This is your all-in-one guide on how to sell a motorcycle with a lien

✓ TIP: Are you looking for a new motorcycle to ride?

Compare insurance quotes to get the best deal.

Enter your zip to get started.

ZIP:

A person may have to sell their motorcycle for many reasons. Whatever the reason is, selling a motorcycle isn’t necessarily a fun experience especially if you still wanted to keep it.

Selling a motorcycle can be fraught with complications. A lien still on a motorcycle can cause problems. This is one of the complications that you might be wondering how to sell it.

How can I sell a motorcycle that has a lien on it? If you’re selling a motorcycle that has a lien, both you and the buyer need to visit your financial institution together. The seller will pay you the agreed price. If there is any difference, the bank will send you a check and release the title.

When it comes down to it, selling a motorcycle with a lien doesn’t have to be considered a complication at all. I’ve successfully sold several vehicles with liens attached that were able to be sold without problems. This is what I’ve learned.

Selling A Motorcycle with A Lien

Many people believe that to sell a motorcycle you must have a clean title to attract buyers. This actually isn’t the case. It’s completely possible to legally and safely sell your motorcycle that still has a lien on it.

It’s a good idea to call your bank first to inform them of your intention to sell the motorcycle and see exactly what they need in order for the transaction to run smoothly. However, I can give you a general idea of what to expect from doing something like this.

You must first be aware of the amount you owe to your motorcycle. Payment stubs may show an amount owed, but it’s usually not the exact amount. Contact your bank to determine how much you must pay to buy the motorcycle. This will give you a good reference of how much you will be able to pocket once it’s sold.

Next, you’ll need to figure out the worth of your motorcycle and get it up for sale. If you’ve never sold a motorcycle before, you need to expect people who will try to negotiate on the price. It’s okay to list the motorcycle for a little more than you’re expecting to get out of it because people feel like they’re getting a deal if you go down on the price a little bit.

You’ll also need to make sure you have insurance on your motorcycle during the selling process. Most potential buyers are going to want to take it for a test ride so they know exactly what they’re getting in to. It is vital to have insurance during this process. For more information on insurance for selling a motorcycle, see my article.

Once you have found a buyer and agreed on a price, You and the buyer must both go together to your lending bank to complete the transaction. You can either pay in cash, or with a registered cheque. You must inform the bank that the bike is being sold and that the buyer will repay the loan using the money provided by the seller.

If you have money left after paying the loan off, the bank may give cash, check, or simply deposit the money into your account. Some banks are able to transfer the title to the buyer the same day, while others will take several weeks before they can mail it to the buyer.

Most buyers are wary of handing over a registered check to a seller, but the fact that they get to hand the check over to the bank directly and witness the transaction themselves ensures them that they aren’t being scammed. Some people will prefer to buy motorcycles from someone who still has a lien on the motorcycle.

Possible complications

Although it may seem simple to sell a motorcycle without a lien, there are some complications and roadblocks. I’ve run into most of these complications myself and can tell you how to get around them.

The first problem you might face is the fact that you owe more money to the bank than the motorcycle is worth. This is the most common problem when selling a motorcycle that has an attached lien. This is one of the negative consequences of depreciation. You cannot negotiate with the bank how much you owe. You signed several documents promising you’d pay off the loan.

There are two options for getting a personal loan. The first step is to talk with your bank about obtaining a personal mortgage. Personal loans have high interest rates, so make sure you have collateral like a checking or savings account. These loans allow you to use the money for a variety of purposes.

Second, you can simply pay the difference. Sellers often find it difficult to sell their motorcycles because they have to make a profit and are unable or unwilling to spend the additional money.

A lien on a motorcycle can lead to the second most common issue: if the buyer is financing the purchase. If this is your situation, don’t consider this a complication because it’s completely doable.

After you have reached an agreement on a price, both you and your buyer need to inform your bank about your plans. Buyers will need to have made arrangements before purchasing, such as applying for a loan. Your bank will then be able to contact the buyer’s bank and sign over the appropriate paperwork. Your bank will also be able to tell you when it’s okay to let the seller take the motorcycle (usually it’s that same day).

How to Make Your Financed Motorbike Marketable

You may be concerned about selling your motorcycle if it still has a lien. Many people assume buyers don’t want to have to deal with banks.

It is important to communicate as much information as possible with the buyer when you are selling a motorcycle that has been financed.. The last thing you want to do is negotiate and come to an agreement then drop the bomb saying it’s financed. It can be a quick way to turn away buyers.

When you’re advertising your motorcycle for sale, always put in the description that you do not have the title and that you have it financed through a bank. This way you know any buyer that contacts you is aware of the financial situation and you don’t feel like you’re keeping any secrets.

Here are some additional tips: Give your motorcycle a thorough clean. You can take it to the car wash and shine it up. A clean looking motorcycle will help buyers know that you’ve taken good care of it.

Make sure you have a complete description of the motorcycle when selling it online. You can answer any questions buyers might have about the bike. Also post a lot of pictures of it so you don’t leave people guessing which leads them to moving on to the next posting.

Selling a motorcycle to a dealer

Selling your motorcycle to a dealership isn’t necessarily out of the question if you still have a lien on the bike from another financial institution. If you have a lien on your motorcycle from another financial institution, most dealers will still be willing to buy your motorcycle. In fact, selling your motorcycle to a dealership is probably the easiest way to sell a motorcycle whether or not it’s already financed.

The majority of paperwork can be handled by dealers. You may still need to go to your bank and sign a few papers, but you won’t have to deal with bringing in a seller with you and working with their schedule.

The downside to selling a motorcycle to a dealer is that they don’t pay you as much as you could get by selling it privately. If you sell it for less than you owe, you’ll need to come up with the difference and pay your bank. Selling your motorcycle to a dealer will result in a larger difference.

Similar Questions

Is it possible to re-pose a motorcycle? If you borrowed money from a bank to buy the motorcycle, and then start to default on payments, it is possible to have your motorcycle repossessed. The title is technically the bank’s property and the bank has the right to take it back. For more information, see my article.

How can I pay my motorcycle loan off faster? Paying more than the minimum monthly payments is the best and fastest way to repay a motorcycle loan quicker. You could make bi-weekly payment, add an additional monthly payment, or put any extra money towards the loan.

Leave a Comment