War Story 1: Never Buy a Vessel Before Confirming that a Registry Will Accept It
March 5, 2024
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BUYING TIP: Always confirm that the vessel registry you want to use will accept your new vessel before you commit to buy it. Background: Our
![Lessons Learned Never finalize a vessel purchase without a clear understanding of the costs to make it operational. Repair costs can significantly impact the overall investment. [Learn More] Background A client, intent on quickly purchasing a tugboat, was prepared to proceed without obtaining cost estimates for necessary repairs. The tugboat had been out of service for years, and while the purchase price seemed reasonable, the cost of making it operational was unknown. The Challenge Proceeding without a clear understanding of repair costs risked turning what seemed like a good deal into a financial quagmire. Action Taken We insisted that the client obtain detailed repair estimates before finalizing the purchase, highlighting the financial risks of proceeding blindly. Outcome The repair estimates revealed that the costs to make the tug operational were nearly as high as the purchase price itself, leading the client to reconsider the purchase. Conclusion The client's decision to seek detailed repair estimates averted a potentially ruinous investment, underscoring the importance of thorough financial planning in vessel acquisition.](https://vesselsales.law/wp-content/uploads/2024/02/P0P9WD-scaled.jpg)
