Hurricanes come and go every year. In their wake these massive storms leave behind a multitude of damaged boats. These damaged boats are often sold at pennies on the dollar by individual owners or insurance companies or salvage companies. The question that comes to mind in light of that fact, “Is it a good deal to buy damaged boats?
The truth is, it can be a good deal because you can pick up the boat for a rock bottom price and then repair it for a fraction of what it would cost to buy the boat new. But is a bargain, damaged boat really right for you?
After a catastrophic hurricane, many boats are destroyed. They may be damaged beyond repair or completely sunk. However, other boats survive, even with significant damage. These boats are declared by claims adjusters and surveyors as Constructive Total Losses (CTL), similar to an automotive total loss, in which the estimated repair costs exceeds the actual value. The CTL designation means one of two things, the damage is truly too great or the owner didn’t insure the boat for the appropriate amount in the first place. In the case of the latter, the boat is likely a good deal and well worth the repair costs involved in bringing it back to life.
These damaged boats are typically sold at auction, though some may be sold via individuals who have purchased them at prior auctions. Though for novice boat lovers, repairing a boat damaged by a hurricane may seem daunting, the truth is that most can be repaired with great success. The question is, after all the associated costs and time, will the damaged boat still be a bargain?”
Here are some tips to help you determine if the hurricane damaged boat you’re looking at is a good deal for you. These are costs you’ll need to consider in addition to the bargain price you are paying for the boat:
What is the cost in both time and money if you are doing the repairs on your own?
How much will repairs cost if you are hiring a professional to the work for you?
How much will it cost you to transport the boat to your location for repair (or the location where the repair will take place)?
What is the cost associated with storing the boat until it can be transported, repaired or while you are making the necessary repairs?
If you are planning to do the repairs, will you need subcontractors to help with engine repair, electrical components, etc., and what is their costs?
Will you need additional tools (with added expense) to get the job done well?
These are just a few of the questions you will need to answer to determine if the hurricane damaged boat you have your eye on is a money pit or a good deal. If you determine it is a bargain for you, call on the experts at FMT Yacht Transportation for a fair price in moving your damaged boat from its point of origin to the repair sight.