In spite of the fact that we see some economic recovery banks are still struggling to manage the wave of repo boats and other water craft that they were unprepared to handle beginning mid 2007. Boat prices similar to that of home values are showing signs of recovery but boat buyers will still be able to find incredible bargains at local and regional boat auction houses as well as motivated owners. But that window of opportunity may not stay open long.
Like the housing market banks are still in troubled water as they struggle to stay afloat in managing storage and sales of their repossessed boats, yachts, and other bigger ticket toys. Inventories are very difficult to manage forcing banks to move quicker than they normally would, accept lower cash offers that they otherwise wouldn't accept so as to avoid a total loss. The problem is that with the devaluation of boats banks are still working to working to liquidate collateral in an already flooded market.
Years ago Jeff Henderson of Harrison Marine in an interview concluded that banks have got to "take it in the shorts" i.e. lower their expectations for what they can expect to get for a repo. That seems to be how banks have been managing to weather the storm of repossessed boats the past few years and even somewhat today.
Don Parkhurst the senior VP of Suntrust Bank in the middle the repo boat tsunami stated that lowering the price of their boat repos is the only way to move them. "You just have to take the hit," stated Parkhurst. And that strategy seems to be what has allowed banks to semi-recover from this tidal wave of repo boats they endured the past few years and even seeing still today. As a result boat buyers looking at boat auction opportunities can easily realize 15 to 20% savings on newer or used boats before they even start negotiating.
Smart over seas buyers recognize the value of the USD and are taking advantage of this boat repo glut. According to their records upwards of 50 percent of the boats from National Liquidators (one of the worlds largest boat liquidators) goes to Europe, the Caribbean or Canada.
While banks have been 'taking a hit' with letting go of their non-performing assets this has translated to some very attractive prices for mid-sized cruisers and performance boats. Buyers in the power sport vehicle market can also find value in this market as well. Many ATV, PWC, and RV owners have defaulted on their toys and forced to surrender it to the repo man. The result is banks have got to seriously consider letting the asset go as a 'repo' , take the hit and move on.
Like the housing market banks are still in troubled water as they struggle to stay afloat in managing storage and sales of their repossessed boats, yachts, and other bigger ticket toys. Inventories are very difficult to manage forcing banks to move quicker than they normally would, accept lower cash offers that they otherwise wouldn't accept so as to avoid a total loss. The problem is that with the devaluation of boats banks are still working to working to liquidate collateral in an already flooded market.
Years ago Jeff Henderson of Harrison Marine in an interview concluded that banks have got to "take it in the shorts" i.e. lower their expectations for what they can expect to get for a repo. That seems to be how banks have been managing to weather the storm of repossessed boats the past few years and even somewhat today.
Don Parkhurst the senior VP of Suntrust Bank in the middle the repo boat tsunami stated that lowering the price of their boat repos is the only way to move them. "You just have to take the hit," stated Parkhurst. And that strategy seems to be what has allowed banks to semi-recover from this tidal wave of repo boats they endured the past few years and even seeing still today. As a result boat buyers looking at boat auction opportunities can easily realize 15 to 20% savings on newer or used boats before they even start negotiating.
Smart over seas buyers recognize the value of the USD and are taking advantage of this boat repo glut. According to their records upwards of 50 percent of the boats from National Liquidators (one of the worlds largest boat liquidators) goes to Europe, the Caribbean or Canada.
While banks have been 'taking a hit' with letting go of their non-performing assets this has translated to some very attractive prices for mid-sized cruisers and performance boats. Buyers in the power sport vehicle market can also find value in this market as well. Many ATV, PWC, and RV owners have defaulted on their toys and forced to surrender it to the repo man. The result is banks have got to seriously consider letting the asset go as a 'repo' , take the hit and move on.
About the Author:
Get Access to Boat Auctions and Save! Buy any boat direct from auction and pay half the price your neighbor paid! Edgar has been searching for repo boats for sale across the U.S. since 2004 and is editor for several recognized boat auction search sites.
