3 charter yachts being auctioned at Largs

[Tomaret]

Very sad. Saw the boats out with people enjoying their holidays just a few weeks back (Phoenix did Largs to Iona and back recently).
Nice boats for somebody. But surely they would get much more for them if sold through somebody like Euroyachts of Largs, who is the dealer for that marque and presumably supplied them in the first place. A generic auction house will realise much less value.

Each of the two remaining yachts is subject to an undisclosed reserve price. This might be close to what you might think is their true value.

 

[ylop]

Each of the two remaining yachts is subject to an undisclosed reserve price. This might be close to what you might think is their true value.

Their value at auction will “never” be as high as their “true” value on the open market where surveys, sea trials, etc take place. The liquidator will have set the reserve at a price he expects them to sell at - last thing he wants is them racking up winter fees at Largs. All he really cares about is covering his fees and the secured debt.

 

[dunedin]

Their value at auction will “never” be as high as their “true” value on the open market where surveys, sea trials, etc take place. The liquidator will have set the reserve at a price he expects them to sell at - last thing he wants is them racking up winter fees at Largs. All he really cares about is covering his fees and the secured debt.

Really just the bit in bold, I fear - getting maximum value for unsecured creditors doesn't often feature very highly (in my recollection).
The berthing will likely be an annual fee, so no cost until renewal date.

 

[ylop]

Dunedin - yes, I did say secured creditors - given their were charges on the boats! They don’t really care about them either - but they must think they are worth more than the outstanding debt or they’d have passed the buck!

 

[Tranona]

Really just the bit in bold, I fear - getting maximum value for unsecured creditors doesn't often feature very highly (in my recollection).
The berthing will likely be an annual fee, so no cost until renewal date.

The marina may well be one of the unsecured creditors.

 

[mrming]

The last UK asking price for a Sun Odyssey 349 I saw was £99,950 for a 2018 boat. I’ve also seen a 2018 boat for €109,900 in Split and a 2017 example for €103,900 in Germany. So that gives an idea of a typical asking price for a decent one of those.

 

[nevis768]

The last UK asking price for a Sun Odyssey 349 I saw was £99,950 for a 2018 boat. I’ve also seen a 2018 boat for €109,900 in Split and a 2017 example for €103,900 in Germany. So that gives an idea of a typical asking price for a decent one of those.

Asking price is often a long way short of selling price....

 

[jbweston]

Really just the bit in bold, I fear - getting maximum value for unsecured creditors doesn't often feature very highly (in my recollection).
The berthing will likely be an annual fee, so no cost until renewal date.

The challenge is of course what is 'maximum value'. For many creditors, something definite now is better than maybe-more-maybe-not-more after a long drawn-out sale process that inevitably leads to extra expenses of storage of the asset, insurance and administrators' staff time.

The whole point of an auction sale is that it gets the asset sold and the money in quickly with no faffing about. And it's a public sale, so it's transparent and gets the best price for an immediate cash sale. If you or I think the asset is worth more to us than the current highest bidder we're welcome to bid more.

When you or I sell a boat privately or through brokers we put up with the faffing about and delay in return for a better price - we hope.

And of course when businesses go bust, creditors lose money. If there were enough money to pay everyone, the business wouldn't have had to go into administration. A failed business is sad for all concerned - creditors, any staff and usually the business owners too.

 

[Tranona]

Asking price is often a long way short of selling price....

So the selling price may be higher than the asking price?

There is no asking price in an auction. Post#26 is just giving an idea of what similar boats might fetch to a retail buyer - and with relatively new boats like these the actual selling price is likely to be close.

The auction boat is not VAT paid and there is a buyers premium of 10%+VAT so would expect a hammer price of between £60-70k to give a sailaway price of £80-90K,

 

[Mark-1]

If people think these boats are being sold at substantially under market value maybe buy them both and sell them fast and pocket the profit.

And if people can't think of a way to achieve that for a reasonable effort then most likely they're being sold close enough to their 'real value'.

Can someone local tell me what happened to Muir (and his Brother who, I think, owned Kiwi)? Is he still involved in the business? I thought he sold up years ago and I hope he's enjoying a happy retirement somewhere.

 

[jbweston]

If people think these boats are being sold at substantially under market value maybe buy them both and sell them fast and pocket the profit.

And if people can't think of a way to achieve that for a reasonable effort then most likely they're being sold close enough to their 'real value'.

. . .

Provided the auction is adequately publicised and properly conducted what they sell for is 'market value'. In fact technically it's usually a little more because there was no-one else in the world prepared to pay as much as or a pound more than the winning bidder paid.

Obviously if someone intends to buy them and add value, for example by carrying out repairs or improvements, or moving them to a place where people will pay more, or by being prepared to wait until Mr/Ms Right comes along, or whatever, they may be able to sell them for more than they paid at auction. But 'market value' (in the condition and on the terms offered at auction i.e. cash on the nail, VAT unpaid, buyer's premium owed) is the winning bid.