Trading-in Pros and Cons | GTAMotorcycle.com

Trading-in Pros and Cons

motorsiklo

motorsiklo

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Hey folks,

What are your thoughts on trading-in a motorcycle that’s not completely paid off for another motorcycle? I have a Z400 that I love but I feel that I need more power.

Is better to keep the my current bike and but another bike? Or trading her in is a better option? What are the pros and cons?

Thank you! 🏍🥸🤍

p.s. I passed my M2 exit couple of weeks ago. 🤘🏼🤩
 
You don't need more power. You want more power. How many km on z400?

Buying a second concurrent bike is the most expensive option by far as insurance doubles (or more as faster bike will likely cost more to ensure).

Trading in a bike with a lien on it is no big deal but do not even think about doing it if you have negative equity. That is a terrible idea for a daily driver and absolutely inexcusable for a toy. Dealer may let you do it though as they care about the sale not your financial health.
 
I might be interested in helping you out if you’re looking at selling the bike.
 
As other have stated, best to sell it privately or ride until it is paid off before considering a trade in option.
 
Horrible idea financially. Rolling in negative equity into the next car is bad...rolling into the next toy is MUCH worse.

If you need to sell it, and you NEED the power, try and pay it off with an LOC, clear the lien, and then deal with that mess while you pay for the next toy.

Alternatively, find someone to take over the lien, but don't expect much in terms of 'profit' or 'down payment' for the next bike.
 
Pay it off. Do not go into more debt for a toy.

This is why it is pretty much universally recommended to buy cheap used as your first bike.

This is not a condemnation of your choices @motorsiklo , this hobby is inherently ruled by the heart, not the head. Someone in the future may read this thread and make a different choice. That is my only intent.
 
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Trading in, the dealer pays the wholesale price to you. He charges you the retail price of the new bike. Selling privately is a PITA but gives you more money. It takes patience and you deal with a lot of tire kickers and test pilots.

I don't allow test rides but will demonstrate the bike and if the buyer doesn't like that they are free to move on. You are free to risk your future any way you want.

Liens aren't a problem if you let the buyer and lien holder know.

You lose a bit of tax benefit but the wholesale / retail spread covers that.
 
nobbie48 said:
Trading in, the dealer pays the wholesale price to you. He charges you the retail price of the new bike. Selling privately is a PITA but gives you more money. It takes patience and you deal with a lot of tire kickers and test pilots.

I don't allow test rides but will demonstrate the bike and if the buyer doesn't like that they are free to move on. You are free to risk your future any way you want.

Liens aren't a problem if you let the buyer and lien holder know.

You lose a bit of tax benefit but the wholesale / retail spread covers that.
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Unless circumstances were exceptional (rare bike, great price, known seller), I wouldnt buy a bike with a lien. Sure its not that hard to clear off but it's adding hassle to the transaction so I want to pay less. Transferring the loan is probably not possible. Buyer (if they're smart) needs to pay off the loan instead of giving all money to seller and hoping they pay it off.

Trade in is simpler as dealer is used to clearing liens. While the dealer does offer less money, you save the tax on their offer so the spread may not be all that bad (and you avoid the hassle of kijidiots). I still think its a terrible idea to swap already but if you are going to, try to look at prices online (sale prices if possible as asking prices mean nothing) and get a trade estimate. If trade estimate is only 20% less than private sale prices, i would just trade it. Paying a couple hundred to make the transaction fast and painless seems worth it to me.
 
motorsiklo said:
Hey folks,

What are your thoughts on trading-in a motorcycle that’s not completely paid off for another motorcycle? I have a Z400 that I love but I feel that I need more power.

Is better to keep the my current bike and but another bike? Or trading her in is a better option? What are the pros and cons?

Thank you! 🏍🥸🤍

p.s. I passed my M2 exit couple of weeks ago. 🤘🏼🤩
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How many km have you put on the bike?
 
GreyGhost said:
Unless circumstances were exceptional (rare bike, great price, known seller), I wouldnt buy a bike with a lien. Sure its not that hard to clear off but it's adding hassle to the transaction so I want to pay less. Transferring the loan is probably not possible. Buyer (if they're smart) needs to pay off the loan instead of giving all money to seller and hoping they pay it off.

Trade in is simpler as dealer is used to clearing liens. While the dealer does offer less money, you save the tax on their offer so the spread may not be all that bad (and you avoid the hassle of kijidiots). I still think its a terrible idea to swap already but if you are going to, try to look at prices online (sale prices if possible as asking prices mean nothing) and get a trade estimate. If trade estimate is only 20% less than private sale prices, i would just trade it. Paying a couple hundred to make the transaction fast and painless seems worth it to me.
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I agree 100% with the hassle part, no shows and tire kickers. One prospective buyer that showed up on a Vespa wanted a test ride on my top heavy Concours. He admitted that it was his dream to have a bike with a motor bigger than his lawn mower.

I did buy a van with a lien on it once. The seller was up front and he gave me the bank info. The bank had been advised of a potential sale and said if I was worried make the cheque out to both the seller and the bank. This was before the UVIP system.
 
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nobbie48 said:
I agree 100% with the hassle part, no shows and tire kickers. One prospective buyer that showed up on a Vespa wanted a rest ride on my top heavy Concours. He admitted that it was his dream to have a bike with a motor bigger than his lawn mower.

I did buy a van with a lien on it once. The seller was up front and he gave me the bank info. The bank had been advised of a potential sale and said if I was worried make the cheque out to both the seller and the bank. This was before the UVIP system.
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I bought a bike with a lien once, no real issue. A few phone calls and a visit to the dealership to pay off the lien, and the balance to the seller.

Minor hassle, but in the end not a deal breaker so long as everyone is honest and up front with expectations.
 
Trading you have a tax break , but not if your underwater. I don’t like driveway selling anymore , it’s a pita so I would happily dump a couple hundred to a avoid it . But trading a toy for another toy and loosing money in the process , if you have lots go ahead . If your an average guy it’s a really poor idea .

But I do love you guys. You keep the market moving and I get toys at a better rate . Carry on


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As everyone agree I'd ride till it's paid and later buy something cheaper for cash to find something have enough "power and style" for you.
Or dive deeper into debt polling one into another = this is an option too :)
 
@GreyGhost

Sold the XR with a lien.

  • We agreed on purchase price.
  • I called BMW and got the final payout.
  • Buyer met me with a cheque for full payout amount to BMW. Paid balance of purchase price to me in cash.
  • Witnessed buyer mail the cheque to BMW in person with tracking info shared between us
  • Parked the bike at his location but kept the keys, documentation and registration
  • Upon confirmation from BMW that lien was released, handed over the above to buyer and considered sale complete. Gave buyer a copy of letter from BMW when available.
Was pretty smooth and I'd do it again this way if I had to.
 
motorsiklo said:
Hey folks,

What are your thoughts on trading-in a motorcycle that’s not completely paid off for another motorcycle? I have a Z400 that I love but I feel that I need more power.

Is better to keep the my current bike and but another bike? Or trading her in is a better option? What are the pros and cons?

Thank you! 🏍🥸🤍

p.s. I passed my M2 exit couple of weeks ago. 🤘🏼🤩
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Pros - you could have a shiny, powerful toy...until you go broke from increased insurance and monthly payments
Cons - you could go broke
 
Evoex said:
@GreyGhost

Sold the XR with a lien.

  • We agreed on purchase price.
  • I called BMW and got the final payout.
  • Buyer met me with a cheque for full payout amount to BMW. Paid balance of purchase price to me in cash.
  • Witnessed buyer mail the cheque to BMW in person with tracking info shared between us
  • Parked the bike at his location but kept the keys, documentation and registration
  • Upon confirmation from BMW that lien was released, handed over the above to buyer and considered sale complete. Gave buyer a copy of letter from BMW when available.
Was pretty smooth and I'd do it again this way if I had to.
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It's definitely possible and that's the right way to do it. I am just saying that it adds complication so given the choice of two similar bikes (one with lien, one without), I would have a clear preference for the clean title bike. If I wanted to sell a bike with a lien, I would probably use LOC to clear the lien so I could sell a clean title bike. Imo, that gives me a larger buyers pool and should get me a higher price. It costs me a little interest but not much.
 
I'm on board with only paying cash for toys. Don't have the cash? Then don't buy. Wait until you do.

I bought my race bike as a lightly-crashed street bike, which the previous owner still owed money on (but wasn't underwater). Fortunately, we both deal with TD, so we just arranged to do the transaction at a branch local to the seller. The selling price covered two transactions, one to pay off the loan and another for the cash over and above. That was easy.
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