Question about buying a bike from individual while still being financed....

[leeinmemphis]

I think I have found a bike that I would like to buy. The seller has it financed and still owes roughly $2500 and he is asking $5800 for it. What is the best way to handle this transaction? In other words I can write him two checks.....one to honda for payoff and one to him for the difference owed vs sales price. What is the best way to handle this? He said he doesn't have the cash flow to handle paying it off right now. I mentioned maybe giving him a "deposit" to pay it off and the balance when the title came in. Any suggestions?

[roadrailer]

Do not give him any money until he is able to hand you a clear title. Period. Anything else is asking for trouble.

[hig4s]

I think I have found a bike that I would like to buy. The seller has it financed and still owes roughly $2500 and he is asking $5800 for it. What is the best way to handle this transaction? In other words I can write him two checks.....one to honda for payoff and one to him for the difference owed vs sales price. What is the best way to handle this? He said he doesn't have the cash flow to handle paying it off right now. I mentioned maybe giving him a "deposit" to pay it off and the balance when the title came in. Any suggestions?

Go with him to the bank that has the title, pay them the amount he owes, give him the rest and have the him and the bank sign the title to you right there.

[leeinmemphis]

He said that it is financed through american honda so it isn't like we can go down to a local branch to do that. This is what makes it a little more complicated.

[Doug Just Doug]

I I mentioned maybe giving him a "deposit" to pay it off and the balance when the title came in.

Noooooooooooo!

[Studad]

I'd have him talk to his banker (surely he has one other than Honda) and have him get a new short term loan to pay off the other with, then he can sell the bike with a local lein

[ejwpc]

I think there are third parties that will act as an escrow agent to complete this type of transaction.  You may want to look into that.

Alternatively, if this is a local transaction, go with the deposit for the payoff at the time you pick up the bike.  He can get the balance when he produces the title.  This gives each of you an insentive to complete the transaction.

[county]

Call American Honda and ask them how they want to do it with your interest protected.  I'd think theyd accept some sort of notarized statement from him about the title along with your check paying off the loan...they'll tell you what'll work for them with you being protected.

[hig4s]

He said that it is financed through american honda so it isn't like we can go down to a local branch to do that. This is what makes it a little more complicated.

I know both Yamaha and Kawasaki motorcycle financing is done through a manufacturer sponsored credit card and they do not hold a lien on the bike's title. That is how I bought my 03 Kaw and how I am buying my 07 Yamaha, I have had clear titles on both from the start.

From Honda's web site their motorcycle financing is also on a revolving credit card so the owner should have a clear title.. I personally am leary of dealing with anyone that does not have a clear title unless they are financed locally so I can go to the bank with them.

[Y.B Slo]

Go with him to the bank that has the title, pay them the amount he owes, give him the rest and have the him and the bank sign the title to you right there.

:thumbsup:This is how it is done. If the guy wants to do it any other way, back out of the sale.

[Ruefus]

With American Honda financing the bike, it makes things more difficult.

I was going to buy a bike from a guy that owed money to Suzuki - and told him "When your balance equals what we agreed I'd pay you for it - call me."  Now - I work at a dealer, so I was simply going to have him come in and 'sell' the bike to the dealer for my purchase price - and then have the dealership flip the title from his name, to theirs, to mine.

It would be as if the dealership bought and sold the bike in the same day.  

I've tried to find ways to keep the dealership out of it - by having Suzuki issue the title to me once it's paid off and such, but I've had no luck.  My best advice is to call American Honda and explain the situation and try every avenue you can with them.  Unless Honda plays ball - there's little you can do.

[leeinmemphis]

Thanks guys. I've found another vfr that the guy has the title on and I think I may just go on ahead and get that one.

[uvakat]

Go with him to the bank that has the title, pay them the amount he owes, give him the rest and have the him and the bank sign the title to you right there.

Unfortunately that does not always work. When I got my SV we had a problem with the title release and the VA DMV. I ended up having to get the title department of navy fed to act as a middleman to make sure that I ended up with the bike. Make sure that the bank has the title in hand and it's not one of those pesky electronic titles like Virginia has.