Sales Hints

[DunnInn]

When selling your RV, what did you require from the driver before allowing them to drive the unit? When it came time to close on the rv, did you go to a bank to do the closing or what? How did you make sure the funds were valid? What about transfer of the title? I read somewhere a horror story about someone who sold their rv and the new people didn't transfer the title and something happened to the coach and the former owners got stuck with some expenses and a law suit. Definitely want to avoid that!!

[ferndaleflyer]

It don't have to be complicated----several "experts" on here don't know what they are talking about.

[JoeH]

When I sold our last RV, the buyer never even started the engine ! Looked at the coach and offered me what I wanted. He had a big bag of cash... all $20 bills. Wow.... I said lets go to my bank... they had a macine that counted and checked the bills.... I wasn't about to count out thousands of $'s in 20's . Anyway, turns out the bills were ok and once the funds were deposited in my account, I signed over the title. Very unusual situation.

[gonesouth]

Just a small note. When
i bought my first motorhome in 2003 in Connecticut they had no temporary permits and either you brought your own plate or borrowed the selling owner's plate. You needed your own insurance. you had to have written permission from the plate owner to use it.

and don't cross Massachusetts. They don't recognize paper plates and since you are therefore driving an unregistered vehicle, you must not have insurance and your vehicle is seized and you go directly to jail.

So plan to drive around Mass and not through it!

[RetiredRealtorR]

JALLEN4 wrote:

A1ARealtorRick wrote:

JALLEN4 wrote:

A1ARealtorRick wrote:

DrewE wrote:

A1ARealtorRick wrote:
For them to drive it (even with you in the vehicle) make a copy (or picture) of their driver's license and their proof of insurance, because if something happened while your prospective buyer was driving it, you want HIS insurance to be primary, not yours.

I'm not an insurance agent, but I think as long as it's your vehicle and the other driver is driving it with your permission, your insurance is going to be primary. I cannot see how photographing an insurance card of the driver's for some other vehicle isn't going to matter one bit in the case of a crash; and as a buyer I'd be very put-off if the seller required me to provide them with a binder for a vehicle I hadn't even committed to purchasing or even made an offer on yet.

I haven't read the policy recently, but I think I remember my own car insurance only covers me in another vehicle to the extent that no other policy would be applicable. If I were test driving your RV and you had no insurance, it would appear to cover me in that situation; but if you had insurance, it would not cover whatever your insurance does cover.

Nope, his will be. Been there -- done that.

Yes, having a copy not only assures you he has both a DL and insurance, but contains information you might need in the unlikely event something happened. Again, been there -- done that.

And who said anything about a binder? If you're calling the DL/insurance card thing a binder, you've obviously not test driven anything at a dealership recently. (They won't ask you for an insurance card necessarily, but they WILL ask you to produce a DL, and yes, they'll make a copy of it).

Dealerships ask for a license and copy it because they number one want to make sure it is a licensed driver operating their vehicle and as a theft prevention in case it all goes upside down. One would be surprised how often a theft takes place on a "test drive". It does not transfer primary responsibility to the consumer. As a dealer, you cannot void your ownership and potential liability. This is why you buy Garage Owners Liability for a huge yearly premium.

When we speak of "Been there...Done that" my opinion comes from four decades of owning/operating multiple new car dealerships, working with attorneys to set demo policies, and purchasing insurance yearly for all of the above.

I appreciate your input based on your history in the business. I, too, spent a while in the automobile business ... right at 30 years to be exact (Real Estate overlapping in the final years of it). I managed a multi-line highline dealership for a number of years before starting my own dealership with my son. So, I know how it works. I've worked with attorneys, set policies, bought plenty of (usually overpriced) insurance, and had my share of experiences with customers damaging cars, and even one theft (only one thank goodness). So I'm not speaking off the cuff, but rather as a result of real life experience. We sold the dealership including all the real estate in 2013.

Simply Google "primary insurance carrier on dealership test drive". The results are not ambivalent. Or, you can call NADA Legal, if still a member, and they will be happy to address the issue.

OP is an individual, not a dealer. I also know insurance laws for individual coverage can vary state to state.

[JALLEN4]

A1ARealtorRick wrote:

JALLEN4 wrote:

A1ARealtorRick wrote:

DrewE wrote:

A1ARealtorRick wrote:
For them to drive it (even with you in the vehicle) make a copy (or picture) of their driver's license and their proof of insurance, because if something happened while your prospective buyer was driving it, you want HIS insurance to be primary, not yours.

I'm not an insurance agent, but I think as long as it's your vehicle and the other driver is driving it with your permission, your insurance is going to be primary. I cannot see how photographing an insurance card of the driver's for some other vehicle isn't going to matter one bit in the case of a crash; and as a buyer I'd be very put-off if the seller required me to provide them with a binder for a vehicle I hadn't even committed to purchasing or even made an offer on yet.

I haven't read the policy recently, but I think I remember my own car insurance only covers me in another vehicle to the extent that no other policy would be applicable. If I were test driving your RV and you had no insurance, it would appear to cover me in that situation; but if you had insurance, it would not cover whatever your insurance does cover.

Nope, his will be. Been there -- done that.

Yes, having a copy not only assures you he has both a DL and insurance, but contains information you might need in the unlikely event something happened. Again, been there -- done that.

And who said anything about a binder? If you're calling the DL/insurance card thing a binder, you've obviously not test driven anything at a dealership recently. (They won't ask you for an insurance card necessarily, but they WILL ask you to produce a DL, and yes, they'll make a copy of it).

Dealerships ask for a license and copy it because they number one want to make sure it is a licensed driver operating their vehicle and as a theft prevention in case it all goes upside down. One would be surprised how often a theft takes place on a "test drive". It does not transfer primary responsibility to the consumer. As a dealer, you cannot void your ownership and potential liability. This is why you buy Garage Owners Liability for a huge yearly premium.

When we speak of "Been there...Done that" my opinion comes from four decades of owning/operating multiple new car dealerships, working with attorneys to set demo policies, and purchasing insurance yearly for all of the above.

I appreciate your input based on your history in the business. I, too, spent a while in the automobile business ... right at 30 years to be exact (Real Estate overlapping in the final years of it). I managed a multi-line highline dealership for a number of years before starting my own dealership with my son. So, I know how it works. I've worked with attorneys, set policies, bought plenty of (usually overpriced) insurance, and had my share of experiences with customers damaging cars, and even one theft (only one thank goodness). So I'm not speaking off the cuff, but rather as a result of real life experience. We sold the dealership including all the real estate in 2013.

Simply Google "primary insurance carrier on dealership test drive". The results are not ambivalent. Or, you can call NADA Legal, if still a member, and they will be happy to address the issue.

[RetiredRealtorR]

JALLEN4 wrote:

A1ARealtorRick wrote:

DrewE wrote:

A1ARealtorRick wrote:
For them to drive it (even with you in the vehicle) make a copy (or picture) of their driver's license and their proof of insurance, because if something happened while your prospective buyer was driving it, you want HIS insurance to be primary, not yours.

I'm not an insurance agent, but I think as long as it's your vehicle and the other driver is driving it with your permission, your insurance is going to be primary. I cannot see how photographing an insurance card of the driver's for some other vehicle isn't going to matter one bit in the case of a crash; and as a buyer I'd be very put-off if the seller required me to provide them with a binder for a vehicle I hadn't even committed to purchasing or even made an offer on yet.

I haven't read the policy recently, but I think I remember my own car insurance only covers me in another vehicle to the extent that no other policy would be applicable. If I were test driving your RV and you had no insurance, it would appear to cover me in that situation; but if you had insurance, it would not cover whatever your insurance does cover.

Nope, his will be. Been there -- done that.

Yes, having a copy not only assures you he has both a DL and insurance, but contains information you might need in the unlikely event something happened. Again, been there -- done that.

And who said anything about a binder? If you're calling the DL/insurance card thing a binder, you've obviously not test driven anything at a dealership recently. (They won't ask you for an insurance card necessarily, but they WILL ask you to produce a DL, and yes, they'll make a copy of it).

Dealerships ask for a license and copy it because they number one want to make sure it is a licensed driver operating their vehicle and as a theft prevention in case it all goes upside down. One would be surprised how often a theft takes place on a "test drive". It does not transfer primary responsibility to the consumer. As a dealer, you cannot void your ownership and potential liability. This is why you buy Garage Owners Liability for a huge yearly premium.

When we speak of "Been there...Done that" my opinion comes from four decades of owning/operating multiple new car dealerships, working with attorneys to set demo policies, and purchasing insurance yearly for all of the above.

I appreciate your input based on your history in the business. I, too, spent a while in the automobile business ... right at 30 years to be exact (Real Estate overlapping in the final years of it). I managed a multi-line highline dealership for a number of years before starting my own dealership with my son. So, I know how it works. I've worked with attorneys, set policies, bought plenty of (usually overpriced) insurance, and had my share of experiences with customers damaging cars, and even one theft (only one thank goodness). So I'm not speaking off the cuff, but rather as a result of real life experience. We sold the dealership including all the real estate in 2013.

[JALLEN4]

A1ARealtorRick wrote:

DrewE wrote:

A1ARealtorRick wrote:
For them to drive it (even with you in the vehicle) make a copy (or picture) of their driver's license and their proof of insurance, because if something happened while your prospective buyer was driving it, you want HIS insurance to be primary, not yours.

I'm not an insurance agent, but I think as long as it's your vehicle and the other driver is driving it with your permission, your insurance is going to be primary. I cannot see how photographing an insurance card of the driver's for some other vehicle isn't going to matter one bit in the case of a crash; and as a buyer I'd be very put-off if the seller required me to provide them with a binder for a vehicle I hadn't even committed to purchasing or even made an offer on yet.

I haven't read the policy recently, but I think I remember my own car insurance only covers me in another vehicle to the extent that no other policy would be applicable. If I were test driving your RV and you had no insurance, it would appear to cover me in that situation; but if you had insurance, it would not cover whatever your insurance does cover.

Nope, his will be. Been there -- done that.

Yes, having a copy not only assures you he has both a DL and insurance, but contains information you might need in the unlikely event something happened. Again, been there -- done that.

And who said anything about a binder? If you're calling the DL/insurance card thing a binder, you've obviously not test driven anything at a dealership recently. (They won't ask you for an insurance card necessarily, but they WILL ask you to produce a DL, and yes, they'll make a copy of it).

Dealerships ask for a license and copy it because they number one want to make sure it is a licensed driver operating their vehicle and as a theft prevention in case it all goes upside down. One would be surprised how often a theft takes place on a "test drive". It does not transfer primary responsibility to the consumer. As a dealer, you cannot void your ownership and potential liability. This is why you buy Garage Owners Liability for a huge yearly premium.

When we speak of "Been there...Done that" my opinion comes from four decades of owning/operating multiple new car dealerships, working with attorneys to set demo policies, and purchasing insurance yearly for all of the above.

[wallynm]

Have you financial create an escrow account that the money comes to. Give them the signed title and they will transfer the funds to you and the title to the buyer.

DunnInn wrote:
When selling your RV, what did you require from the driver before allowing them to drive the unit? When it came time to close on the rv, did you go to a bank to do the closing or what? How did you make sure the funds were valid? What about transfer of the title? I read somewhere a horror story about someone who sold their rv and the new people didn't transfer the title and something happened to the coach and the former owners got stuck with some expenses and a law suit. Definitely want to avoid that!!

[RetiredRealtorR]

DrewE wrote:

A1ARealtorRick wrote:
For them to drive it (even with you in the vehicle) make a copy (or picture) of their driver's license and their proof of insurance, because if something happened while your prospective buyer was driving it, you want HIS insurance to be primary, not yours.

I'm not an insurance agent, but I think as long as it's your vehicle and the other driver is driving it with your permission, your insurance is going to be primary. I cannot see how photographing an insurance card of the driver's for some other vehicle isn't going to matter one bit in the case of a crash; and as a buyer I'd be very put-off if the seller required me to provide them with a binder for a vehicle I hadn't even committed to purchasing or even made an offer on yet.

I haven't read the policy recently, but I think I remember my own car insurance only covers me in another vehicle to the extent that no other policy would be applicable. If I were test driving your RV and you had no insurance, it would appear to cover me in that situation; but if you had insurance, it would not cover whatever your insurance does cover.

Nope, his will be. Been there -- done that.

Yes, having a copy not only assures you he has both a DL and insurance, but contains information you might need in the unlikely event something happened. Again, been there -- done that.

And who said anything about a binder? If you're calling the DL/insurance card thing a binder, you've obviously not test driven anything at a dealership recently. (They won't ask you for an insurance card necessarily, but they WILL ask you to produce a DL, and yes, they'll make a copy of it).

[DrewE]

A1ARealtorRick wrote:
For them to drive it (even with you in the vehicle) make a copy (or picture) of their driver's license and their proof of insurance, because if something happened while your prospective buyer was driving it, you want HIS insurance to be primary, not yours.

I'm not an insurance agent, but I think as long as it's your vehicle and the other driver is driving it with your permission, your insurance is going to be primary. I cannot see how photographing an insurance card of the driver's for some other vehicle isn't going to matter one bit in the case of a crash; and as a buyer I'd be very put-off if the seller required me to provide them with a binder for a vehicle I hadn't even committed to purchasing or even made an offer on yet.

I haven't read the policy recently, but I think I remember my own car insurance only covers me in another vehicle to the extent that no other policy would be applicable. If I were test driving your RV and you had no insurance, it would appear to cover me in that situation; but if you had insurance, it would not cover whatever your insurance does cover.

[JALLEN4]

rgatijnet1 wrote:
A lot depends on if you own your RV free and clear and have the title in hand or if the bank is holding your title because of a loan. If the bank holds the title, check with them to see the procedure that they use. Some banks/States use electronic titles and as soon as the lein is paid, they will release the title ELECTRONICALLY so that you and the buyer can go to the DMV and get a printed title.
If the buyer is going to finance the purchase and you also have a loan on the RV, the two banks will have to get together to figure out how they want to deal with things.
If you own the RV free and clear and the buyer is paying cash then I found the best way is for them to wire transfer the funds to you before you sign over the title. Depending on the seller's bank, he may have to make arrangements to wire transfer the funds BEFORE he comes to see you. Most banks will not authorize a wire transfer over the phone unless prior arrangements have been made. Once the wire transfer is complete, then you can sign over the title.
Naturally you may find a buyer that wants to pay cash. One of my Classic Cars sold for over $50,000 and the buyer insisted on paying cash. No big deal but we had to go to my bank where they counted the money with two tellers and then deposited it in to my cash. My bank knew me and this DID NOT involve any additional paperwork and red flags to the FEDS even tho it was a cash deposit in excess of $10,000.
If your bank is not familiar with you, depositing that much cash may be an issue and require additional paperwork.
I do not ever recommend accepting a cashier's check. These can be forged and a stop payment can be issued on the check by the buyer.
As far as removing you from liability all you have to do is type up a Bill of Sale outlining the entire transaction and when you hand over the title, both of you sign the Bill of Sale and you are out of it, according to my attorney. Using a Notary at your bank insures that each party is who they say they are.
In my last sale, the buyer lived in my State and at closing we BOTH went down to the DMV and the title was transferred right there. Since Florida uses electronic titles, he received a new title with his name on it and a new tag as soon as he paid the sales tax and the license fee. Took about 15 minutes and he had a new tag and title and was ready to drive home.
Really all it takes is a little common sense but if there is any doubt, go to your bank and get their advice.
You want to avoid trying to close a deal on the weekend where your financial institution and the DMV are closed. This could be a red flag if the buyer insists on closing a weekend deal with a cashier's check.
If it is a cash deal on the weekend, use your own discretion but he can still sign a Bill of Sale and there are places, like car dealers, that do have a Notary and are open on the weekends.

You offer some excellent advice. I would though take exception to your attorney's opinion about potential liability before title transfer but after signing a bill-of-sale. Most attorneys, not in the automotive practice realm, would answer that way and will proceed under that premise in court. As a retired new car dealer, I have been down that road and have seen it played out as well as being warned by our various trade Associations. Be careful and do not rush to cancel coverage on a sold unit for the sake of a couple bucks.

[wolfe10]

The order we use once we have agreed on price (assuming you have clear title):

Provide buyer copy of title in your name so he knows you have the right to sell it. He will also need this if he is getting a loan.

Meet at either a branch of your bank or his if convenient. Have your bank give him/his bank wiring instructions. Once funds confirmed by your bank, complete the paper work to transfer. In Texas forms are online. If no convenient branch of either your or his bank, have your banker call when funds have arrived.

Once funds are in your account, they can not be drawn back/cancelled.

[cudntherd]

I have sold several vehicles in Texas.
As someone said I would go to the bank and make the payment transaction. If the vehicle does not have a lien I would then take the buyer to a court house and transfer the title.

[RetiredRealtorR]

For them to drive it (even with you in the vehicle) make a copy (or picture) of their driver's license and their proof of insurance, because if something happened while your prospective buyer was driving it, you want HIS insurance to be primary, not yours.

As for funds, agreed that wiring the funds is the only way to go (unless the buyer has a sack full of greenbacks). Do the transaction at the bank or credit union if there's a payoff involved, OR do it at the DMV (just in case any questions or issues arise pertaining to the title transfer).