The year 2009, has been one of THE best years for buying boats at state or local bank liquidation auctions. As a frequent boat auction follower myself it’s typically accepted that a boat sold at auction will deliver a 15-20% discount relative to book value.
That’s big!… especially when considering larger yachts 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 as high as 30%.
Boat auction in the states — especially in the harder hit (California, New York, Florida, 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 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 auctioned boats across USA with most every lender has attracted new boat buyers who can now literally buy a late model vessel for significantly less than what a new boat buyer threw down 3-4 years ago for the same make and model. Notable boat auction companies 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 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. 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 reap savings of 50% or more. It’s really not rocket science.
Tags: buying boats, liquidation auctions, national liquidators, new york florida