Selling a bike with a lien | GTAMotorcycle.com

Selling a bike with a lien

Iceman

Iceman

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Unfortunately I'm considering selling my Tracer 900gt. I have a loan owing currently for less than the value of the bike.
Any advice? I've never tried to sell anything with a lien on it.

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Go with the buyer and pay the lien off in their presence, or pay it off and get the updated uvip before the sale?
 
Iceman said:
Unfortunately I'm considering selling my Tracer 900gt. I have a loan owing currently for less than the value of the bike.
Any advice? I've never tried to sell anything with a lien on it.

Sent from my SM-A530W using Tapatalk
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Take care of the lien before selling or sell the bike for market value, or agreed upon selling price with a buyer, minus the lien amount and have the lien be the responsibility of the buyer.
 
As above. Buyer can do two cheques. One to lienholder and one to iceman for difference between lien and sale price. Safest for the buyer if they see the lien cleared personally. It would suck to get a bike repossessed because there was a few dollars left on the loan (interest from last statement until cheque).
 
I bought a KTM 950 with a lien against it. He disclosed it upfront, and I asked that he make note on the bill of sale that he would clear it off.

I was comfortable with the arrangement and he did what he said.

I don't know if the notation/clause on the bill of sale would be binding, but having met the guy I was comfortable with it.

If it's a concern, perhaps you have enough credit available to clear it?
 
GreyGhost said:
As above. Buyer can do two cheques. One to lienholder and one to iceman for difference between lien and sale price. Safest for the buyer if they see the lien cleared personally. It would suck to get a bike repossessed because there was a few dollars left on the loan (interest from last statement until cheque).
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I was buying a used van years ago and the seller disclosed the lien and lien holder. I called the bank and they were aware of the pending sale and suggested that I make the cheque payable to both the owner and the bank.

This was before UVIP.
 
I bought a bike with a lien before and the agreement was as follows:

- agree on price
- cheque to lien holder to pay off lien
- cheque to owner for the difference

Your easiest bet is to pay off the lien, wait 2-3 weeks, call the lien holder to get a letter stating that lien is now paid off. And have the letter when you’re selling the bike. It can take a while for it to come off UVIP and no need to wait for that process.
 
800over said:
How do you do the 2nd option?
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Sometimes you can convince the lender to advance a loan to the buyer (although the buyer would need to qualify). I doubt you can just pass off a loan without violating a term of the loan. Lender has an agreement with you, not some random third party. You could write something up between you and the buyer but the lender would be ****** if they found out.
 
Or simply take out a loan from an LOC to pay off the bike first. At the current rate we are talking about $30 in interest for a month even if you have to borrow $10k. You will have a much easier time selling the bike as most people don't want to buy something with a lien on it.
 
DoubleDonut said:
Or simply take out a loan from an LOC to pay off the bike first. At the current rate we are talking about $30 in interest for a month even if you have to borrow $10k. You will have a much easier time selling the bike as most people don't want to buy something with a lien on it.
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This sounds like the best route for all involved.

How much is the lien and how much are you selling the bike for?
 
DoubleDonut said:
Or simply take out a loan from an LOC to pay off the bike first. At the current rate we are talking about $30 in interest for a month even if you have to borrow $10k. You will have a much easier time selling the bike as most people don't want to buy something with a lien on it.
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Agreed. This is the easiest route forward.

Pay bike off with LOC/Cash. Get letter. Sell bike.

Use money from sale to pay of LOC…profit?!
 
GreyGhost said:
It's easy if you have the cash/cheap credit to clear the vehicle loan. If you dont it's hard.
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Agreed. I just assume everyone here is a baller and money is free.

But I’m sure the majority of us have an LOC available…whether it’s enough to cover the lien is different.
 
Thanks for the advice guys, pretty much what I was thinking. Either I pay it out before hand or a trusting buyer lol.
Sucks to be selling such a great bike.

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mimico_polak said:
Agreed. I just assume everyone here is a baller and money is free.

But I’m sure the majority of us have an LOC available…whether it’s enough to cover the lien is different.
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When you're sick and haven't worked in two years the ball gets smaller.
Recently found out I won't ever be returning to work, lots is changing...

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