People often dream of owning a fancy boat and setting sail with friends and family. But buying a new boat is not easy. It’s quite an expensive purchase, usually costing a few thousand dollars. While sellers often announce discounts and promotions, the price does not reduce much, and the boat might still remain out of one’s budget. One way to avoid overspending is to look for repo boats for sale from boat liquidators.
About repossessed boats
Since boats and yachts are expensive, people often buy them on a loan. But down the line, some fail to repay the borrowed money to the lender. In such a situation, the lender takes back or repossesses the boat and recovers the debt by auctioning the boat. With the aim to recover their money as soon as possible, banks and lenders list the boat for sale at a competitive price. Doing so helps potential buyers save significantly when opting for a used repo boat.
Tips for buying repo boats
While considering a repossessed boat is a good idea, it is important to follow a few tips to get the best deal and ensure a hassle-free purchasing process.
1. Set a budget
One must create a budget before exploring online for repo boat sales nearby. The amount one sets aside for the purchase will depend on one’s financial situation and the features one needs. Boats with advanced features will be more expensive and vice versa. Once a person has a budget in place, they can sift through repo boat listings and shortlist options they find affordable. A budget prevents one from getting swayed by attractive and luxurious options and spending more than they should, which could lead to a financial burden. So, one should never skip this step. While it is okay to be flexible and spend a few bucks more, it is best to stick to the budget as firmly as possible.
2. Consider the maintenance costs
When setting a budget for repossessed boats, one must consider not only the upfront cost but also future expenses. This could include monthly payouts (in case one buys a repo boat on a loan or installment plan) and the cost of repairs and maintenance. The cost of maintenance and repairs may be high if the previous owner has not maintained the boat well. In fact, when shopping at bank repo boat sales, buyers will most certainly get their hands on boats with a poor upkeep history. So, to have the ship functioning well, one will have to put in a few hundred extra.
3. Keep an eye on repo boat websites
Many websites often list available repo boats for sale in different locations across the country. These websites often have a tie-up with the bank liquidators, so they advertise inventory on the bank’s behalf. Exploring repo boat websites is one of the best ways to find deals and learn about upcoming auctions in one’s area. These websites are regularly updated with the latest information about the boats a bank has repossessed.
4. Watch out for government auctions
Like banks, government agencies also have auctions to sell repossessed boats and yachts. The models listed in government auctions start at a lower price. So, if not many bidders are available, it is easier to walk out with a great deal.
5. Assess the boat’s features
Before buying the boats from the auctions, one should assess them thoroughly. Sometimes, the boat may lack the features one is looking for, such as GPS navigation, fishfinders, and a VHF radio. It is not advised to invest in a boat that does not serve the intended purpose. Buyers can usually find the features of the boat on the website it is listed, along with the price and other details.
6. Negotiate the price
In addition to offering a low price, repo boat sellers may be open to negotiation. But the problem is that it’s difficult to know how low a bank can go to unload the boat. One way to determine this is by coordinating with a dealership. Dealers are usually privy to the insider details from the banks, so they can provide buyers with a hint on the lowest price the bank can offer for a particular boat. Although price negotiation can take some skill and extend the buying process, it helps one get a better deal on the repo boat.
7. Act quickly
The repo boats and yachts made available for sale do not stay on the market for long. People always wait for these listings and buy them as soon as possible, mainly because the prices are incredibly low. So, if someone is seeking a repo boat and is lucky to find a model that fits their budget and aligns with their needs, they should act promptly and purchase it. Even a few days’ delay could mean missing out on an incredible deal.
Sometimes, one may need to visit an auction in person for these bank-owned boat deals. Still, one should not hesitate to participate in the auction as it may be worth the effort. While logistics might be an issue, it will help one save thousands of dollars.
