Boat Auctions: Why Banks Want Your Offer
This has without a doubt been a banner year for buying boats and water toys at state or local repo auctions. As a frequent boat auction follower myself it’s usually accepted that a boat sold at auction will deliver a 15-20% savings when compared to book value.
That’s big!… especially when you figure larger yachts retailing over $100,000..the savings can be really be significantNow fast forward to now where boat auctions has only served to up that percentage to well over 20%.
Boat auction in the states — 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 bad debt assets. SunTrust Banks Senior VP, Don Parkhurst says with regards to their repossessed boat 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 auctioned boats across the states with most every lender has attracted new buyers who can now literally buy a late model repossession for significantly less than what a new boat buyer would have paid 3-4 years earlier for the same make and model. Notable boat auction companies like National liquidators and Boat Auctions Direct have indicated that with the drop in value of the U.S. dollar coupled with the rise of repossessed collateral shrewd international boat enthusiasts particularly from Australia, UK, and Canada taking advantage of this high tide.
So how can you get in on the action as well? The key is frequently reviewing listings. 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 see savings of 50% or more. It’s really not rocket science.
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