Has it always been your dream to set sail with your close ones without spending a fortune? Consider buying a repossessed or repo boat. A repo boat for sale is seized by a bank or other financial institution because the owner defaulted on the loan, forcing the bank to resell it to reclaim their money. If you’re planning on buying a repo boat, it might be helpful to know a few key tips from experts.

5 important tips to know before buying a repo boat

Search repo boats offered by bank lenders

For those looking to purchase repo boats, various resources are available, including auctions, banks, lenders, and credit unions.

It’s best to keep an eye out for a watercraft offered by banks and lenders, as they are motivated to sell. This means they’re more likely to offer boats for a lower price. Another advantage of purchasing repo boats from banks is that they are likely to offer you great financing options and make it easier to get approved for the loan amount needed. However, like every other type of loan, you’ll get a better interest rate if your credit score is good and you have more funds for the down payment.

Prepare and act promptly

There is something you must know about repo boats for sale from banks:

they don’t stay on the market for long. These water vessels are almost always in high demand, mainly because even the good-quality repo boats are priced extremely low. As suggested, banks tend to want to reclaim whatever amount they can from the defaulted loan, so they price them aggressively. If you find a repo boat that checks off most, if not all, of the points from your checklist, such as the right type, great price, and good condition, make sure to act fast. Remember that waiting even a few days can cause you to lose the vessel to another bidder. However, don’t stress yourself out if you miss out, as there are usually plenty of repossessed boats nearby out there.

Negotiate smartly

Note that a bank-owned boat listed as repossession is most likely open for negotiation. So, don’t hesitate to negotiate. To get an idea about what negotiations can work, check out a boat appraisal guide, like NADA Marine Appraisal or BUC boat appraisal, before making a bid, as banks generally use these guides as a benchmark when pricing their boats. If you don’t have time to read guides, it’s advisable to establish a good rapport with the dealer, as they might let you in on how low a price the bank will accept for the vehicle.

Ensure you have funds and tools for cleaning, repair, and maintenance

Every repossessed boat is sold “as-is,” meaning the buyer is responsible for everything—cleaning, repair, and maintenance—as soon as the deal gets closed. The good news is that a large percentage of bank repo boats for sale are in decent condition. But that doesn’t mean the vehicle will not need cleaning and maintenance. In fact, owners stop looking after their boats before a repossession, so there’s a chance that you’ll need to spend quite a few bucks out of your pocket for minor repairs and maintenance.

Have the boat inspected and request a trial
This is one of the most important things to keep in mind before purchasing a repo boat for sale from the bank. Get it thoroughly inspected by an expert. For example, if the boat has a diesel engine, get it checked by a diesel engine specialist. This is because you don’t want to buy a boat that doesn’t function smoothly and may need unexpected repairs and maintenance in the near future. Also, you might want to take it for a sea trial. Unfortunately, in a few cases, banks don’t permit a survey and sea trial, and buying a repo boat without testing may not be worth the risk, especially if it is relatively old.

If you’re unsure of where to start your search for your dream boat, read on below.

Where to find repo boats for sale?

The best way is to search for auctions that stock repossessed boats nearby. You can check out bank repo boat auctions or third-party websites. When buying online, explore popular websites that sell used boats, such as YachtWorld and Boat Trader. Sometimes, dealers list repo boats in these online marketplaces and other used boats. Or, you can directly visit websites that specialize in selling repo watercraft, such as National Liquidators, which auctions everything from boats to jet skis to cruise ships.

If you’re buying a boat in person, try to make connections with boat brokers and learn about the vessels in the auction ahead of time. Typically, auctions and bank catalogues include a wide variety of repo boats, from bass boats to sailboats, yachts, and even pontoon boats. It’s quite helpful to know the type you want before the bidding begins, as it enables you to narrow down your options faster and plan your budget accordingly. Another great thing about auctions is that they usually include a range of boats that will fit most people’s budgets and needs. So, it’s best not to choose the first boat you see.