trying to buy a used financed bike

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4/11/2018 2:47 PM

I am currently trying to buy a 2015 and up yz250f used. I keep running into the same problem, the bikes are financed. This means the seller does not have the title on hand, there is no way to ensure that the loan will be paid off or wether I will ever receive the title. The yamahas are typically financed through capital one. If anyone knows a safe way to go about doing this or if I should steer clear let me know.

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4/11/2018 2:50 PM

I would only buy a bike that the buyer has the title to. I know it’s hard to pass on a good buy but maybe you can talk to the bank and pay it off and they send the title to you. Wouldn’t hurt to call the bank and see what they say.

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4/11/2018 2:53 PM

I will only buy a bike that still has money owed if it’s a very close friend that I trust fully. I’ve only done that once.

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4/11/2018 2:53 PM

I'm sure things are different in the US, but here in Canada when I've run into these situations I write the check to lender or meet them at the bank and ensure it gets paid.

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4/11/2018 2:56 PM

X2....go to their bank and pay directly.
The bank will mail the title.
Or, call the finance company directly, they will usually let you pay the loan off and will mail the title to you, requires a small amount of paperwork.

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4/11/2018 3:00 PM

Get the owner to put you in touch with the lender. Tell them you are paying off the motorcycle. Go online and download a power of attorney to transfer the title. Get the owner to sign and take possession of the motorcycle and pay the difference between the payoff and the final price if any. Send a check to the lender with the power of attorney. If the owner does not agree to all of this walk away from the deal.

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4/11/2018 3:00 PM

The bank is not going to let you pay the bike off for the current owner. Title is only released to the name on the loan. We had a customer who purchased a Yamaha from our shop and passed away prior to paying it off (unrelated to the bike). Capitol One wouldn't accept payment from his own brother who wanted to keep the bike. He ended up dropping the bike off to us for a voluntary repossession for Capitol One and they told us they arent coming to pick the bike up. Yamaha also does not use CapOne any longer, they've completely exited the powersports industry. Yamaha has their own financial institution so you won't see any new loans with capitol one. There is absolutely nothing you can do to ensure the owner pays the bike off, receives the title and then hands it over to you. You'll more than likely be stuck with a bike that has no title. That's the #1 reason you see bikes for sale without a title. They've never paid them off or don't plan to so there is no title. You do have a few options.

1) buy the bike and cross your fingers he's honest
2) be patient and find one with a title
3) buy new and get your own title

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4/11/2018 4:03 PM
Edited Date/Time: 4/11/2018 4:06 PM

You can give the guy a check made out to him and the bank that has the loan. Both party’s have to sign it to cash it and they will forward you the title!

You can also contact the bank and make the transaction at the bank, they will forward you the title. Have the bank manager handle the transaction.

If in doubt call them and ask what their best process is.

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4/11/2018 4:32 PM

I've never had an issue. I've gotten a bill of sale at the bank while they paid it off. Never had an issue with getting a title after that. Then again, I won't deal with anyone I get a scumbag vibe from. I've sold alota bikes on the other side of the fence too. Meet me at my bank and I'll hand you the title (more times than not I finance through my local CU and they keep title on hand).

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4/11/2018 4:50 PM

I write out a bill of sale , paid in full with vin #, signed by both of us. Then get the title within 30 days, either send title or give in person. And dont deal with drama. Most my friends buy my bikes. Smooth transactions.

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4/11/2018 4:56 PM

Ha, I bought a bike with a very nice title. Must have been printed because the vin came back stolen. Run the vin number get their id and they should have a bill of sale or some documentation. Other than that you can get a title at any title company.

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4/11/2018 5:13 PM

Make an offer. Only 30 minutes total. Clear title.Photo

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There's something happening here, what it is ain't exactly clear.

4/11/2018 5:14 PM

I’ve sold a bike that was financed once. I told him i would payoff the lender and mail him the pink slip once i get it. He trusted me and i did what i said i would. I’m pretty sure not everyone is ethical though.

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4/11/2018 6:02 PM

When I was selling my Honda financed, the buyer was nervous, I told him just make a cashiers check out to Honda, I’ll give you bill of sale with vin, bike make and amount , mail you the pink when it comes. everything worked out fine that way.

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4/11/2018 9:04 PM

40acres wrote:

The bank is not going to let you pay the bike off for the current owner. Title is only released to the name on the loan. We ...more

That is incorrect, at least with Sheffield and Powersports Finance.
I have done exactly this with both in the last 12 months.
Both were very easy to get a payoff facilitated with almost no input from the seller.
Just my experience.....

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4/11/2018 9:26 PM
Edited Date/Time: 4/11/2018 9:35 PM

dcg141 wrote:

Get the owner to put you in touch with the lender. Tell them you are paying off the motorcycle. Go online and download a power ...more

This. The power of attorney allows the bank to send the new buyer title after the pay off is complete. I sold a kawasaki this way through freedom road financial. If the seller wont sign a power of attorney and an official bill of sale I would walk.

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4/11/2018 11:55 PM
Edited Date/Time: 4/11/2018 11:56 PM

I've done this numerous times (selling my less than year old bike each year that were financed), just need to have a legal document that states within a set amount of days the seller will ensure the title is mailed to the buyer and lien will be paid in full, both parties sign and have copy, seller pays off lien, then mails title or has title mailed to buyer. Easy peasy. I would question though why someone has a 3 going on 4 year old bike financed still financed.

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"Asking this question here is analogous to going to a KrispyKreme store and asking the patrons if you should have a doughnut."-NotCore

4/12/2018 6:27 AM

Im in ct as well,

Both my Yamaha and KTM came with the cert of origin. Both bikes were financed. You wont get a tittle for a dirt bike unless you actually register it in the state of CT. The cert of origin is what you would need if you were to try and register even though you cant register a dirt bike in CT. So rarely in CT will you see a title, 90% of the time its actually the cert of origin. Some banks depending on who financed, may hold the cert of origin. In my case I have always gotten it at the time I bought it. Only issue you would run into is if you try to trade the bike in. it would show the dealer a red flag saying it still has a lein on it.

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4/12/2018 6:29 AM

and Yamaha isn't typically financed through cap one. They offer the Yamaha card which is there version of a credit card used to finance the bike

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4/12/2018 7:03 AM

In this day and age of bikes nearing 10K it is going to be common to find them for sale with a lien on them. If you do your business through the loan company you are completely safe and they will mail the title to you instead of the previous owner

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4/12/2018 7:12 AM

Sold a Yamaha 250F for my payoff of $5800. The buyer saved a couple thousand. I told him it would take 10 days to get the title after I sent his $5800 to the bank. He got nervous around 5 days and started calling me and asking when he would get the title. I had to calm him and tell him over and over I was trust worthy and did what I said. The title showed up in 9 days. The deal was awesome for the buyer, but he had to trust someone he didn't know well. I am sure the buyer didn't sleep good for 9 days.

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4/12/2018 7:15 AM

This isn't uncommon. It happens on cars all the time. Work with the owner and bank/finance company to ensure the total payoff amount is clear. If someone finances the bike entirely when it was new and they try to sell before it is paid off there is a good chance there is more owed than the bike is worth.

When I sold a vehicle that was financed, the buyer wrote me a check, I went to the bank. Paid off the loan and then 30 days or so they sent the clear title out. I can't remember if they sent it to me for me to sign off or directly to the buyer. That's the only fuzzy part. Either way it was easy and took about 10 minutes.

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4/12/2018 7:16 AM

Normal stuff these days, just talk to the bank. Bikes aren't $2000 anymore.

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4/12/2018 7:26 AM

alex465 wrote:

I am currently trying to buy a 2015 and up yz250f used. I keep running into the same problem, the bikes are financed. This ...more

I didn't read all the comments so I apologize if this has been mentioned.

Last year I purchased a truck from a private party that still had a loan with Ford financing. Instead of giving him the cash and hoping he paid the truck off, I sent the payoff amount directly to Ford. I sent a cashiers check so he knew the money was good and I took possession of the vehicle. A friend at a car dealership gave me a limited power of attorney form that allowed me to sign the owners name only on the title once it came in. Call the lender and tell them to mail the title to your address.

I assume a similar process could be done for a motorcycle.

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4/12/2018 8:20 AM

40acres wrote:

The bank is not going to let you pay the bike off for the current owner. Title is only released to the name on the loan. We ...more

Highflier wrote:

That is incorrect, at least with Sheffield and Powersports Finance.
I have done exactly this with both in the last 12 months. ...more

Depending on the loan that the stealership got the seller into the payoff amount can change daily so be careful with that part

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4/12/2018 8:23 AM

I bought my truck with a lein on the title. The way i did it is i took my cash to the bank that had his title and stood there with him as he paid it off. The bank gave me the title and had it notarized then and there.

Some banks dont store their titles at their main office. My personal bank stores theirs somewhere else. So i guess i got lucky with my truck purchase. But yea try this method and see if it works.

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4/12/2018 8:24 AM

Learned my lesson....NEVER buy a bike without a title.....it's a nightmare trying to get one down the road

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Kevin Windham‏ @kdub_14

Not 1factory racer hasnt been told that if ucan help teammate out, then do it 4 championship. Few r in a position like MM25 #partofthesport

4/12/2018 8:47 AM

ledger wrote:

Make an offer. Only 30 minutes total. Clear title.Photo

what year and what part of tenn?

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4/12/2018 1:46 PM
Edited Date/Time: 4/12/2018 1:48 PM

fourfourone wrote:

and Yamaha isn't typically financed through cap one. They offer the Yamaha card which is there version of a credit card used ...more

Up until about 2 years ago it was backed by Capital One. If it’s a 2015 YZ250F it’s likely the loan is still serviced through Capital One. Such was the case for my 13, 14, 15 and 16 Blu bikes.

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"Asking this question here is analogous to going to a KrispyKreme store and asking the patrons if you should have a doughnut."-NotCore

4/12/2018 1:55 PM
Edited Date/Time: 4/12/2018 2:10 PM

Just don't do it.

New financed with the various incentives manufacturers offer or used straight-up cash money. Those are the two smart financial options.

You are the one looking to buy. You are the one in the cash position to make a straight-up offer. If the seller can't accommodate your needs because they are too upside-down and can't buy out their title, that's their problem, not yours.

If the deal ain't right, move on. It's just a bike. They build many, many of them every single year.

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