The past few years have been chaotic for those buying and selling RVs. Unfortunately, now that the dust has settled, some owners face difficult financial situations.
If you’re one of them, you may be looking for answers to how to sell a camper you still owe money on. While it may not always be easy, selling a camper that you still owe on it is possible.
Today, we’re sharing some tips and tricks for handling the transaction in these situations.
Let’s get to it!
The demand for RVs skyrocketed from 2019 to 2023. It was a simple game of supply and demand that drastically increased prices for many RVs. While consumers previously paid 10 to 30% below MSRP, some paid over MSRP during the chaos. Now that the market has calmed, some are severely underwater on their rigs. The heightened interest rates have not helped with these monthly payments for consumers either.
When someone is underwater on a loan, they owe more than the value of the financed item. It doesn’t matter whether it’s a home, automobile, or recreational vehicle; you don’t want to find yourself in this situation.
It’s generally not a problem until you go to sell the item. Most consumers aren’t willing to pay more than something is worth. Some RVers are discovering the amount owed on their well-used rig is equal to what a new model costs today. This can create a serious issue, especially if you’ve not done any modifications or upgrades to warrant a customer paying a premium price.
Pro Tip: If you’re looking to get a loan with zero-down for an RV, be sure to check out Is Zero-Down RV Financing Possible!
If you can avoid any mistakes when buying an RV, it’s to avoid becoming one of these individuals. The last thing you want to do is owe more on your rig than it’s worth. This can make it extremely challenging if you need to sell your camper and get out from under the loan.
Because RVs depreciate incredibly fast, it’s essential that you put a sizeable down payment. While many lenders will require a 10% down payment, it’s even better if you can do 20%. This can help if you want to sell or upgrade in a year or two. The downpayment and monthly payment you’ve made can significantly reduce the chances you’ll end up underwater.
Additionally, as many recent buyers have discovered, you want to avoid overpaying for your rig. Some consumers let their emotions get the best of them and made poor financial decisions in the past. Don’t make the mistake of paying more than you have to. Be sure to negotiate and work a deal you’ll be comfortable with now and in the future.
Yes, you can sell a camper if you still owe money. However, you must satisfy the loan before completing the transaction because you still owe on it.
The financial institution that financed the loan will also have the title. When transferring the rig into their name, the new owner will need the title. Once you’ve paid the balance on the loan, it can take a couple of weeks for the bank to send you the title.
If you sell or trade the RV to a dealership, their finance department will likely handle all the logistics. Althgouh, if you’re doing a private sale, it can be trickier. It can take increased trust and communication between the buyer and seller. If a buyer is financing the transaction, the two institutions may do most of the work for both parties.
If you want to sell a camper you still owe money on, we have good news for you. Getting out from under your loan may take some effort, but it’s possible. Here are some things you’ll want to remember and do for the smoothest possible transaction.
The first step to selling a camper you still owe is contacting your lender. You’ll want to get the payoff amount and instructions for the final payment. These will be critical pieces of information that you’ll need as you sell your rig.
Many lenders provide this information through online portals. If you have an account set up to make your monthly payment, you’ll likely be able to find the necessary information there. Additionally, you can always call them or stop by a local branch if you have any troubles.
The next step will be to determine the market value of your particular camper. The best way to do this is to check Facebook Marketplace, RV Trader, and other online sales sites. While the goal is to find the same year and model of your camper, it can be challenging, especially if you have a less common camper.
When determining the market value, it’s also crucial that you refrain from including sentimental value in the price. You’re likely going to have made a ton of priceless memories in the camper. Regardless, future owners aren’t going to pay a premium price because of them. Don’t let the sentimental value inflate your price, making it less appealing to potential buyers.
If the market value of your camper is higher than what you owe, you’ll walk away with cash in your pocket. Regrettably, it’s not uncommon for sellers to end up owing more than their camper is worth. You’ll need to pay the financial institution the difference in these situations.
This may not be a big deal if it’s only a few hundred or thousand dollars difference. But, if there’s a considerable difference, consider a bridge loan. These allow you to pay off the negative equity over time instead of a lump sum. For many sellers, this is the only way out from under their camper loan.
Once you have a potential buyer, you’ll want to disclose the loan situation to them. Unfortunately, some buyers won’t consider purchasing from a private seller if there’s a loan involved. This is, sadly, the way things are, and there’s nothing you’ll be able to do about it.
If your buyer is still interested, anyone with concerns can work directly with your bank. This may help them ease any worries that you’ll scam them out of their hard-earned money. They’ll have less to worry about, as you may only see their money after your financial institution processes the payment.
Again, buyers and sellers should be cautious when doing a private sale. Putting the money into an escrow account can be the easiest way to ease both parties. This can help ensure the funds are secure and the transaction can go through without issues.
The last thing you want to do is to accept a bad check and send the new owner off with your camper. It’ll be messy, and you’ll likely have to involve law enforcement and a lawyer. Save yourself the hassle and stress by arranging a secure payment method ahead of time.
The final step to complete the transaction is to sign all the paperwork, pay off the loan, and transfer the title and registration. If the financial institution or dealer handles the transaction, they’ll do most of this work for you. On the other hand, a private sale will require a little more effort.
Completing the transaction as a private sale means paying off the loan and signing the title when it arrives in the mail. You’ll then need to deliver it to the new owner so they can register it under their name. While you or they may be in a hurry, this process can take a few weeks.
Just because you still owe money on your camper doesn’t mean you’re stuck with it. If you play your cards right, you can sell it and get out from under the monthly payment. Regrettably, depending on several factors, you may owe more than it’s worth. Nevertheless, closing a deal on campers in these situations is still possible. It just might take a bit more effort.
