How to Successfully Sell Your RV Even If You Have a Loan

Nov. 27, 2024

If you’re an RV owner with an outstanding loan, you might be wondering, “Can I sell my RV if I have a loan on it?” The good news is, yes, you can sell your RV even if you haven’t paid off the loan entirely. However, the process involves a few extra steps compared to selling an RV that’s fully paid for. In this guide, we’ll walk you through how to sell an RV with a loan, ensuring a smooth and hassle-free transaction.

Understanding Your Loan Balance

Before putting your RV on the market, it’s crucial to know your loan payoff amount. Contact your lender to get the exact figure, which may include any remaining principal and interest. This amount is essential because it determines how much you need to sell your RV for to break even or make a profit.

Determining Your RV’s Market Value

Next, assess the current market value of your RV. Use resources like the NADA Guides or RVTrader to compare similar models and their selling prices. Keep in mind factors such as:

• Age and condition: A well-maintained RV will fetch a higher price.
• Upgrades and amenities: Added features can increase value.
• Market demand: Seasonal trends can affect how quickly your RV sells.

Preparing Your RV for Sale

To attract potential buyers, ensure your RV is in top condition:

• Clean thoroughly: A spotless interior and exterior make a great first impression.
• Perform necessary repairs: Fix any mechanical issues or cosmetic damages.
• Gather documentation: Have maintenance records, warranties, and the title (even if held by the lender) ready.

Choosing the Right Selling Method

You have a few options when selling your RV with a loan:

Private Sale

Selling privately can often yield a higher price, but it requires more effort:

1. List your RV: Use online platforms, social media, and local classifieds.
2. Disclose the loan: Be upfront with buyers about the lien on the RV.
3. Coordinate with the lender: Arrange for the loan payoff and title transfer upon sale.

Dealership Trade-In

Trading in your RV at a dealership is convenient:

• Quick transaction: Dealerships handle the paperwork and loan payoff.
• Less profit: You might receive less money compared to a private sale.
• Potential for negotiation: Use the trade-in value towards a new purchase, if desired.

Consignment Sale

Consignment dealers sell your RV on your behalf:

• Minimal effort: They handle marketing and negotiations.
• Fees involved: A portion of the sale price goes to the dealer.
• Loan coordination: They assist with paying off the loan from the sale proceeds.

Handling the Financials

When selling, the buyer’s payment typically goes directly to your lender to pay off the remaining loan balance. Any excess funds are then forwarded to you. If the sale price doesn’t cover the loan amount (being “upside down”), you’ll need to pay the difference out of pocket or explore refinancing options.

Legal Considerations

• Lien release: Ensure the lender provides a lien release after the loan is paid off.
• Title transfer: Follow your state’s regulations for transferring the title to the new owner.
• Bill of sale: Document the transaction details for both parties’ records.

Tips for a Smooth Sale

• Be transparent: Honesty about the loan status builds trust with potential buyers.
• Stay organized: Keep all documents and communications in order.
• Seek professional advice: Consult with financial advisors or legal professionals if unsure about any steps.