Selling Your Boat Via Auction In New Zealand - A Comprehensive Guide
Selling your boat can be a daunting task. The traditional method is to engage a boat broker. Brokers provide an excellent service and remove the hassle for the seller. They take care of advertising, purchaser queries, sea trials and the transfer of ownership including obtaining payment. However, Private Listings and Online Auctions are alternatives that can have their own benefits for the right seller.
The Three Ways to Sell a Boat in New Zealand
- Using a Boat Broker: Brokers provide an excellent service and remove the hassle for the seller. They take care of advertising, purchaser queries, sea trials and the transfer of ownership including obtaining payment. The trade-off is commission, usually 7 to 10% of the sale price.
- Listing Privately: Sellers who want to save the broker commission can choose to list their boat privately on one of the major New Zealand boating websites, such as BoatsOnline, Boatsales or YachtHub. However, the sale process can be time-consuming and frustrating, especially for first-time sellers. If you want to list with Boatsonline, New Zealand's Largest Used Boating Marketplace, click here for more information.
- Selling via Online Auction: A third selling alternative is to sell via online auction. There are a number of online auction platforms operating in New Zealand, including Marine Auctions, Grays, Pickles, Manheim and Lloyds. Traditionally these platforms have tended to deal with “distressed” assets and have a reputation for primarily dealing with the “bargain” end of the market.
As at February 2024 the following number of boats were listed for auction in New Zealand:
- Pickles – 18
- Grays – 15
- BoatsOnline – 8
- Lloyds – 7
- Marine Auctions – 6
- Manheim – 5
Based on the above numbers there are approximately 50 boat auctions per month in New Zealand.
Advantages of Boat Auctions
Fixed End Date: Auctions offer a fixed end date to hopefully achieve the best price in the shortest possible time. Provided your boat has reached the majority of prospective buyers, the bidding process should achieve the best possible price at any point in time.
Creates Competitive Tension: Auctions operate on transparent bidding processes, allowing buyers and sellers to witness the price of the boat in real time. The desire to “win” can create competitive tension, leading to higher prices, especially once the reserve price has been met.
Ease of Sale: Generally, the auction platform takes care of the marketing, showing and transfer of the boat, including payment. If the boat does not sell at auction, fees are generally low and it is back to the traditional sales channels.
Disadvantages of Selling a Boat via Auction
Fragmented Marketing: It is currently difficult to reach a majority of prospective purchasers through auction platforms. Each individual auction website presents a fragmented marketing campaign that does not reach a majority of prospective boat buyers, and each platform runs its own active auctions and marketing campaigns, making it difficult for buyers to easily locate upcoming auctions.
Fees and Commissions: Auction platforms charge a range of fees, including sellers commission, buyers commission and listing fees. In general, the total commission will range from 10% to 20% of the sale price. Some platforms offer a “no sale no fee” option, so be sure to do your homework before selecting an auction platform.
Limited Pre-Purchase Inspection Access: It can be difficult to access the boat prior to auction to conduct detailed inspections. There can be limitations on running the motor, and sea trials are generally not possible. Pre-purchase inspections are a key part of taking the risk out of any purchase, so buyer beware.
Is Selling via Auction the Right Choice for You?
Boat auctions have the potential to offer an efficient alternative to established online listing services. For time-constrained sales, they are probably the best option. However, in order to complement the existing online boating websites such as BoatsOnline, Boatsales and YachtHub, with their 10,000+ listings, more work is necessary. In particular, coordinated marketing by the various auction platforms and better access to boats to conduct pre-purchase inspections, including sea trials, is required.
Frequently Asked Questions
What is the difference between selling a boat via broker, private listing and auction?
A broker manages the entire sale process, including advertising, enquiries, sea trials and the transfer of ownership, for a commission of around 7 to 10%. A private listing on a site such as BoatsOnline, Boatsales or YachtHub avoids that commission but puts the work of managing buyer enquiries and the sale process on the owner. Selling via auction sets a fixed end date and lets the platform handle marketing and transfer, but typically involves total commissions of 10 to 20% and limited pre-purchase inspection access for buyers.
How many boats are sold at auction in New Zealand each month?
As at February 2024, approximately 50 boat auctions were taking place per month across the major New Zealand auction platforms, including Marine Auctions, Grays, Pickles, Manheim and Lloyds.
What fees should I expect when selling a boat at auction?
Auction platforms charge a range of fees, including sellers commission, buyers commission and listing fees. Total commission generally ranges from 10% to 20% of the sale price, though some platforms offer a “no sale no fee” option. It is worth comparing platforms carefully before committing.
Can buyers inspect a boat or do a sea trial before bidding at auction?
Generally, access is limited. It can be difficult to inspect the boat in detail prior to auction, there can be restrictions on running the motor, and sea trials are usually not possible. This is one of the main trade-offs of buying or selling at auction compared with a traditional listing or broker sale.
Is selling a boat at auction a good option if I need a quick sale?
Yes. Auctions offer a fixed end date, which makes them well suited to time-constrained sales. The transparent bidding process can also create competitive tension between buyers, which may help achieve a strong price within a known timeframe.
Related Reading
- Why Use a Boat Dealer or Broker?
- How Can I Sell My Boat Online?
- Sell Your Boat for Free
- Selling Your Boat: Tips for a Better Ad
- I Sold My Boat: Checklist of Things to Do
- Selling a Boat in Sydney, NSW and Surrounding Areas
- What Is a Sea Trial and Why Is It Important?
- Staying Safe Online
February 2024
