How do I pay for my Coastal boat? Many clubs and private individuals are currently ordering their boats for 2024. One issue that always comes up: what are the payment terms? How to pay your Coastal boat. (Picture Credit: https://www.freepik.com)
In the rowing industry, at least in the western hemisphere, there are various payment terms that can be agreed between buyers and sellers. These terms can vary depending on the type of deal, the type of boat, the manufacturer and other factors. Here are some common payment terms that may be used in the boating industry:

• Prepayment of the complete boat: This method of payment is highly valued by sellers, but is not very common in reality. They usually occur when the seller is unsure about the customer’s solvents. The buyer pays the full amount upfront before the boat is delivered. This provides the seller with financial security, while the buyer bears the risk that the boat may not meet expectations. In our experience, about 3% of transactions are completed.
• Down payment on order and final payments shortly before delivery (deposit):
  You want to know, how to pay your coastal boat? Here is the most common option:  The buyer makes a deposit as a partial payment of the total amount to reserve the boat. This is usually done when the order is placed and confirmed. The customer orders and pays a deposit of between 30 and 50% – the remaining payment is made shortly before delivery. Only in rare cases at a later date. More than 80% of our know transactions are made like this.
• Installment Payments: The total amount is divided into several installments that are due at specified times or according to milestones in production or delivery. For example, the purchase of a 10,000 boat is divided into 3 installments. Less than 5’% of the customers use this options.
• Letter of credit: Very rare: A bank-guaranteed payment agreement where the buyer’s bank guarantees payment to the seller’s bank once the agreed conditions are met.
•  Open account: The buyer receives the boat and pays the invoice amount at a later date, often within a fixed period of time after the boat has been delivered. This payment term is very unusual. It carries an enormous risk for the seller.
• Cash payment: The buyer pays the total amount in cash upon delivery or collection of the boat. Rare but possible. This practice is occasionally used when buying used boats.
• Credit financing: The buyer finances the boat purchase with a loan provided by a bank or financial institution. The buyer pays back the loan amount with interest.
• Leasing: The buyer leases the boat for a fixed period of time and pays monthly lease installments. At the end of the lease, the buyer may be able to purchase the boat. This process is also rather unusual.

Delivery times: All boat manufacturers of coastal boats have delivery times. Europeans shorter, Asians sometimes significantly longer. You should bear this in mind when buying. If I buy a Coastal four for €15,000 and pay 50% (€7500), you have to ask yourself whether you really want to pay this money 6-8 months in advance. In most cases you will not be able to avoid this. In our experience, the deposit payments are always between 30 and 50%. That is a lot of money. Please note, however, that the dealer also has to finance the boats in advance and usually uses the customer’s payment to finance his deposit.