How To Sell A Motorcycle With A Loan?
How To Sell A Motorcycle With A Loan? Owing money to a motorcycle loan does not mean that you cannot sell your motorcycle. First, you have to pay off your loan, which can be tricky if you don’t have the money to cover the balance. You still have some options. However, you could lose money depending on how much you owe compared to the retail price of your bike.
Sale of vehicles with Liens
When you finance the purchase of a car or motorcycle, your lender retains ownership of the vehicle until the loan is paid off. This is also the case when you take out a title loan. When a third party has your title, your motorcycle would have a lien. This lien allows your lender to repossess your bike if you stop paying.
Abolition of pledge
You can’t sell your motorcycle until the lien has been removed, so your first step should be to figure out how much you owe on your loan. You may be able to determine your remaining loan balance based on a loan statement, but calling your lender directly is the best way to make sure you have the correct number.
Paying for your motorcycle
You can remove the lien and erase the title from your bike by paying the financing. Doing this with your own money is the easiest thing to do, but many people are unable to get the loan balance in one go. If you have a co-signer, that person can pay the loan. Another option is to have your buyer prepay you before delivering the title. You can then pay off the loan with your buyer’s money. Another option is to work with the lender to complete the sale. You may be able to complete the sale with the bank or credit union that holds the lien and have the title signed on the spot.
Sell to a dealer
Many dealers are willing to handle the paperwork associated with a lien on a vehicle. The only downside, in this case, is that you may not get the same price for your motorcycle as you would from a private buyer.
Reverse Motorcycle Loans
If you owe more on your loan than your motorcycle is worth, it is known as having negative equity or being in arrears on the loan. This often happens with vehicles that have been involved in an accident or other damage. Experts recommend keeping your bike in this case until you pay off the loan and get some equity back. If you sell it, you must raise the money to cover the negative balance of your loan.
How To Sell A Motorcycle With A Loan – Step By Step
When you finance the purchase of a motorcycle, the lender places a lien on the title. To sell the motorcycle, the lien must be settled so that the new owner can take over the vehicle without third parties being able to claim it. As a private owner, you can sell a motorcycle by placing advertisements online or in local newspapers. As with any real estate sale, you should negotiate with potential buyers until you reach a mutually acceptable price.
Contact the finance company that has a lien on your vehicle and request a 30-day per diem payment. The 30-day payment quote tells you exactly how much you need to pay the lender to pay off the lien today. Per diem tells you how much you need to add to the payment quote daily to take into account interest accrual.
Go to the Kelley Blue Book website and click on the ‘motorcycles’ tab. Enter your zip code on the next screen and select “Motorcycle Sales Values” on the next page. Enter the year, make, and model of your motorcycle on the following screens to find out the vehicle’s market value.
Set a price for your vehicle that is higher than the amount you need to pay off the loan, but not much higher than its market value. If your loan amount exceeds the value of the motorcycle, price it close to market value and use your money to pay off the excess loan balance. Advertise the motorcycle locally and in online classifieds.
Agree on a sale price with a buyer and set a closing date for the sale. If you have enough money to pay the lien before you sell the motorcycle, pay it. Ask the lender to sign the title lien release or provide you with a lien document, if your state allows it. If you can’t pay it off early, take out the loan at your lender’s office and give the proceeds of the sale to your lender at closing so your lender can release the lien.
Sign and date the title owner section and fill in the necessary information in the odometer and title transfer fields. Get proof of payment from your lender and give the buyer the title and keys to the motorcycle.
Conclusion – How To Sell A Motorcycle With A Loan
Some banks allow you to create escrow accounts where the buyer can deposit the money for the purchase of the motorcycle. The bank acts as the custodian of the account, so you won’t be able to access the money until the lien has been released the lien and the title paper has been completed.
In some states, such as Virginia, you can sell a motorcycle without paying the lien, but only if your lender allows the buyer to take over your loan. The buyer must meet the lender’s eligibility guidelines. The buyer takes possession of the vehicle and assumes responsibility for paying off the debt.