You are looking for a bike to purchase and you’ve found your favorite one. But the problem is: it is an unpaid motorcycle with a lien on it. So what can help?

We know once a person places their heart on something, it’s really hard to give up on it. Thus, the good news is: you can buy an unpaid motorcycle but with some struggle of paperwork.

In this guide, you’ll learn everything that you should consider before buying a motorcycle that has a lien on it. So, let’s get started!

What is an unpaid motorcycle?

An unpaid motorcycle is the one that still has debt on it. A person who can’t afford the full payment of a bike can lend it from the Bank and then pay in installments.

But until the loan is paid off, the bank has the authority to reclaim it. Further, the vehicle will have a lien (a legal right to keep possession of a property).

In most countries, the bank keeps the title of the bike until the debt is cleared.

After paying the loan, they hand over the title to the owners. Some other things that can help you throughout this process are explained in the next section.

What to check before buying a motorcycle that is not paid off?

Before buying a motorcycle with a lien on it, make sure to check the following things:

  • There’s a VIN (Vehicle Identification Number) that ensures that the vehicle is registered and licensed. Find out if your bike is registered or not.
  • Always look for a trusted dealer. Especially when the bill is not paid off, you should either sign a contract with the seller or ask him to pay the loan asap! Preferably, look for a known or reputable dealer.
  • On the day of purchase, pay the dues along with the seller so you can freely ride your bike.
  • Get information about the legal requirements of your state regarding vehicle purchase. Because each country has its own set of guidelines. You need to consider yours!
How do you buy a motorcycle when the owner still owes the bank?

First of all, ask the representative about the details of the bike. Once you reach a deal, negotiate with the owner of the bike and ask him to pay off the loan.

You can only get the title when the debt is cleared. To transfer it to your name, you’ll have to pay the fees and dues for the bike. After this process, you can ride your bike as you want!

Can you sell a motorcycle with outstanding finance?

Yes, but you can only sell something that you own. So paying the loan can help you with the selling procedure as well.

How can I get out of a financed motorcycle?

There’s no other way than to pay the loan you’ve asked for. Therefore, the best way is to remove the lien and get the title by clearing out the debt.

Can I transfer my bike loan to another person?

You can do that but it is better to get the guidelines from the bank that is involved in this process. Some documents must be signed off for the transfer. So, contact your bank and get proper information about the procedure.


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