Hello,I am thinking of buying a used Class A diesel in another state. The amount is on the order of $140,000.There is a lien on the RV about equal to the sales price. What is the best way to do this transaction?I could wire the money to the seller or I could take a Cashiers check and wait three days until it cleared.Either way, once the seller has the money, how do I guarantee he pays off the loan and signs the title over to me?Do I need to go through an escrow company?I am sure I am not the first person in this situation. What is the normal procedure?Thank you,Gridley

go with the owner to the bank or whom every the loan is with. Pay off the loan and he /she signs off on the title. Talk to the whom every you are giving the money to , so they understand whats going on.

MountainAir05 wrote:go with the owner to the bank or whom every the loan is with. Pay off the loan and he /she signs off on the title. Talk to the whom every you are giving the money to , so they understand whats going on.x-2 Its the safest way to ensure everyone knows whats going on. If there is no note, tell the other party its to get a notarized Bill of sale.

Call the lien holder. Do not make a check out to the seller! Sounds like s scam.IMHO Make a cashiers check out to the lien holder. If the seller try to cash it he is committing fraud.

X3 on dealing with the lien-holder. If the seller isn't alright with that, then the seller is not being up front with you.

The lien holder either has the title or is the ONLY one that can release the title to the seller to sign it over to you. Write a contract with the seller, explaining the exact final selling price than contact the lien holder to make arrangements to wire transfer the loan balance funds to the lien holder to release the title. After the title is released, give the seller his balance and then he will sign the title over to you. Basically a pretty simple process.

Best way to transfer funds on private RV sale | Good Sam Community

20 Replies

tropical36
Explorer
Aug 04, 2017
Gridley wrote:
Hello,

I am thinking of buying a used Class A diesel in another state. The amount is on the order of $140,000.

There is a lien on the RV about equal to the sales price. What is the best way to do this transaction?

I could wire the money to the seller or I could take a Cashiers check and wait three days until it cleared.

Either way, once the seller has the money, how do I guarantee he pays off the loan and signs the title over to me?

Do I need to go through an escrow company?

I am sure I am not the first person in this situation. What is the normal procedure?

Thank you,

Gridley

We always completed these transactions at or through the bank holding the lien and the only way, I'd feel safe in doing so. Especially if the title is somewhere else and is going to take awhile, getting back to you.
We bought a Corvette that way once, with all present at the bank. The seller left with nothing.
Bird_Freak
Explorer II
Aug 03, 2017
Meet him at his bank or yours. Have your bank transfer funds to pay off balance while you both are there and have lean holder send title to you. Very easy to do and no waiting for checks to clear. I did this with the last classic car we bought.
Dennis12
Explorer
Aug 03, 2017
Send me the money, (Preferred cash transaction will be quicker). I'll take care of it for you. I promise.
msmith1199
Explorer II
Aug 03, 2017
Going to the bank that holds the lien is a great idea except that many, if not most, rv loans are not held by banks. And odds are they won't have a physical location you can go to.
katoomer
Explorer
Aug 03, 2017
I purchased our coach in a similar situation. Private sale, 2500 miles away with the lien being held by a bank in a different state than where the seller had the coach registered. Selling price was similar. I hired a lawyer in the state where the seller lived. He handled the transfer of funds.
I think I paid about $900 for legal fees. Small price to pay for piece of mind.
Captain_Happy
Explorer
Aug 03, 2017
Here's how I did it. You and the owner both go to his bank. Get with an officer of that bank to get all the information. Call your bank and have a money transfer from your bank to his bank while your right there. Once the loan is paid off, you get the original title. Now go to the local county court house and have the title transfer into your name. If the owner doesn't want to do that, take a walk.
georgelesley
Explorer
Aug 03, 2017
I have done similar things recently. Have your bank talk to his bank. They will arrange it. Get out of the middle.
wa8yxm
Explorer III
Aug 03, 2017
If there is a lein on the RV then the best way is to take a certified check to the LEIN HOLDER made out to the current owner AND the Lein Holder.. Present the check in the Lein Holder's office and have the lein holder notorize (They should have one on staff) the seller's signature, also present a discharge of lein which you can then take to DMV so you can register in your name.

At least that would be my suggestion.. But I am not a lawyer. I do not even pretend to be one on the internet..

For better answere.. Consult one.
MrWizard
Moderator
Aug 03, 2017
msmith1199 wrote:
MrWizard wrote:
have your bank call the lien holder bank
if its a liget deal
you take a check to the lien holder bank and have the seller meet you there
the bank gets the check the seller and bank sign off
the RV is yours, the paperwork is yours
that bank will give the seller the left over balance, aka payoff 130,000
sale is 140,000 dif is 10,000

if they don't agree, run away from the deal

Nothing is over that quickly anymore if you're using a check. Other bank is not releasing the title until that check clears. The owner of the motorhome would be crazy to let you have the motorhome until the check clears.

yes .. with a cashers check, when you get the banks involved to began with

you might have to wait for the title in the mail
but you you will leave with a legal bill of sale and the keys
just like driving off the dealers lot
dave17352
Explorer
Aug 03, 2017
chuckftboy wrote:
I purchased a motorhome from someone out of state and they had a loan on it but I was paying cash.
I simply made a loan to purchase it through my credit union. My credit union then paid the owners loan off and two weeks later when my credit union recieved the title, I paid off my loan and got the title.
The safe way is to do it through a bank or credit union.

I never heard of doing things this way but sounds pretty darn safe!