Owning a boat can be quite an exciting prospect, whether it’s for personal enjoyment or business purposes. But the cost of a brand new boat can be quite significant, ranging between $15,000 and $75,000, with luxury ones commanding steep price tags exceeding $100,000. On the other hand, repo boats are a considerably cheaper option. These are typically pre-owned boats that have been repossessed by a bank or the government, making them available at lower prices.
Helpful tips for buying a repo boat
1. Set a budget
Before searching for repo boats for sale, it is best to evaluate one’s finances. This will enable one to fix a budget that is affordable and practical enough to score a favorable deal. Additionally, having a predetermined budget in place can also help one negotiate the most beneficial terms at auctions featuring repossessed boats. Otherwise, one may be tempted to opt for a boat with higher price tags, leading to overspending. So, to avoid this situation, establish a fixed budget and adhere to it.
2. Consider maintenance and repair costs
Many potential buyers overlook the maintenance and repair costs associated with owning a boat. If these costs are not considered, they may pile up over time and become higher compared to those for a new boat. Repossessed boats are pre-owned, so they may have typically experienced significant wear and tear during the course of their usage, leading to frequent repairs and part replacements. Additionally, these boats are often in subpar condition, especially if the previous owner neglected their upkeep.
3. Check out websites and online forums for listings
Some of the best places to look for repossessed boats for sale are specialized websites that cater to a wide audience of potential buyers. These websites or online forums feature listings of repo boats available across different states and often collaborate with boat liquidators to advertise the available inventory. Subscribing to these websites and regularly checking their listings is a convenient and efficient way to find a suitable repo boat in a timely manner.
4. Explore auctions
- Government auctions
One can consider exploring government auctions as a potential source for purchasing repo boats on sale. The government often confiscates boats from individuals engaged in illegal activities such as unauthorized brokerage or poaching. In some cases, the IRS seizes boats from those who have failed to pay their taxes. These seized boats are then made available for sale through government auctions, typically starting at fairly low prices. As a result, it is possible to discover lucrative deals and purchase a repo boat at a reasonably affordable price through these auctions. - Bank auctions
Like the government, lenders such as banks and financial institutions also acquire boats from owners who have defaulted on their loans and place them as collateral. The bank seizes these boats as compensation when they fail to meet their debt obligations. So, to recover the loan amount, the bank or the finance company typically sells these boats at affordable prices through their auctions.
5. Take quick action
Repossessed boats tend to sell quickly due to the high demand in the market. Buyers are eager to grab the deals as soon as they see repo boat listings with attractively low prices. Sellers often set competitive prices for similar boats, while banks aim to recoup a defaulted loan by offering repossessed boats at heavy discounts. So, potential buyers must try to act promptly when they find a repossessed boat that meets all the requirements, including the right price, model, year, and condition. Delaying a decision even for a few days can cause one to miss out on a good deal.
6. Put out low-price bids when negotiating
Buyers often show great interest in repo boats compared to other boat listings for their appealingly low prices. Seasoned boat buyers are aware that bank-owned repo boats are generally open to negotiation. That said, it can be challenging to determine the lowest price that the bank would accept for the repo boat in its possession. Nevertheless, it can be beneficial to start with the lowest bid to gauge the bank’s flexibility in negotiations. This effective approach provides one with a fair insight into the wiggle room that is available for bargaining with the bank.
Most importantly, one must check for repo boats for sale within their location, as the prices may vary. And if one’s unaware of how to streamline the process to find the right deal, speak to a person who has prior experience with repo boat deals.
