The short answer is yes. It is possible to sell a motorcycle if you owe money on it. However, this depends on factors that are unique to each person’s situation.

Therefore, continue reading below to see if you can sell your motorcycle with a lien on it. 

1. Take a Look at the Title 

First, if you have possession of the title, check and see if there is a lender or are multiple owners listed.

If a lender is listed, you’ll need to contact that financial institution to form an agreement in which the bike is purchased and ownership is transferred to the buyer. 

And, if there are multiple owners, each will need to sign over legal ownership of the motorcycle to the buyer via the title.

2. Contact the Lender 

Contact the lender/owners before you start the selling process. Find out what is required to release the title to the new owner once the bike sells.

Sometimes a potential buyer may be hesitant to purchase a motorcycle with a lien on it. 

So, it’s best to have a game plan so you can be prepared to confidently answer any questions a potential buyer may have. 

3. Form an Agreement 

You’ll need to come to an agreement with the lender. Negotiate a way in which you can be released from your lien. 

More than often, the lender just wants to collect on the money they are owed. So, it’s possible to work out an agreement in which the buyer pays the remaining balance owed to the lender (leaving you debt-free). 

If you are unable to reach this agreement, you’ll need to pay off the outstanding balance to the lender before selling the bike.

4. Confirm with the Buyer 

Once you’ve confirmed the agreement with the lender, you can start the process of listing your motorcycle. 

If you come across a serious buyer, be upfront about the lien. But, also explain to them that you’ve already made arrangements with the lender.

If they are still interested in the bike, walk them through step five so they are aware of what the purchase process will be like. Then, make an appointment with the lender. 

5. Meet at the Financial Institution 

Next, you’ll meet the buyer at the financial institution that has a lien on the title. There, the buyer will pay off the remaining balance. Then the lender will transfer ownership of the motorcycle to them and present them with the title.

After it’s all said and done, you should be free from the lending agreement, the buyer will have legal ownership of the bike and possession of the title 

In Conclusion

Selling a motorcycle privately can be a breeze with proper knowledge and planning. For more information on the entire selling process, check out our comprehensive guide on how to sell a motorcycle.

And, if you’re interested in purchasing another bike but aren’t’ interested in financing it, check out this post on the most affordable American motorcycles.