We are replacing the current boat name - Bagheera, with our own name - Sonas.
The yard has told us that they have removed some of the lettering and that there is some shadowing that could be diminished by buffing and re-waxing. But that the shadowing may very well come back later.
Their recommendation is that they sand the stern back and paint it, matching the gelcoat color. Then apply the new name.
Has anyone dealt with this? Thoughts?
Yes... repainting unless you can custom match the gelcoat exactly may not be a match for it. Had a similar situation on a 34' SeaRay, painted name much longer than the one we'd chosen...the pro painter told me how to remove it (how does it, but easy enough for an competent owner to do and save the cost) and get rid of its ghost...and it worked perfectly. Do NOT use this method on a painted hull, ONLY on gelcoat.
Tools needed: Easy Off oven cleaner (oven cleaners dissolve grease and oil including oil paint), metal spatula, bronze (NOT steel!) wool and a water hose. And maybe a cold beer or two:
Directions:
Spray a good coat of Easy Off onto just a couple of letters at a time...no more 'cuz you don't want the letters at the end to dry before you can get to 'em. Wait 5 minutes (now you know why I suggested your "tools" include a beer or two), scrape with spatula. If you used enough and waited long enough, you should get at least 95% of the paint off. Spray again, plus the next letter or two...wait 5, use bronze wool to remove the last of the paint on the first letters, spatula on the next two. Hose off as needed. Repeat and then touch up until you've removed the entire name, then wash the whle area very thoroughly with detergent and water, rinsing very thoroughly. Shouldn't take much more than an hour once you get the hang of it...that's about how long it took me to remove "Casey Leigh II" spread all the away across a 12' transom in 8" script and "Lawrenceville GA" in smaller block letters beneath it.
Now for the ghost: This may take more time than you want to spend with a no-name boat, but you can always put the name on a board and hang it somewhere else...temporarily or permanently. Park the boat where it can spend the most hours--preferably afternoon--with its transom presented to the sun. Spray repeatedly--several times a day if possible--with undiluted bleach. This will cause the gelcoat that hadn't faded because it was hidden under the lettering to fade out to match the surrounding gelcoat almost completely in 2-3 weeks at most. Now you can put a new name on. Within a couple of months, normal oxidation will remove the last of the ghost--which was only visible from just the right angle--completely.
It used to be that a lot of people knew how to do this, but not so many any more since decals have pretty much replaced painted names altogether.