How to sell a bike with outstanding finance.
With rising interest rates, dwindling economic prospects, and riders' general ageing out, there may be a host of riders willing to sell off their loved two-wheeled machines. Whatever the reasons may be, selling your motorcycle can be stressful for many people, even more so if the machine in question is still under a finance agreement. The team at AutoTrader Bikes will try to make the whole procedure a little easier to understand.
What is the best way to advertise my motorbike for sale?
Is it ok to sell a bike under finance?
There is no problem to sell a bike that is financed, however, it should go without saying that the party selling the vehicle should be the registered owner and of course, the financial institution that is owed money should be settled before the transaction can be finalised.
Can you sell a bike if it's under a finance agreement?
Selling your motorcycle while there is outstanding money owned on it through a finance agreement happens more often than not, with many riders opting to wait until there is positive equity before either trading in or selling on.
Are there financing options available for purchasing a motorcycle in South Africa?
Can you sell a bike privately if it's on finance?
Selling your bike privately can often yield a better return, however, all of the work needs to be done by the seller and buyer and its going to take a significant amount of time. Before listing your bike that has outstanding finance on the private market, you must request a settlement quote from the financial institution that financed the deal. From there, you can determine your selling price and, indeed, whether you will have positive or negative equity on the vehicle.
Once you've dealt with the financial considerations, it's time to set the sales process in motion. This differs slightly between selling to a dealership (trading it in) and selling to a private individual, but the basic steps are similar in principle.
- Disclose your settlement amount to the buyer. This will allow them to deposit the outstanding amount directly to the bike loan account, convincing the bank to sell their asset. They will release the bike's certificate of registration (the title) to either you or directly to the buyer – that option is up to you to decide.
- Any leftovers once the bank got its share must then be deposited into your own bank account. This will come in handy when you put down the deposit on your next bike.
- Once all payments are reflected in the appropriate accounts (and are irreversible), you can complete the transaction by signing a bill of sale (just a document which states that you're selling your motorcycle to this buyer, and the conditions of the sale), handing over the certificate of registration and the Notification of Change of Ownership (NCO) form which you've now acquired from the bank, and giving the buyer the keys to his new acquisition.
- If the buyer is financing the transaction, their bank will deal with your bank, transfer the bike's title to their name, and deposit any amount due to you into your own account. The same applies when you sell to a dealership.
What are the signs of motorbike engine problems and how do I troubleshoot them?
Selling a bike under finance to a dealership
When selling a bike to a dealership when there is an outstanding loan, the dealership must be informed that there's an outstanding amount, after which the dealership will request a settlement quote from the finance house if the seller has not already provided one. From there, the dealership will make an offer on the vehicle based on the outstanding amount.
These are not complex processes, and while it involves a fair amount of paperwork and some phone calls, selling a bike that is still financed can be accomplished fairly easily. Just make sure it makes financial sense before you do it...
