Finance or pay cash for RV?

[aksteelhead]

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?

[Teacher Terry]

It depends on the age of the RV whether anyone will finance it or not.

[38Chevy454]

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.

[youbet]

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.

[aksteelhead]

Quote:

Originally Posted by youbet 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.

[Blue Collar Guy]

Quote:

Originally Posted by aksteelhead 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

[Teacher Terry]

This must be some used RV for 140k! Ouch!!!

[Texas Proud]

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....

[Jerry1]

Quote:

Originally Posted by 38Chevy454 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 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.

[Bamaman]

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.