Credit Union wants "dealer/broker" for out-of-state purchase

[CoachToadDLG]

Greetings! I hope someone has been through this and can offer some suggestions.

I have a Credit Union who is more than happy to supply me with a wonderful loan (great terms)... but the RV I want to purchase is out of the state. I live in Texas, the coach is in Arizona.

The coach is owned by a private party (the don't owe anyone for it) and they have title in-hand.

The problem I'm experiencing is that my Credit Union doesn't want to take an out-of-state private party purchase type loan. They told me that it would have to be a dealer in-state purchase. They're not suggesting that I purchase a totally different rig from a dealer, but that there are dealers out there who will act as the "middle-man" for this deal -- essentially taking the Arizona RV in, and then allowing me to take delivery of the coach (I'm guessing for a heavy fee).

Doing things this way is the only way my Credit Union will feel comfortable with the transaction -- as they want to insure that the title is in-hand (I guess they don't trust that I or the seller will mail the title in).

Does anyone have any experience with this kind of situation? What did you do?

I called one local dealer and also a Camping World. I thought Camping World, being as large as they are with a network everywhere, would be a sure shot for this kind of thing... but the person I talked to said they don't do those kind of deals as they are "too risky"... because, what if the title is screwy or there is a lien on the title or something like that? They simply don't want to get involved.

Anyone have any hints or suggestions on good "dealers" in Texas who perform this kind of service (which is some form of a "broker" service, right? or is it called something else? I don't even know what to ask for when talking with dealerships).

Ultimately I could always apply for another loan elsewhere -- I just don't think I'll get anywhere near the terms/rate I can get with the Credit Union.

Thanks for any suggestions/advise.

[Mike and Cha]

We actually got a lot better rate at Bank of America, than we did with our credit union so you may want to check with your personal bank. I wonder if the seller met with you at the Credit Union with the title in hand if that would help, if he wants to sell it it may be worth the trip for him.

[rvarner]

I would find someone else to finance the deal and buy it as long as there was no prepayment penalty. As soon as I returned to Texas and registered it, I would refi thru the credit union. If this were my credit union, I wouldn't be to happy with them and, as long as there is a clean title and legal bill of sale, I don't think there would be a problem. Sounds like they may be in cahoots with some of the Texas dealerships but just guessing. Good luck
Rich

[Pa Miller]

Normal dealers draft off the bank and don't get money till the title clears.. I don't see why the CU couldn't do that it is the safe way
.

[Tetonchief]

Try Alliant Credit Union (See Escapes magazine). They are former United Airlines CU. I used them for a buy with a private owner and got a great rate too. Their main office is in Chicago.

[Pigman1]

I'd call the state that has the title on the rig and ask them if they could suggest how this could be accomplished. I'd also complete the sale at that DMV just to be sure you have a clean title transfer and there's no unknown liens or problems with the title or the present owners passing title. After you get that info, go back to the CU and see if they're happier doing the deal.

I can understand your CU being shy about issuing a check on something they've never seen to someone they don't know with a rig that may have a questionable past. If the DMV gets in the deal, and the lien is properly recorded on a new clean title and then sent to them, they may be a lot easier about the loan.

[Ray,IN]

Originally Posted by CoachToadDLG

but the person I talked to said they don't do those kind of deals as they are "too risky"... because, what if the title is screwy or there is a lien on the title or something like that? They simply don't want to get involved.
Thanks for any suggestions/advise.

That's the same reasoning your Credit Union is using.

[CoachToadDLG]

Originally Posted by Ray,IN

That's the same reasoning your Credit Union is using.

Agreed. The Credit Union doesn't want to take anything with any risk at all, yet I don't understand why they think a dealer would want to act as the middleman and assume that risk for a simple fee. Just doesn't seem logical. Looks like I'll just have to give up on them and go elsewhere.

Now I'll just have to find a place that can work with the type of loan I need (considering the situation).

[Old Car Nut]

Originally Posted by CoachToadDLG

Agreed. The Credit Union doesn't want to take anything with any risk at all, yet I don't understand why they think a dealer would want to act as the middleman and assume that risk for a simple fee. Just doesn't seem logical. Looks like I'll just have to give up on them and go elsewhere.

Now I'll just have to find a place that can work with the type of loan I need (considering the situation).

Seems to me the dealer would act in the same capacity as they would in a consignment sale. Something CW does all the time.

[Ray,IN]

Originally Posted by CoachToadDLG

Agreed. The Credit Union doesn't want to take anything with any risk at all, yet I don't understand why they think a dealer would want to act as the middleman and assume that risk for a simple fee. Just doesn't seem logical. Looks like I'll just have to give up on them and go elsewhere.

Now I'll just have to find a place that can work with the type of loan I need (considering the situation).

You have the option to initally finance elsewhere, then after a month or two, when the title and paperwork is all straight, refinance with your credit union.

[89sandman]

For out of state private party purchases my credit union requires title in hand when the check is cut. Seems this is the norm for a lot of them.

[rvarner]

Originally Posted by 89sandman

For out of state private party purchases my credit union requires title in hand when the check is cut. Seems this is the norm for a lot of them.

Exactly. I have purchased two motorhomes out of state. Both had clear title in hand. In NV and AZ a private party purchase is not taxed. Saves big money.
Rich

[gilbour]

Originally Posted by CoachToadDLG

Greetings!

Thanks for any suggestions/advise.

Have you considered using an escrow company? If you go through a dealer you may have to pay the sales tax.

[Pa Miller]

If you live in Texas you'll pay sales tax when you lic the RV.. don't mater were you get it.