New trailer / finance / title question

[TL7]

This is a bit complicated, but I don't think it should be. A few weeks ago I bought a new aluminum trailer, from a 3rd party manufacturer. Turns out the 3rd party manufacturer has a "partnership" with my dealer, so all sales in the area go through the dealer. Fine, no problem. I buy the trailer, pay the full price to my dealer, no financing. Done deal. I have the new trailer and it rocks.

Dealer asks what I'm going to do with my old Boatmate single axle. Told them I was planning on going the Craigslist route or similar, and they offered me 1K for it. Perfect, let's do it. Handshake, agreement, we're good to go.

Here is when it gets interesting. Since the original (Boatmate) trailer was sold and financed with the boat as a package (2010), I cannot sell it without a clear title. Dealer suggested we do a collateral swap; basically swapping the new trailer for the old trailer on the loan. Whatever, as long as the end result is the same as status quo and I get my 1K, I'm ok with it. A few weeks pass, and I contact the rep at my dealer. Below is the email I get.

"THE SUPERVISOR AT U.S. BANK WONT ALLOW A SUB OF COLLATERAL, THEY WANT YOU TO DO A COMPLETE REFINANCE ON THE RIG WITH THE NEW TRAILER. THEY WONT ALLOW US TO DO THE PAPERWORK SO YOU WOULD HAVE TO GO DIRECT TO U.S. BANK TO DO THE RE FI. I AM HAVING xxxx BRING THE TRAILER HERE AND WILL CALL WHEN WE RECEIVE

SORRY TO ALWAYS BE THE BEARER OR BAD NEWS"

So now I'm totally confused. At this point, what are my options? I've yet to get paperwork from dealer to title the new trailer. I definitely don't want to refinance the entire thing, as I've been paying on it for over a year now and I just paid cash for a new trailer. I can see the bank's point of view, as they want to make sure if I default they get back exactly what they "loaned" me money for, even though the new trailer is worth more.

Any bankers out there want to explain this a little better to me? I'm in Texas if that matters. At this point, I'd just assume keep the original trailer, title the new one, and leave it be. It'd be nice to somehow get the title and sell the old trailer, but I don't want to do something stupid in the long run. Or anything illegal or "shady".

Thoughts?

[ian ashton]

You can likely refi with a term the same as what you have remaining, thus keeping your payoff the same. Rates might even be better now than they were when you previously financed as well.

[mmandley]

The problem lies in the Bank doesnt say this amount is the boat and this amount is the trailer. They see it as one amount.

All you should have to do is say look i owe X amount on this debt. Refinance it as a Boat only deal and the boat should still cover the value of the trailer. The bank can then be happy with X amount on the boat and now your trailer will be out of the picture.

Other wise your going to be stuck with 2 trailers till you pay the loan off.

[Razzman]

That's what's nice about California, the vessel and trailer are seperate entities and can be sold seperately. The bank would be none the wiser as they have no seperate record per se of the trailer.

[E4NASH]

That's what's nice about California, the vessel and trailer are seperate entities and can be sold seperately. The bank would be none the wiser as they have no seperate record per se of the trailer.

Same here in TN...

[zabooda]

For those with separate entities, do you finance the boat and trailer seperately? All boats and trailers have seperate titles so it is how the loan is written up. You will need to refinance or hold onto the trailer. They will probably refinance the new trailer and the boat so you would end up with cash when you sell your old trailer. Try a competitor bank and see if they can get you a better loan rate to refi with them and switch out the trailer at that time.

Let us know how this one works out.

[kaneboats]

Trailers aren't even titled in FL. I sold the trailer right out from under my last financed boat (for $100 because it was a rusty piece of chit). I replaced it with a much better one I paid $1100 for. I suppose if the boat ever got repo-ed I would have filed a theft claim and they would have filed a fraud claim.

[zabooda]

Then that works. Do you have titles on expensive trailers or camp trailers? I would think it would be hard to get a loan on a trailer if there was no title as it could be sold at any time. I remeber that in Florida a lot of people store their boats in marinas and never get a trailer. I saw some nice boats in Destin last weekend.

[mmandley]

In Oregon the trailer is titled to the boat. The trailer does have its on registration, as well as the boat as its own registration. I think this is weird because even though i pay seperate registration on them they share the same title lol.

[Razzman]

In Oregon the trailer is titled to the boat. The trailer does have its on registration, as well as the boat as its own registration. I think this is weird because even though i pay seperate registration on them they share the same title lol.

Now that is strange.