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Selling a financed bike (and what to replace it with)
Varinn
Vancouver, BCRegistered User regular
Vancouver, BCRegistered User regular
So, a few years ago in a fit of absolute stupidity I allowed myself to be convinced to invest in purchasing a 2009 GSXR 750. I payed a couple thousand down and because I was dumb and didn't have anybody experienced with financing there with me ended up with a total bill for an absurd $14,000 at end of term. I'm ALMOST payed off now, with roughly $3000 remaining on it and have reached a point with the bike that I do not want it anymore. I love riding motorcycles, I do not love riding MY bike however. It took a year of ownership to realize it, but this is not what I want from my riding hobby. I am looking to trade it in on a slightly more upright sporty v-twin or otherwise interesting bike. I have no need for the absolute top end power of a inline 4 sportbike and want something more fun for cruising around town or on the highway to work.
Now with my desire to trade it in it creates a problem; market value for the bike is fairly low considering what I have paid for it. I have as far as I've seen it two realistic options
1: Sell the bike private, use what I need to pay off the remainder in full and purchase something else for significantly less with cash
2: Trade the bike to a dealership and use the credit towards the purchase of a used bike off the showroom floor, continuing payments until end of term
I value the bike at around $6500-$7000, it has minor drop damage from a mishap in the garage 2 years ago and runs a touch rich. It has some blingy aftermarket mods that squidly kids will love that can bring some of the value back. For people more in the know with finances which one is the least impactful on my bank account in the long run? Dealerships obviously list prices much higher and I'm less likely to get full value for my trade in but private sales can tend to take a long time to work out. One of my cousins put it well though by saying that even taking a loss on my bike may be better off as $3000 in the bank account is worth more than $6000 collecting dust in the garage.
Now with my desire to trade it in it creates a problem; market value for the bike is fairly low considering what I have paid for it. I have as far as I've seen it two realistic options
1: Sell the bike private, use what I need to pay off the remainder in full and purchase something else for significantly less with cash
2: Trade the bike to a dealership and use the credit towards the purchase of a used bike off the showroom floor, continuing payments until end of term
I value the bike at around $6500-$7000, it has minor drop damage from a mishap in the garage 2 years ago and runs a touch rich. It has some blingy aftermarket mods that squidly kids will love that can bring some of the value back. For people more in the know with finances which one is the least impactful on my bank account in the long run? Dealerships obviously list prices much higher and I'm less likely to get full value for my trade in but private sales can tend to take a long time to work out. One of my cousins put it well though by saying that even taking a loss on my bike may be better off as $3000 in the bank account is worth more than $6000 collecting dust in the garage.
Varinn on
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Oh, I'm an idiot. Completely forgot about that bit. I'll have to defer that to someone else, but a little Googling brings up this from a forum...
"sold two vehicles that were being financed.
vehicle #1) the buyer came with certified check from his bank. i put together a bill of sale with both parties info and vin # of vehicle. went to my bank and paid off the loan. they immediately released the title. mailed the title to buyer by certified mail. everyone happy.
vehicle #2) the buyer was getting a loan from his bank. his bank contacted my bank for payoff and vin # etc. buyer's bank cut a check for pay-off amount and another one for remainder of sale price. went to my bank paid of loan. bank released title. signed title over to buyer along with bill of sale."
Usually when you sell something that you still owe on, you'll have to either have them pay off the bank in person to give a note that they're taking the lien off or to have them transfer the title, depending on who owns the title. In this case, the technically easiest way is for the buyer to write a check to you and a check to your bank. That's assuming they don't need financing to buy it off you.
Check the terms of your loan and find out if there is a penalty for paying it all off in one lump when you sell. Rarely there is.
Also, the easiest way to figure all of it out is to call your lender and ask.