Buying Repo worth the risk? Any experiences?

[b_mac]

Hi,
Been looking quite a bit online since I joined up. Quite a few boats on place like yachtworld, etc. Again I am in the market for a ~30 foot used cruiser. I did come across quite a few repossessed units. Buyer beware I know. But they are so cheap you could afford to put some money into them. Anyone ever bought one in the states and brought back into canada? or just bought one period?

[boatman61]

Just because a boat is a RePo does not mean its shot.. could be someone poured so much love into a boat he broke himself.. if you'd said a salvage then.. Buyer Beware..
RePo's are another matter.. and what does a viewing cost if the photo's are dated pick the best and look

[a64pilot]

I'd buy a Repo in a heart beat, if the price was "right".
Just a personal opinion, I'd rather have a Repo, than one that had been chartered.

[hellosailor]

Well, one thing a repo can mean is that either someone couldn't take care of business, or that some event overwhelmed them, so they couldn't take care of business. And that could also mean part of the 'business' they weren't taking care of was engine maintenance, deck leaks, little things like that.


So I'd call a repo a potential red flag, but as with any used boat, the question is whether you know how to spot real problems with it, and have the chance to do so.

[FamilyVan]

Originally Posted by b_mac

Hi,
Been looking quite a bit online since I joined up. Quite a few boats on place like yachtworld, etc. Again I am in the market for a ~30 foot used cruiser. I did come across quite a few repossessed units. Buyer beware I know. But they are so cheap you could afford to put some money into them. Anyone ever bought one in the states and brought back into canada? or just bought one period?

There was a big repo at my marina last year, people who hadn't paid slip and storage fees. Some of the boats were reall dogs breakfasts, some were okay, none were great. The ones that fell into the okay bracket were excellent bargains.

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[wooden head]

My second boat was auctioned for past due moorage. I found out the hard way how expensive a cheap boat is.
Then I turned around and did it again..

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[CSY Man]

Have some experience repo boats.
Basically owners went broke, either from bad luck or for being irresponsible.
If folks are broke the maintenace and care taking will have suffered and you will pay for it later.

Seen one lucky deal: 39' trawler with brand new engine and brand new gen.
Auctioned off at National Liquidators, friend put in a lucky bid.
Helped him pick it up.
We found out later the boat was owned by some drug guy who pad cash for all the new gear and engine, money was not a factor. Then he got killed, then the U.S. Marshalls put the boat up for auction.

Other repo boats I boats I have been involved with have been derelicts and/or sitting without maintenace, or being abused, etc.

[psneeld]

One day standing on the beach admiring all the boats nicer than mine, the banker I was chatting with said "a large number of those boats next year will be owned by someone else".

He went on to say some will just get sold, but a large number would be taken back by the banks.

Certainly financial times dictate some of those numbers, but he said there's always a steady stream of repos.

Many are new or nearly new.

[Sea Frog]

I was always wondering what would be a proper way to bid for repo boats @ national liquidators and such. Like, they have some "suggested bid" - but that's just it, suggested by them Who sets the price? If it is a bank repo, do they have some sort of "reserve" that should be met, or they just try to milk out as much as possible from stuff? Like, if I bid 50% of their "suggested price" - they just ignore me or counteroffer, or say "reserve not met"? Never bought a repo stuff so wonder what is the correct way to get good stuff cheap

[FamilyVan]

I bid on a repo Pearson 37.5 a few years back. I made an offer, they sent it back and asked me to submit a proposal detailing why I thought that was a fair price. They declined the offer and gave me lots of opportunities to counter. I really low balled. I offered $12500, and the boat was in decent shape. I'm pretty certain if I'd come up a couple grand they would have accepted.

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[Sand crab]

Can you get a haulout and survey contingincy or is it where is as is?

[rjgmt1]

You might also consider insurance claim boats.

[Hoodsail]

Sea frog - I bid on acouple of national liquidator boats...go to their website for directions, very straight forward and simple. They told me they wait til they have a least 4 prospective buyers, then they call you the day of the auction and get your bid. they do this round robin calling w/ all buyers, letting you know what the current bid is. you have the opportunity to go higher or drop out all w/in 1 day. If you are the winning bidder you have 3-4 days to move the boat so lining up a shipper prior to is key. I lost out on 2 "Sandy" boats, 1 Sabre 34 and 1 Tartan 33..

[oregoncycle]

One year ago I purchased a 38' mono hull that was a bank repo using National Liquidators. It was a very easy experience. They make zero claims about the boats and it is up to you to asses the condition of the boat prior to the bid. I offered less then 60% of the suggested bid and still won the boat. National liquidators does not approve the bids, it is done, as in my case by the bank that held the paper on the boat, who then accept or reject the offer. In my case I looked at the boat on Tuesday, made an offer on Friday and owned it on the following Thursday.. My appraisal for current value after was 6 times more then I paid.

[Sea Frog]

Wow, thanks a lot folks! So it is not that difficult after all.