18 • Mar. 25 - Apr. 7, 2016 • The Log


thelog.com Boat auctions: Are they worth the trip?


Good deals could be had at boat auctions but preparation is the key to a successful purchase.


By Parimal M. Rohit


SOUTHERN CALIFORNIA — You want to buy a Boston Whaler but don’t have $250,000 sitting around. What if you could buy a Boston Whaler for $10,000 or $20,000? Great buys can indeed be found at boat auctions for savvy veterans and the most novice of bargain hunters alike. Taking a few easy steps to know what you are buying


Do your homework 1


“Proper planning pre- vents poor performance,” an iteration of a U.S. Marine Corps adage says. If you are going to buy a vessel at a boat auction be sure to be armed with as much information as pos- sible. How much would the vessel sell for on the open market? What are the sell- ing prices of similarly classed vessels? What is the vessel’s condition? Does the vessel need repairs? If so how much will the repairs cost? Is the vessel currently in the water or on stands? “Get some quotes. A lot of people have to hire someone to do the work. Get an evaluation by [look- ing at] comparables. Get your costs in line with what the boat needs,” said Mike Costa, a broker with Certified Sales.


Keep a budget and stay within it 2


Know a vessel’s retail value, Costa said. The best way to know a vessel’s retail value is to look at comparables. Prospective bidders should study Yachtworld.com, one of the largest sites on boats for sale, Costa suggested. If you’re headed to a boat auction in San Diego and there is a Catalina 27 available be sure to research similar cruising sail- boats in the 25- to 30-foot range and built in a simi- lar timeframe. Newport Beach Harbor Resources Manager Chris


Miller said boat auction attendees should consider where they would store the vessel. Oftentimes stor- age is an additional cost and should be factored into the budget before committing to a boat. Also factor in how much it would cost to trans-


port the vessel to wherever you plan to have it stored. Costa added hauling or loading fees are also something to add into your bottom line. Taking a boat out of the water or off stands is not free. Do you plan to store the vessel at your residence?


Be sure to check whether your city’s zoning laws allow or prohibit the parking of a boat on residential property. Many auctions inform bidders all sales are final and without warranty. Vessels are sold as-is, so be sure to factor in any and all repair costs to the over- all value.


and the risks involved can go a long way to making boat auctions an enjoyable experience. The Log spoke with a few boating experts and auction attendees


who provided perspectives of how to avoid rough waters and enjoy smooth sailing throughout the boat auction process.


General Principles


Attend a preview or hire a surveyor


3


Nowadays it is easy to look at a photo of a boat or kayak on eBay or auction website and purchase the vessel with a single click. Buying a vessel site unseen, however, might not be the wis- est action. A visual checkup of your planned


purchase can reveal damage not view- able in a photo or online posting, Costa said. “Before you bid it’s a good idea to view the boat,” Costa said. “If they can’t inspect in person they could always hire a local surveyor to look at the boat.” Check the engine and dipstick. Does the oil look clean? Does the propeller turn? Is there visible physical damage? Surveyors could help catch repairs


required in areas not visible to the untrained eye. What if the boat you want to buy is available at the auction because it sank in saltwater and remained underwater for a few days? The engine could be corroded in parts due to the salt. Such corrosion might or might not be visible during an inspec- tion.


Be realistic about repairs 4


You might look at a fixer-upper boat and think, “Hey, I can fix this.” Not all repairs are easy or


affordable. Do you have the right tools and/or parts available? What if the repairs require more time than you realize? Where can you do the repairs? Have you properly determined the costs involved? What if you discover some nec-


essary repairs later in the process and cannot fix them yourself? How much would it cost to have some- one do the repairs for you? “The bidder might want to pri-


oritize the repairs,” said Ted Sensenbrenner, BoatUS’s assistant director of Boating Safety, adding it would be wise to focus on engine repairs ahead of cosmetic items such as touching up paint. Miller said he wants the boats sold at his auctions to go to people who want them. The last thing he wants to see is someone buy a boat in hopes of repairing it only to lose patience and abandon the vessel.


Parimal M. Rohit photo


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