I had already narrowed down my choice to a Moorings 405 (Beneteau Oceanis 400).  It had the right number of cabins, all the facilities, and could be obtained for a reasonable price.  

Advertising from Moorings Brokerage

There are probably 300 production charter boats operating in the Caribbean that are less than five years old.  Moorings and Sunsail keep their boats for 5.5 years, meaning that 20% of them are retired from charter each year, most of them sold on the used market – that’s 60 hulls each year!  With this kind of supply, there had to be a deal in there somewhere.

In addition, the stigma attached to used charter boats (the fact that they have been beaten to within an inch of their lives) would also increase the chances of picking one up for less than market value.  I was looking for a “fire sale” and was prepared to accept something with a few scratches.  Having owned, raced, and put back together J24s (bumper cars) for 13 years, I was not afraid of a little gelcoat or fiberglass work.

I live in Canada.  Barefoot is in St. Vincent.  That’s a lot of geography in between.  How would I go about buying the boat?  After six months of exchanging E-mails with Seth, I trusted him.  He offered to act as my agent, and I accepted.   I’m certain the many armchair yachting experts that cruise the various Internet newsgroups would have plenty to say about this, however I was willing to take the risk.  Here’s why:  I reasoned that Barefoot had more to lose with the acquisition of a “lemon”.  It would be they who would face the angry charter guest when the boat fell apart.  They would insist on a charter-ready boat, and take the necessary steps to ensure one was chosen.  Besides, they have a whole lot more experience with charter boats than I.  It was decided that I would buy the boat “over the Internet”, by E-mail!

Through a series of E-mail exchanges, Seth and I established the ground rules that would be used in the negotiation process.  I indicated the price range I was willing to operate under, which “options” were mandatory and which were desirable, for boats of various condition and age.  Seth contacted some Yacht Brokers that he knew personally, and the whole process was set in motion.

It is expensive, time-consuming, and simply not practical to physically look at boats before making an offer.  Instead, the generally-accepted method is to find a boat that meets your requirements, negotiate a price, and then make the closing of the deal conditional upon inspection, survey, and sea trials.  If the condition of the boat is not as stated, your offer stipulates that you can either walk away or negotiate a cash adjustment or repair.  It saves a lot of time and money this way, but scares the hell out of people not used to spending stupid amounts of money on something they haven’t looked at personally.  I bought my J24 this way, so I was comfortable with the idea.

False Start

We put in our first bid on a 1993 Moorings 405 based in Martinique in early December, 1998.  If the offer had been accepted, I had a brilliant idea.  I would go down and spend a week at Club Med Martinique (just around the corner from the Moorings base).  When the deal closed, I would move the boat from Moorings to a spot out in front of the resort.  When it came time to leave, instead of hopping on a bus to the airport, I would dinghy out to my boat, and leave from there.   Unfortunately, the offer was not accepted and the Club Med plan would have to wait for another day.

We made a second bid on a Moorings 445 out of St. Maarten.  This boat had a LOT wrong with it, so we took the approach that we would low-ball the bid substantially, use the savings to restore it to charter condition, and end up with a 44’ for the same price as a 40’.  Again, we could not agree on a price, and the deal was dropped.

Being the start of charter season, it became evident that owners were less likely to sell at below market price with a season of charter revenue just ahead.  I was told that such prices existed in August-September, but not now.  Since I was not prepared to go beyond a certain price, Seth and I agreed to hold off until the spring.  May is the time when the Sunsail/Moorings agreements run out, meaning that there should be a glut of boats on the market then.  I would also have more money in the kitty.

Second Attempt

We tried again in May 1999 with a bid on a Moorings 405 out of Grenada that seemed to be priced within range.  Unfortunately the owner changed his mind, and the deal was off.

I was informed that Moorings were desperately trying to keep boats in their fleet because they were afraid of the consequences of the repeal of the French Tax Laws (Loi Pons - see description -  it's in French, of course!).  In an effort to stimulate the tourist economies of the French Caribbean islands, France offered extremely lucrative tax breaks to charter boat owners from their country.  This propped up the new sales market in the charter boat industry for many years.  With the tax incentives gone, Moorings were concerned about a substantial reduction in new boat purchases, and significant depletion of their fleets.  They were now doing what they could to keep existing owners.  This meant fewer boats on the used market, and at a higher price.  What next, I wondered!  Where was my support team?

But wait.  I knew that the tax law expired in 2002.  All owners under the plan would have to dump their boats by then, or pay the huge taxes they were trying to avoid.  This meant that there should be a glut of boats on the market just before then.  I reasoned that many owners would not want to be selling a boat then, and might want to get out before the rush.  It would take them a few weeks to realize this.  I was right.

Finally!

I received an E-mail from Seth one morning in late May 1999.  He became aware of a Beneteau Oceanis 400 that Sunsail listed for sale, just across the Blue Lagoon.  He said he would take a stroll over and check it out.  An hour later, I received a second E-mail from him indicating that the boat was in excellent condition and that the asking price was within negotiating range.  I was encouraged by the convenience of this opportunity, as there was significant advantage to having the boat right in the Blue Lagoon.  Seth could personally inspect it and I could realistically buy it on his “say-so”, without a costly trip down to have a look myself.  Seth advised me that he would send over an offer and let me know in a day or so.

A week went by.  I resisted the urge several times to inquire about the status of the offer.  I had inquired many times during previous attempts, only to be told that there was no information and that he would get back to me.  Finally, on Tuesday, June 1, 1999, I could wait no more.  I sent in an inquiry and a minute later,  an unexpected response came back.  The message Subject header said it all – “YOU HAVE A BOAT”.

Hi Rob

They will accept our offer for TRAVELS WITH TIN TIN (!).  Unless I hear to the contrary from you, I will place the formal offer this afternoon (they have accepted it informally) and we can then proceed with a haul-out and survey (your expense, I am guessing around $US 700 in total, maybe a little less).  If haul-out and survey are satisfactory we’ll then give her a sea trial. I’ll also try and get a complete inventory today.  Let me know if you have questions - looks like we finally got there!

Best wishes
Seth
Barefoot Yacht Charters

Seth pretty well took over from there, and it’s a good thing because things were pretty blurred that week.  He arranged for the final offer to be formally submitted, complete with signatures.  He also arranged for delivery of the boat to a nearby boat yard for haul-out and survey by a local marine surveyor.  I contacted my bank to start the wheels in motion for the financing.