How to Sell a Motorcycle With a Loan: 6 Expert Tips

This article will provide expert insights and practical advice on selling a motorcycle with a loan, including removing any existing liens. 

We’ll break down the process and explore the best ways to sell a motorcycle, as well as various places you can use to sell your motorcycle.

Key Takeaways

• Know the value of your motorcycle and your current loan balance before you list it for sale.
• Try to pay off the existing motorcycle loan before the closing date of the sale
• Selling your motorcycle back to the dealer may be the fastest option
• If you decide you want to purchase a new motorcycle and don't have the upfront cash, consider getting a personal loan. Various financing options are available 

How to Sell a Motorcycle with a Loan Step by Step

The below process provides a step-by-step approach to the best way to sell a motorcycle with a loan. This process will help you remove the lien and secure a seamless transaction.

1. Contact Your Lender

Contact your motorcycle finance company and request a 30-day payoff quote with a per diem. The quote provides you with the exact amount required to pay off the lien and clear the debt immediately. Referring to your loan statement will provide a clear breakdown of your outstanding balance. This information is crucial for determining the financial aspects of your sale. 

2. Determine Your Motorcycle Retail Value

To set a fair sale price, determine the value of your bike based on its year, make, and model. Websites like Kelley Blue Book can estimate retail value, considering mileage, condition, and additional features. This valuation will help you gauge a realistic price range for your motorcycle.

3. Set the Sale Price of Your Bike

You must set a sale price once you understand your motorcycle's market value from either Kelley Blue Book or NADA. Ideally, the sale price should exceed the amount of money you still owe on the loan, ensuring you have enough funds to pay off the debt. However, it is important to balance maximizing your return and remaining competitive.

4. Find a Buyer

Next, begin your search for a new owner. Advertise your motorcycle through various channels, such as online classifieds, motorcycle enthusiast forums, and social media platforms. Be transparent about the loan status of the bike and emphasize the advantages of buying a well-maintained vehicle with a clean title.

5. Pay Off the Motorcycle Lien

Try to pay off the loan before the closing date of the sale. When paying off the loan, refer back to your finance agreement for any additional fees or terms you might have overlooked. By doing so, you can avoid any potential complications and ensure a smooth transaction. 

If paying off the loan in advance is not feasible, arrange to close the loan at the lender's office during the sale process. Hand over the sale proceeds to the lender to satisfy the remaining debt.

6. Sign the Documents

Once the loan has been paid off and the new buyer is ready to purchase, it's time to sign the necessary documents. Prepare a bill of sale, which includes details such as the sale price, vehicle information, and buyer and seller information. Make sure both parties sign the document, providing a legally binding agreement.

Where Can I Sell My Motorcycle?

You have several options when selling your financed motorcycle or a motorcycle with a lien. Here are three popular avenues to consider:

Sell Your Motorcycle Back to the Dealer

Dealerships offer the convenience of purchasing motorcycles directly from sellers, providing a quick and hassle-free sale experience. Additionally, they may offer trade-in options for those looking to upgrade a used motorcycle to a new model.

The process typically involves contacting the dealer and expressing your intention to sell. They may then evaluate the motorcycle's condition and offer you a price based on market value, demand, and potential reconditioning costs. 

If you agree to the terms, you can proceed with the sale, sign the necessary paperwork, and receive payment from the dealer. 

It's important to note that the sale price may be lower than selling privately, but the convenience and simplicity of the transaction can make it an attractive option for some sellers.

Sell Your Bike Privately

Opting for a private sale enables direct negotiation with potential buyers, granting you greater control over the sale price and the opportunity to maximize your return. 

However, consider that this approach demands time and effort to effectively advertise your motorcycle, screen potential buyers, and navigate negotiations. 

Online Marketplaces

Websites like Cycle Trader, Craigslist, and eBay provide extensive listings of motorcycles in various styles, makes, and conditions, catering to diverse rider preferences. 

• Cycle Trader specializes in motorcycles and related gear, making it an excellent resource for both new and experienced riders. 
• Craigslist, a classified advertisements website, allows local transactions, often providing opportunities for in-person inspections before purchase. 
• eBay offers a comprehensive platform where you can participate in bidding wars for unique finds or secure a 'Buy It Now' price for straightforward transactions.

When using online platforms, make sure to verify the legitimacy of sellers and inspect the condition and history of the bike. 

These online marketplaces make buying a motorcycle more accessible and convenient but always be upfront about the remaining balance on your motorcycle.

Best Ways to Sell a Motorcycle

When it comes to selling a motorcycle, there are several strategies you can employ to maximize your chances of a successful sale:

• Know your numbers: Research the market value of your motorcycle to set a competitive yet reasonable price.
• Prep your bike and take professional photos: Clean and polish your motorcycle, capturing high-quality photos that showcase its best features.
• Use online motorcycle marketplaces: Leverage platforms like Cycle Trader, Craigslist, or eBay Motors to reach a wider audience of potential buyers.
• Apply the best online marketing practices: Craft a compelling and detailed listing highlighting your motorcycle's unique selling points. Use attention-grabbing headlines and optimize your listing for search engine visibility.
• Outline your customizations: If you've made any customizations or upgrades to the motorcycle, detail them in your listing to attract enthusiasts seeking personalized rides.
• Throw in your motorcycle accessories with the deal: Including accessories like helmets, jackets, or spare parts can make the deal more appealing to potential buyers.
• Offer to ship the motorcycle to the buyer: The shipping option expands your potential buyer pool, allowing you to reach individuals located outside your immediate area.

Final Word: Selling a Motorcycle with a Lien is Possible

Selling a motorcycle with a lien may appear overwhelming, but you can do it with the right knowledge and strategy. You can easily navigate this process by understanding the steps involved in removing the lien, evaluating the market value, and attracting the right buyer. 

Now equipped with insights on how to sell a motorcycle with a loan, it's time to make an informed decision and embark on your quest to find the ideal ride. Begin exploring different models, compare their features, and approach the process with confidence.