Tag: foreclosed boats

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.

Buying Boat Foreclosures and Foreclosed Boats

By boatingrvcenter • February 18, 2011 11:02 PM

foreclosed boats for saleBuying boat foreclosures allow you to save a lot of money on one of the biggest investments most people make. Even though some people think buying a foreclosed boat is heartless and cruel, and think you are taking advantage of some poor soul if you buy them, the truth is they are loosing the boat no matter what you do or don’t do. Buying foreclosed boats for sale can only help these people out. If you buy it when it is pre-foreclosure, you can keep them from having a foreclosure on their credit. Also, the more people that are interested in foreclosed boats, the less money the bank looses and the less likely they are to come back and try and collect the default amount owed by the original owner.

Plus if you buy a boat in pre-foreclosure, you may be able to help the owner salvage his credit and get out from an unbearable debt burden. Buying a boat from someone who can not make their payments may even save them from loosing their car or their house. (Some I know would rather keep the boat!)

Believing that buying boat foreclosure is unethical is narrow-minded and myopic for several reasons. First, when someone owes a mortgage on a boat for more than a boat is worth, they actually own negative equity. Each month they make payments on a boat + interest payments on the negative equity + payment on the depreciating value of the boat. The truth is the minu

te you fall behind on you payments, you find out you do not actually own the boat, the mortgage holder does.

From time to time, you find boat foreclosures at auctions, but not that often. This is because most lenders prefer to pay a dealer a small commission to sell them on a lot. It is quiet and convenient.

To make a lot of money buying foreclosures it takes a lot of time and effort to make the right connecctions and build the networks you need. For most people the time and patience required to build this network makes in an un-viable option. There are a few internet companies that do this and then sell you the boats

But there is still a great opportunity for the average buyer like you and me to save a bundle.

This is in the pre-foreclosure market. I love this market. They say “the two best days in a man’s life are the day he buys a boat and the day he sells it.” (or pays it off) While many people dream of owning a boat, many boat owners dream of selling theirs, either to buy a bigger boat, or to get out from under the burden of debt. For every 10 sellers you contact, 1 will be behind on their payments, and 2 will have trouble just making the payment every month. If people are behind, you can help them, either by buying the boat and short selling the bank, or the owner. You can get the price you want, and the owner can avoid foreclosure and get rid of most of their debt. However, not all preforeclosures or foreclosed boats are  good. But a few of them will work out so nicely, it will be well worth it.