Selling an RV with an outstanding loan is a bit more complicated than selling one that you fully own. Here are the general steps you should take:
Determine the Payoff Amount: Contact your lender to find out the exact payoff amount for your RV loan. This is the total amount you need to repay to clear the loan.
Assess the RV's Value: Determine the fair market value of your RV. You can do this by researching similar RVs for sale in your area or using online valuation tools such as Kelley Blue Book or NADA Guides.
Calculate Equity: Subtract the payoff amount from the RV's value to determine your equity in the vehicle. If the RV's value is higher than the loan payoff amount, you have positive equity. If the payoff amount is higher, you have negative equity, also known as being "upside down" on the loan.
Prepare the RV for Sale: Clean the RV thoroughly inside and out, make any necessary repairs, and take high-quality photos for your listing. Be transparent about any issues or defects with the RV to avoid surprises for potential buyers.
Advertise the RV for Sale: Create listings on online marketplaces such as Craigslist, RV Trader, eBay Motors, and Facebook Marketplace. Provide detailed descriptions and include plenty of photos to attract potential buyers.
Negotiate with Buyers: Be prepared to negotiate with potential buyers regarding the selling price. If you have negative equity, you may need to come up with the difference between the loan payoff amount and the sale price to close the deal.
Complete the Sale: Once you've found a buyer and agreed on a price, you'll need to transfer ownership of the RV. In most cases, this involves signing over the title to the new owner. Additionally, you'll need to arrange for the payoff of the loan with your lender. This may involve coordinating with the buyer's lender if they're financing the purchase.
Pay off the Loan: Use the proceeds from the sale to pay off the remaining balance of your RV loan. Your lender will provide instructions on how to do this, and they'll typically release the lien on the vehicle once the loan is paid in full.
Transfer Title: Once the loan is paid off, you can transfer the title to the new owner. This typically involves signing the title over to the buyer and submitting it to the appropriate state agency for processing.
Finalize the Sale: Provide any necessary documentation to the buyer, such as maintenance records, manuals, and keys. Make sure to cancel any insurance coverage on the RV once the sale is complete.
Selling an RV with a loan requires careful planning and coordination with your lender and the buyer. Be sure to follow all legal requirements and ensure that the transaction is completed smoothly for all parties involved.