Motorhomes, like all vehicles, depreciate over time. Since motorhomes are expensive to purchase, you may find yourself upside-down on your motorhome loan when the vehicle's value drops more quickly than you can pay down the principal owed on the loan. In order to sell your motorhome, you must take steps to pay off a portion of the loan balance that exceeds the motorhome's value. You cannot sell a vehicle until you satisfy the lien on it, as your lender will not release the lien and allow the title to change hands until you have paid off the entire loan balance.
Go to the National Automobile Dealers Association's website RV price listing guide (see "Resources"). Using information from your registration documents and handbook, search for your vehicle's pricing by choosing the manufacturer, year, model and specifications.
Write down your vehicle's value after you finish entering all of the relevant information. If you do not have online access, you can also find out the vehicle's value by going to a local library or vehicle dealership and asking to see a copy of the "Kelley Blue Book" or the NADA guide for motorhomes.
Contact your lender and ask for a payoff quote including a per diem for your motorhome. The payoff quote tells you how much you need to pay your lender in order to pay off your lien today, and the per diem tells you how much to add to the payoff quote for each day that passes in order to account for interest accrual. Deduct the market value of your motorhome from the payoff quote to determine the amount you need to pay out of pocket in order to sell your vehicle.
Advertise your vehicle in local classified advertisements and online. Set the price at the market value of the vehicle. You can also attempt to sell the vehicle to a motorhome dealer if you cannot find a private buyer.
Agree a sale price with a buyer and set a closing date for the sale transaction. Pay off the portion of the loan amount that exceeds the sale price prior to the sale date. At closing, you must use the sale proceeds to satisfy the remainder of the lien. Your lender will release the title upon receipt of the sale proceeds.
In some states, lending laws allow lenders to write assumable loans. With an assumable loan, you can sell your motorhome to another buyer, and the buyer assumes your existing motorhome loan. A lender with very poor credit who could not otherwise qualify for a motorhome loan may agree to take on a motorhome with an upside-down loan. However, in many instances, lenders have the right to review the buyer's credit before approving the assumption of a loan.
Many vehicle dealers enable you to trade in your upside-down motorhome or car for a newer, more expensive vehicle. In such situations, the dealer rolls your negative equity on your existing vehicle into your new vehicle. Therefore, you find yourself immediately upside-down on your new vehicle, so you do not actually resolve the issue of having a debt that exceeds the value of the collateral that secures it.