Owner Financing

[Terry J. Sturgis]

I have been looking at a bus that an older gentleman has for sale. His last two lookers had trouble with bank financing. I was thinking that if my co-pilot likes the bus I would offer to buy if he would carry the paper.
Question is after researching the net I do not see any sales forms that apply to RV financing. I am thinking I would have to have an attorney draw up the contract. I appreciate any advice from those that have been there, etc. THANKS!

[tdelorme]

You should be able to find something on this site that will work.
http://www.free-legal-document.com/f...l-of-sale.html

[Jon Wehrenberg]

I see two issues regarding private financing. Each of you need protection.

As a seller I would have serious concerns that my security (the bus) is being well maintained so if I had to repossess it I would not end up with a bus that has been trashed. I would probably ask for additional security, I would certainly demand copies of the borrower's tax returns and a list of his assets and liabilities (just like a bank does) along with being a named insured. I would want additional security such that the buyer will never consider walking away from the deal.

From the buyer's side I would insist on some assurance the title will transfer to me as soon as my obligations have been met, possibly placing the title in escrow. I can see all sorts of problems such as the seller passing away and the estate (greedy kids) screwing the buyer to boost their inheritance. That would be especially true if the buyer put a lot of money in the coach refurbishing it.

Both parties are at risk here.

[garyde]

To add to Jon's thoughts, if I were selling my Coach I would want the buyer to have a substantial amount paid for a down payment. 25-30 percent.
Also, a copy of Insurance naming the seller as additionally insured and a requirement in the contract as such.
The Pink slip would still have the seller as Lein Holder on the Coach as well until the Coach is paid in full.

[Petervs]

Well my opinion is that as a seller I would want a substantial down payment too, like 100%!

50% would be the bare minimum. Look at what has happened to coach values over the last year or so, the values have dropped by half, and as the lender, you do not want your borrower to be upside down.

Better yet, do not buy a toy until you can pay cash for it.

[Terry J. Sturgis]

As I posted, the best way to protect all parties is to have an attorney draft the contract to the benefit of both seller and buyer.
I do have several toys that I paid cash for, Harley Road King Classic, 1969 Z-28 Camaro, 30 foot enclosed trailer, etc.
790 credit rating, substantial retirement income, house paid off, very little debt and 20% down. Banks will only finance 2000 or newer. I do know what my budget can handle therefore that is why I have been looking at mid 90's busses.
I am open to suggestions as to how one would go about financing a used Prevost bus or should I give up the dream and buy a plastic bus. Thanks!