If you wish to sell a motorcycle that is still under a loan, then this blog will provide you with all the relevant information on how to do it! Don’t worry if you still need to pay the installments, and there is still a provision for selling your motorcycle. If you still owe your bike to the original sellers or the dealer, they have the hold of your title. In other words, they will have a lien over it. It allows them to repossess your motorcycle if you cannot repay the loan.
The first step will be to remove the lien. For that, you will have to inquire about how much you need to pay for the party. The amount to be paid can be calculated from the balance of the loan statement. The other way is to call your lender directly. They will let you know exactly how much you need to pay them and all the additional related information about the loan. However, it’s essential to note how much you have paid.
What is a motorcycle lien?
When a third party still owns your motorcycle title, there is said to be a lien on it. The party with the lien has the authority to control your motorcycle if you cannot pay the loan.
Paying the loan
It’s always better to pay the amount from your pocket. Therefore, it’s essential to know how much balance you have in your bank before you start the process of selling your motorcycle. You may opt for a loan to pay the lien, but you will be tied with another liability. Once you pay the amount to the lender, the lien will be removed, and you will be able to sell your motorcycle to another buyer.
What to do if I don’t have funds to pay for the lien?
But you may not always be in a position to collect the entire amount. In that scenario, you can have a co-signer to pay on your behalf. The other option is to ask the buyer to pay off your loan and deduct the amount from the final selling price. You can also contact dealerships who will take care of all the paperwork and help you sell your car. However, with dealers, you may not get the same price as you would get from a private buyer. Another option is to look out for online buyers. You can either fill in the form or contact them directly via phone or email provided on the website. The experts will review your information and provide you with their offers.
How do you privately sell a motorcycle if you still owe the money?
The truth is, nobody would readily agree to buy a motorcycle that is still under a loan. They may feel that the bike may be stolen or the seller is not entitled to sell it. There are many cases where people sell a motorcycle under someone else’s name without informing them. The experts also usually don’t recommend buying a bike with a lien. The question then arises, how would I sell my motorcycle to a buyer then?
Firstly, you need to be very honest with the buyer and provide them with all the information regarding your loan. If they feel that they are being informed about everything, there is a chance that they may agree, considering your credibility. Also, gather all your documents, loan agreements, etc., and present them before the buyer. They can check the paperwork themselves.
How to Sell a Motorcycle with Negative Equity
Negative equity means a net loss to your assets. It happens when the loan remaining on your motorcycle exceeds its present market value. The value of a bike depreciates with time, and the more you drive it, the lower will be its market value. This usually happens when the down payment is lower, and you have to pay multiple installments over the years.
Selling a motorcycle with negative equity
The process remains the same as selling a motorcycle you own. In case of a lien, you will first have to pay the loan and then proceed with the sale. There is also an option of trading your motorcycle to a dealer. The profits you will earn in selling the bike will be negated by the amount you would pay for the loan.
How to pay the loan before selling a bike?
The easiest option is to pay in cash. However, not everyone has money in hand to pay off their liabilities. You can also opt for a personal loan and immediately get rid of your motorcycle. However, you will then be liable to pay for the personal loan. However, it’s still a better option than to keep paying for a motorcycle that you no longer intend to own.
You can also ask your buyer to pay your loan in advance. The loan amount will then be deducted from the final price of your car. If the loan amount exceeds the value, you can pay the buyer the remaining money. This way, you will be able to get rid of your motorcycle without worrying about your bank balance.
Sell your motorcycle with The Bike Buyers
If you are looking to sell your junk motorcycle for cash, then The Bike Buyers who buy junk motorcycles is the right place to get the actual worth of your bike. We buy junk motorcycles for money and provide a same-day motorcycle removal service.
The bike buyers have been buying old wrecked motorcycles for decades. We work professionally and believe in doing business honestly, making us different from other motorcycle removal companies. We pay more cash than virtually anyone else in this business does. We certainly do not value the motorcycle for scrap steel; instead, we put efforts to get you more money from it. You can also inform the buyers about the loan office and tell them that they can get all the information, including the title.