Mass Maritime Academy Auction

[SOUNDBOUNDER]

I have no vested interest in this....just wanted to pass it along.

Mass Maritime Academy 2011 Boat Sale
Used sail and powerboats up for grabs at the 2011 sealed-bid auction held by Massachusetts Maritime Academy’s (MMA) boat donation program. The sale will take place this November 19 and 20 at the Massachusetts Military Reservation on Cape Cod
Video: Mass Maritime Academy 2011 Boat Sale Preview | BoatingLocal.com

list of inventory:
http://www.maritime.edu/apps/boats/

[mm2187]

Purchased my boat there. Highly recommend at checking it out.

[Minnewaska]

I wasn't sure I followed how this works, since the inventory list shows prices. However, watching the vid indicates they expect to get about $13k for the Bertrum that is on the inventory for $17.9. My rough estimate was that the prices on the inventory were about market, whatever that is these days. Buying as is, where is, I might expect more than a 20% discount. Unless, of course, their reputation is for screening boats and ensuring they are in good mechanical and structural condition.

[mm2187]

Those prices are suggested....it is a sealed bid auction so bit what you feel comfortable bidding given the boat and what you see, that being said there are reserves on what they will be sold for.

[sailingfool]

These boats are here because the tax credit the donating owner gets is of greater value than what the owner could realize in a sale, as generally the boats are beaten and broken, and are worth a shadow of the book market price.

The "asking" price is usually 25%-50% of book price and to my knowledge, the school is happy if they get half the asking price. I firmly believe a buyer would get no bargain with these boats, even if they were free.

[mm2187]

I am no expert but I believe the tax credit given to the donor is only what the boat sells in many cases. These boat sails have come along way in the past 5 years.

Unless you are GIVEN a brand new boat no boat is a bargan!

[SOUNDBOUNDER]

Originally Posted by sailingfool

generally the boats are beaten and broken, and are worth a shadow of the book market price.

That's true in a lot of cases, but I've noticed some of them now are no longer interested in beaten-down clunkers.

[Minnewaska]

The vid does say they have painted several of them. Lipstick on a pig? Who knows.

The donors will only get a deduction for whatever their boat actually sells for. The old scam of deducting full market value for a clunker is no longer allowed. Therefore, the tax savings on the actual sale value has to be a fraction of what they could have theoretically sold it for themselves. I think the leveler is the storage and holding costs of waiting for a sale as opposed to a relatively quick auction. Also, I'm sure many are just motivated to help the charity.

If you are skilled at knowing what you may have to do to bring auctioned boats up to your standard, I think you can do well.

[sailingfool]

Originally Posted by mm2187

I am no expert but I believe the tax credit given to the donor is only what the boat sells in many cases. These boat sails have come along way in the past 5 years....

There are exceptions to that rule that knowledgeable charities can use to provide the type of tax benefits that used to exist in the past.

Here is the relevant paragraph from the MMA donation page http://www.maritime.edu/index.cfm?pg=508:
"Benefits of Donating Your Boat to MMA

- Excellent opportunity for a tax-deductible gift that benefits the Academy.
- Eliminates the time, effort and expenses (maintenance, storage, insurance and broker's fees)
- Your income tax deduction is based on fair market value as established by a qualified appraiser.
- Your donation will greatly enhance our Marine Development Program."

I would bet the survey is quick and simple, and the boat value comes right out a book, even if there are no sails and the engine may not run...

As to the chance of a good deal, my advice remains that the best you can hope for when buying a boat is to get what you pay for...

The cheaper the boat is compared to similar models, the more likely that a typical buyer will get screwed in the deal. If someone hasn't rebuilt a boat....new engine, electronics, deck core, painting, wiring, rigging, etc, our regular life experiences just dont come close to preparing one for what all this stuff costs...even if you do most of the work yourself.

[Minnewaska]

Watch the vid on their website. They make it clear that only IF they actually use the boat in their fleet for a minimum of three years are you able to deduct the appraised value. Otherwise, if they auction it, you get the sale price as a deduction.