Whether you are searching a new boat for yourself or you are simply looking at an investment to buy and sell, repo boats are a hot commodity that have gone overlooked for far too long. You will discover that boat auctions are like seized vehicles (cars, motor homes, trucks, campers, motorcycles, etc). There are a vast number of reasons they get confiscated, and little has to do with the quality of the actual boat. For instance, repossession is a term that is used for people that have been making payments on something, and for whatever reason, have discontinued making those payments. When this happens, that item will eventually be impounded. For the most part, reclaimed objects are newer items – objects that still retain a respectable value in them-and this is what you will be able to look forward to when you are looking for repo boats for sale.
To Buy or Not to Buy
As stated before, many of the repurchase agreements take place because an individual is unable to continue making payments on their purchase. These situations exist because of lost jobs, divorces, separations, or financial issues beyond a person's control. So, what does this have to do with the watercraft? Not much. You will discover that many of the boats that will be available will range in condition from fair, good, or excellent condition, to almost new. Now it is necessary to note that an item is not seized in the event a sail or motor-driven craft offers no resale value. The only time a lending institution will be concerned with any reclaim, that item, will need to have some type of value or a considerable amount still left on the loan.
Sometimes, repo boats are available for sale through governmental agencies; in this case, the vessel would have been seized because the owner was involved in some illegal activity like smuggling. Recreational watercrafts are also impounded in this manner if there are tax evasion issues and appear on the market for sale. Most often, such collateral items are sale through auctions and hence enable you to purchase these at a great price.
Pro and Cons
Now, it will be crucial to remember that you are not buying a new boat. Because of this, there are pros and cons that will need to be considered when purchasing confiscated or seized boats, flats boats, runabouts, sailboats or jet skis for sale. The most fascinating aspect about these types of purchases is that they can be bought below market value. You will often find assets for sale that will be priced well below what that item could have been bought for if you were to buy it from a dealer's forecourt. In addition, that boat may have gone under an upgrade procedure and had additional items added to its option package.
Another advantage is the fact that most often, forfeited boats have to be inspected before putting it up for sale or auction. Hence a certification process is carried out which ensures the value and condition of the vessel. A lot of boat dealers and traders attend such events to procure vessels at affordable prices, which are then sold at the dealership for a higher sum of money. Hence it is in your best interests to attend these sales yourself and make the purchase than approach a second hand dealer.
The downside to purchasing these types of pre-owned water-borne vehicles will be where to find them. Quite often it is hard to find locations or auctions that have these items in stock. The best way to do this would be to search online, go through the newspapers or sign up with an online boating agency which deals with repo boats.
Where to Find
There are hundreds of auctions across the country were repo boats or similar seized vehicles are being sold – both on the open market and through auction. View our constantly updated list of Boats & Yachts in the market. Purchasing one of these can help you make a large saving in the initial outlay as well as the total cost. Boat seizures are usually carried out by a mortgage company or any financial institution when the owner of the boat fails to make the loan repayments for several months. These objects are seized and are sold by the company in the effort to retrieve at least part of the payment made to the owner. Hence the sale prices of these transactions are way below the market retail price when considering the same model when sold at a boat dealership.
However, the difficult process will be to find these auctions so you will be able to place a bid and get one of these boats for yourself. With that being said, it will be valuable for you to do your research in order to find the specific locations where these vessels are being made available.
Things to Do After Buying
Once you have bought the boat, there are other factors that you need to think about – factors that you should 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 confiscated – or worse, your house becomes subject to a repurchase agreement!
So, when it comes to seizure of collateral, you will be able to take advantage of this perfect opportunity to pick up top-quality repo boats for an extremely inexpensive price. Now, it will be valuable for you to do your homework before placing your bid because you want to make sure that you get exactly what you are hoping for, for that perfect price.