This year has been simply the best of years for buying boats at state or local bank liquidation auctions. As a frequent boat auction attendee myself it’s generally accepted that a boat sold at auction will offer a 15-20% discount when compared to book value.
That’s not bad, especially when considering larger vessels retailing over $100K..the savings can be really be significantNow fast forward to now where boat auctions has only served to inflate that percentage to as high as 30%.
Boat auction in the states — especially in the big four states (Florida, California, New York, and Arizona) are seeing lenders and credit unions more aggressive in their re-marketing strategies of ‘non-performing’ assets. SunTrust Banks Senior V.P. 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 continued escalation in repo boats across the U.S. with most every lender has attracted new boat buyers who can now literally buy a late model repossession for substantially less than what a new boat buyer paid 3-4 years earlier for the same make and model. Boat auction sources like National liquidators and Boat Auctions Direct have witnessed that with the value decline of the U.S. dollar coupled with the rise of repo boats shrewd overseas buyers 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 frequently reviewing what’s out there. Regularly attending 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 reap savings of 50% or more. It’s really not rocket science.
