Buying a boat overseas
As you let your fingers do the work, you discover your dream boat online at half the price that what it costs here in Australia. Only problem, it’s halfway around the world on the Mediterranean coast! This could be a challenge, not only shipping it to Australian shores but paying for it too. Whether you’re buying a fishing boat, yacht or large motor cruiser (all of which cost a substantial amount of money) from a remote location, the most cost efficient way of paying for it is by making an international money transfer through a foreign exchange provider. However, keep in mind, it costs around $40,000 to freight a yacht from Europe to Australia.
How do I actually pay for a boat overseas?
An OFX, CurrencyFair or World First offer competitive exchange rates, so you receive the best value for your Australian dollars. Their service is quick and offered 24/7 with fees a lot more reasonable than the banks. It doesn’t matter if you’re purchasing from a reputable manufacturer or an individual, when it comes to buying a boat overseas a foreign exchange specialist will be a reliable, safe and cheap option.
Scenario
James has found a luxurious yacht a Frenchman is selling and he’s serious about making the purchase. He’s deciding whether or not to stick with his Australian bank to transfer the money over to France or to open an account with a foreign exchange specialist. To get the best value for his money James compared the differences between a bank and a foreign exchange provider. Excluding fees and charges, James realised he can save himself hundreds of dollars just by choosing a foreign exchange specialist over a bank.
| Bank | Foreign Exchange Provider | |
|---|---|---|
| Exchange rate | 1 AUD buys €0.5889 EUR | 1 AUD buys €0.6240 EUR |
|
Amount received for AUD $10,000 Transfer time Transfer fees |
€5,876 EUR 2-5 days In person $30, online $22 |
€6,209 EUR 1-2 days $0 |
5 features to consider when comparing Foreign Exchange Specialists
When you’re choosing a Specialist FX to purchase a boat overseas, keep in mind the following features. Each feature can make a huge difference in how much your recipient will receive and how quickly they receive their money.
#1 Exchange rate: This is one of the most important aspects to consider as the current exchange rate will determine how much you’ll get for your Australian dollars. The higher the exchange rate, the more money you will receive. Don’t go with the first provider you come across, take the time to compare exchange rates, a cent or two difference could make a huge impact on your final amount.
#2 Fees and charges: As you would have learned above, fees and charges can vary quite significantly between banks and money transfer specialists. General fees to be wary of include: a transfer fee, a sending and receiving fee, a cancellation fee and an amending fee.
#3 Transfer limits: Some international money transfer providers have a maximum and minimum amount you can transfer at a time or even a month.
#4 Turnaround time: This is the time it takes from the moment you book the transfer to the second it hits the recipient's account. Sending money can take between 1 and 5 days, depending on the provider.
#5 Transfer options: With the advancement of technology there’s no shortage of efficient and convenient ways to send money overseas. These include: online, over the phone, in person at a branch and some providers even have an app you can use.
What you’ll need to make an international money transfer to buy a boat overseas
So you’ve compared providers and considered the features that best suit your transfer needs now it’s time to gather all the information required to book the transfer. While each provider might require slightly different information, here’s the general info you’ll need.
- Personal details: Name, address, date of birth, phone number
- Account privacy: You’ll need to create a username, password and security question
- Account details: Account number from which the transfer money will be deposited from
- Recipient’s banks details: Full name and address of the bank where the money is being transferred to including the SWIFT/BIC code
- Recipient’s personal details: Name, address and bank account details
- Amount: How many Australian dollars you would like to send or how many dollars you would like the recipient to receive.
Pitfalls to buying a boat overseas
- History of the boat can be unknown; has it been damaged by a hurricane or cyclone
- Some companies focus on putting money into the appearance of the boat rather than structural issues
- Make sure there is no rudder damage or the boat may sink!
- Fitting out the vessel for the homeward trip can be complicated and cost a lot
- Customs costs
- You’ll likely have to pay import duty and GST
* The exchange rates offered by each provider are indicative exchange rates that have either been supplied by each provider or gathered by Mozo. Exchange rates fluctuate constantly and as a consequence the exchange rates listed here may vary to the actual exchange rate you are quoted by a provider. Please ensure you confirm the actual exchange rate with the relevant provider prior to conducting any transaction. These exchange rates are updated every hour.
^See information about the Mozo Experts Choice International Money Transfer Awards
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