Financing in Ohio

EmergencyKen

Hey Ohio folks, Quick question regarding a loan and financing.
I was approved for an RV loan from my local bank with a great APR.  However when I went to sign paperwork, and they realized it was a small trailer, everything changed.  Apparently, in Ohio, the BVM does not title vehicles <4000 pounds. Therefore the Tab 320 does not qualify as an RV, and therefore does not qualify for an RV loan.  Suddenly, my APR went from 4ish% to 10ish% (secured loan to unsecured loan).
Has anyone else had this issue? How did you work it out?  
How does anyone in OH afford the more expensive trailers such as the $44k Airstream Basecamp?

From the DMV:  https://www.bmv.ohio.gov/vr-firstissuance.aspx

Non-Commercial Trailer

• Weighs less than 4,000 lbs.
• Title is not issued
• Ohio driver license or state ID
• Proof of weight: Official Weight Slip (form BMV 5721), or Manufacturer’s Certificate of Origin (MCO) / Statement of Origin (MSO), or if using previous owner’s Ohio registration, complete a notarized Affidavit of Original Weight (form BMV 5728) available at any local deputy registrar license agency

Sharon_is_SAM

Well, we have a plate.  I would check with the dealer regarding registration.

EmergencyKen

Our Dealer is in PA.  
According to the State of Ohio, there is no title for trailers <4000#.  According to the credit unio, they can’t use the untitled trailer as collateral against the loan.  When the CU called the BMV to confirm, they said yes, and if a title was issued to a trailer <4000#, then it was done so in error.

EmergencyKen

Sharon_is_SAM said:

Well, we have a plate.  I would check with the dealer regarding registration.

@Sharon_is_SAM when you purchased it, did you finance it? 
According to the BMV a title is not needed to register the trailer (<4K#), hence the issue.
I doubt many people have $20k just sitting around to purchase them, and I can’t imagine taking out a 10% APR unsecured loan.  Yet I know they sell them here in OH. 

PamandJohnUpNorth2

@EmergencyKen You might see if they would be OK with a UCC (Uniform Commercial Code) lien to be filed with your state. This creates a lien using the asset as collatteral.

Our bank filed a ucc loan when I took out a low interest rv loan on a T@B400 which I happened to buy in another nearby state.

They charged $65 to file the UCC lien.

EmergencyKen

@PamandJohnUpNorth2 Thanks for the info.  $65 does sound much more appealing than a 10%APR!

JanandDave

FWIW, We bought our 2016 T@B 15 months ago in Ohio from a private party. It had an Ohio title.

Sharon_is_SAM

@EmergencyKen, we did not finance.  I will check when we get home for the title.  DH remembers taking something to the BMV to show proof of ownership.  

EmergencyKen

@PamandJohnUpNorth2 Turns our the bank we purchased through (Huntington) is requesting a UCC since there is no title in Ohio. 

PamandJohnUpNorth2

@EmergencyKen The dealer should give you a "certificate of origin" with the VIN# on it and your purchase agreement demonstrate ownership for the purpose of license plates. I hope that Huntington gave you a good rate and a reasonable fee for the UCC. The bank will cancel the UCC lien when the loan is paid in full. When does your new trailer arrive ?

EmergencyKen

@PamandJohnUpNorth2, we picked up the trailer last weekend (and had to winterize it this weekend). But at least we got one good camping weekend out of it.  We got a good rate at Huntington (much better than the unsecured loan that the Credit Union was offering).  I got all the paperwork ready to go, now just have to make it to the Registrar to get my tag, then contact Huntington again on the UCC.  

Cbusguy

The information in this thread is incorrect,   Travel trailers are classified as house Vehicles in ohio and are required to be titled.  link link

Motor Home, House Vehicle or Recreational Vehicle

• Ohio Certificate of Title or Memorandum of Title
• Ohio driver license, state ID or proof of Social Security number
• Affidavit for Registration (form BMV 5712) if MH not listed on title

EmergencyKen

Per your (state) link: non-commercial trailers weighing  less than 4000 lbs: “title is not issued”    I’ll take their info over Cuyahoga County website any day. 

jkjenn

I bought and registered a military trailer in Ohio. Mich easier than registering as a home-built in PA.

Cbusguy

Okay,  since you did not understand what I posted, 

It is a travel trailer not a non commercial trailer.     It is registered as a house vehicle in ohio so a title is required,   either the registrar I had was very knowledgeable regarding how to register it or your was unfamiliar with the law or you were simply trying to scam the system.  either way the information is incorrect.

this is also from my link

All travel trailers, including fold down campers are required to be titled in Ohio. All House and Travel Trailers, including Tent, Fold Down Campers & Truck Campers must have a CERTIFICATE OF TITLE. DO NOT purchase a vehicle of this type unless the seller assigns to you the proper title.


Directly from the BMV website 

Motor Home, House Vehicle or Recreational Vehicle

• Ohio Certificate of Title or Memorandum of Title
• Ohio driver license, state ID or proof of Social Security number
• Affidavit for Registration (form BMV 5712) if MH not listed on title

followed up by this definition take from  http://codes.ohio.gov/orc/4501

(N) "Noncommercial trailer" means any trailer, except a travel trailer or trailer that is used to transport a boat as described in division (B) of this section, but, where applicable, includes a vehicle that is used to transport a boat as described in division (M) of this section, that has a gross weight of no more than ten thousand pounds, and that is used exclusively for purposes other than engaging in business for a profit, such as the transportation of personal items for personal or recreational purposes.

Your information is incorrect

Simply trying to help other avoid the hassles I went through following the advice in this thread. 

In ohio to correctly register your trailer you need a title.

Sharon_is_SAM

@EmergencyKen, I think the Ohio BMV website is at times less than straight forward and you need to jump around to find answers.  We purchased in Ohio and we were required to have a title and regular registration.  

EmergencyKen

When I went to the BMV, I specifically asked about this and she said no.  I guess I’ll have to make another trip and ask a different person.  We will have our T@B paid off in about a month.  Do you think it will be easier to do before we pay it off (bank involvement), or wait til afterwards? 

Cbusguy

I would wait for pay off and not involve the bank,   less bureaucracy and paper work the better 

Sharon_is_SAM

Wait.

EmergencyKen

Hey guys, just to update and close out this forum.  
You guys were correct. It does have a title and is a “travel trailer” not a “non-commercial” trailer. After a lot of headache and paperwork and phone calls, we were able to get the title after we paid it off.   The bank that we had financed it through (Huntington) had filed a UCC lien on the trailer as they were not aware of the title either. Our bank originally refused to give us a loan because they had spoke with the state and told it didn’t have a title.

We sold our trailer last week, and interestingly enough, prior to purchasing it, the new owner went to see what she needed to get a temporary tag for it and she was told the same thing: <4000# no title (she had gone to the same office we had gone to).  Luckily we were able to correct her and steer her in the right direction.

thanks for all of your help on this.  Now the search for our perfect 400 begins. 

EmergencyKen

Ooh, and they were all surprised and shocked at the tag office when I went in last month to have the tag changed from “non-commercial” to “travel trailer”.  lots of “who did this?” Questions and confusion on their part.