In spite of the fact that we see some economic recovery banks are still struggling to manage the wave of repo boats and other water craft that they were unprepared to handle beginning mid 2007. Boat prices like home values are showing signs of recovery but boat buyers will still be able to find incredible bargains at local and regional boat auction houses as well as motivated owners. But that window of opportunity may not stay open long.
Bank Repo boat specialist, Jeff Henderson of Harrison Marine in a recent interview stated, "Banks are not in a position to wait one or two years to sell a boat. The bank's got to take it in the shorts," continues Henderson. "They [banks] have to lower their expectations for what they get for their boats." And lower their expectations for the sake ridding themselves of "non-performing assets" are what many banks are resorting to these days.
Years ago Jeff Henderson of Harrison Marine in an interview concluded that banks have got to "take it in the shorts" i.e. lower their expectations for what they can expect to get for a repo. That seems to be how banks have been managing to weather the storm of repossessed boats the past few years and even somewhat today.
Lending Institutions are in uncharted territory with the numbers of repossessions and their plummeting values, and are trying to figure out how to catch up. With repossessions reaching unprecedented highs, lenders are scrambling to unload the vessels in an already flooded market and fetch enough money to avoid taking a complete loss.
With this surplus of bank repossessions lenders aren't sure how to react with plummeting values and are shocked in terms of how to keep their head above water. The last economic recession in the late eighties you could at least sell your boat. Today that's not an inspiring option. It's a supply and demand issue right now while banks are taking the brunt of it while smart buyers are capitalizing on some of the best values ever seen.
When it comes to boat boat are "taking the hit" which translates to some attractive prices for buyers in the right place at the right time. Lenders are 'taking the hit' in other asset classes as well. As with boat owners, power sport vehicle owners are also defaulting on payments towards their ATV's, Motorcycles, RV's, Snowmobiles, and PWC's. In this current economic environment lenders simply have to concede and accept less for their repos or their stuck. As a result repossessed recreational vehicles and vessels are being let go at alarming prices as much as 20-60% of what they would cost new.
Bank Repo boat specialist, Jeff Henderson of Harrison Marine in a recent interview stated, "Banks are not in a position to wait one or two years to sell a boat. The bank's got to take it in the shorts," continues Henderson. "They [banks] have to lower their expectations for what they get for their boats." And lower their expectations for the sake ridding themselves of "non-performing assets" are what many banks are resorting to these days.
Years ago Jeff Henderson of Harrison Marine in an interview concluded that banks have got to "take it in the shorts" i.e. lower their expectations for what they can expect to get for a repo. That seems to be how banks have been managing to weather the storm of repossessed boats the past few years and even somewhat today.
Lending Institutions are in uncharted territory with the numbers of repossessions and their plummeting values, and are trying to figure out how to catch up. With repossessions reaching unprecedented highs, lenders are scrambling to unload the vessels in an already flooded market and fetch enough money to avoid taking a complete loss.
With this surplus of bank repossessions lenders aren't sure how to react with plummeting values and are shocked in terms of how to keep their head above water. The last economic recession in the late eighties you could at least sell your boat. Today that's not an inspiring option. It's a supply and demand issue right now while banks are taking the brunt of it while smart buyers are capitalizing on some of the best values ever seen.
When it comes to boat boat are "taking the hit" which translates to some attractive prices for buyers in the right place at the right time. Lenders are 'taking the hit' in other asset classes as well. As with boat owners, power sport vehicle owners are also defaulting on payments towards their ATV's, Motorcycles, RV's, Snowmobiles, and PWC's. In this current economic environment lenders simply have to concede and accept less for their repos or their stuck. As a result repossessed recreational vehicles and vessels are being let go at alarming prices as much as 20-60% of what they would cost new.
About the Author:
Get Access to Boat Auctions and Save! Buy any boat direct from auction and pay half of what your arrogant friends paid! Edgar has been searching for repo boats for sale across North America since 2003 and is editor for several recognized boat auction search sites.
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