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A guide to boat and yacht auctions |
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Liquidators do boat and yacht auctions to sell boats that are under "unusual circumstances": bank repossessions, foreclosures, salvage, government seized vessels and brokerage boats. Many people consider auctions to purchase boats at prices that are significantly lower than their retail value. Although it is considered risky, you may just win for yourself a good buy if you know where to look and understand the tricks of bidding.
Of course, buyers of auctioned boats and yachts should be ready to undertake repairs that may be minor to major depending on the condition of their purchase. But some people would still consider it as worthy investment because they can always resell the boat after it is fixed and refurbished. Others keep the boats for their personal use.
Salvage boats
What is most important about acquiring an insurance salvage boat is the buyer's understanding of the extent of work he is willing to do for the boat. Keep in mind that a boat has either suffered damage through an explosion, collision, or even a strong hurricane like Katrina. Salvage boats are sold as-is, where is and the sellers nor the liquidators do not normally offer warranties. The buyer assumes all risks of loss of the boat upon purchase.
Another category of boats that are usually auctioned are repossessed vessels. These are sold by financial institutions that are trying to make up for some losses. In other cases, a private boat owner may just be in a hurry to get rid of an old boat either because he has bought a new one or simply wants to sell his boat.
Boat buying guide
Liquidators usually have an established bidding process for boats and yachts on auction. In the case of the National Liquidators, it uses a sealed bid system to liquidate its marine inventory. It holds auctions every week and welcomes bids from interested brokers and dealers as well as individual buyers. Those interested are also encouraged to visit their facilities to view available boats and yachts. The highest bidder gets the boat on auction unless the bank or the owner makes a counter-offer.
Other entities, like Certified Sales, Inc.'s YachtSalvage.com, implement an open and competitive bid process. To be part of the auction on a particular vessel, bidders fill up the bidding form found in the website, then faxes the accomplished form together with a 'good faith' deposit. Once the faxed bid is received, the bidder is registered for the particular action. After about four to six weeks when the boat is listed on the website, each bidder is contacted individually and advised of the current highest bid. The bidder can either go higher or drop out of the auction. By process of elimination, the boat goes to the highest surviving bidder.
Boat and Yacht Auction sites
For more on boat and yacht auctions, you can visit the following websites:
US Auctions (powered by eBay)
YachtSalvage.com
Marine Bid Exchange - A business-to-business exchange offering insurance companies, individuals, and private vessel owners an online competitive bidding service.
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