Selling an RV That I still have a loan on

[Campfire RV]

We purchased our brand new C Class MH in May and we are thinking of selling it for an upgrade in space and cargo. We still have a loan on the MH with the bank but I just looked up the Nada value and the average price is still more than what we owe on the loan.

Can you sell an RV that you still have a loan on since the bank owns the title?

Our C Class MH has been good for a starter but we now have 5 in the family and it becomes a little crowded while camping. We checked out some nice A Class MH's that we liked this weekend so we would really like to sell our C Class. We spoke with Campingworld about Consignment but the price amount they would give us is much less than the average Nada price so we want to try and sell it ourselves.

Josh

 

[RoyM]

The bank will be happy to release the lien as long as you can cover what is owed.

 

[Campfire RV]

Nada has the average price much higher than what I owe on the loan so covering the loan won't be a problem.

 

[Gary RV_Wizard]

The usual arrangement is that the buyer writes one check to the bank to pay off the loan and another (for the balance of the sale amount) to the seller. The same thing happens in a dealer trade-in scenario - the dealer pays off the bank and credits you with any extra.

You should be able to set the price in a consignment sales, but most dealers won't accept a consignment if the asking price is unrealistic.  They don't want to bother with something that won't sell because it is overpriced. You might contact PPL Motorhomes about consignment - they will help you determine a price that is consistent with the market.

The online NADA guide is an estimate based on average depreciation and may not reflect market value in all circumstances.  Your bank or credit probably has a subscription to the real NADA guide that has market data - you might ask them what the wholesale and average retail value is. Many public libraries also subscribe.

 

[DearMissMermaid]

One of the fast creative ways to sell it, is to keep camping in it with FOR SALE signs on all 4 sides.  It helps if you go to campgrounds that have tent campers too (like most of the state parks and so on. )  The larger the campgrounds, even the better... more exposure to more people.

Have some business cards and or  copies of a fact sheet with price and how to contact you etc.

I saw a guy sell his in under a week at a campground with 200 sites. Campers came by to look at it, cause they had a friend looking for something similar...  they looked, then they called their friend...  and soon the deal was nearly done. Meanwhile some others came by and wanted to make an offer too, but by then he had the first one working already with a deposit.

I had a hard time catching the guy to talk to him,  cause I had a friend who might be interested...  but by then the guy explained to me  (the above) how his already sold, he just hadn't taken down the signs until the deal was completed but he already had a deposit and simple sales contract, just waiting for the new owner to turn up with the final payment and finalize the paperwork.

 

[RoyM]

You can also write one check payable to the lender and seller, the lender takes it's cut and the seller gets the balance. Saves you the cost of a second check. How they do it is not your concern as long as the lien is released.

 

[scottydl]

Nada has the average price much higher than what I owe on the loan so covering the loan won't be a problem.

You have a better chance of selling at Low Retail price, and make sure you UNCHECK all the Options boxes on Nada.  They don't count for used rigs, and may artificially inflate the perceived value of your RV.

Of course, finding "just the right buyer" at any price point is key... and the best way to do that is advertise, advertise, advertise.  Post window signs, park it someplace with high visibility if you have that option, list on every Craigslist site in any cities within a couple hours' distance, and then you can think about paying money for additional ads.    There are lots of free and easy ways to get the word out.

 

[Campfire RV]

You have a better chance of selling at Low Retail price, and make sure you UNCHECK all the Options boxes on Nada.  They don't count for used rigs, and may artificially inflate the perceived value of your RV.

Of course, finding "just the right buyer" at any price point is key... and the best way to do that is advertise, advertise, advertise.  Post window signs, park it someplace with high visibility if you have that option, list on every Craigslist site in any cities within a couple hours' distance, and then you can think about paying money for additional ads.    There are lots of free and easy ways to get the word out.

I unchecked everything when I checked the prices. If I sell it at Low Retail price then I will end up having to pay someone to buy it from me and I'm not about to do that since I'm already in the boat with my house.

 

[carson]

I am not a preacher.. but how about a little reality check ?

  Sounds like you made a mistake (financially speaking) when you bought the rig recently.  Mistakes usually cost money.  The longer you wait the more money you will lose. Like in Poker...take your money, whats left, and run.

 

[Just Lou]

I unchecked everything when I checked the prices. If I sell it at Low Retail price then I will end up having to pay someone to buy it from me and I'm not about to do that since I'm already in the boat with my house.

I have to agree with Carson.  If the alternative to "selling it at low retail" is "not selling it at all", then what?

Unfortunately that "gap" between worth, and what you owe, will continue to grow wider, by several thousand more dollars, and you will continue to make payments on a rig that you can't afford to use.  That situation cannot be sustained forever.

When you finally do reach the point where you simply have to rid yourself of the rig, you may find yourself making payments for a good long time while someone else is using their new rig.  JMHO

 

[Campfire RV]

My wife and I have discussed the issue of selling the MH again and have decided to not let it bother us one way or the other. We are going to take it out to Death Valley Thanksgiving weekend for a couple days since the weather will be nice there at this time of year. We will have For Sale signs in it and if someone wants to buy it for what we owe or more then we will sell it, otherwise we will keep it and enjoy the travels.

I won't be able to enjoy it much over the next few months due to basketball season beginning now but I can still use it as my mancave to escape the women in my household.

Thanks for all the feedback everyone. If it sells it sells, if not then we contine to enjoy the time.\

Josh

 

[COMer]

Sounds like a healthy attitude.  Hope it works out whichever way is best for you.

 

[Jeff Brown]

Josh,
All I can say is if possible make REALLY LARGE payments, and have fun.

Jeff

 

[keocera]

Here's another thought since you want to upgrade to a larger unit.  In as much as most RV's can be discounted from 25% to 35% try to trade with an aggressive dealer.  The lender is not concerned with what you got for your trade, only what amount will be financed on the new unit.  The dealer should have a good idea what the loan to value ratio is that is acceptable by the lender.  Therefore you could carry some of the balance on your trade in forward on to the new loan and pay off the old loan.  Typically Class A's can be financed for a longer period than your Class C which will help to keep you payment manageable even if you carry forward some of the old loan balance.  Most dealers have in house loan approval conferred on them by the lender.  The parameters are usually as follows:  Credit Score 760 or higher, Loan amount up to $100,000.00, 10% down cash or trade, established residence and work history.  If you meet those criteria most dealers have been authorized to approve and close the loan and simply forward the paperwork to the lender.  For what it's worth Loan to Value varies by Manufacturer, Winnebago is very high in this regard due to the stability of the company and strong resale values.

 

[scottydl]

Paying off an upside-down loan with another bigger loan that will almost instantly also be upside-down?  Yikes.  ???

 

[arizona al]

If you just purchased a new class C in May and didn't come up with a large down payment,  I am sure that you are really up side down in your motorhome.  I would do as you suggested.  Go camping and enjoy it.  Buy a tent for the kids and give them a chance to rough it. As long as you are in a mild climate they will probably enjoy that more that being closed in with the rest of  the group.
Have fun and go Adventuring.
ArizAl

 

[arizona al]

Paying off an upside-down loan with another bigger loan that will almost instantly also be upside-down?  Yikes.  ???

In used vehicle terms, that would no longer be upside-down, that would be called Buried.  Please don't get yourself in even deeper for something that is optional in you life like a RV.
ArizAL

 

[therealsimpsons]

I would just clarify to the original poster that the bank doesn't "own" the title...you do! The bank has a lien on it, and likely has the original in your loan file or in a vault somewhere. One of the conditions of your loan agreement likely says they have the option of keeping the title in their possession until the lien is satisfied.

Stan

 

[Campfire RV]

Thanks for all the great ideas everyone. We have actually taken it out for a couple one night stays this month and we are just posting locally to see if it sells for what we owe or more. Otherwise, we are going to keep it and enjoy the time in it. If we get a buyer then we will start looking seriously at upgrading to a larger unit. I won't really have any time to take trips in it now for the next couple months because we start our basketball season this week so I will be quite busy for now.

Josh

 

[DeanG]

Hi Josh,

Would you consider renting out your RV to receive some income towards paying for it?

I am working on a new startup company that will take care of insurance, match up owners with renters and do background checking, etc,  like airbnb but for motorhomes. 

We are checking to see if owners would use this service and/or what services they would find useful.

Would appreciate your thoughts on this.

Thanks
Dean