How to sell RV when you have a bank loan?
Sorry, I know I should already know this, but I'm not sure. Could someone explain the best way to sell a used TT to a private party when the owner still has a loan on it? Thank you very much.
Forum Discussion
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.
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.
