While the auctioneer was droning through his "I-got-five-gimme-six-gimme-six" spiel, I'd sauntered off to the far side of the dusty auction lot where I was inspecting an even dustier runabout. Glancing back, I saw what looked suspiciously like my auction card number being held aloft to bid. Deciding that I'd better check this out, I saw that the auction card was attached to what looked even more suspiciously like my wife.

As I slid breathlessly to a stop next to her, the auctioneer banged his gavel and said, "Sold to the pretty lady who's gonna have to explain it to the man next to her."

"What," I asked with great calm, "did you just buy?" I remember thinking that I seemed to be very under control, although she now claims I wasn't.

"Remember that Donzi we looked at first?," she said innocently. And that, folks, is how my wife acquired a 23-foot Donzi in good condition, including two freshly overhauled Ford 302 engines, a two-axle trailer, a new boat cover and crates of parts for ... $500.

Anyone who says they can't afford the boat of their dreams has obviously never been to an auction. Boat auctions are held for several reasons but most are the result of boats being donated to non-profit organizations such as charities or colleges, which then sell the boats for amazingly low prices. There are also auctions where banks sell off repossessed boats, but those tend to be far more expensive.

Finding An Auction

There are sometimes ads in local boating publications for these events, such as the one at Orange Coast College in Southern California where we (she) acquired the Donzi. But many auctions are held almost unannounced and unknown except to those few insiders who have tracked them down. The Long Beach Marine Bureau, for example, auctions off boats that have been impounded for non-payment of slip fees, but you have to call the Bureau to find out the annual auction date.

A good starting point is to watch for ads encouraging boat donations — these are a dead giveaway of a group that probably auctions boats. Call your harbor department, a nearby college, the Sea Scouts, or try some of the local charities. It may take some phone work, but you're likely to turn up an auction or two.

How Auctions Work

Each auction is handled differently but, in general, you have to show identification to register and receive a bidding number to participate. In some cases, you are required to post a deposit but, for most small boat auctions, you simply fill out a form and get a number.

Payment is usually required at the end of the auction, but many auctions will allow you to pay either by check or credit card. Since we're obviously not talking really big dollars here, that means you don't have to carry a wad of bills in your pocket.

The bidding process also varies, but generally an auctioneer stands on an elevated platform (sometimes on the boat itself) and does his "gimme-gimme" chant. To bid, you raise your auction card with your number so that he or his spotters can see it.

If you're the successful bidder, you'll go to an on-site office nearby to make the payment and arrange to take possession of your new boat. In most cases, you have to remove the boat that day, although you may be able to make arrangements if the boat is larger or you need to borrow a suitable tow car.

But before you start picturing a new boat in your driveway, there are some caveats to keep in mind at a boat auction:

  1. Do your homework. Get a list of the offerings beforehand and, since most auctions have preview days, visit the auction site to actually inspect the boats. That gives you a chance to see which boats are of interest so you can check on the realistic "street" value. By using a marine "blue book" that you can find at your bank or insurance agent, you can get an average price range, and talking to boat dealers is also valuable because they may know of problems with a certain model. Check the classified ads to see what similar models sell for on the open market, and use all this input to guide your bidding.

  2. Every auctioneer not only knows about "buying frenzy," but actively encourages it. It's very easy to get so caught up in the bidding that you can soar past a reasonable price and end up with an overpriced purchase. That's why you did your homework beforehand, and experienced buyers at an auction always start with a mental ceiling beyond which they won't bid. There is a fine line between value and desire, and "auction fever" is only for the innocents. Tell yourself firmly that a certain boat is worth X dollars and not a penny more, and don't allow yourself to creep past that limit.

  3. Expect nothing. Auction boats are sold "as-is," and the caveat emptor phrase really applies at auctions. Assume that the engines don't work, that the outdrives are seized, and that any electronics are rusted solid. There are no warranties for an auction boat so, if you assume the worst, you can only be happily surprised.

  4. Know what you're getting. In the case of our Donzi, the engines weren't in the boat, so I (like most of the other bidders) had assumed that no engines were included. My wife, however, had tracked down the auctioneer and found that not only were zero-hour engines included, but so was the trailer. Read the published description of each auction item carefully, because that's exactly what you'll buy. If the listing doesn't mention a trailer, there isn't one. If it doesn't mention electronics, there aren't any.

  5. Don't let dust scare you. Our Donzi was filthy because it had been left uncovered for several months before the auction. Underneath that grime, however, was a hull without blemishes that could easily be buffed to a shine. Auctioned boats routinely are dirty and have their bilges half-filled with scummy water. Look past the grime and check for damage or poorly done repairs.

  6. Why was the boat donated? In the case of our Donzi, it had belonged to a man who bought it new years ago but no longer wanted a sportboat. The local college offered him a sizable write-off on his taxes for the donation, and we picked the boat up for a song. Many donated boats are in great condition, but I've found that bank repos and lien sales tend toward the rough end of the scale. In those cases, a boat worth $6,000 may need $5,000 worth of repairs, so the boat owner simply hands it back to the bank. If an owner has abandoned a boat rather than pay a $500 dock charge, that's usually exactly what it's worth. Be wary and find out what you can beforehand.

  7. Why is no one bidding? If there is no interest in a particular boat, ask yourself what the other bidders know that you don't. They may have spotted hull damage or a seized engine, or they may know that the boat just isn't worth the effort or cost to buy and restore. On the other hand, we have a Donzi because the other bidders dropped out early.

  8. Don't overbuy. Just because you can buy that 35-foot cruiser at an auction doesn't mean that you can afford it. Remember that bigger boats mean bigger costs: insurance, mooring, maintenance and taxes. As experienced boat owners know, the purchase price for any boat, new or auctioned, is just a starting point.

  9. Know the repair costs beforehand. If you've diligently inspected a boat that interests you, you may have found, for example, that it has a broken windshield or that the seats are missing or that the steering system was removed but never replaced. Talk to shipyards and boat dealers to find out what your repair cost will be, and factor that into what you bid for the boat. Older boats, and particularly those from defunct manufacturers, can present major problems if you need parts such as windshields or other custom equipment. If you're reasonably handy, you can do much of the work yourself, but replacing an engine with a cracked block is still going to be expensive.

  10. Make sure before you bid that someone — auction company or the non-profit organization — will provide you with clear title to the boat and trailer. Simply receiving a bill of sale can send you on a frustrating odyssey through bureaucratic channels to get the necessary pink slips.

As a last piece of advice, if you find yourself getting caught up in the bidding frenzy, start humming the refrain from Kenny Rogers' song, The Gambler: "Know when to hold 'em, and know when to fold 'em."

Smart auction buyers will always fold on more boats than they hold.