How
to steal a boat
Do
you want to learn how? Of course you do, even if you would
never do it, it’s fun to read about. This article will
give you some tips on how to steal a boat…. legally.
Legalized theft, or buying boats for pennies (okay maybe dimes)
on the dollar, is happening, so how is it done?
Wikipedia
defines fair market value as follows:
Fair
market value (FMV) is an estimate of the market value of a
property, based on what a knowledgeable, willing, and unpressured
buyer would probably pay to a knowledgeable, willing, and
unpressured seller in the market
To
steal a boat, a normal factor in the sales process has to
be different. The seller has to be motivated and the buyer
has to find the seller. The most common factor that allows
one to steal a boat is financial distress on the part of the
seller. There are a myriad of reasons for financial distress,
particularly in the past few years! There are many other factors
that result in low sales prices as well and there are a few
companies specializing in selling boats in “distressed
situations”.
Some
boats are deals because few people know they are for sale.
There are owners who refuse to pay brokers’ fees and
create their own web sites or use lesser known listing sites.
Google/Yahoo/Bing searching and internet farming will lead
to some of these sites. Tip: Use a skilled broker to acquire
the fair market value for a boat you are trying to sell.
Some
boats are on the more popular listing sites, such as Yachtworld,
but have incorrect information, reducing the size of the potential
buying market. Wrong or lesser known manufacturer, wrong year,
length, and even the wrong price is sometimes listed. Think
about the wide range of names use for many boats, including
the builder, importer, designer, model or common nick name.
While these are “rookie” mistakes, there are a
few rookies out there and a veteran shopper may be able to
capitalize on these situations.
Deals
are often possible before boats make it to a listing site
or are listed by a broker and some deals are made after the
boat has been listed for an inordinate amount of time and
the seller has tired of the process and the burdens of ownership.
“Low ball” offers on boats that have been for
sale for a long period of time are occasionally accepted.
Life
changes often result in boats available at a discount. An
abandoned dream of sailing around the world, a divorce, the
dissolution of a partnership and death are all great tragedies
for some and opportunities for others. Boats for sale as a
result of these types of events will often be sold to individuals
who become aware of the circumstance soon after it occurs
and are able to act quickly. A wide network helps locate these
boats, so if you are looking for a deal, don’t keep
it a secret. The more people that know you are looking the
more likely a deal will be revealed to you.
Donated
boats for sale are possible deals. Though laws changed a few
years ago reducing the number of these opportunities, some
remain. Boats of lower value or ones that the donor actually
is giving the boat away (versus those who give as a better
financial option to selling) can be had at a bargain. Some
of these deals require a two year lease with an option to
buy, and are appropriate for buyers who desire a particular
boat and plan to keep it for several years. This is no longer
a viable option for “flippers”, or those who want
to buy and sell quickly for profit.
There
are deals to be had on damaged boats, often for sale by insurance
companies after a constructive total loss. There are numerous
individual boats sold by countless insurance companies and
marine surveyors, to find them one needs to network extensively
and be patient. Then there are a few large companies specializing
in this type of sale, they include Copart, Certified Sales
and Cooper Capital. All are easily found online. Tip: A stolen
and recovered boat often has very little damage but still
can be purchased at a huge discount due to the circumstances.
Damaged boats present challenges best undertaken by people
experienced in the repair industry or people who are “handy”
and like to fiddle with projects.
Many
boats are being sold on Craig’s List and other online
markets such as Ebay. Some boats are sold by marinas and various
marine companies as lien sales. There are various governmental
auctions and Marshall’s sales, most are publicized on
the internet. Don’t forget your due diligence (not so
subtle plug for a good marine surveyor) and these sites can
lead to a bargain.
And
finally the most voluminous source of deals in today’s
market: repossessed boats. There are many banks that sell
only a few boats and utilize a wide variety of outlets to
sell them. These boats can be found in all the nooks and crannies
of boat selling websites and brokerages. Then there are a
few companies that specialize in selling “repos”.
Among these businesses are several with a Southern California
presence, including: Long Beach Yacht Sales, Grande Yachts,
National Liquidators and Brokaw Yacht Sales.
To
utilize these companies effectively one should understand
some of the underlying factors. Many of the boats are sold
quickly, so be ready to act. Know what you want, a specific
type of boat or a smoking hot deal. Have your budget or funding
source established and if you see a boat that interests you,
don’t take long to make your offer. Realize that some
of these businesses are deluged with interest (phone calls,
emails and walk-ins) and thus customer service is not what
it might be at a more traditional brokerage. If you are seriously
in the market, let the contact person at the business know
in no uncertain terms.
Also
realize that the discount doesn’t come without a catch.
You don’t get the benefit of disclosure of problems,
events of significance (submersions, collisions, etc...) or
maintenance history. Many repo boats were not well maintained
prior to being repossessed.
Bob
Brokaw of Brokaw Yacht Sales is active in selling repo boats
and he advises that a buyer utilize a broker familiar with
the process. He also suggests that any potential buyer, who
is remote from the boat, hire a qualified local representative
local to perform a “walk through” prior to incurring
any significant expense in the buying process. The sheer volume
of repo boats handled by some companies precludes them from
getting to know the boats well. Thus if you have an agree
price on a boat that is a plane flight away, having a quick
inspection to let you know if there is an easily detected
significant deficiency can save you the airfare (and valuable
time) or let you modify your offer before incurring the expense
of travel and/or a detailed marine survey.
So
how do you steal a boat?
Broaden
your network
Prepare and act quickly
Use due diligence
