" all in your boat loan.

Some of those guys make more money after they have sold you the boat, then they made on the boat.  

So just make sure you have a clear understanding of what and what not... and for how long... everything is going to be covered... Other than that, If it was a good deal, I would go for it.

I bought a new 36 ft. twin engine Chris Craft cruiser - years ago just after Chris Craft filed bankruptcy... the dealer said he would stand by the warranty... he did, and we lived happily ever after...  Only I am much poorer... lol

Go for it!

Happy & Safe Boating!

Answer 4

Finding parts if you need them.

Answer 5

First you'd have to do your homework.  That means finding out what parts exist on the boat which cannot be replaced due to the manufacturer not existing anymore.  Also, you need to check the workmanship of the hull and various upholstery and such.  

If fiberglass hull, I would ask fiberglass repair shops if and how much does boats from this manufacturer have problems.  I would also do a complete inspection of any areas in which holes are drilled into the hull to insure 100% sealed from leaking by silicone or another good sealant.  

One particular check, take your finger and stick it in the bilge drain plug hole, if you do not feel a sealed tubed hole or feel wood or plywood, do not buy that boat.  The transom will rot out on you in 10 years or less.  That's a $1500 to $2000 repair time bomb that will happen.  

(1 Month ago) When I was speaking to a fiberglass pro I know, I found a 1994 I/O OMC boat in his shop.  The engine and sterndrive was removed.  Looking at the transom, there were pieces of rotted plywood on the shop floor and a hole at the transom.  The culprit, the lazy manufacturers didn't even seal the bilge drain plug hole from the plywood in the transom.  I believe he said he has run into 2 or 3 projects waiting with similiar transom issues.

Leaking in fiberglass hulls from the outside usually equals internal rot, and that means unsafe and worthless boat.

Answer 6

Well, if the boys weren't being paid, and they got lazy or pissed on the line, quality is going to be compromised.

You want a warranty, but what's it worth?

Going back after this company in the future is going to be tough.

Edit: Capt. John, you may be poorer in terms of bank account, but imagine how much richer you are from spending all those wonderful days on the water.

Answer 7

Chapter 13 bankruptcies are filed for reorganization, not to go out of business. If I wanted the boat and it was appropriate for me, I would get it.

Regards,

Dan