How To Sell A Financed Motorcycle
If you wish to learn how to sell a financed motorcycle, you will need to perform a few steps to ensure that your motorcycle title is free and clear. Selling your financed motorcycle is similar to selling a fully owned motorcycle. You will need to perform an additional step with the financing company to ensure your title paperwork is clear.
Here are the items you will need:
- Bill of sale paperwork. This shows that you are legally selling your motorcycle to another party for an agreed upon price.
- Lien Release. The lien release is provided by the bank which financed your motorcycle. This allows for the title to be transferred from seller to buyer.
- Bank contact information. Check on your original loan documentation for the phone number of the bank.
- Complete the sale of your motorcycle. If you are trying to sell your motorcycle, you can list it online or the newspaper classified section. Once you have a buyer for your motorcycle, complete a mutual agreement with the prospective buyer. You and the buyer will need to sign a contract with information such as make, model, date and price of the motorcycle.
- Obtain a lien release. Contact your bank for exact information on the specific process. In order for the bank to release the paperwork, they will need to be paid in full. The buyer of the motorcycle will need to submit funds on your behalf. The financing bank will provide a payoff amount. This amount needs to be paid to the bank before they can send a lien release. If the buyer is paying you more than the payoff, he/she will need to make two separate checks. The payoff amount will go directly to the financing company. Any additional amount in excess will be given directly to the seller of the motorcycle.
- Provide your prospective motorcycle buyer with all the paperwork. After you sell your motorcycle, your buyer will be responsible for completing the rest of the steps. He/she will need to apply for a new title and registration. The bill of sale and lien release will provide your buyer with all the information needed to complete the rest of the steps.