Buyer due diligence · FL, TX · 11 min read
What a Buyer's Order Should Include When Buying from a Dealer
Line-item dealer buyer's orders on a $290,000 cruiser should separate hull, engines, freight, prep, and finance optional products—here is the math check.
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Line-item pricing and MSRP checks
Buyer's order on $290,000 cruiser should show hull $210,000, engines $55,000, dealer prep $8,500, freight $6,200, electronics $10,300—sum must equal total before tax.
Compare each line to manufacturer price list—$3,500 'rigging' line with no components listed is markup target for negotiation.
Document optional equipment serial numbers on order—Mercury 350 serials, Garmin package SKUs—for insurance and warranty registration.
Rebate and factory incentive credits should appear as negative lines, not reduced silently from hull price—transparency affects tax base in some states.
Trade-in, payoff, and negative equity
Trade allowance $120,000 with payoff $135,000 creates $15,000 negative equity rolled into new note—on 180 months at 7.25% costs $24,000+ including interest.
Require dealer to fax payoff good-through date matching closing—payoff inflation after 10 days adds surprise at funding.
Separate trade value from new boat discount—dealers mix to obscure true new boat price for future resale comparison.
If trade has lien, list lienholder and per diem interest on buyer's order—$18/day interest over 15-day delay adds $270.
Contingencies and punchlist escrow
Buyer's order should reference simple-interest marine financing approval and allow cancellation if only precomputed contract offered.
Survey/sea-trial punchlist: list items seller fixes pre-delivery (AC leak, trim tab actuator) with $3,500 escrow holdback until verified.
Delivery date ties to weather and survey—penalty $150/day late delivery after agreed date unless force majeure defined.
Initial deposit amount and refundability on buyer's order must match purchase agreement—conflicts between forms delay compliance review.
Sources
- CFPB — What is a prepayment penalty? — Consumer Financial Protection Bureau
- NMMA — Boat buying resources — National Marine Manufacturers Association
Questions
Is buyer's order binding like the purchase agreement?
Often yes when signed—read both; conflicts favor whichever contract your state treats as controlling.
Can dealer refuse line-item breakdown?
Walk if they refuse—opacity on $300k+ deals signals backend product pressure.
Should GAP or MPP appear on buyer's order?
Yes if financed—separate lines show true amount borrowed versus boat value.