Buying a Repossessed Yacht: Risks, Rewards, and How to Do It Right
Is it worth the look? Is it worth the survey? What can you do to make the most of the opportunity?
So you saw that killer deal on the market for the boat you really want, but, oh s***, it was repossessed. Is it worth the look? Is it worth the survey? What can you do to make the most of the opportunity?
We’ve all seen it in the auto market: more than 1.5 million vehicles were repossessed in 2023, climbing to 1.73 million in 2024, a 16% increase year-over-year and 43% higher than 2022. Projections suggest repossessions could hit 1.8 million or more in 2025, reflecting the squeeze of higher interest rates and inflation.
Marine finance is not different, as a matter of fact, it may be the most susceptible. Over the past three years, repossessions in our sector have been rising. The National Marine Lenders Association reports that delinquencies ticked up in 2022 and 2023, and while hard repo numbers aren’t public, lenders across the board are saying the same thing: repossessions are “way up”. Pair that with a 9% drop in new powerboat sales in 2024 (NMMA), and you’ve got affordability pressure spilling straight into defaults and recoveries.
In my ten years in the marine industry, I’ve never seen repossession activity at this rate. I’m on several listservs that circulate active repos, and the quality of boats coming through now is higher than ever. What used to be tired, low-value inventory has turned into late-model yachts and well-kept cruisers finding their way into custody. I hate to be blunt, but these shortcomings create real-world opportunity for those of you with cash. So listen up.
You may be salivating at the thought of buying your dream boat for 30-40% less than its retail sibling, but you also need to understand this is not a repossessed car, house or watch. When custodians claim boats, there’s no guarantee its not getting off the dock without a few new scratches, and there’s certainly no guarantee its maintained in the same polished, proactive manner.
The Allure (and the Reality) of a Repo Yacht
Let’s be honest: the attraction is price. A repossessed yacht can look like a bargain compared to traditional listings. But “cheap” often masks the real story. These boats may have sat neglected at a dock or yard for months. Custodians aren’t caretakers, they’re asset managers. Their job is to liquidate, not to love.
So when you look at a repo yacht, assume:
The engines haven’t been run or serviced.
The batteries are dead because the charger failed.
Hatches and storage areas haven’t been cleaned of salt water.
The repossession when south and there may be a few new love bumps on the hull.
Sometimes the owner hands the keys over politely; other times, the handoff is less graceful. Either way, your starting point should be “this is someone else’s problem, and it’s on me to decide if it’s worth solving”.
How the Purchase Differs From a Standard Deal
On the surface, buying a repossessed yacht follows the same path—offer, contract, survey, acceptance, closing—with a few wrinkles:
Are they listed publicly for sale?
Repossessions show up in public MLS listings, sometimes flagged as such, sometimes not. Other times they’re marketed quietly through custodians like National Liquidators or Rick Obey & Associates. A broker will usually know which is which.
What’s the deal with the survey?
Banks don’t always grant full survey access. But here’s the golden rule: if there’s any boat you go the extra mile on for surveys, it’s a repossession. And if there’s any boat you should walk away from if a survey isn’t possible, it’s a repossession. Unlike a house or car, yachts can hide catastrophic, hidden issues like no other asset on the planet.
What paperwork do I need?
After a repossession, banks are required to notify the owner (Notice of Repossession or Notice of Seizure), give them a chance to cure, and only then can they sell the asset. When you buy, you want to see the documentation proving the custodian has clear authority to act. If those papers weren’t executed properly, a jealous former owner could drag you into court. This is where an attorney—and a broker who’s been through it—earns their fee.
How Ownership Feels Afterward
Once the deal closes, ownership is just like any other yacht, except here we hope you’re smiling ear to ear with a sweet deal. You’ll register, insure, and operate her the same way. The difference is in your mindset. With a repossession, you’re inheriting deferred care. That means staying proactive: survey systems regularly, keep ahead of services, and assume problems will surprise you.
What Should You Do Next?
Repossessed yachts aren’t unicorns anymore, they’re showing up in real numbers, and some of them are surprisingly good boats. But every deal carries baggage. Titles need to be checked, systems need to be surveyed, and the story of how the yacht landed in a bank’s custody is always worth knowing.
That’s where experience matters. After a decade in this industry, I’ve learned that a repo can be either the smartest purchase of your boating life or the fastest way to drain your pocket. The difference lies in how you approach it.
If you’re considering stepping into this corner of the market, let’s talk. The opportunities are real, and the inventory is getting better, but you want someone by your side who knows how to separate a hidden gem from a polished headache.
ON THE HUNT FOR YOUR NEXT BOAT?
Let’s use the value-based approach in this artcile to find your next boat.
To get started, email me at Reed@RNMarine.com.
About the Author
Reed Nicol is a licensed yacht broker with experience in all corners of the marine industry. He’s worked as an executive and sales director in yacht manufacturing and distribution, has structured commercial charter operations, and designed and executed notable refits. Read more about Reed’s marine journey, his love of helping 1st time boaters and his entrepreneurial spirit here.
Reed Nicol [Licensed FL Yacht Broker #11926]
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