This year has been a banner year for buying boats at state or local repo boat auctions. Unashamedly, I’ve been a long time boat auction attendee it’s generally accepted that a boat repossession sold at auction will offer a 15-20% savings relative to retail.
That’s big!… especially when considering larger yachts retailing over $100K..the savings is worth pursuing. Now fast forward to today where the boat auction climate has only served to inflate that percentage-to as much as 35%.
Boats auction in the U.S. — especially in the big four states (Florida, California, New York, and Arizona) are seeing banks andre-marketing strategies of ‘non-performing’ assets. SunTrust Banks Senior vice president Don Parkhurst states with regards to their repossessed boat inventory within todays climate, “You’ve just got to lower the price to where you can move it. You’ve just got to take the hit.”
The rise in repossessed boats across state lines with most lenders has attracted new buyers who can now literally buy the same but later model repo for substantially less than what a new boat buyer paid 3-4 years earlier for the same vessel. Auction companies like National liquidators and Boat Auctions Direct have reported that with the decline of the U.S. dollar coupled the rise of boat repos has perked the interest of shrewd international buyers particularly from Australia, UK, and Canada who have been taking advantage of this high tide.
So how can you save on a boat this year as well? According to the experts the key is consistently reviewing what’s out there. Frequenting auctions, online listings, classifieds, and dealer liquidations. Only by comparing asking prices and recent sales of similar models of the type of boat you’re interested in can you brag about savings of 50% or more. It’s really not much luck as it is smart shopping with the right tools.