Why I Love Buying Boat Foreclosures at Auction

By boatingrvcenter • February 25, 2011 5:18 PM

Buying boat foreclosures at auctions is a chance to walk away with an excellent deal. This depends a lot of the amount of inventory available and the numbers of buyers. When the inventory is high and the amount of competitive buyer is low, this can be a chance to get the best deal. Also if you are interested in older boats, or boats with cosmetic blemishes, this might also be a great opportunity for you to get a great deal shopping for boat foreclosures at auctions.

Why Buying Boats from Dealerships is Not a Good Idea

bank repo boatsIt takes a lot of overhead to run a boat or RV dealership. For this reason, most boats and RV sell for 40% above invoice. It is no wonder most new and used boats are way over priced when you buy them from a dealership. For this reason alone, boats and RVs will tend to lose  1/3 of their value during the first year of ownership. This is why it is a great reason to buy foreclosed boats, which can be purchased for nearly ½ of retail. Boats sold at auctions even beat private party prices by 20-30%.

The two biggest disadvantages of buying boat foreclosures at auctions are these. First when you buy at an auction, you are buying the boats in as-is condition. When possible, you should have the foreclosed boats carefully inspected before bidding or at least before finalizing the sale. It is well known that auctions sell their inventory in as-is condition and there are no guarantees when you buy at an auction. The second major disadvantage is that most auctions want you to pay in cash. (The last thing they want is another foreclosure, right?) This means you need to start saving if you want to buy a boat at an auction. This is nice though because it narrows down your competition and helps you to get a better price. A lot of people will actually buy a boat together with a friend or neighbor and this will actually help them reduce the cost of ownership.

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