Buying advice needed

GunNut37086

You don't need a therapist if you own a motorcycle
Joined
Jul 27, 2017
Messages
22
Location
La Vergne, TN
I live in TN and want to buy a used motorcycle from someone in AL. The seller is still making payments, so the title is tied up w/ whomever financed it. This seems like a common scenario, but it also seems like a lot could go wrong. I did some research and read that my best hope is if the lender agrees to let me pay them directly and they agree to release the title to me, but it also says I'd still have to arrange a time to get the seller to come sign the title over to me. This could take weeks to finally get it registered in my state and legal to ride.

Would you buy a motorcycle w/out a free/clear title in another state?
 

SkunkWorks

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Sep 13, 2018
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1,735
Location
Colorado
I did.
I'm sure every State is different with how they handle such things.
My transaction happened in Texas.
I met the seller at the Bank that financed their loan. The Bank held the Title in their files.
I walked in with the cash, and walked out with a signed-over Title in my hand.
 

magic

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Jul 6, 2015
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743
Location
WISCONSIN
I have done this before and always did the transaction and title transfer at the sellers financial institution that is holding the lien and title. Be aware of the different states laws. Maybe check with the DMVs involved.
 

GunNut37086

You don't need a therapist if you own a motorcycle
Joined
Jul 27, 2017
Messages
22
Location
La Vergne, TN
I should have mentioned that the seller said he'd have to "request a payoff amount" and "send them the payment" and "send the title when it arrives in the mail". I didn't get the impression that the lender was local, but he didn't really say. I just presumed based on what he told me, so I got scared off.
 

Eville Rich

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Sep 15, 2016
Messages
464
Location
Wisconsin, USA
I had the situation with a used car some years ago. I knew there was a lien and the buyer needed the cash to pay it off. It was only a $1500 purchase for me, so I paid for the car, took it, with an agreement that they'd take care of the title.

I ended up having to call their bank after I didn't receive the title or a notice after some delay. The bank had to do their own detective work. It turned out the guy had actually paid off the loan. But some issue at the bank meant one hand didn't know what the other was doing. In the end, the bank sent me the title, but it took some effort.

This could have gone far worse and been a real circus. If I were doing it again, I'd insist on everything being done at the bank and getting the title or at least clear documentation from the bank that they'd release the title to me.

I felt sort of lucky and took it as a learning experience.
 

GunNut37086

You don't need a therapist if you own a motorcycle
Joined
Jul 27, 2017
Messages
22
Location
La Vergne, TN
I had the situation with a used car some years ago. I knew there was a lien and the buyer needed the cash to pay it off. It was only a $1500 purchase for me, so I paid for the car, took it, with an agreement that they'd take care of the title.

I ended up having to call their bank after I didn't receive the title or a notice after some delay. The bank had to do their own detective work. It turned out the guy had actually paid off the loan. But some issue at the bank meant one hand didn't know what the other was doing. In the end, the bank sent me the title, but it took some effort.

This could have gone far worse and been a real circus. If I were doing it again, I'd insist on everything being done at the bank and getting the title or at least clear documentation from the bank that they'd release the title to me.

I felt sort of lucky and took it as a learning experience.
This is exactly what expected as a best-case scenario. If it all went perfect, it'd be nearly a month before I could legally ride it. Thanks for the advice.
 

Sierra1

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Nov 7, 2016
Messages
14,819
Location
Joshua TX
. . . . If I were doing it again, I'd insist on everything being done at the bank and getting the title or at least clear documentation from the bank that they'd release the title to me. . . .
This is the way I would do it. Your bank contacts his bank. Money is wired back and forth, and the bank sends you the title. If you show up with cash, nothing changes. You give his bank the cash, and they release the title after he sign it. The fact that his bank has the title is a good thing. He can't take your money and keep the title.
 

HiJincs63

Member
Joined
Apr 2, 2021
Messages
53
Location
West Central Georgia
In addition to all the good advice above, double check, you might have to have the bike inspected in your state to confirm the VIN#. I bought a bike in California and brought it home to Georgia. I had to have an affidavit signed by the county sheriff confirming the VIN before I could get it registered and tagged.
 

Cycledude

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Jan 29, 2016
Messages
3,998
Location
Rib lake wi
Many years ago I tried buying a Goldwing from private seller here in Wisconsin, bank had the title so I wrote a check, after I gave them the check the bank said I couldn’t have the title or the bike for two weeks until the check cleared, so I asked to have my check returned, when they gave the check back I left and never returned, luckily I found a better deal in a newspaper that night and that bike had a clear title and the seller was happy to accept my check. Turned out to be a nice deal for both of us.
 
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