Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Finance or pay cash for RV?
Old 09-04-2017, 03:28 PM   #1
Confused about dryer sheets
 
Join Date: Dec 2013
Location: Fairbanks
Posts: 8
Finance or pay cash for RV?

I have the cash to purchase a used class A, but Im worried about the process. It's a private party and they have a lien. Google hasn't been much help although I did find an escrow service for $1200. If I finance I will receive the title upon payoff. If I pay the current owner I feel like I'm exposing myself in the event that they wouldn't sign the title over to me. Any advice?
__________________

aksteelhead is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-04-2017, 03:29 PM   #2
Thinks s/he gets paid by the post
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 4,599
It depends on the age of the RV whether anyone will finance it or not.
__________________

Teacher Terry is offline   Reply With Quote
Old 09-04-2017, 03:33 PM   #3
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 2,348
The escrow service will prevent any fraud potential by the seller and buyer. That is their role, to ensure both do what they are supposed to and protect each party in the transaction. The other thing is are you planning to pay off the loan if you finance, just using it as the protection factor? RV financing rates are pretty high, so I would avoid paying this for very long since you have the cash to pay in full.

The good thing is that most RV sellers are not crooked and if you go to the lienholder with the seller, pay it off and then give seller any residual money, have them sign the released title right there on the spot.
__________________
The advice we're giving you is invaluable, that's why it's free
Experience is a good teacher, but the tuition can get expensive real fast

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 09-04-2017, 03:38 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 10,887
If you're spending big bux, say low six figures, for the Class A and it has the complication of a current lien on it, I'd pay to talk to an attorney about how to do it. Perhaps the transaction could be handled in the lawyers office with him coordinating everything and holding money in escrow.

Or, talk to the current lien holder. Perhaps you can pay the owner his share, pay off the lien directly to the lien holder and then have the lien holder sign the title over to you.

Don't confound paying cash or financing with the guarantee of getting a clean title.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 09-04-2017, 03:42 PM   #5
Confused about dryer sheets
 
Join Date: Dec 2013
Location: Fairbanks
Posts: 8
Quote:
Originally Posted by youbet View Post
If you're spending big bux, say low six figures, for the Class A and it has the complication of a current lien on it, I'd pay to talk to an attorney about how to do it. Perhaps the transaction could be handled in the lawyers office with him coordinating everything and holding money in escrow.

Or, talk to the current lien holder. Perhaps you can pay the owner his share, pay off the lien directly to the lien holder and then have the lien holder sign the title over to you.

Don't confound paying cash or financing with the guarantee of getting a clean title.


I was just thinking if I financed part of the $140k that my bank would get the title and then i could pay it off in a few months and get a clean title without the worry of being scammed. I might add that its 9 hrs away.
aksteelhead is offline   Reply With Quote
Old 09-04-2017, 03:55 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Mar 2017
Location: New York City
Posts: 2,838
Quote:
Originally Posted by aksteelhead View Post
I was just thinking if I financed part of the $140k that my bank would get the title and then i could pay it off in a few months and get a clean title without the worry of being scammed. I might add that its 9 hrs away.
In my world 140k is a fortune. If the bank is footing the bill for the title search than great. Make sure there arent any prepayment penalties. Post some pics of the new RV
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
Blue Collar Guy is offline   Reply With Quote
Old 09-04-2017, 04:11 PM   #7
Thinks s/he gets paid by the post
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 4,599
This must be some used RV for 140k! Ouch!!!
Teacher Terry is offline   Reply With Quote
Old 09-04-2017, 04:14 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 15,326
How much money is owed on it now?

I would make the seller pay the escrow fee.... for that kind of money it is like buying a house... and you make people selling a house pay for things like this...



Edit to add... I bought a boat for around $11K... they had a line on it for about $5K... I took possession of the boat with a sales contract and paid them the $5K to pay it off... when they got clean title and was able to transfer that to me I paid them the rest...

The only problem I had was I did not know I needed title to the trailer!!! Took me a few years to get that as I could not contact the seller and then I found out the seller was also not the owner of the trailer....
Texas Proud is offline   Reply With Quote
Old 09-04-2017, 04:29 PM   #9
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 3,540
Quote:
Originally Posted by 38Chevy454 View Post
The escrow service will prevent any fraud potential by the seller and buyer. That is their role, to ensure both do what they are supposed to and protect each party in the transaction.

. . .go to the lienholder with the seller, pay it off and then give seller any residual money, have them sign the released title right there on the spot.
Quote:
Originally Posted by youbet View Post
If you're spending big bux, say low six figures, for the Class A and it has the complication of a current lien on it, I'd pay to talk to an attorney about how to do it. Perhaps the transaction could be handled in the lawyers office with him coordinating everything and holding money in escrow.

Or, talk to the current lien holder. Perhaps you can pay the owner his share, pay off the lien directly to the lien holder and then have the lien holder sign the title over to you.

Don't confound paying cash or financing with the guarantee of getting a clean title.

Some combination of the above. Large dollar transactions are not uncommon. There are processes to make sure all is handled correctly. It may be that obtaining financing and then paying it off quickly is an affordable option, but I'm sure it's not the only one. I would try to find a lawyer. Even at a high hourly rate, they wouldn't need to spend much time on something like this or, better yet, they'll know who to refer you to.
Jerry1 is online now   Reply With Quote
Old 09-04-2017, 06:05 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 3,992
I am also an RV'er. I've never seen a titled vehicle purchased through an escrow company. You'd do best to spend the $1,200 on a trained RV mechanic to go through that Class A and analyze every single system in it. They are very complicated animals and a detailed inspection is the best thing you can ever do for yourself.

When you're ready to complete your deal, you would contact the lienholder and ask how they want to process the payoff. The best way is to have your bank do a wire transfer directly to the other financial institution--about $25 to do. You and the seller can meet at the office that's holding the title. Get the seller to sign off on the title and give you a odometer mileage statement--and then call your bank and get them to wire transfer the money. If everyone's lined up, the wire transfer can be done in an hour or less. Then you're assured you've got a good title and the lienholder's been paid. And everyone's happy.

No attorney is required. It's the same way if you're buying an automobile.

As far as financing the unit: You can handle that as a separate deal with your bank or financial institution that's forwarding the money. You can sign all documentation prior to the purchase being processed. I personally believe that all toys should be paid in cash--unless some $ is coming later to pay it like an inheritance or CD maturing.
__________________

Bamaman is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Employment Finance vs Early Retirement Finance truenorth418 Life after FIRE 12 12-16-2015 01:18 PM
Finance or cash? happy2bretired FIRE and Money 18 03-24-2013 09:25 AM
Finance house or pay cash? soupcxan FIRE and Money 31 01-18-2013 10:12 PM
Finance cars or pay cash? azanon FIRE and Money 24 02-27-2005 12:40 PM

» Quick Links

 
All times are GMT -6. The time now is 04:22 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×