Rules to sell your bike when it is still financed

By Réhann Coetzee

If you want to sell your bike but you still owe the bank money on it, you obviously need to settle that first, because the bike actually belongs to the bank.

If you owe the bank less than what the buyer is paying you, the best is to let the buyer settle the financing directly with the bank and then pay the balance to you. Get a settlement amount from the bank, inform the bank that you are selling the bike and let the bank confirm payment details with the buyer.

You don’t want to be in a situation where you still owe the bank after the sale, because the bank will not release the ownership registration of the bike. That means the buyer will not be able to register the bike in his or her own name.

Get in touch with the bank when you have a buyer. Make sure that the buyer knows where to transfer the payment.

If you are selling to a dealer, it will be easier, because dealerships settle financing on vehicles all the time. They are also used to waiting for the ownership registration (often referred to as Natis documentation) and they already have a relationship with the banks.

Don’t try to sell the bike without settling it with the bank. It is illegal and opens you up to prosecution as well as civil litigation.