Why Do Banks Collect Boats from Owners?

The reason that banks collect and sell boats is because they are entitled to them (by contract) if the owner fails to pay of his or her loan on time. You have probably heard about other things getting repossessed as well such as homes, cars, SUVs, trucks, and motorcycles. When people take out loans for any type of transportation unit or for any newly acquired property, they must be paid for on time. When they do not get paid for, the banks give a notice out to owners and then tell them that their property is going to be repossessed.

Deals on a New Bank Boat Repo

Since there have been so many boats that have been reclaimed from their original owners, the bank repo boats market is really booming. There are many places that you can go to take a look at stock and inventory in your area. Many fishermen and used boat dealers contact banks and find out when auctions are going to be held for their boat stock. You may even see advertisements on television like “liquidation sale on boats that have been repossessed.” Most of the time, there will be contact information, including a number that you can call to find out more.

Saving Money With Bank Boat Repos

You can save a huge amount of money by purchasing your next watercraft from a bank repo boat auction. When you go to bank repo boat auctions, you will notice that there are some incredible deals to be had. Some of the boats will not necessarily be in perfect condition for taking on the water right away, but if you inspect all of the boats that you’re interested in, you are bound to find one that you will want to buy for a reduced price.

The Repo Boat Market

Even though there are some people that do know about the boat repo market, not all of them are going to show up just because there is an auction. Let’s face it, people have a lot of other stuff to do than be constantly concerned with the next repossession auction. Although they do not happen every single week, you should be able to find one in a large city on at least on a bi-monthly basis. It takes time for a large selection of things to be gathered, compiled, evaluated and sold to people that are interested.

Now Is The Time To Get Repos For Sale

Bank boat repos are good to take advantage of right now because when the economy bounces back, there is not going to be nearly as large (and as good) of a selection. Though the economy is terrible, you’ve got to roll with the punches. Instead of always buying new, you can get something that is either used or that has been classified as a boat repossed. It has been said that there has been more repo boats in Florida than most other states; this makes logical sense if you know anything about the baseline boat sales down south.

The number of bank boat repos varies across the United States. The Midwest tends to have a fairly good market, and so does the west coast. If you are planning on making a trip to a certain region of the U.S., you should probably make some phone calls and contact a few people that are “in the know” ahead of time. If you are able to get in contact with the people responsible for storing and collecting them, you may want to see whether you will be able to tour what they have in stock which is definitely recommended before going to an auction.

Why Boats are Seized

A lot of people wonder what the difference is between seized bank boats and government seized boats. Really the only thing that may differ is that they are handled by different repossession agencies. Usually government repos are a result of a person failing to pay money to the government in the form of taxes. The banks usually take boats from their customers that fail to pay back loans and mortgages on time.

Before the boats get repossessed, the owner is required to be notified either through the mail or with a phone call. In other words, the act of repossession should not be a surprise to the person that cannot pay off their bills. If it is a surprise, then chances are that they did not want to communicate with the company and disregarded the notice. In many reality television shows and movies like Repo Man, the act of repossession is portrayed as being very dramatic and dangerous. As mentioned in a previous article, boat repo jobs continue to become popular choices for work in the rough economy.

Selling Discrepancies

Both the banks and government work the operation of selling very similarly. They both are trying to essentially flip the property for a profit as quickly as possible to any willing buyers. So if you show up to either an auction that is endorsed by the government or banks, you will find a barrage of different things, some of which may not even be vehicles. Many times auto dealers and boat companies will try to get all of the best deals by buying in bulk and reselling them at their business; be aware of this. The most important aspect is analyzing your boat to make sure that it is in decent shape and runs well before you make an investment in a “seized property.”

Advantages of buying bank repo boats

1. The savings – The primary reason that people participate in the act of buying bank repossed boats is because they can potentially save a lot of money in the deal. Think about it, when the banks collect a ton of repossessed boats, they want to get rid of them quickly so that they can get some money out of the deal. The longer they wait to sell them, the lower their profits in the long run. For this reason, they want to sell them fast for a decent price; one low enough so that people are willing to buy these used repo boats.

2. Good quality – Another reason that people buy things like bank repo yachts is because they are usually in good condition. Sometimes very wealthy people (e.g. pro athletes) are forced to give up their boats because they run into financial trouble. Most people take good care of their watercrafts when they are owners and they end up being above-average quality when they are repossessed and put up for sale at an auction.

3. The selection – Typically when there is an auction, it has a large selection of watercrafts. There are all different types and kinds including repo pontoon boats, repo wakeboard boats, repo bass boats, ski boats, yachts, power boats, and more. The location and city size usually reflects the amount of boats put up for sale.

Disadvantages of getting a bank repossed boat

1. They may need repairs – Very often you will encounter boats that need to be fixed up in some way. Maybe it needs a new motor or the carpeting is worn out and you’d like to replace it. Realize that making these changes is going to take work and is likely going to cost you money and time. It is a good idea to calculate whether the time and repairs you do on the boat will be worth it in the long run before you buy a boat that is in sub-par condition.

2. Buyer competition – At many boat auctions there will be other people competing with you to get the low priced boats. Sometimes, this can turn into a bidding war (which makes the banks happy). Try to stay away from watercrafts that everybody wants because the price will likely be subject to heavy inflation in the auction process.

3. Harder to find – Let’s face it, even though a poor economic state has significantly increased the number of repossessed boats sold, they aren’t extremely common. Many people think that they are going to practically grow on trees and this is not the case. If you happen to live in a good location, then you can have some luck, but most of the time (especially if you aren’t living near any water), they will be hard to find.

4. Someone loses their boat – If the thought of buying someone else’s property that they could not afford to pay for does not sit well in your mind, then buying a repo is not for you. Many people feel sorry for the people that ended up losing their boat for whatever reason. Unfortunately, many people that have lost jobs fail to pay for their boats and end up in financial trouble, which leads to boat repos.

Why People Don’t Always Buy Boats

Remember though, you do not necessarily need a boat “per se” to go fishing and enjoy yourself. There are many people that enjoy fishing on land or own a cheap canoe so that they don’t even need to get themselves a new boat. In some parts of the country, people even like to go ice fishing when the water freezes over. While other people just use a friend’s watercraft when they feel like going fishing so that they don’t need to buy a brand new boat or even bother with looking up repo boat sales in their area.

The economic downturn that has plagued the United States the past couple years has really been bad news for boat dealers and boat owners, while those who had a little extra money have been able to cash in on sales of repo boats. When seized boats for sale are being offered for a good deal many people jump at the low costs. Since you can save a lot of money by purchasing a repossessed item, it is an intelligent opportunity to take advantage of if you happen to be in need of a new boat.

Economy Directly Affects Repossessed Boat Sales

If you happen to be on the unfortunate end of the stick, or the person that has had to give up your boat to the repossessed sellers, then you honestly probably lost money out of the deal to a person that got an awesome deal. When the economy bounces back to normal or is on an upturn, people will be more inclined to buy new boats instead of repos. Humans have a natural tendency to want to purchase things that have not been previously used. My experience in the watercraft industry has taught me that significant changes in the economy can really change the entire way that the market works. It seems as though there have been more repo boat sales in the past two years than there has been during any other year of my life (which is crazy).