Selling a bike that is still being paid off?

[Brainfade]

Hi Y'all
I have a 2006 Yamaha R6, I also have a DRZ400SM & lately I realised I dont really use the R6 anymore cos the DRZ, with its new Yoshi & FCR39 carb is waaay more fun to ride 90% of the time, what I want to know is How do I go about selling a Bike I am still paying off?
I mean, can I sell it by getting the new owner to continue the payments or do I have to pay it off before I can sell it?
Thanks
btw, its a Nice Bike!
Cheers Brainfade

[Mully]

Either. Tell them there is money owing (if they do a VIR, they will find out anyway).

They either pay your finance company, and the finance company refund you the difference, or they may be able to t ake over the payments (subject to the finance companies credit criteria).

[slimjim]

would say that you would = tell next owner to buy that this is outstanding current i shall meet you at bank transfer loan payment and rest of purshase price goes into your account, that way serciuties is removed from rego of bike,
not good too just pay a despoisit and the next owner takes over payments things can go wrong,and unless legally done you still respondabil
however if selling i think you should notilify insurance-creditor -bank ? as its not owned outright

[Fatjim]

Yep, I bought my SV by paying off the finance. There is an element of trust here, because you're not paying the seller, but a third party. Nothing to stop the guy from keeping the bike.

Be up front.
Use online banking as it cannot be reversed.
Don't hand the keys over until you both get the ok from the finance company that they have the money in full.

[HenryDorsetCase]

Hi Y'all
I have a 2006 Yamaha R6, I also have a DRZ400SM & lately I realised I dont really use the R6 anymore cos the DRZ, with its new Yoshi & FCR39 carb is waaay more fun to ride 90% of the time, what I want to know is How do I go about selling a Bike I am still paying off?
I mean, can I sell it by getting the new owner to continue the payments or do I have to pay it off before I can sell it?
Thanks
btw, its a Nice Bike!
Cheers Brainfade

Do not under any circumstance do the "here take my bike, thanks for saying you'll take over the payments line": that is the worst idea I have heard this year.

Whoever buys your bike will maybe make one payment, then stop. You are then not in possession of the vehicle, and still liable for the payments. See where I am going with this?. Sure the PPSR security on the vehicle will still be on it, so your punter will find it hard to on-sell, and eventually it might get repo-ed. But from his perspective, so what? its a free bike. And because its free you can bet it will be raced, rallied rolled and trashed, so even if you do get it back it will be worth fuck all.

the ONLY way to do this is for whoever buys it to do a VIR?PPSR check, attend the finance co, pay off the balance, they remove the charge and pay you the difference.

Of course if you owe more than the bike is worth you are still going to have to go there, still going to have to do the deal with the finance co, and then do another deal about paying them out the balance. The buyer should not, and likely will not proceed unless and until they are sure they are getting a clear title.

do a search on KB for the many tales of woe around this issue.

Do it properly, or dont do it at all is my advice in a sentence.

[Sparrowhawk]

The first question is really "does the finance company hold security over the bike?". Not all lenders do. If there is no security held over it, then you can do what you want with the bike. That's why I always suggest going unsecured from a bank if you can. The interest is often cheaper, and there's no security interest.

If you're not sure, PM me, I can find out for you.

[pritch]

I had trouble getting my head around some of this, it seemed a bit weird. Henry DC summed it up well.

Ring the lender, xplain what is proposed and ask for a settlement figure. The buyer pays you (with a bank cheque?), you pay the finance company. End of story.

In the case of a hire purchase agreement property rights remain with the lender until payment has been made in full.

[limbimtimwim]

btw, its a Nice Bike!Yes, it is.

[BLazeD]

I sent you a PM

[Mully]

Ring the lender, xplain what is proposed and ask for a settlement figure. The buyer pays you (with a bank cheque?), you pay the finance company. End of story.


When I bought (and sold) a cage, I got the seller to get a settlement figure from this finance co, and my finance co paid his directly. He then got the difference refunded from his co.

[Oscar]

The new owner continuing the payments?
It is possible to transfer a loan agreement in this way.
Contact your Finance Company about a "Transfer of Buyers Rights".
The draw back is that you will almost certainly end guaranteeing the loan for the remaining term...

[BLazeD]

I've done it before and it's easy. You both go to the finance company and the buyer pays them and any left over to the seller at once.

[Hoon]

Yep I bought a bike that the seller was still paying off. I asked him to get me the outstanding balance and the loan ref id. I then gave him two bank cheques, one to the finance company quoting the loan ID, and the remainder of the balance to the seller.

Easy peasy, no need to visit/ring finance companies (although I did ring a few weeks later just to confirm that the loan had been repaid for peace of mind).

[barty5]

Sold a 4wd earlier this year (customer couldnt pay bill asked to sell it) New onwer payed finance company after i gave them a letter of sale once finace was paid up ( gave them peace of mind i wouldnt resell it or not sell at all)they then came back with paper work from finace Co to say it was all payed up gave me the balance. Sad part was customer still owed me $400 after the sale.

[Patrick]

he debt you owe must be paid in full, the best way is by way of the new buyer paying it off as part of the purchase price, as mentioned above.

Too risky to rely on them taking up the payments. If they didn't pay, YOU still owe the debt and disposing of the items being paid off, without paying them off, is a theft / fraud matter.

Good advice posted above by others. The consequences are too high otherwise.

[Brainfade]

Thanks Fellow KBers, I really appreciate the good advice You all gave Me, now I have a much clearer idea of what I shud do,
ALL of You have a Great day, Man, the Sun is out, I think We shud all take the day off & go riding (I wish!)
Anyway, Thanks again, Much appreciated
Cheers Brainfae