The Rocket Science of Boat Auctions

This year has been simply the best of years for buying boats and water toys at state or local bank repo auctions. As a frequent boat auction follower myself it’s usually accepted that a repossessed or seized sold at auction will offer a 15-20% savings compared to book value.

That’s big!… especially when you consider larger boats retailing over $100K..the savings can really be big. Add to that boat auctions has only served to inflate that percentage.

Boats auction in the U.S. — especially in the big four states (Florida, California, New York, and Arizona) are seeing banks and credit unions more aggressive in their re-marketing strategies of non-performing assets. SunTrust Banks Senior V.P. Don Parkhurst concluded 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 repo boats across the states with most every lender has attracted new boat buyers who can now literally buy a late model repossession for suprisingly less than what a new boat buyer paid 3-4 years prior for the same make and model. Boat auction sources like National liquidators and Boat Auctions Direct have reported that with the drop in value 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 get in on the action as well? The key is frequently reviewing 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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