Bank Repo Boats
The Bank repo boat is a story of tragedy looking for a happy ending. The previous owner has lost, the bank has lost, and it is time that someone wins. It might as well be you.
Bank Repo Boats
It is a sad truth of human nature that our desire so often outpaces our wallets. Boats are expensive hobbies and unless you make your living on the water, they are not necessities of life. Boater may disagree with this vehemently, but in most cases when the decision is between paying the boat loan payment and buying food or paying rent, it is the loan that goes unpaid.
When a lending institution is forced to foreclose on a loan and take physical possession of the object securing the loan, it is going to suffer a loss. This is even truer with boats than with autos. The bank is not a marina and it is going to be losing money from the minute it takes possession. This is going to be in addition to the money already lost by the delinquent payments. The boat is then known as a repossessed boat or repo boat.
The tactic that the Bank is going to use to cut its losses is most likely going to be a quick sale usually by auction. Cut its losses is the operative word here because the quicker the Bank unload the boat, the more it will save on its bad loan. There is an opportunity here for a buyer to get the boat at a price far below market value. Bank repo boats can be very sweet deals indeed.
If you are a dealer of used boats, you do not need to hear anything about Bank repo auctions. They have most likely provided you with some good inventory in the past and you are well aware of them. If you are seeking a boat for your own personal use, you need to do a few things to prepare if you are interested in finding a deal of a lifetime on a bank repo boat. The first is to decide just what kind of boat you are looking for and then try to find a bank repo that closely matches this. It does not matter how good a deal you get if you do not get what you want and need. Understand what you are looking for first, and then try to find it. You may get lucky and you may not, but at least you are going after your dream and not someone else’s dream.
Another preparation is to be prepared to pay upfront. The Bank is looking for a quick sale and not to make another chancy loan. Most repo sales will require cash or certified check at the time of the sale. Do not go there looking for favorable loan rates. It is sad when a loan goes bad for any reason. It is sad when a boat owner loses his boat. It is sad, I suppose, when a Bank loses money although it is hard to feel too sorry for the bank. With all this sadness, it would be nice to make at least someone really happy. A bank repo auction might just make that someone you.