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Lien title sale??

26667

26667

the Wizard of Oz
I still owe the credit union on the bike I'm trying to sell. In the past when I've sold a bike, I've always had the title in my possession. How should I deal with this when i reach an agreement with a buyer?

I've thought of making the deal, paying it off myself, and then asking the buyer to wait a few days (weeks?) till the title arrives in the mail, but that seems pretty weird from the get. I wouldn't like it if the situation were reversed.

I'd rather not spend the money on the payoff to prior to the sale. Must I? What's the typical procedure?

thanx.
 
Talk to your credit union. They have, or control, the title and will want payment before they release it to the buyer or the buyer’s financial institution. If possible, it is easier if you and the buyer meet at your credit union with a person who can accept money from the buyer, payoff the loan, release the title and pay you what is due after settling the loan.
 
What AKbeemer said.

Meet at the credit union. Pay off the bike, sign over the title along with the paperwork to release the lien. Give him the keys and away he goes.

I’ve done it this way a couple of times. Both buying and selling.
 
As many titles are held in “electronic limbo”, you may not be able to actually see the bikes title. Around here it’s rather rare for a title to be actually issued until the vehicle is paid off......Unless it had a previous owner or perhaps a smaller lending institution.
Much easier to just have it with “Title in Hand”.
OM
 
If Illinois is like Indiana you can call institution holding title in advance, have them get it available for pickup at their appropriate branch. Meet buyer there to complete transaction. Buyer pays you...you pay off loan...title goes to you....you sign off and give to buyer. All it takes in Indiana is institution's Agent sign off to transfer title to you. Just be sure your credit union will accept buyer's form of payment. A cashier's check from buyer's bank would be best (or cash) and even cashier's check may require a phone call to confirm funds. There is so much fraud going on nothing is for sure any more. This arrangement protects everyone involved.
 
Gene:

I'm an attorney and I would suggest that you pay the security agreement off now, and get the title in hand. BMW's are hard enough to sell without having an encumbrance on the title that might spook a potential buyer. The daily cost of the "pre" payment will be minimal.

I've helped people buy encumbered personal property and it is a lot of extra work.

Good luck with your sale, and hope you will continue to hang around.
 
I agree. I had a really hard time selling a car a year ago. It was listed for 6 months and every person that called clammed up as soon as I told them there was loan against the title. I ended up selling it to my son in law who, naturally, trusted that wouldn't screw him out of his money. If you can afford to pay it off up front, I'd go ahead and do that.
 
I've sold and purchased vehicles with liens. When selling, I called my cu and had them send the physical title to my local branch. I met the buyer there, used the proceeds from the sale to pay the balance. I signed the title and the bank signed the release on the lien. In and out in just a few minutes. The buyer has a clean title to take to the dmv for a transfer. No prepay and waiting 10 days for the state to forward the clean title. Very easy.

Doug
 
Agree with all the above and would add the challenge is exacerbated if/when a "buyer" plans to finance the purchase him/herself. I considered your scenario when I bought a GSA this Spring. This is the first time I've ever had a lien, but BMW's end-of-year .9%/36-month incentive financing was nearly "free" money. If for whatever reason I choose to sell it before payoff, I will just write a check to obtain a clean title.
 
We decided long ago that financing motorcycles, ATVs and SnoGos was not a good idea. If we cannot buy it outright then we do not buy it.

There are companies that act as go-betweens for distance transactions. I sold a bike to a woman in Ohio a few years ago and she hired a guy in AZ that acted as an intermediary for the exchange of the check and the title. I had the title in hand and thought it was just an added expense for her, but it caused me no problem.
 
83014 said:
I called my cu and had them send the physical title to my local branch. I met the buyer there, used the proceeds from the sale to pay the balance.
Click to expand...

Fair enough, but a BMW is a special interest motor vehicle, so the potential buyer may be out of state and unable or unwilling to travel. Buying and selling special interest vehicles can be tough.
 
Last edited:
thanx!

Rinty said:
Gene:

I'm an attorney and I would suggest that you pay the security agreement off now, and get the title in hand. BMW's are hard enough to sell without having an encumbrance on the title that might spook a potential buyer. The daily cost of the "pre" payment will be minimal.

I've helped people buy encumbered personal property and it is a lot of extra work.

Good luck with your sale, and hope you will continue to hang around.
Click to expand...

I think I'll do just that; pay the loan, hope i can sell this bike soon, and then see how things play out.
 
Pre-Funding Motorcycle Purchases - No lien

akbeemer said:
We decided long ago that financing motorcycles, ATVs and SnoGos was not a good idea. If we cannot buy it outright then we do not buy it.
Click to expand...

Sometime earlier in life when we got done making payments on a motorcycle - we just kept on doing it. Instead of the payment going to the bank an automatic withdrawal from checking goes to a low expense ratio balanced mutual fund account for the future purchase of the next motorcycle. While it hasn't always provided the full amount, it has always made the cash purchase possible with help from other accounts.

Some people use this same principal for funding an emergency account to provide funds for comparatively less important purchases than motorcycles. Things like utilities, house payments and food if you have a dip of income between jobs.

Wayne Koppa
Grayling, MI
#71,449
 
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