I'm looking to purchase a used bike from a private dealer. He said he has a loan on it. He said that in order for me to buy it, I would have to pay him for it, sign the bill of sale, then he would pay off the load and get me the title. I've never bought a vehicle from somebody who had a loan on it. Is this normal?

Here is his latest email to me,

Hey John,

I did not sell the bike. The reason being is, I have a loan on the motorcycle and dont have the title in my possession (my loan company does). I called my loan company and they told me that I would have to pay the loan off then they send me the title which can take up to 30 days, then I would sign it over to you. The motorcycle has to stay with me until I get the title for many reasons (insurance, registration, liability, etc.) To ensure your money is put towards the bike, we would fill out a bill of sale and get it notarized. So basically you would pay me for the bike, I would pay the bike off immediately , and when I get the title we go to DMV sign it over to you then you can take it home. Please let me know if you are still interested (or not) becuase I am going to take it to a dealership this weekend if this doesnt work out.


Thanks, in advance.

 

why not just go to loan place with him and walk out with the title..then go get the bike

 

This is the standard practice. You can even go straight to the lean holder and pay them directly, get the title then go get the bike. DO NOT pay the guy without having the title in hand! Yes, most people are honest, but be sensible about it. Also, some states charge a fee to add/remove lean holders from the title so be careful of that as well.

Good luck!

 

I'll propose that. Thanks guys.

 

+1
Thats the best way to handle it.

 

i just went thru this with my truck i bought. if you have a bill of sale and his insurance card then you are fine. he will keep the playes. YOU CANNOT RIDE untill you have the title in your name. he will recieve the title from the bank and then send to you. could take up to 30 days like he said. but im calling BS on him keeping the bike.

 

or be a dick and go to the dealership with him. watch him get screwed in a trade in. when he leaves offer the dealer 500 more then they bought it right then n there. did this when i worked at nissan a few times.

 

Unless he is taking it there to be sold on consignment...

 

^^^ THIS is the only way I will (& have) do this type of transaction.

If the bank doesn't actually have the title on hand, they can get it if they know up front that the payoff/transaction needs to take place. This shouldn't be an issue.

Take your Bill of Sale w/ you & have the bank's loan officer notarize it.

After you have done the transaction, gotten the title & BOS, then go to the DMV together to process new title & registration. Done deal.

Any other way is unacceptable as far as I'm concerned.

 

Think it depends on who financed it. Don't think the dealer will have the title if Honda Finance Corporation issued the loan. PO of my bike had to wait for it to be mailed to him.

It could have gone bad for me. I did have a few hole cards though. His wife's name, place of employment for both he and his wife, probably a couple relatives (didn't follow up on those) and a very well written bill of sale