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The Log • Mar. 25 - Apr. 7, 2016 • 19


What types of boats or vessels are at auctions?


Any number of boats and vessels could be found at a boat auction, rang- ing from dilapidated to functional and in good condition. Miller said buyers at the city’s auc- tions held two to three times per year, typically purchase dinghies, inflatable boats, kayaks, standup paddleboards or the occasional powerboat or sail- boat. He pointed out kayaks generally sell in the $100 to $200 range, depend- ing upon the condition. A brand new kayak purchased from REI ranges any- where from about $300 to more than $2,000. It is not uncommon to see a 25- or 30-foot sailboat sold at one of Newport Beach’s boat auctions. They might not always be in the best condition but some people are aware of the work that needs to be done and are willing to invest the time in upgrading what- ever they purchase, Miller said. Others might just buy a boat for the


parts. Marine Group Boat Works in Chula


Vista hosts one to two boat auctions per year. The firm tries to have about 10 boats featured at each auction.


Where do the boats come from?


Most boats populating Newport


Beach’s boat auctions are impounded from city tidelands. Proceeds from these boats sold directly benefit city tidelands, while other vessels are sup- plied from county tidelands or har- bors, such as Dana Point Harbor or Huntington Harbour. Los Angeles County has auctioned off abandoned or impounded vessels. A Sheriff’s deputy in Marina del Rey previously told The Log that purchas- ing an abandoned vessel at a boat auc- tion could be risky as sometimes the required repairs could be worth more than the vessel would ever yield on the open market. Private auctioneers might sell sal-


vaged boats often recovered from dev- astating storms such as Hurricane Sandy. Other vessels available, according to


Pictured from left to right: Potential buyers examine boats up for bid at the city of Newport Beach’s March 18 boat auction. Harbor Resources Manager Chris Miller acts as auctioneer during the event held at the Orange County Sheriff’s Department Harbor Patrol docks.


BoatUS might be repossessed, leftover models from boat dealers, damaged boats from insurance companies or bankruptcy proceedings.


How do boat


auctions work? There is no set formula of how boat auctions operate. Some are done dis- cretely. Marine Groups Boat Works only offer boats at its auctions. “The condition of the vessel … is sold in as-is condition,” said Jill Salgado of Marine Group Boat Works. “The potential new buyer has 10 days after the auction to inform Marine Group Boat Works of their final deci- sion. If they do not inform Marina Group Boat Works by this time the boat purchase is then reported to the California DMV.” The Chula Vista company posts its auction list on The Log and its website. Hard copies of the auction list are also available at the Marine Group Boat Works main office. The list is made public 20 to 30 days ahead of the auc- tion. “Arrive at the time stated on the


advertisement and inspect boats,” Salgado said. “The auction starts promptly at 9 a.m. and boats will only be mentioned once during the auc- tion.” Some auctions are done by phone or email, according to Costa. Bidding also occurs on auction-style websites such as eBay. All sorts of interested parties, rang-


ing from the first-time buyer to the savvy regular, attend auctions. Representatives from boat dealers also make it out to these auctions, poten- tially looking for a value-buy to quickly flip.


The intensity of each auction item


varies upon popularity and condition of model offered. A Boston Whaler in pretty good shape could endure a competitive bidding process, whereas


a canoe might only have a handful of bids. At a recent city of Newport Beach boat auction action ranged from non- existent to intense. The city’s boat auc- tions are held at the Orange County Sheriff’s Harbor Patrol office on Bayside Drive where prospective bid- ders often arrive at the dock 45 to 60 minutes early to preview the goods. Newport Beach only accepts cash at its boat auctions; all sales are settled immediately. Miller said each pur- chased vessels is usually off the docks and in the possession of its respective owner the end of the day. Miller added any boats sold at an auction with a vessel registration, or CF, number must undergo a 10-day waiting period before the transaction is complete in order to give the previ- ous owner one last opportunity to pay impound fees and reclaim his or her boat. It is not uncommon for the fees to be worth more than the vessel itself, meaning the previous owner would likely not reclaim his or her craft dur- ing the 10-day waiting period. If they do pay the fees, however, the person who bid on the vessel at the auction would receive a refund.


The Boater’s Perspective


About 60 people crowded the docks


in front of the Orange County Harbor Patrol station to inspect on March 18 to bid on about 50 vessels, mostly canoes, kayaks and sabots. A 16-foot green Coleman canoe, for


example, started at $40. The canoe almost went unsold but finally sold at the last moment possible when a bid- der accepted the opening price. Conversely the $40 starting bid for an 11-foot red Hobie kayak quickly escalated into a bidding war involving at least four bidders and ultimately selling for $600. A brand new 11-foot Hobie Mirage Revolution kayak, by


comparison, would likely run about $2,000 at local retailers. A bidder, who only went by the name of Paul, made it out to the March 18 boat auction in search of his first- ever kayak. Paul won the first auction of the morning, spending $200 for a 10-foot beige Hobie kayak. He also tried to purchase a 10-foot yellow Ocean kayak minutes later but ended up losing it to a higher bidder. “I’m looking for a good value, some-


thing that’s half the price of what you normally find used,” Paul said moments after losing out on a second kayak. Tom Nakashima, a sportsfisher, attended his first-ever boat auction on March 18 and perused the inventory for potential good buys. “I’m looking for some sort of a


deal,” Nakashima said. “I have two boats in my backyard. “I’m a boat guy. I like boats.”


What happens to unsold boats?


Salgado said vessels offered at boat auctions go unsold “all the time.” “For all the boats that are not sold at auction, Marine Group Boat Works submits a request for a junk slip to the California DMV,” Salgado said. “Once the DMV grants the junk slip the boats are demolished as is.” Vessels not sold at Newport Beach’s boat auctions are also thrown away, according to Miller.


The bottom line


Buying a boat at an auction could be a good experience. The trick, as with any major purchase, is to be pre- pared and know what you are buying. “Are there good deals available?


There certainly are,” Costa said. “To come out ahead of the game is to do your homework.”


Parimal M. Rohit photo


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