Seller’s Questions - Private Sale, New Buyer with Bank Financing

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X-Roughneck Strike 3

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I am thinking about putting the Class C I own outright for sale later this spring, Texas Title In hand.

I was wondering if any Forum member has ever sold to a person who was obtaining financing thru a bank?

My follow up would be is that a complicated process and how can you make sure you don’t get scammed?

Also, I realize that persons obtaining a bank loan might be limited to newer models, as banks may be reluctant to finance older Motor homes?

Is there a certain Year model where you need to sell the RV you own for the group of potential buyers trying to obtain a loan can get the money they want to borrow?

I am thinking my 2017 Aspect has to be right at the Max Limit for a buyer wanting to purchase with bank loans? I hope I am not beyond that.

I also see the Federal Reserve is going to raise rates soon. First time in three years, so wondering how hard that is going to cool off RV buying. My guess big time! I know I dang sure would not wanting to be loan shopping after that.

I know or read that RV or Recreational Vehicle rates are higher than, auto rates.

I have never peeled that topic back and studied it. I bet the rates are not Great.

Any comments, advice, from fellow Peanut Gallery :) Forum Members?

Hope the Day Finds Ya’LL Well.

JD
 

TheBar

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Years ago I flipped cars, trucks, and RV's for a side hustle. I took a 10% up to a maximum of $1000 for a deposit giving them a week to get the money. Never let them "try it out overnight" or you may never see it again.

A lot people are just "shopping" for entertainment and aren't serious buyers. Do the walk through first and if they are serious always ride along on test drives "in case they have questions". If they look shady tell the buyer you have to be back in 30 minutes and at least pretend to text a friend before leaving :)

I would only accept cash, a bank transfer, or a cashier's check. If they do a bank transfer make sure they don't see your login or account #. Don't let them have the keys until the transfer or cashier's check has cleared your bank, which sometimes takes several days.

I had the most trouble with people never transferring the title over to their name. Keep a copy of your advertisement and have them sign a bill of sale so you have some proof it wasn't you involved in that hit and run. If possible have them sign your title over to them at the DMV. That link also says what you need to do as the seller.

Good luck and I hope you stay around on the forum even if you don't get another RV. I enjoyed your colorful posts.
 

Gary RV_Wizard

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Looking to buy a new home
You really aren't involved in the financing, except that it probably delays the proceedings and you may have to give access to an appraiser or somebody to verify VIN, etc. With title in hand, you should have all the legal info available. At the end of the day, you still get a check for the amount of the sale. So there is some extra hassle involved, but it's still a cash sale to you. Set a time limit on obtaining financing - you don't want to hold the RV off the market without proof that financing is in-progress.

Lenders vary, but typically they do RV financing up to 5-10 years of age.

Don't overthink the interest rate thing. When the Fed talks about raising rates, they are talking about an increase of 0.25%. However, there may be multiple 1/4% increases over the course of the year, so loan rates get worse as the year goes on.
 

Kirk

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Being married to a former bank loan officer, I can tell you how it was done when she was in the business of financing.

With a private sale of any type of vehicle the bank holds the title until the loan is paid off as their security. The best way to handle such a sale is to arrange to go to the lending organization that the buyer wishes to use with the buyer and close the loan in the presence of the loan officer, who also then closes the new loan with the borrower. At that point the buyer pays whatever portion he is paying in cash and the loan officer will supply a check (negotiable in that bank if the) lender is a bank) for the remainder of the purchase price. As seller you then sign off on the title and pass it to the loan officer for them to finish the loan process. At this point the seller is finished and free to leave with his money in full. The only catch is that the buy will need to have had financing arranged for whatever the difference is between purchase price and the loan amount. By doing it in this way you do not need to pass title until you actually have the full payment in hand.
 

shorts

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We financed our 2016 Newmar DP through our bank and it was a private purchase. We had the funds wired directly from our bank to the seller’s bank account. Easy peasy. Once he verified the transfer of the funds, we completed the bill of sale, the transfer of title and drove off with our motor home.

Vicki
 

Laura & Charles

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Could be anywhere. Originally from Ohio. Go Bucks!
PPL may be worth considering. Selling on consignment through them, or selling directly to them, are both options. They also offer financing for buyers. And they’re in your home state.
Just curious…. Are you planning on getting another RV? You really seemed to relish your trips with the grands so figured we’d meet up some day.
 

X-Roughneck Strike 3

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A lot people are just "shopping" for entertainment and aren't serious buyers.

...another RV...
Gents always appreciate and value the replies. Hope 2022 is treating you both well.

I know now why you know all those good Fix it cures. Got a little Used Car Seller In you..

In a Good Way. I bet you loved that I finance Portion. Hire a Big old Guy to do the RE-PO. Wink.

100% Playing Brother!! I do remember inprocessing at Ft Bragg and they warned about the 20% plus interest rates along Bragg BVLD, and Not to purchase anywhere along that ave. I am sure that all has long been cleaned up. Have not been back in years. I do know you live in the Midwest where I am not sure..The Seller signs a ethics declaration each sale? Not sure..Probably false?

You were a driving force behind my Quality DIY on my roof seam where the Front Cap Bonds with the Body. Shame that I had to do what should have been at the Winnebago Factory.
I will say gouging out the bad factory putty, resealing with proper dicor, then the overlap of 4 inch wide eternabond cures alot of worry about the leak coming back which I am sure it would have with the twist of the occasional unlevel surface you just cant avoid. At 32 ft Class C a House on a Extended delivery van frame basically.. Twist or slight flex of the just the cost of doing business banging these big old lumbering beasts around the USA.
 

X-Roughneck Strike 3

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In keeping with my style here. Posting replies to my replies here goes again. Got sidetracked and did not properly finish the post.

I do appreciate the input of everybody. I will consider most of us Peanut Gallery members, but Gary coming by to add his $0.03 always appreciated. I was pinging Gary on Messenger asking about buying strategies, etc. Always back in Spring 2019 when I was virtually kicking the tires.

Me, a Texas guy doing a purchase in Detroit, Private Sale. I had a USAA Bank Check when I purchased. He went into his bank to verify with USAA on my request. It went real smooth.

If there are any non Flaky people out here needing a class C...I am going Live on RV Trader in March 2022, I think. I am going to have all the RV swag included. Grab your toothbrush, Momma, and the Dogs, 2 pair of underwear, optional, then go camping. Not looking for that shady guy the bar describes... wink.

The Bar, I do appreciate the good tips as I imagine..those came from your real life experiences. The Best to learn from. I always enjoyed the back and forth with you myself, too.

Charles..I am going to be downsizing...Probably a Tear Drop. I am not sure this is going to be in my operating budget wheel house much longer.

If we can get vertical to the position it is going to be a great day for sure!

Hope the day finds you all well.

JD
 

Ex-Calif

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Being married to a former bank loan officer, I can tell you how it was done when she was in the business of financing.

With a private sale of any type of vehicle the bank holds the title until the loan is paid off as their security. The best way to handle such a sale is to arrange to go to the lending organization that the buyer wishes to use with the buyer and close the loan in the presence of the loan officer, who also then closes the new loan with the borrower. At that point the buyer pays whatever portion he is paying in cash and the loan officer will supply a check (negotiable in that bank if the) lender is a bank) for the remainder of the purchase price. As seller you then sign off on the title and pass it to the loan officer for them to finish the loan process. At this point the seller is finished and free to leave with his money in full. The only catch is that the buy will need to have had financing arranged for whatever the difference is between purchase price and the loan amount. By doing it in this way you do not need to pass title until you actually have the full payment in hand.
Interestingly this is also how a mobile home is purchased - which I just closed on.

It may be helpful but I signed a power of attorney to the lending bank so they could do the title work. In this case I presume you hand over the title to the lender - they hand you a check, the seller hands over any down payment, they do POA for the buyer and title it in their name.

But as Kirk says - As soon as you get the DP from the buyer and the remainder from the bank, you a done.

I gave the down to the seller and they got the rest from the bank.

As for your other concerns about interest rates and age of RV I wouldn't sweat it. Depending on the buyers credit they may even go 10 years old. Some folks (not my recommendation) are buying RVs with HELOCs and other folks just have that much cash available - the heart wants what the heart wants.
 

Isaac-1

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SW Louisiana
I bought my current coach from a private seller a thousand miles away, financing the deal through my local bank (it made more sense tax wise than liquidating stock and taking a tax hit to get cash on hand). This was for a then 14 year old coach, though the bank had a general policy of not financing an RV over 12 years old, which they were willing to wave. It should be noted that I have a substantial past relationship with this bank.

In my case the process went something like this, the loan officer requested some information, VIN of the RV, scans of the sellers drivers license, etc. I paid 10-20% down (I forget which), and they gave me bill of sale paperwork to get the seller to sign and a cashiers check.

Upon meeting the seller, they signed the bank paperwork, I handed them the cashiers check, which they immediately deposited in their bank before handing over the motorhome.

There are a lot of fake cashiers checks out there, so watch out for scams.
 

SRGuy

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Jun 9, 2021
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Austin, TX
I sold a twenty year old Class C to a fellow who was financing it through his bank. I was never asked a single question about the unit, by the bank. Very odd. I had previously warned the buyer, at my house, that the outside walls were delaminating, and a portion, that I through-bolted back on, and showed him, had peeled off while we were driving down the road. I told him that the unit should be bought for parts, only, but he was planning to camp in it, with his wife. He was 78 years old, at the time. The closing took place at his bank. We signed an "As Is" Bill Of Sale that I had drawn up, the bank gave me its documents to sign, the buyer signed some documents, I handed over the signed title, got a bank check, and that was it. I was in the bank less than a half hour. Very easy.

This was fifteen years ago, so there is a chance that things have changed. I was very surprised, back then, that the bank never sent out an appraiser or even requested pictures of the unit.

I got $7K for it. It was an inheritance that I used for five years. Everything worked on it. Nice generator, no slides, corner bed, 24'. No, I don't remember the make or model. Chevy 350 front, I think.
 
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