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A person may be forced to sell their Bike for a variety of reasons. Whatever the reason, selling a bike isn’t always a pleasant experience, especially if you still intend to keep it.
When selling, several complications can arise, leaving you frustrated. One of the issues you may be wondering about is how to sell a bike with a lien on it.
How to Sell a Bike with a Lien?? If you are selling a bike with a lien, you and the buyer must go to your financial institution together to complete the transaction. The seller will pay the bank the agreed-upon price, you will receive a check from the bank for any difference in the price paid, and the bank will release the seller’s title.
When it comes down to it, selling a bike with a lien does not have to be a difficult task. We’ve sold several vehicles with outstanding liens and were able to complete the transaction without incident.
Before we head on to the specifics let’s learn what a ‘Lien’ is.
What is a Bike lien?
A ‘lien’ is placed on your bike when a third party, such as a bank or credit union, owns the title to it. This party has the authority to repossess your bike if you fail to make payments on it.
Can you sell a bike with a lien?
You certainly can! Even a motorcycle with negative equity can be sold. The procedure is slightly more complicated than if you owned the bike outright. But it’s totally worth pursuing, especially if you get a great deal on your ride and some leftover equity after you clear the slate.
Just keep in mind that, in most private sale situations, the buyer will refuse to work with you while you are removing the lien from your bike.
How do I lift the lien from my bike?
Before you even consider selling your bike, make sure you have enough cash to pay off the remaining balance. If you have the money to pay off the loan in full, do so because the last thing you want is to owe money on a motorcycle you no longer own. After you’ve paid off the lien, the lienholder will clear your bike’s title, allowing you to easily transfer it to the buyer.
How do you sell a bike with a lien?
Contact the lienholder to determine how much you still owe on your vehicle; they will provide you with the most up-to-date and accurate information. You can then either
- Sell it to a dealership, where you can almost always expect to be paid less for a bike with a lien than without one
- Initiate a private sale with an exclusive buyer willing to negotiate sale terms given your lien status
- Sell it to a ready online bike marketplace.
Things you need to be careful about when selling a bike with a lien
Once you’ve found a buyer and reached an agreement on a price, you and the buyer will need to go to your lending bank together to finalize the transaction. The buyer has the option of paying in cash or with a registered check. Inform the bank that you are selling the motorcycle and will be paying off the loan with the proceeds from the sale.
If you have any money left over after repaying the loan, the bank will either give you cash or a check, or you can simply deposit it into your account. Some banks will be able to sign the title over to the new buyer on the same day, whereas others will need several weeks to mail the title to the new buyer.
Most buyers are hesitant to hand over a registered check to a seller, but the fact that they get to hand the check over to the bank directly and witness the transaction ensures that they are not being duped. For this reason, some people prefer to buy bikes from people who still have a lien on the bike.
Final Thoughts:
If you are selling a bike with a lien, you and the buyer must go to your financial institution together to complete the transaction. The seller will pay the bank the agreed-upon price, you will receive a check from the bank for any difference in the price paid, and the bank will release the seller’s title.
