Advice on selling a '17 RT that isn't paid for yet

[NoFatNoFlavor]

Hey y'all.

So, before I post in Classifieds, I have a noob question: How does one sell a bike when there's still principal remaining on the financing?

I've never had to sell a bike before it was paid for; most have been traded in, to ease a purchase, or privately sold long after I paid for and held the title.

My situation now is that, oh so sadly, due to a botched surgery last year I simply can't ride safely the way I prefer (long, luggage-laden trips and twisty day rides).

So, I have to sell the bike. 

There's far less principal remaining on the note than the bike is worth (I'm assuming I can get about 6-8k more than it would take to pay off the loan).  But, how do you sell a bike that isn't paid for, since you don't hold the title until it is?  Do I need to clear the note before selling it?  I've seen "take over the payments" offers from time to time, but even wonder how those would work, TBH.

Would the buyer take over the remaining payments (requiring, I assume, the usual credit-check and what-not from BMWFS), and need to get the same terms or better?  I'm confused, obviously.  Hopefully, I'm over-thinking something that's very simple.  Any advice here would be greatly appreciated.  

 

-- 

Kevin

Boston, MA

[Rougarou]

The same way you sell a car that you're making payments on.

 

I bought my '06 via a private party buy, previous owner still making payments.  I gave them my check, I took the bike, when they title returned from previous owner, they signed, I signed, then I sent to my bank.

 

There's gotta be some level of trust in that game too.

[West_Coaster]

I would just pay the bike off, and when you get the title sell it normally.

 

Personally, there are so many choices out there I don't consider buying anything where I don't immediately get the title. Buying in these days is already risky, too many scams. 

 

I'm sure you can probably sell it while you owe on it, but I would think you reduce your available buyers. Been wrong before.....

[Oldrider51]

I would suggest writing a very detailed Bill of Sale describing what is being sold including the VIN, sale price, and any accessories and that the vehicle has an outstanding balance that will be paid off and the title sent to the new owner via a method that can be tracked within a specified time frame. Of course, should also include complete details of seller and buyer. Google bill of sale to find an example.

[Hosstage]

Talk with the lender about what is needed. If local, the buyer can meet you there to do final payout, get lien release, then off to DMV to switch title.

[chrisolson]

Each state and lender can have vastly different "rules" regarding how to apply for and process a lien release and re-assignment of title.

 

As an example, Arizona is a non-title holding state ... meaning if their is a lien, you, the owner, don't even have a paper title ... so transfers are completed on line and the seller and buyer need to have DMV on-line accounts ...

And I don't even know how a lien pay off is processed. a real PITA vs just having a paper title.  Even then states are different ... if you have a paper title, AZ requires a notary to witness the owner's sale on the title ... Colorado doesn't.

 

Don't have a clue about how MA works .

 

 

Check with your lender, pretty sure they've have had this situation come up before.

 

 

1 hour ago, NoFatNoFlavor said:

Do I need to clear the note before selling it? 

That would be the best and easiest, but not always financially possible.

[szurszewski]

As above, it can be done and the best way to find out how is to talk to BMW Financial. 

 

BUT! If you have the time and have the funds, I strongly suggest paying it off and getting the title in hand. First, that makes it all easier, but also it broadens your market - unless you are offering a great deal or a have a very specific bike I want, I'd opt to buy from someone else who had the title in hand. I've even opted out of a bike from the dealer when it turned out that BMW financial was holding the title (it would have worked but would have also been a bit of a hassle for me as  I was buying out of my home state and not planning to be home for several months - easier in that case to just pic another bike).

 

If, on the other hand, you had the title held at a local bank where I could walk in with you, pay the bank what you owed them, pay you the balance and walk out with the signed title, that's easy enough.

 

 

[Indy Dave]

In 2008 when I bought my 2006 RT, from a seller in North Carolina, BMW financial still held the title. I created a bill of sale and came down with certified funds which he deposited and I took the bike. About 2 weeks later I got the title in the mail. It does take a little bit of trust, and to be fair the seller was a little leery of certified funds.... Even after his bank verified the genuineness of the check.

 

So everything worked out and it's no big deal.

[NoFatNoFlavor]

All of this, every word from everyone who replied so far, is truly helpful. Thank you!

What I'm going to do is, first, contact BMWFS to see what they have to offer in the way of guidance.  Writing up a detailed B.O.S., definitely.

The last resort is the solution that would make selling it the easiest: paying it off first. I'll try to avoid parting with 7k worth of liquidity, but if it really is the best way for me to get this done, I'm going for it.

 

Now comes the decision of whether to sell with all of the accessories, or sell them separately.  Navi VI, Illium crash bars front and back (never installed), SW-Motech tank bags (one small urban and one Yukon hi-viz waterproof), BMW soft tail bags (one large, one 'regular')...you get the drift.  I'm guessing the determining factor here is that I'll probably get more for all of this stuff if I deal with it separately; but that's also the problem; who has time for this crap? Of course, while riding, it was EASY to find time to SHOP for and BUY it!

[szurszewski]

You are correct - it will take more time to sell stuff piece by piece, but you’ll get more money. Eventually. 
 

I do a cost per hour equation and use that to decide. It also helps to know if you enjoy the process of selling (dealing with people, packing and shipping, creating for sale listings in the first place). So, guess how much more you think you’d make selling stuff individually, guess how many hours it will take and divide.