Do not confuse the term “repossessed” with “refurbished” or “restored”. Repossessed basically means that a property has been confiscated by the authorities for one of many reasons, a boat may be repossessed by the financing agency for not payment of dues by the borrower, or it may be repossessed by the bank or financing company as collateral that was put up for a loan. Many people feel that a repossessed boat is a boat that has been badly cared for and has been in an accident or some other disaster and is not worth the trouble bidding for. Nothing can be further from the truth, repossessed boats can be a very good bargain especially at repossessed boat sales organized by auction houses hired by the authority selling the repossessed boat.
If you are following a dream to have your own boat and are investigation all the possible avenues you can acquire a boat for yourself, do not completely ignore the repossessed boat sales and auctions. Many a man has gotten his first boar from a repossessed boat sale. So many people dream of owning their boat that they do not plan their purchase very well. They are talked into buying a boat they can not really afford. Then they end up defaulting on the payments to the finance company and the boat is ultimately repossessed by the financier and is sold at a repossessed boat sale to recover the finances put into the boat.
Because the finance company is not concerned with recovering all the money put into the boat, like the owner would like to. The bank of financier usually is concerned with the amount that is outstanding and aims to recover it first. Now suppose the boat cost a total of 50,000 dollars and the owner has already paid 20% of the total cost and in addition has also repaid part of the 80% loan he took from the financier, what is left is about 60% of the total cost of the boat which is sold at the repossessed boat sale is recovered through the auction. This means that you could get a perfect boat for as little as 60% of the cost of a new one. As you can see you can get a great deal at a repossessed boat sale so give it a try you never know, you could get a deal of a lifetime.
However, if you are going to a repossessed boat sale you should proceed with caution. Look for signs of damage or changed parts in the engine. Tell tale signs are usually the oil spills and scratches on the engine nuts and bolts. The condition of the engine is of prime importance as are the electrical wiring of the boat. These can cost you a packet if you need to have them repaired and must be considered when you are placing your bid for the boat.