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reubenray · 01-28-2013, 07:21 PM

I know the ends and outs of trading in and buying a RV from a dealer, but how does it work with a private party. We are looking to upgrade to a motorhome from a fifth wheel. In our setup we would have to sell the fiver first. It is financed and I have already figured we would most likely take a hit on it. We would then sell my tow vehicle (it is paid for). This money would be used for the down payment for the new RV. Now the questions-these all pertain to selling and buying from a private party.

1) Would it be better to pay off the fiver prior to selling it? We do have the money in our mad money account. Would this simplify it? Once we sold the fiver then we would put this money back in the mad money account.

2) How would we do the title and whatever else is necessary on the fiver and the truck?

3) How would we do the financing, title, insurance and taxes on the new to us motorhome? I am assuming I would need to be pre-approved with the financing before going any further. How can you do this without the info for the motorhome to give to the lender?

TQ60 · 01-28-2013, 08:55 PM

Many folks will comment, but ours is simple.

Regardless of how the transaction goes, it does NOT leave your driveway in your name!

We have purchased several vehicles from the Salvation Army, you give them the money, they give you the paperwork, you go to DMV come back with title they give you keys...

That avoids all problems with registration down the road.

BFlinn181 · 01-28-2013, 09:14 PM

Check website for your state BMV. Normally you don't have the real title if there's a loan on the vehicle. You'd have to pay off the loan to get the original title. In our state, you sign and date the back of the title then the new owner takes it to BMV and pays sales tax and applies for new title and registration.

If it's the same in your state, having paid off the loan and having the original title in hand saves any delay in the transaction.

You will have to get pre-approved for a loan on vehicle, it's up to the loan company as to if they have to inspect or survey vehicle before loan approval. Insurance can be arranged for once you have the VIN number and details of the vehicle. I had insurance before I flew 1400 miles to inspect and finalize purchase.

Go Dawgs · 01-28-2013, 09:19 PM

If you have the ability to pay off the 5er than do it.

1) It will make the sale and title transfer much easier. I, as a former buyer, wouldn't deal with paying a loan off and going to the bank and dealing with your bank and loan issues. Pay off and reduce buyer stress.

2) If you have title in hand it is very simple. Sign the title over, verify mileage (TV), complete a bill of sale. Buyer will take title to County Auditor and pay taxes and fees. Depending on your state you may have to fill out some additional forms (check with your county or state website).

3) If financing have all pre-approval done ahead of time. Go to your bank or credit union and tell them you want to be pre-approved for a MH loan. They know what to do. If you have cash that would be better or a line of credit on your home may also work. But have financing in place. It will make the deal easier and then maybe you can bargin with the dealer of financing.

I would caution that you check with your state DMV of required paperwork for sale of 5er and truck before proceeding. The only thing I can tell you pay the note off. In the long run the hassle and convience of saying (Title in hand) is powerful. It will allow you to maximize your sale.

Good Luck
Arnold

Jack1234 · 01-28-2013, 11:21 PM

I appreciate that there is a lot of advice to pay-off the loan and have clear title.

Well.......just another perspective. We purchased our RV from a private seller and the fact he had a loan was a HUGE comfort factor when it came time to transfer a large sum of money. You see we weren't transferring this money to some guy we hardly knew....we were transferring the money to Wells Fargo who held the title....they took our money and paid-off the loan (cleared the title).... Transferred the balance directly to the Sellers account.....then handled all the transfer & ownership papers. This was also a HUGE comfort factor for the seller. You see he didn't have to trust us....people he hardly knew.....he knew everything was going to be handled by his bank (Wells Fargo).....his loan would be paid....and the money was guaranteed in his account.....and all the appropriate paperwork would be done correctly.

It was nice for both of us to have a well recognized and trusted third party (Wells Fargo Bank) facilitate & guarantee the transfer of funds....handle all the necessary paperwork....all for free!

Mr_D · 01-28-2013, 11:39 PM

Check the tax liability too. Here in WA if you sell your vehicle and buy another you pay the full sales/use tax on the "new" vehicle. If you trade through a dealer you only pay on the difference. That tax is almost 10% too. That can make a big difference to us here.

reubenray · 01-29-2013, 04:38 AM

Hmmm - I have seen the comments concerning the taxes on trade-in's. I will need to check on it. I did some rough calculations and the difference could be between $2,500 and $3,500 less on the taxes. It would almost be worth getting less $$ for the fiver which I am sure will happen with a trade-in.

I may need to go by the local dealer to get some rough trade-in numbers. This dealer also said they do trade-in's for the two vehicles also.

winniman · 01-29-2013, 04:43 AM

make sure if you buy privately to have the title searched to make sure the title is clear. if you finance the mh the bank will search it for you. you dont want to pay for something and find out the seller owes a lein against it. In Ontario sellers have to purchase a sellers kit from M.T.O. It states previous owners and any outstanding leins against the vehicle. Definitely get preapproved for loan on mh before selling you current rig. good luck and happy camping

Caveman CBB · 01-29-2013, 05:04 PM

In MN when you sell a vehicle you and the buyer have to sign the title in two places. You then tear off part of the title and save it for proof of sale. Even with that, I always go with the buyer to the DMV and watch them transfer the title right away. You do not want someone else driving around / using the vehicle while it's still in your name.

lenkerb · 01-29-2013, 06:45 PM

we paid cash (cashier's check) in PA...all agreed it was a gift so no sales tax....

Caveman CBB · 01-30-2013, 07:21 AM

Quote:

Originally Posted by lenkerb

we paid cash (cashier's check) in PA...all agreed it was a gift so no sales tax....

That won't work in MN anymore. To many people were doing that. Here when you tranfer the title you pay tax on the book value. Doesn't make any difference what you paid for it.

JohnT · 01-30-2013, 07:52 AM

Quote:

Originally Posted by Caveman CBB

That won't work in MN anymore. To many people were doing that. Here when you tranfer the title you pay tax on the book value. Doesn't make any difference what you paid for it.

In Michigan, plates are based off the original MSRP. Not what you actually paid, regardless of the age of the vehicle.

LDP243 · 01-30-2013, 03:42 PM

I shopped for 3 months before buying a used MH if you buy new it may not make a difference but on a used one ,if at all possible you should sell in Texas and buy in Florida or California or a state close by, for some reason the used coaches are cheaper there. I think maybe because all the RV's are going to west Texas oil fields for workers to live in, no other place for them to live. try to find a campsite near Midland.