A lot of prospective buyers wishing to enter the Boat & Yacht market often find the initial purchase price a touch on the high side. A relatively new vessel in the thriving second-hand market can still be too expensive for a new boater, especially if aiming to purchase direct from a mainstream broker, trader or dealership.
It might therefore be worth considering the possibility of looking into repo boats for sale. Each year, large quantities of seized, confiscated or repoed boats come onto the market via open sales or auction. Taking on the ownership of one of these bank repo boats often results in a saving in the initial outlay - at times this can be a sizeable saving in cost.
Repossessed boats for sale are essentially objects seized by a financial institution (Bank or Mortgage Company) due to defaulting on loan repayments-often after several months. When a commercial organization implements a repurchase agreement, the actual sell on price to a large-sized auction house or dealership, is at a price vastly below the market retail price one would expect for a similar vessel showcased on a dealer forecourt.
Seized boats also come about as a result of a vessel being impounded by a government agency if the operator is found to be involved in some form of illegal activity, such as narcotics smuggling. A boat repossession of this nature is more common to areas of California or southern Florida, where a powerful 'Go-fast' boat is a favored mode of transportation to Cuba, Mexico, and South and Central America. In a similar approach, the Internal Revenue Service (IRS) can take possession of recreational vehicles, such as a pleasure crafts due to tax evasion, or related issues.
On occasion, boat repo auctions, organized via state or government agencies, are arranged to dispose of confiscated assets that have stockpiled over a period of time. If a repossessed asset does not result in a successful transaction, it is disposed.
Auctionable items start at the small to medium end of the market, with a personal watercraft (also referred to as waverunners or jet skis), to bass or open fishing boats, or cuddy cabins to the luxurious motor-driven or sailing yachts, to the vastly expensive mega yachts.
A common point noted with confiscated collateral is that these vessels are often in a better and newer condition that of a well used second-hand model. A seized sail or motor vessel is often still a prized possession if new - whereas, a vessel sitting on the forecourt at a used boat dealership is more inclined to have been used to the fullest if an owner has opted to upgrade to a better or newer model.
One positive point to note is that in several US states it is a requirement by law to have a repossessed boat or similar asset inspected prior to being sold on. While this inspection process is not rolled out to all repossessed items, it is often guaranteed that those sold on by a government agency would have completed such a certification process.
While a lot of dealers and traders attend public auctions in the hope of securing less expensive stock - and often this is the case with boat repos - once these crafts arrive on the dealers forecourt, their sale price is still more favorable, to those used boats sourced from other locations.
Boat auctions open to dealers, as well as the public in general offer a large inventory of confiscated, foreclosures, government seized, and bank repo boats. Auction bids are conducted either in the open or via a sealed bid system. Liquidation companies [National Liquidators – Boats Direct USA – Harrison Marine, Inc – American Yacht Sales - etc] are located in various states across the US, as well as numerous online sources - see links to the right for direct access to the official sites. Repo boats for sale Florida are located HERE, and repo boats Michigan are located HERE for example.
Many prospective boat owners often feel the time and expense of visiting one of these auction houses offering boat repos for sale, and to make a successful bid is not always worthwhile. However, it might be possible to drive away with a trailer sailor, runabout, or PWC or a rock bottom price; in some cases, a saving of 60% - 80% is achievable on a similar type of vessel seen on a boat dealer’s forecourt. So if that's considered, a visit to an auction site might be well worth the effort.
Searching for the most relevant information online is at times time consuming - so to avoid searching a variety of sites offering boat repo sales, it is now an option to gain access to a vast multitude of current and upcoming sources of boat repossessions for sale with a comprehensive database of some 2,000 federal, state, and local government auctions.
Visit GovernmentAuctions.org® for full details - immediate access is available via a 3 day FREE TRIAL.