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Community Member
Posts: 1
Registered: ‎02-24-2006

Buying a motorcycle that has a lien on the title?

How does one handle the transaction in that case? Having a lien on the title really makes me nervous and seems like it would complicate the transaction and make it much riskier.

comments/suggestions?
Community Member
Posts: 1,803
Registered: ‎01-25-2003

Buying a motorcycle that has a lien on the title?

in reply to dpadair
Need to get some banks involved to insure your security as either buyer/seller. Whoever holds the loan probably holds the title but a bank can usually work out what they need to get it released upon satisfying the note and then transfer that title to the buyer.

If you're the buyer, start with your bank. If you're the seller start with the loan company and ask them how they wish to handle payoff/release lien. It's a fairly common deal but don't rely on chat boards for all info, check with bank/loan company to be sure.
Community Member
Posts: 5,582
Registered: ‎01-26-2003

Buying a motorcycle that has a lien on the title?

in reply to dpadair
If the seller has a local lienholder, you make the check out to the lienholder, who will take the proceeds and pay off the loan, and give the balance to the seller, and the title to you. Do not in any case pay the seller directly unless he can provide you with a clear title.
Community Member
Posts: 326
Registered: ‎06-19-2005

Buying a motorcycle that has a lien on the title?

in reply to dpadair
Geez that's how I paid for my bike a year ago. I guess I'm lucky and had a good seller who worked on good faith? Peace
Community Member
Posts: 725
Registered: ‎03-05-2003

Buying a motorcycle that has a lien on the title?

in reply to dpadair
As Trident says.

You did get lucky JT.