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  1. #1
    Join Date
    Jun 2007
    Location
    Sugar Land, TX
    Posts
    464

    Question New trailer / finance / title question

    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?
    Current: 2010 LSV
    Previous: 2007 Outback

  2. #2
    Join Date
    Feb 2008
    Location
    Traverse City, MI
    Posts
    2,680

    Default

    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.
    2013 Outback V

  3. #3
    Join Date
    May 2009
    Location
    North End Lake Lanier GA
    Posts
    8,118

    Default

    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.
    Malo <--- Means--Evil or Mean One. This explains a lot.
    2013 Mojo 2.5 Skylon Tower. Bestia < Beast >
    [COLOR="#696969"]

  4. #4
    Join Date
    Apr 2008
    Location
    California
    Posts
    2,840

    Default

    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.
    2007 Mobius LSV

  5. #5
    Join Date
    Feb 2010
    Location
    Canton, Ga / Lake Lanier
    Posts
    1,600

    Default

    Quote Originally Posted by Razzman View Post
    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...
    SOLD! 2011 Mobius LSV 325HP EFI
    Digital Cruise Pro, Wakeplate, Kenwood KM550U and KCA-RC107MR x2, Kicker ZXM700.5, Kicker 6.5 Cabins, 10'' Kicker CompVT sub, Wetsounds SYN 4, Wetsounds REV10s, Wetsounds WS420Q, Gravity VI Surf Ballast, Acme 537

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  6. #6
    Join Date
    Mar 2003
    Location
    Springfield Missouri
    Posts
    3,178

    Default

    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.
    1998 Mobius
    310 HP PCM
    SOLD

  7. #7
    Join Date
    Jan 2008
    Location
    Tallahassee, FL
    Posts
    14,071

    Default

    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.
    My Mom said I'm not allowed to get wet!
    2008 LSV (sold)
    2000 Outback LS (sold)
    LLTR!!!!!!!!



  8. #8
    Join Date
    Mar 2003
    Location
    Springfield Missouri
    Posts
    3,178

    Default

    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.
    1998 Mobius
    310 HP PCM
    SOLD

  9. #9
    Join Date
    May 2009
    Location
    North End Lake Lanier GA
    Posts
    8,118

    Default

    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.
    Malo <--- Means--Evil or Mean One. This explains a lot.
    2013 Mojo 2.5 Skylon Tower. Bestia < Beast >
    [COLOR="#696969"]

  10. #10
    Join Date
    Apr 2008
    Location
    California
    Posts
    2,840

    Default

    Quote Originally Posted by mmandley View Post
    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.
    2007 Mobius LSV

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