Four Ways to Find Cheap Boats: Used Boats, Repo Boats, and Salvage Boats

As this past summer went by, you may have thought to yourself how nice it would be to have a boat, whether for early morning fishing excursions, or lazy days on the river. But if you’ve looked into buying a new boat, you have probably realized that they come with a hefty price tag, and you may be discouraged. For the savvy shopper, however, finding cheap boats is not nearly as difficult as it may seem. This article will discuss four keys ways that you can save money and still get the boat you want: buying used boats, finding salvage boats for sale, buying boat repos from auction, and saving money on new boats.

Before going into the details of each method of saving money, it is important to take into account the total cost of ownership. This includes interest, depreciation, insurance, maintenance, repairs, dockage and fuel. Depending on which route you choose, some of these costs will be higher than others. Failing to take them into consideration may end up costing you more than you can afford.

Perhaps the most obvious way to save money is to buy a boat used. As with cars or RVs, a new boat depreciates the moment it is purchased, though the initial depreciation rate is only about 20%, as compared with 25% for a car or 30-40% for an RV. Purchasing a used boat that is only one or two years old will already afford you significant savings. Many seasoned boat buyers tend to buy gently used boats for this reason. However, buying used will save you money only up to a certain point. The older the boat, the higher the maintenance and repair costs. Once you hit 10-12 years, you begin to incur deferred maintenance costs and will have to repair or replace major components of the boat to keep it functioning. This increases your overall cost of ownership. Keeping your used boat search to within 2-3 years of the current year will help reduce these costs and your overall risk.

Another way to save money is to purchase salvage boats.  Salvage boats are those that have been damaged in some way.  To find salvage boats for sale, begin with classifieds and craigslist, as they are sometimes sold by private owners.  More often, however, they are sold at auctions by banks or insurance companies.  These boats can range from needing a few minor repairs, to needing significant repairs, replacements and maintenance.  The cost to purchase a salvage boat is often very, very low; however, keep in mind that the total cost of ownership could be quite high, especially if the boat requires major repairs.  If you are skilled in boat repairs, or feel like taking on a big project, then a salvage boat may be a great place to start.   

If you want the quality of a gently used boat, but want to pay salvage boat prices, then you may want to consider buying a repo boat from an auction.  Many repo boats are in excellent condition but are being sold at 20-40% of the original price.  Repo boats are boats that have been taken back by the bank when a borrower fails to make adequate payments.  Banks usually want to offload these boats as quickly as possible, thus the low prices.  Before you buy a boat from an auction, keep in mind that you are buying as-is – no guarantees, and no warrantees.  Do a thorough inspection of the boat before the bidding begins to make sure that the boat does not need significant repairs.  It is also a good idea to set a maximum bid before the bidding begins, to help you stay within your budget. 

Finally, if buying a used, salvage, or repo boat just sounds too risky, there are still ways to save money on a new boat.  You can find a cheap new boat simply by choosing when to make your purchase.  Start your search well before you want to use your boat, and try to purchase during the off season or during a model change-over period. You are more likely to get deals during these times.  Also ask the dealer about manufacturer’s rebates or discounts.  Another way to save money is to try to negotiate a lower interest rate.