Need advice on buying used

[B Dubbin]

Hi,

I'm looking at buying a used motorcycle where the owner still owes money to the bank on the bike.

Does any one have any clauses or things to include in a bill of sale that protects me? Right now both the seller and the bank have a stake in the bike and I want to make sure I'm not stuck somehow owing the bank, too.

I'm sure this must be pretty common and there's probably a fairly generic wording that protects both parties?

Thanks all.

[Kor]

Re: Need advice on buying used

It would be easier for you if the owner just paid off the bike (short term loan) then you bought it lien-free.

[nordex]

Re: Need advice on buying used

Ya do not by any means by a vehicle with a lien on it. you'll get bitten. Don't get suckered into an bs by the seller. have a lien check once he says its cleared and then buy it.

[RONDAL]

Re: Need advice on buying used

dont buy! you are just ASKING for royal headaches

[GINCH]

Re: Need advice on buying used

Not really!!! Make the cheque payable to both the lien holder and the guy thats selling the bike. The only way for the seller to get his money is to pay out the bank. We do that all the time at the dealership!

Or Just go with him to the bank he owes the money to and get a letter of release on the spot!
Derek

[B Dubbin]

Re: Need advice on buying used

This is all good stuff... so the majority are advising I stay away from a bike with a lien on it but GINCH is suggesting an alternative to make the cheque payable to both the lien holder and the seller. I didn't know I could make a single cheque payable to 2 parties.

This letter of release is the same as releasing the bike from a lien? I'm supposed to meet up with the seller tomorrow so any more advice on how to approach this would be greatly appreciated.

[nordex]

Re: Need advice on buying used

Your best bet is to go to the bank explain the situation. They well give you directions on how to proceed. Verify everything with the bank. Do not buy the bike with the agreement that he well pay the lien off once he's paid for the bike as he could leave you high and dry. Most cars have liens on them I believe unless they're paid for so this is not uncommon at all. I would just call your bank and inquire on how they recomend you proceed!

[B Dubbin]

Re: Need advice on buying used

Your best bet is to go to the bank explain the situation. They well give you directions on how to proceed. Verify everything with the bank. Do not buy the bike with the agreement that he well pay the lien off once he's paid for the bike as he could leave you high and dry. Most cars have liens on them I believe unless they're paid for so this is not uncommon at all. I would just call your bank and inquire on how they recomend you proceed!

Would it make more sense to deal directly with the bank that has the lien on it instead of working through my bank? I do plan on calling AMA tomorrow when they're open to see what they recommend.

[B Dubbin]

Re: Need advice on buying used

Not really!!! Make the cheque payable to both the lien holder and the guy thats selling the bike. The only way for the seller to get his money is to pay out the bank. We do that all the time at the dealership!

Can I just make the cheque payable to the bank only? Or are you saying that because the cheque is made out to 2 parties that both have to be present to cash it?

Or Just go with him to the bank he owes the money to and get a letter of release on the spot!
Derek

This is also a good idea; from what I understand of what he told me he'll have to front some cash as well as the lien is for slightly more than what I'm paying for the bike.

[GINCH]

Re: Need advice on buying used

If the lien amount is higher than the what you are paying for the bike than by all means do not give him the cash and espect him to pay out the lien. I would just go with him to the bank that holds the lien and get it straightened out there!

[B Dubbin]

Re: Need advice on buying used

If the lien amount is higher than the what you are paying for the bike than by all means do not give him the cash and espect him to pay out the lien. I would just go with him to the bank that holds the lien and get it straightened out there!

Cool... thanks for the advice.

[Mitcheh]

Re: Need advice on buying used

When I bought my GTI, there was still $12000 owing on the loan, I just got bank draft in the guy's name then went WITH him to the finance company where he paid out the loan, and they gave me a letter of release.