If hoping to purchase a Sailboat – Motor Boat – PWC in the second-hand market, the availability of seized, confiscated, or repossessed boats offers the ability to acquire high-quality vessels at incredible rates – and can come within the financial reaches of most interested parties.
Seized by a financial institution (mortgage companies or banks), the boat repossessions are objects confiscated as a result of defaulting load agreement – often after months of not making a repayment. Bank repo boats for sale come onto the market at a knock-down price to guarantee a saving in cost; these saving can be quite substantial compared to a vessel of similar age for sale on dealer’s forecourt.
On top of the boats seized by a financial institution, boat repossessions are also made available due to a government agency, such as the IRS, impounding assists due to issues relating to tax evasion or similar. Also, the these vessels can come on to the market as a result of a law-enforcement agency seizing assets due to a wide range of illegal actions, such as narcotics smuggling.
Locations of Interest
Prior to making a auction bid on a second-hand or repo boat, be certain to inspect the auction listing to determine the T&C, sales tax, vessel condition – including possible imperfections, deposit required, and where possible view the photographs in detail.
- National Liquidators – with offices situated in Capistrano Beach, California, Fort Lauderdale, Florida and Cleveland, Ohio, National Liquidators offers one of the best destinations for Boat and Yacht auctions. Auction vessels, including the Jet skis, flats boats, motor-driven yachts to mega yachts, are open to private and commercial investor’s with its actual bidding process using a sealed bid system. Call National Liquidators on 800 633-7172 for further information, including a list of auction boats available.
- Harrison Marine – with offices situated in the Midwest, located at Harrison Township, MI, Harrison Marine offers a large range of repossessed boats for sale, often bank seized, and offering an inventory that changes almost daily. Call Harrison Marine on 586 465-3054 to locate a vessel that might well fit within your personal finances.
Inspect in person
If assistance is required, a qualified surveyor or mechanic can help to determine the overall shape and condition. In most cases, expect to some degree neglect or slight damage to these repossessed boats, such as electronics that are missing, upholstery that is worn, or a hull that is showing signs of wear.
Boat repos come on to the market with a number of the valuable items missing, such as the electronic pieces (depth sensors, VHF radios, GPS units, stereos, fish finders, etc), outboard engines, kayaks, tenders, or bimini tops or covers, as these valuable, ease-to-remove items are kept to one side at the time of repossession and sold on at a later date.
After giving a vessel some much need attention or TLC due to prior neglect or minimal scratches or nicks to the hull can often mean that a prospective new owner gets a good clean vessel, with minor wear, yet at cost that can bring a sizable saving in overall outlay.
Once you have bought the boat, there are other factors to think about – factors that you should really think about while considering your purchase. Can you afford to put in place a marine insurance plan for the boat? Will you have somewhere to put it – either on shore, on moorings, or marine based? You will also need to make sure that the monthly payments are something that you will continue to meet; the last thing you want is for it to be repossessed – or worse, your house being repossessed!
Also, it taking on an aged (10 to 15 years of age), salvaged, or hurricane-damaged vessel it often becomes a necessity (at the insurers request) to arrange an out-of-water survey and valuation report prior to effecting the all-risk boat insurance coverage – without such a report, cover is often limited to liability only insurance.
All in all, repossessed boats offer the potential to save thousands of dollars in the initial outlay costs if able to find a high-performance 20 to 34-ft production sail or motor-driven boat on sale with minimal usage and wear and tear.