How to sell RV when you have a bank loan?

Bring the buyer with you to the bank and they can handle the transaction.

I have sold two vehicles that still had a loan on them.

1. Notified the Credit Union and they were ready when I came in with the buyer to pay off the loan and help us sign over the title to the buyer.

2. Dug into the "emergency" fund to pay off the loan before I met the buyer. After I was paid by the buyer, I replenished the "emergency" fund, then used the remainder to pay cash for my TC.

I don't agree that the guy's unit is worth less just because he has a lien on it, and he certainly doesn't have to sell at a discount to "induce a buyer to pay off his loan."

Somebody has to come up with the money to pay off the loan. To buy my RV, I came up with the cash as the buyer, essentially financed the transaction from my checking account. I took the risk,had the assets.

If the seller doesn't have the money, and the buyer needs to borrow the money, it gets complicated. This is where the business manager or finance manager at a dealership earns his keep, shuffling around money that may not yet be there, working to get two lenders working together.

Private party,someone with bigger pockets needs to trust someone who doesn't have the money. There is not a single best way, somebody has to agree to trust somebody else, depending on who has access to money. If nobody has the cash at hand, then somebody has to get the two lenders talking to each other; it happens, it is not always easy to make it happen.

I personally would pay off what I wanted to sell. Makes it easier on the buyer, enough to ask a premium on sale price. A buyer with cash reserves, or credit access, can work it the other way, I can bring the cash, want a discounted price. Dealers work this way, access to money is what lets them buy at trade-in, sell at retail.

So to sell,you need to be in abpositiontompay offthe loan before sale, or sell at a discounted price to induce a buyer to pay off the loan for you. If upside down, loan more than market value, it is not going to be easy, probably costing something to make a sale.

So why dont you call your bank and ask?

1) you want to call your lender and ask them if they have a physical title on hand or an electronic title. a) if a physical title, you'd go to the lender/bank negotiate the amount for sale, have the buyer payoff your loan and give you the difference; you'd get the title from the lender, sign off on the release of interest and release of liability and hand it over to the new owner.
b) if it's a electronic title, they don't have the title with them at the lender, once you pay them off, they will instruct the dmv to issue a title under your name at your current address, which you will receive in a week or two. In this case, you can ask them (lender) if they're willing to issue the title under another persons name and address. If not, you'll have to work out something in writing with the buyer so that both interests are protected to follow through with the sale while you're waiting for the title.

hope it helps and good luck with the sale.

Go Dogs wrote:
How to sell RV when you have a bank loan?

I would suggest you contact your lender and ask how they like to do it.

That works great if you are dealing with a local bank that can do the paperwork at the branch...many large banks and finance companies have centralized loan processing depts. that require mailing a check somewhere and them mailing bank the lien release.

I have sold several vehicles privately that still had a loan. When an interested party contacts me I tell them that I still owe on it and any exchange of money will happen at the bank so that I can immediately give them paperwork. I of course notify my banker ahead of time so he knows I am coming in and has it all ready to go.

You need to disclose to the buyer that there is a lien on the vehicle. For illustration, let's say the agreed sale price of the unit is $13,000, balance of loan is $10,000. Buyer delivers 2 checks to the seller, one payable to the bank or finance company for $10,000, one payable to the seller for $3,000. Seller should have a printout or fax or something from the lender to show the buyer what the exact lien amount is.

Buyer and seller sign a Bill of Sale and seller gives the title (showing the lien) to the buyer. Once the seller receives the lien release, he delivers to the buyer so the buyer can register the vehicle.

This protects the buyer and seller by ensuring that the lien is paid, and the buyer holds the title while that process takes place. Making the check for the lien amount payable to the lender enables the buyer to give that check to the seller without fear that the seller will pocket the cash.

Seller should maintain insurance on the vehicle until the lien has been been paid and the lien release delivered to the buyer.

Friend bought a hi-dollar Class A like this and US Bank was the lienholder. They agreed to act as escrow agent in the deal, taking full purchase price from the buyer, re-registering the vehicle on behalf of the buyer, and remitting the difference back to the seller. Was nice that they offered to do that, it gave both buyer and seller confidence that a trusted 3rd party was protecting the interests of both.