This year has been simply the best of years for buying water toys at state or local repossession auctions. As a frequent boat auction attendee myself it’s generally accepted that a boat sold at auction will offer a 15-20% discount relative to book value.
That’s not bad, especially when you consider larger boats retailing over $100,000..the savings can really be big. Now fast forward to now where boat auctions has only served to inflate that percentage to well over 20%.
Boats auction in the U.S. — especially in the harder hit (California, New York, Florida, and Arizona) are seeing financial institutions like banks and credit unions more aggressive in their re-marketing of non-performing assets. SunTrust Banks Senior vice president Don Parkhurst states with regards to their repossessed marine inventory, “You’ve just got to lower the price to where you can move it. You’ve just got to take the hit.”
The surge in auctioned boats across the states with most every lender has attracted buyers who can now literally buy a late model repossession for substantially less than what a new boat buyer would have paid 3-4 years prior for the same make and model. Boat auction liquidation sources like National liquidators and Boat Auctions Direct have reported that with the value decline of the U.S. dollar coupled with the rise of repossessed collateral shrewd international investors particularly from Australia, UK, and Canada taking advantage of this high tide.
So how can you save on a boat this year as well? The key is regularly reviewing auction listings. Staying in front of boat 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 see savings of 50% or more. It’s really not rocket science.
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