How to buy a repossessed boat or personal watercraft
There is a certain allure to owning your own boat. Having the ability to go out on the water to relax whenever you want is a dream that many people desire. However, buying a boat brand new can be expensive.
Financing a boat comes with higher interest because it is considered a luxury item, and saving up to purchase a boat can take too long. So how does a person purchase the boat of their dreams without all the hassle? Many people opt to buy a repo boat.
A repossessed boat is a boat that has been taken back by the finance company for non-payment of the loan. The lenders, in turn, resell these boats so that they can make up for the losses they incurred from the bad loan. The boats are generally sold at auction and at very low price.
Purchasing a repo boat or personal watercraft
The first thing that you should do before you decide to buy a repo boat is determine what type of boat you want and how much they are worth brand new. Having this information will allow you to make a bid on a repo boat that is favorable to you. Once you know what type of boat you want, you need to find an auction.
There are many online auctions that sell repossessed boats. Local lenders, law enforcement agencies, and tax authorities also offer auctions on watercraft and similar items. A boat can be repossessed for non-payment of taxes or during a police raid so that is why it is essential to check these types of auctions as well.
Once you find an auction that has your type of boat, the next step is easy. Simply bid up to the price you are willing to pay and you hope you win. But remember, you always need to bid with caution.
Considerations when purchasing a repo boat
You must take into consideration when you are bidding on a boat that there may be repairs necessary to repair the boat and make it seaworthy. The previous owner may not have kept up on the maintenance of the boat if they were suffering financial hardships, or the boat may have been repossessed because of a major repair that the owner did not want to make so they stopped paying for the watercraft.
Repairs may also be necessary if the repossessed boat has been sitting exposed for a long period of time to the weather or has been left in the water for an extended period of time. Sadly, most auctions do not allow you to examine the craft before bidding and the boats are always sold as-is.
If you are not willing to take the risk of an auction to purchase a boat, you may want to consider a repo dealer. There are many dealers who purchase these boats from auctions, make the necessary repairs, and then resell the boats. These boats are still sold at a much lower price than they are valued and often include a warranty.
Good luck with your purchase.
