Used bikes that are being financed..?

rasta · September 6th, 2013, 10:44 AM

Is there a problem buying a used bike off craigslist that is still being financed by the owner? I kind of remember reading a post somewhere here that was along those lines, but I can't remember where I saw it/what it said. He says that I pay him the price we agree to, and I get the title once he pays off the financing.

Are there any reasons to not do it? Maybe I should find out how much he still owes?

subxero · September 6th, 2013, 10:49 AM

If he is an honest guy then no problem, but if he is dishonest then bike is not yours he walks away with bike and money in hand as title never got transferred to you. If he owes money on the bike the bank probably holds the real title and maybe he has a "blue title" that in reality isn't worth ****

I would stay way from the way you describe doing the transfer but i'm sure there is a good way to do it.

Take him, blue title, vehicle to a vehicle notary and get the title transferred, give him the cash agreed upon but somehow his name stays on the original bike loan and you get real title from bank?

IDK?

If he is asking for more money than he owes on the bike to the bank then, just do notary title transfer but take over the loan. Pay off loan and give him additional money owed. That would be easy, and after you pay off the loan the bank would release the real title to you

rasta · September 6th, 2013, 10:51 AM

So.....the guy just called me and said he just sold it, so it doesn't matter anyway lol.

But, I'm still interested in the subject, so carry on

subxero · September 6th, 2013, 10:53 AM

I'm curious to.... as if no one has noticed i'm just rambling talking out my ***

Byakkotai · September 6th, 2013, 10:57 AM

I'm surprised someone agreed to the deal, it musta been killer

@subxero pretty much said everything I was expecting. Just wondering though, if the seller defaults - you would lose both your money and the said bike since you aren't title holder?

On another note - which bike is this?

rasta · September 6th, 2013, 11:02 AM

Quote:

Originally Posted by Byakkotai

I'm surprised someone agreed to the deal, it musta been killer

@subxero pretty much said everything I was expecting. Just wondering though, if the seller defaults - you would lose both your money and the said bike since you aren't title holder?

On another note - which bike is this?

It was a Ninja 300......

...a white one....

...was it YOU?! lol

Byakkotai · September 6th, 2013, 11:13 AM

I mean, I'd be pretty depressed if I sold my one and only bike

But yeah, CL peeps want a lot for used 300s (they want their dealer fees back!)

Alex · September 6th, 2013, 11:13 AM

Without the title, he can't sell the bike. The bank owns it. If you can get the bank to agree to transfer the loan to the potential buyer, it can be done. If the sale price is equal or more to what is owed on the loan, the buyer can pay off the loan, sometimes directly to the bank rather than the current seller, and have the title sent directly to them. This works best if the buyer & seller are both at a physical location of that bank or credit union.

If the buyer is putting any money in, and isn't ending up immediately with a clear title, or a loan in their name with the title in their name upon paying off the loan, they are taking a huge risk. It's a red flag that the seller doesn't have their sh*t together, which is reason enough to walk away from the bike and find another.

rasta · September 6th, 2013, 11:18 AM

Quote:

Originally Posted by Alex

Without the title, he can't sell the bike. The bank owns it. If you can get the bank to agree to transfer the loan to the potential buyer, it can be done. If the sale price is equal or more to what is owed on the loan, the buyer can pay off the loan, sometimes directly to the bank rather than the current seller, and have the title sent directly to them. This works best if the buyer & seller are both at a physical location of that bank or credit union.

If the buyer is putting any money in, and isn't ending up immediately with a clear title, or a loan in their name with the title in their name upon paying off the loan, they are taking a huge risk. It's a red flag that the seller doesn't have their sh*t together, which is reason enough to walk away from the bike and find another.

Thanks for the post Alex.

As a side note, the seller said I would have received a Bill of Sale. But by the sounds of what you talked about, that wouldn't have changed anything.

Alex · September 6th, 2013, 11:48 AM

The bill of sale would be illegal. They don't own the item they are selling.

Bigballsofpaint · September 6th, 2013, 11:57 AM

Exactly as Alex said, easiest way (if you're sure you are buying the bike) is to meet at the bank or credit union that has the title. Pay there, bike is yours.

FrugalNinja250 · September 7th, 2013, 06:45 AM

This is why the phrase "clear title" means so much when buying a bike or car. A clear title in the seller's name, with no liens or other encumbrances, makes life oh-so-much easier. If a vehicle has a lien against it, typically by the bank that's financing it, then that bank has first grab on the vehicle, car or bike. Title can't be transferred to the buyer, and it can be legally repossessed at any time regardless of the circumstances of the sale. It's fairly common for a person in over their head financially to sell their bike or car to someone else even though they still owe a loan balance on it, and rather than use the proceeds from the sale to pay off the loan they spend the money elsewhere like on rent and food. A bill of sale is meaningless in these circumstances, as they are in pretty much any other case in strong-title states (most states are now strong-title states).

"Clear title". If it doesn't have that, then I walk. It's just not worth the hassle and drama to deal with otherwise.

MR2Aaron · September 7th, 2013, 07:33 AM

Quote:

Originally Posted by Alex

Without the title, he can't sell the bike. The bank owns it. If you can get the bank to agree to transfer the loan to the potential buyer, it can be done. If the sale price is equal or more to what is owed on the loan, the buyer can pay off the loan, sometimes directly to the bank rather than the current seller, and have the title sent directly to them. This works best if the buyer & seller are both at a physical location of that bank or credit union.

If the buyer is putting any money in, and isn't ending up immediately with a clear title, or a loan in their name with the title in their name upon paying off the loan, they are taking a huge risk. It's a red flag that the seller doesn't have their sh*t together, which is reason enough to walk away from the bike and find another.

This. Unless we could do the deal at the bank, and I could walk out with the title or a receipt for a new title application, I wouldn't mess with a bike that had a lien on it, and even then, it would have to be something I really wanted, and couldn't get any other way.

MrMax · September 8th, 2013, 06:39 AM

Ive hooked up with a seller before similar to this. First I determined he was honest and sincere. Negotiated on the price, wrote up a bill of sale(mentioning the bank loan needs paid off). Go to guys bank together and talk to the bank...make sure they can release the title when the loan is paid off. keep in mind most larger banks keep this type of stuff at their main branch

Pay off the loan...have him transfer ownership and sign the title right there at the bank...pay him the remaining balance...

Keep in mind there is a certain level of trust involved here. I would have to meet the seller in person before going to this level to buy something. Although with bigger ticket items...RV's...Boats...newer cars and trucks...this type of transaction is quite common.

Regards,
Frank

RedPepper64 · September 9th, 2013, 10:20 PM

From personal experience on the seller side, all money should be handled with the financing company directly. We owed $5500 on a car and worked out a deal with a buyer for $5000. After a couple phone calls with the financing company, we paid the $500 and the buyer paid the $5000 over the phone with the company. He gave them his information and the title was sent directly to him. I'm pretty sure they either faxed or emailed him temporary paperwork until the title and registration were mailed.

Never ever give the seller money when they owe someone else. You have no way to prove anything and no legal standing.

dcj13 · January 29th, 2014, 04:00 PM

Quote:

Originally Posted by MrMax

...Although with bigger ticket items...RV's...Boats...newer cars and trucks...this type of transaction is quite common.

Extremely common with real eatate transactions.

September 6th, 2013, 10:44 AM	#1
rasta Your face Name: Wes Location: SF Bay Area Join Date: Jul 2013 Motorcycle(s): 2014 Honda CBR650f Posts: A lot.	Used bikes that are being financed..? Is there a problem buying a used bike off craigslist that is still being financed by the owner? I kind of remember reading a post somewhere here that was along those lines, but I can't remember where I saw it/what it said. He says that I pay him the price we agree to, and I get the title once he pays off the financing. Are there any reasons to not do it? Maybe I should find out how much he still owes?

September 6th, 2013, 10:49 AM	#2
subxero dirty boy Name: Joe Location: Johnstown, PA Join Date: Sep 2012 Motorcycle(s): I don't even know anymore?? Posts: A lot. MOTM - Apr '14	If he is an honest guy then no problem, but if he is dishonest then bike is not yours he walks away with bike and money in hand as title never got transferred to you. If he owes money on the bike the bank probably holds the real title and maybe he has a "blue title" that in reality isn't worth **** I would stay way from the way you describe doing the transfer but i'm sure there is a good way to do it. Take him, blue title, vehicle to a vehicle notary and get the title transferred, give him the cash agreed upon but somehow his name stays on the original bike loan and you get real title from bank? IDK? If he is asking for more money than he owes on the bike to the bank then, just do notary title transfer but take over the loan. Pay off loan and give him additional money owed. That would be easy, and after you pay off the loan the bank would release the real title to you __________________________________________________ I love the smell of burning pre-mix in the morning I don't think I'm a lot dumber than you thought that I think that I thought I was once.

September 6th, 2013, 10:53 AM	#4
subxero dirty boy Name: Joe Location: Johnstown, PA Join Date: Sep 2012 Motorcycle(s): I don't even know anymore?? Posts: A lot. MOTM - Apr '14	I'm curious to.... as if no one has noticed i'm just rambling talking out my *** __________________________________________________ I love the smell of burning pre-mix in the morning I don't think I'm a lot dumber than you thought that I think that I thought I was once.

September 6th, 2013, 11:13 AM	#8
Alex ninjette.org dude Name: 1 guess :-) Location: SF Bay Area Join Date: Jun 2008 Motorcycle(s): '13 Ninja 300 (white, the fastest color!), '13 R1200RT, '14 CRF250L, '12 TT-R125LE Posts: Too much. Blog Entries: 7	Without the title, he can't sell the bike. The bank owns it. If you can get the bank to agree to transfer the loan to the potential buyer, it can be done. If the sale price is equal or more to what is owed on the loan, the buyer can pay off the loan, sometimes directly to the bank rather than the current seller, and have the title sent directly to them. This works best if the buyer & seller are both at a physical location of that bank or credit union. If the buyer is putting any money in, and isn't ending up immediately with a clear title, or a loan in their name with the title in their name upon paying off the loan, they are taking a huge risk. It's a red flag that the seller doesn't have their sht together, which is reason enough to walk away from the bike and find another. __________________________________________________ Montgomery Street Motorcycle Club / cal24.com / crf250l.org / ninjette.org ninjette.org Terms of Service Shopping for motorcycle parts or equipment? Come here first. The friendliest Ninja 250R/300/400 forum on the internet! (especially Unregistered)*
	1 out of 1 members found this post helpful.

September 6th, 2013, 11:48 AM	#10
Alex ninjette.org dude Name: 1 guess :-) Location: SF Bay Area Join Date: Jun 2008 Motorcycle(s): '13 Ninja 300 (white, the fastest color!), '13 R1200RT, '14 CRF250L, '12 TT-R125LE Posts: Too much. Blog Entries: 7	The bill of sale would be illegal. They don't own the item they are selling. __________________________________________________ Montgomery Street Motorcycle Club / cal24.com / crf250l.org / ninjette.org ninjette.org Terms of Service Shopping for motorcycle parts or equipment? Come here first. The friendliest Ninja 250R/300/400 forum on the internet! (especially Unregistered)
	1 out of 1 members found this post helpful.

September 6th, 2013, 10:51 AM	#3
rasta Your face Name: Wes Location: SF Bay Area Join Date: Jul 2013 Motorcycle(s): 2014 Honda CBR650f Posts: A lot.	So.....the guy just called me and said he just sold it, so it doesn't matter anyway lol. But, I'm still interested in the subject, so carry on

September 6th, 2013, 10:57 AM	#5
Byakkotai ninjette.org guru Name: Roger Location: NorCali - East Bay Join Date: Sep 2012 Motorcycle(s): 2013 White Ninja 300 Posts: 379	I'm surprised someone agreed to the deal, it musta been killer @subxero pretty much said everything I was expecting. Just wondering though, if the seller defaults - you would lose both your money and the said bike since you aren't title holder? On another note - which bike is this?

September 6th, 2013, 11:57 AM	#11
Bigballsofpaint ninjette.org certified postwhore Name: Jay Location: CT Join Date: Apr 2011 Motorcycle(s): 2015 636 ABS - 69 Honda 305 Posts: A lot.	Exactly as Alex said, easiest way (if you're sure you are buying the bike) is to meet at the bank or credit union that has the title. Pay there, bike is yours.

September 7th, 2013, 06:45 AM	#12
FrugalNinja250 ninjette.org certified postwhore Name: Frugal Location: Dallas/Fort Worth (DFW) Join Date: Mar 2010 Motorcycle(s): Several Posts: A lot.	This is why the phrase "clear title" means so much when buying a bike or car. A clear title in the seller's name, with no liens or other encumbrances, makes life oh-so-much easier. If a vehicle has a lien against it, typically by the bank that's financing it, then that bank has first grab on the vehicle, car or bike. Title can't be transferred to the buyer, and it can be legally repossessed at any time regardless of the circumstances of the sale. It's fairly common for a person in over their head financially to sell their bike or car to someone else even though they still owe a loan balance on it, and rather than use the proceeds from the sale to pay off the loan they spend the money elsewhere like on rent and food. A bill of sale is meaningless in these circumstances, as they are in pretty much any other case in strong-title states (most states are now strong-title states). "Clear title". If it doesn't have that, then I walk. It's just not worth the hassle and drama to deal with otherwise.
	1 out of 1 members found this post helpful.

September 8th, 2013, 06:39 AM	#14
MrMax ninjette.org nubcake Name: Frank Location: Northeastern Iowa, USA Join Date: Sep 2013 Motorcycle(s): 05 FLTRI, 09 C14, 99 Vmax, 96 FXDWG, 09 Ninja 250R, 89 VTR250, 08 VStar Custom, 02 Zuma :) Posts: 9	Ive hooked up with a seller before similar to this. First I determined he was honest and sincere. Negotiated on the price, wrote up a bill of sale(mentioning the bank loan needs paid off). Go to guys bank together and talk to the bank...make sure they can release the title when the loan is paid off. keep in mind most larger banks keep this type of stuff at their main branch Pay off the loan...have him transfer ownership and sign the title right there at the bank...pay him the remaining balance... Keep in mind there is a certain level of trust involved here. I would have to meet the seller in person before going to this level to buy something. Although with bigger ticket items...RV's...Boats...newer cars and trucks...this type of transaction is quite common. Regards, Frank

September 9th, 2013, 10:20 PM	#15
RedPepper64 Kawi Girl Name: Heather Location: Washington Join Date: Dec 2012 Motorcycle(s): '10 Ninja 250R Green SE, '13 Ninja 636 Pearl White Posts: 245	From personal experience on the seller side, all money should be handled with the financing company directly. We owed $5500 on a car and worked out a deal with a buyer for $5000. After a couple phone calls with the financing company, we paid the $500 and the buyer paid the $5000 over the phone with the company. He gave them his information and the title was sent directly to him. I'm pretty sure they either faxed or emailed him temporary paperwork until the title and registration were mailed. Never ever give the seller money when they owe someone else. You have no way to prove anything and no legal standing. __________________________________________________ Perspective: Everything looks better from the inside of a motorcycle helmet

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