The main reason why boat and RV auctions are so popular, is because people like to save money. In today’s economy, cash is king, and the more of it that people can keep for themselves, the safer they will feel. Also, people have seen great devaluations in real estate and in the stock market. It is only practical that they try and capitalize on these because they have already lost a lot of money on them.
I was listening to the radio yesterday, and they said that the typical home loan-to-value ratio in America is 130%. Traditionally, this is 50 to 60%. It is really scary when you actually think about it. This means that the average American owes more on their house than their house is worth. You can’t really capitalize on low interest rates when the banks will only loan on an 80% loan-to-value if everybody who already owns a home goes way more than what the home is actually worth. The fact that real estate dropped almost 80 to 90% in value in the last three years has not helped.
Boat and RV Foreclosures
People are really interested in buying boat and RV foreclosures and also in buying bank repo RVs. They know that other people are having a hard time, because either they themselves have had a hard time, or people that they know have also been struggling. When you buy RV foreclosures from the seller, you are actually helping them out. Some people feel like you are taking advantage of these sellers, but trust me if you were in their shoes, you would want someone to buy your RV rather than go through foreclosure. After the foreclosure process occurs, a foreclosed RV becomes a bank repo RV.
Occasionally, you may be able to buy bank repo RVs directly from the bank. However, most of the time you will need to wait until these RVs go up for sale at auction. Then you will be able to bid on them against other bidders who are also trying to save money. RV auctions are great place for you to find RV and boat foreclosures, and the more of them that you go to, the better luck you will have bidding at them.