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kdflyer

Purchasing from an Individual

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We are looking at purchasing our first RV.  I found a used motorhome in NY, we live in FL.  My question is how does the paperwork process work?  I will have to get a financing company as I cannot pay cash.  I am not familiar with the process or how the paperwork works.  Any advice?

 

Thanks,

 

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Welcome to the Escapee forums! We are happy to have you here.

On the RV purchase, if you have ever purchased a car and financed it, the process is pretty much the same. If you were to buy through a dealer, they usually also arrange financing if you allow them to do so, but in most cases you can find better financing rates by shopping loans, if you have good credit. The first thing that I would strongly advise when buying a used RV is to get a professional to do a complete inspection of it so that you know that everything works and is in reasonably good condition before you buy, since a used RV will have no warranty and if buying from an individual you don't even have a business to go back on if the RV should turn out to be junk. 

If the RV is financed now and is from a private individual, you will need to arrange for your financing company to work with the lienholder that has the title now. If you have not done so, you will need to arrange your financing and make sure that the loan value of the RV you wish to buy is great enough to cover the amount that you want to finance. You can get some idea of loan value if you know the make, model, and year of the RV by going to your banker with that information and he can look it up in whatever book that they use. 

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As Kirk says it’s just like buying a used car. Get pre approved for the loan first for an amount that you think you will need after your down payment that you will give to the seller. Make sure you see the sellers registration to make sure there is no lien before you give them any money. If the seller has clear title your financial institution will send the seller payment and the seller will send the title to them. If there is a lienholder your lender will make arrangements to have the lienholder send the title to them and receive the loan proceeds. Some lenders won’t send the payment to a seller until they have the title in hand so your seller will need to cooperate with your lender. 

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In NY, liens appear on the title but the lender does not retain the title. A title may list a lien that's been satisfied if the owner has not paid the fee and submitted a payoff letter to the DMV for a clear title. The title and the payoff letter are accepted for sale transfers though, without having to wait for a new title to be issued. The best way to check for a lien in NY is to ask the seller to see a current insurance policy. That should list any still outstanding liens on the vehicle.

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59 minutes ago, kdflyer said:

any suggestions on a lender?

If you already have an established business connection with a bank or other lender, that is where I would start. Do you plan to continue to reside in Florida or do you have in mind to go fulltime? Usually it is easier to borrow from a place that you have done business before, but if you have an established record of borrowing and paying off loans, start with those companies. If you are a member of a credit union, they are usually a good lender. Since you are a member of Escapees, visit the directory of commercial members and contact the lenders who have a membership. 

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Our experience now 4 months into living in our motorhome and having attended the RV boot camp is that there is  a LOT to know and have inspected. We initially hired an "inspector" to purchase a used MH- he only did a very superficial check of the "house", no checking engine etc. He charged $271- I guess you get what you pay for. There were other inspections that charged over $1,500 - I suppose they do a better job....

We didn't end up purchasing our coach from that private party. We ended up purchasing from a reputable dealer- and oh boy are we grateful! After attending RV Bootcamp we went back and checked on all the stuff we learned - everything from dates of tires to electrical to water systems. 

We did find the various pre-purchase inspection checklists etc and used them, but in reality didn't really know what we were looking at or for... luckily for us, the dealer didn't cheat us on anything (they very easily could have).

So our advice if you don't have a lot of experience with RV's, or have a friend who does, buy your first RV from a reputable dealer (whether new or used), its worth the extra $$$.

Happy Travels !

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It would depend on how well you know and trust the seller and the quality of the homework you have done in all areas of the purchase. From reading you post I would not purchase sight unseen and not knowing the seller.

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My current loan is through First Internet bank out of Indiana and I live in California. Our previous loan was through Alliant Credit Union.

I sold my first unit private sale. The buyers lender issued a check to my Lien holder (after the process) and that was that. It was a pretty easy process.

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