Selling an RV with owner financing?
I have someone interested in purchasing my pull behind travel trailer. They will pay a down payment and follow with three payments to pay it off. I am having problems finding a contract for this. I was also concerned about how could the travel trailer be placed in their names without getting the title before it's paid off? Thanks.
- 8 years agoBest Answer
Get a local attorney to draw up the contract for you. You need to be listed on the title as the lien holder so that you can repossess the RV if the buyer defaults on the loan payments.
Keep in mind that the interest that they pay you is taxable income for you and you must show it on your tax return.
- LilyLv 78 years ago
In this case your best option is a lease with a buy out at the end. The person makes lease payments to you on the trailer. Once the terms of the lease are completed they can buy the item and receive title. For example let say 3,000 dollars is owed on the trailer. They plan to make 300 dollar payments for 10 months to pay of the balance. Once all ten payments are received you sell them the trailer for one dollar. The title transfer will occur at time of purchase. If payments are not made you still have the title and you can repossess the trailer at any time. You can also put in the lease that they are required to maintain insurance or the trailer can be repossessed. A lawyer can draw up this contract for 200 or 300 dollars. You don't need a top notch attorney someone fresh out of law school will do just fine. It's much easier and cheaper to set up contracts properly than deal with problems later on. Small town lawyers are frequently much cheaper than big city lawyers. If you live in a big city heading thirty minutes out of town can often save you on lawyer fees. Each individual state has different laws so again consult an attorney. At bare minimum find a paralegal and have both parties notarize the contract. Make sure each party has originals.
- whata wasteLv 78 years ago
I wouldn't do it. tell them to get a bank loan. once you sign that title over no matter what papers you have signed it isn't gonna matter if they don't pay. You'll spend time in court trying to get your money. If they can't pay in full then wait for someone who can