Trying to buy a used ninja 250. Owner is still making payments but wants to sell it, pay it off and send the title after receiving it. Anyone has advice on how to go about that? Any experience buying a bike this way? Thanks Jerry
Call his loan holder and transfer the loan to your name. Then pay him the difference of what he wants minus the remaining loan amount. That way you get the title without waiting for him, if he sends it This is why I like the Canadian system, no title as it is in the usa. You sign over the registration and hand the buyer a letter proving that you sold it and for how much (tax reasons, we pag a tax on used vehicles) then if the agent wants to confirm they can call the seller, but most cases its just reregistered in your name and done.
Any vehicle that is financed, has a lien on it by the finance company. This is a Catch-22 situation, he can't get lien release without your money, what security do you have that he will pay off entire loan and get the release?
You can always write two checks, one to the loan company for the amount that is owed and the other to the seller for any difference, but if is the case, why would you want to buy it for more than the loan amount?
How about giving him only what is needed to pay off the loan & hold the rest back until he has the title. Make sure this is in writing with the vin and both of you sign it and date it. That way if he selles to another party then you can force him to pay the first half back or you can register a lien on the bike, thus preventing the other guy from being able to register the bike. This is playing dirty but you have not many ways to protect your investment under us law. In canada a deal made verbally is as good as on paper, just need a witness.
We need to know balance of loan and what he is asking, we don't know if he owes more than it is worth or he is 1/2 way through his payments.
The only time I have ever bought a financed vehicle from a 3rd party we met at his Credit Union. I paid the loan off and filled the title paperwork out on the spot so that once the lien was cleared the title would come to me in my name. Once that was taken care of we went back to his house and I paid him the balance and drove the vehicle home. 2 weeks later I got the title in my name with no lien on it in the mail. In today's environment of big banks with faceless drones at the branches, I would still find out who his financing is through and as stated above give them a call there has to be a procedure in place for this. It's essentially like trading it in at a dealer. the dealer pays the lien and gets the title. Under NO circumstances would I give the guy the full amount and trust him to do the right thing. I wouldn't even trust family that far.
Bike in question is a 2010 with 50 miles. Non-op at the dmv and not insured at the moment. Seller wants $2700, no idea how much he/she owes, who the lien holder is or other pertinent information. Hope I know more about it today.
Well the the best option is for you to go with him to the holder and transfer the lien to you. Then pay it out. Then go back to his place and ride your new to you bike away after giving him the difference. Ask him, to provide details because if you buy the bike and he doesnt pay out the loan, they come and take the bike from you. If he wont disclose then walk away.
