How To Sell An RV With A Loan: Tips And Legalities

Before you even slap a “For Sale” sign on your RV, it’s crucial to get the nitty-gritty on your loan. Dive deep into your loan agreement and pinpoint details like the current balance, monthly payments, and interest rates. Remember, when you’re selling an RV with an outstanding loan, you’re essentially asking the buyer to trust you in handling the loan payoff. Being transparent with potential buyers about the remaining amount can put them at ease and foster trust.

Liaising with Your Lender

So, your RV’s attracted a keen buyer? Great! Now, it’s time to involve your lender. Most lenders have processes in place for these situations. Some might require a direct payment from the buyer to clear off the loan, while others might need you to close the loan and then transfer the title to the buyer. The key is communication. Keep all parties informed throughout the process. It might sound daunting, but with patience, many have treaded this path successfully.

Ensuring Legal Compliance

When selling an RV with a loan, you’ll want to ensure everything’s on the up and up legally. Each state has its own set of regulations regarding the sale of vehicles with liens. Typically, once the loan is paid off, the lender will release the lien, and you can transfer the title to the buyer. Depending on your state, you might also need to provide a bill of sale, proof of loan satisfaction, and other related documentation. While it might seem like a lot, following the rules to a tee will save you headaches down the road.


  • Can I sell my RV if I still owe money on it?Absolutely! However, it requires careful coordination between you, the buyer, and the lender. The key is clear communication and understanding the process.
  • What if the buyer wants to take over my loan payments?This is known as “loan assumption”. Some lenders allow it, while others don’t. It’s best to check with your lender beforehand.
  • What happens if my RV sells for less than what I owe?This situation is termed as being “upside down” on your loan. If the RV sells for less than the owed amount, you’re responsible for the difference.
  • Do I need a lawyer when selling an RV with a loan?While not necessary, consulting with a legal expert can provide peace of mind, ensuring that all legalities are adequately addressed.

Pre-Sale RV Upgrades

Thinking of fetching a higher price for your RV? Consider giving it a slight makeover. Minor upgrades, like updating the upholstery, adding solar panels, or even just a fresh coat of paint can increase its value. Ensure all appliances are working, and if feasible, upgrade to energy-efficient models. By investing a little in your RV before the sale, you can possibly earn a greater profit, which can be handy if you’re looking to cover the outstanding loan amount and then some.

Insurance Implications

Now, let’s talk about a topic often overlooked: insurance. If you’re selling your RV with an outstanding loan, it’s imperative to keep it insured until the title is officially transferred. Why? Because you’re still legally responsible for it. Inform your insurance company about your intent to sell, so they can guide you on the best steps. Moreover, encourage your buyer to secure insurance immediately upon purchase to ensure a smooth transition of responsibility.

Alternative Selling Avenues

While many opt to sell their RVs privately, don’t put your eggs all in one basket. Explore alternative selling avenues like consignment. RV dealerships often offer consignment options where they’ll handle the sale for you. Though they’ll take a commission, they might be able to fetch a higher price given their industry expertise and client base. Plus, they’re familiar with handling paperwork and can often facilitate the loan payoff process, saving you some serious legwork.

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