BOATS

One of the best places to purchase nearly new boats at a price far below retail value is an auction. Often, brand-name and top-quality boats (Meridian, Bayliner, Stingray, Centurion etc) become state or bank property when their owners are unable to pay debts, and have to be sold fast to avoid substantial storage and maintenance costs. Because of this it is sometimes possible to land excellent bargains with as much as 80-90% off retail price.

In order to help first-time buyers, I have put together the top 10 things to look out for when purchasing a repossessed boat at an auction. A lot of them are similar to the recommendations for purchasing a used car, and in fact experienced boat and yacht owners approach boat purchases in a similar way. Still, there are a few boat-specific points to pay attention to.

10) Get a copy of the manufacturer's datasheet for the boat that interests you. On the Internet you can get one at . Here, you will find all the important specification about the craft - applicable engines, gross weight, speeds, etc. It is also wise to call the U.S. Coast Guard at (800) 368-5647 and ask for information about manufacturers' recalls for that particular model.

9) Take a good look at the maintenance history. Regular mechanical checkups should have been made. Pay particular attention to engine hours, equipment, damage history, paint, and interior. Be sure to ask for the number of prior owners. Several prior owners may be a sign for prior problems with the boat.

8) When purchasing at boat auctions, always start by observing. Attend the preview (usually held a while before the auction, and open to the general public). Stay cool during the auction, and decide what you want to bid beforehand. Never get into a bidding war, it's a surefire way to buyer's remorse.

7) If you find a good candidate, it's time for a thorough visual inspection. Be sure to check the hull (visible defects or irregularities? unevenly painted spots? dings or cracks? fittings firm?). Check steering and throttle controls and cables. If possible, check all systems: bilge pump, blower, lights, stereo, winches, freshwater sink and shower, galley stove, head, heater, air conditioner, generator and so forth. Make sure all hardware is still firmly attached and check the condition of backing plates where possible. On a sailboat, check all rigging, hardware and sails. Open and close hatches. Check out the fuel tanks, fittings and lines. Be sure to smell for leaks. Are the batteries securely fastened in acid-proof containers? Is the propeller shaft and rudder stock straight? Is the upholstery in good condition and the stitching still holding? Does the cabin smell like mildew? Check through-hull fittings to ensure they are not loose and leaking. Check electrical items and connections for rust. Engine mounted solidly, any leaks, exhaust system ok?.

6) The engine deserves special attention. Is there oil in the bilge? It may be a sign of an oil leak and warrants closer inspection. Are there signs of lubricant leakage around gaskets, freeze plugs and hoses? Are the hoses, belts and fittings cracked or brittle? Pull a spark plug and see if it appears relatively new, or burnt and poorly gapped. (This will provide an indication of how well serviced the engine is.) Is there a white chalky residue on the engine or drive? (This may indicate that it has been running hot.) Check the engine's oil condition and level. (If the oil looks milky, water may have entered, indicating the possibility of serious mechanical problems.) Check gearcase oil. Are the sacrificial anodes on the drive in good shape, or should they have been replaced long ago? Are there signs that the drive, rudder or propeller have hit submerged items? Look for signs of cavitation damage on the propeller(s), which is indicative of poor performance. Check for broken engine mounts. Compression check the engine. If possible, have the engine started and check how well it's running. Any irregularities in the sound? Blue smoke from the exhaust pipe (oil, can mean that the engine is worn)? Excessive white smoke (may mean that coolant is leaking)? If you think you are not qualified to perform these checks, try to bring a technically savvy friend along.

5) Beware of any too-good-to-be-true claims. At an auction, odds are they are just that - not true. Liability for a seller at a public auction is relatively low, and two powerful words - "AS IS" - basically free the seller of any responsibility. It is up to you to pinpoint them on essential statements and be wary of any outrageous promises.

4) Before even starting bidding, make sure you have a good idea of the market value of the boat in question, and have set a firm limit for what you are ready to pay. There are several marine price guides that you can consult to get some idea of a boat's market value, but note that these are ballpark figures and much depends on the results of your survey and sea trials to determine ultimate value. The following pricing guides or "blue books" are good sources: ABOS Marine Blue Book, (800) 262-1954; BUC Used Boat Price Guide, (800) 327-6929; NADA Marine Appraisal Guide.

3) Should you win the bid, insist on a written contract, and ask that all important figures and claims are mentioned (e.g. about prior owners or repairs, mileage, or the timespan until you get the boat). Don't forget that the price you will pay is usually higher than the winning bid. Most auctions include a 5-10% buyer's premium.

2) Beware at police and salvage auctions. Those are usually run by professionals, and especially at salvage auctions it can be very difficult to estimate the damage and the actual market value of the boat exactly.

1) Do not be too hasty. Looking at some auctioned boats, you may get the feeling of a once-in-a-lifetime bargain, but in fact the market is pretty large and great opportunities are around all the time. It is best to observe a few auctions first to get a feel of the process, and only actively start bidding once you have a good idea of the market.

There are several databases of auctioned boats online, one of the largest being www.onlineboatauctions.org.

The author of this article, Stephane Boure, is a former used boat dealer and an expert on used vehicle auctions, currently employed at an internet marketing company.