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How to Sell a Financed Motorcycle

How to Sell a Financed Motorcycle

Selling a financed motorcycle is legal, but you have to consider several factors if you still owe money for it. It can be a frustrating process depending on how much of the payment is left and if you are not the motorcycle’s sole owner. The motorcycle also belongs to the lender until you finish making all the payments. Read this article to learn how to sell a financed motorcycle.

1. Settling Payments to the Lender

You cannot sell the property if you are not the primary owner. Technically, a financed motorcycle is not your sole property until you finish making the full payment and ownership has been transferred to your name. If you are planning to sell a financed motorbike, you will first need to discuss and settle on an agreement with the lender. Even if you bought a motorcycle with installments from the lender, you may be able to convince the lender to settle the finances early. However, keep in mind that the lender may refuse your offer as they may be in favor of the installment procedure. Make sure the lender is in full agreement with handing over ownership of the motorcycle to a potential buyer. Convincing buyers can take longer sometimes as they may be reluctant to purchase a financed motorbike.

Note for Buyers:

If you are buying a used financed motorcycle, make sure the seller is its legal owner. Otherwise, the lender/technical owner may request to repossess the motorcycle.

2. Reach an Agreement with the Lender

After communicating with the lender, reach a mutually beneficial agreement before you sell your motorcycle. There are two ways you can pay the outstanding balance:


  • If the lender agrees, pay the outstanding balance and transfer ownership to your name.
  • If the lender is refusing to sell the financed motorbike, you can reach an agreement with the lender by offering an additional settlement fee on top of the outstanding balance.
  • If the lender agrees, you can sell the financed motorbike and pay the outstanding balance from the money you receive from the buyer.

Whatever you decide with the lender, make sure to provide a legal document that shows proof of the agreement.

3. Check the Title

Even if you have possession of the motorcycle, the owner is the one who has their name mentioned on the title. You will need to transfer the motorcycle’s ownership from the lender to you if it is not in your name. After making the full payment to the lender, contact your financial institution to provide a legal document showing proof of the transfer.


Keep in mind that there can be multiple owners listed on the title. In such a case, you will need all of the owners to sign the transfer document before selling the motorcycle.

4. Find a Buyer

After you have settled with the lender, it is time to find a serious buyer. There are several ways you can sell a used motorcycle. The safest way to sell a used motorcycle is to find a buyer within your social circle. Selling a motorcycle online has also become a popular and fast way to make money. E-commerce sites, social media platforms, and online stores like eBay, Facebook marketplace, Cycle Trader, Cycle Crunch, and ChopperExchange are all reliable platforms to sell your motorcycle. Make sure to verify the buyer and look out for scammers. Finding a buyer can be a time-consuming process since most buyers you meet will waste your time. Act professionally and be courteous towards buyers while ensuring your safety.

5. Communicate with the Buyer

While finalizing the deal with the buyer, share details about the motorcycle, the outstanding balance, and the agreement with the lender. Make sure to be clear about the selling and purchasing processes. Depending on the agreement, you may also need to arrange a meeting with the lender.

6. Transferring Ownership to the Buyer

The final step of the process is transferring ownership from the lender to the buyer. The process will usually take place at a financial institution where the buyer will pay and the lender will sign the document of transfer. Pay the outstanding balance to the lender if you haven’t paid it already.

7. Wrap Up

Selling a financed motorcycle is a complex and lengthy process. You are not the legal owner of a financed motorcycle until the payment is cleared and ownership has been transferred to you. You can still sell a financed motorcycle by taking the lender in confidence, settling the finances, and forming an agreement. You will have to pay the outstanding balance to the lender before selling the motorbike or you can pay the amount from the buyer’s payment if the lender agrees. Make sure to inform the buyer of the finances related to the motorcycle and the agreement between you and the lender. If the buyer is interested in buying the financed motorcycle, the lender will have to transfer ownership to the buyer, and you will have to pay the outstanding balance to the lender if you haven’t paid yet.


There are a few motorcycle modifications to consider if you want to sell your motorcycle at a good price, including saddlebags, tank bags, fairings, sissy bars, sissy bar pads, crash bars, and swept-back handlebars. These modifications will improve your motorcycle’s performance, comfort, safety, and resale value.

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