Privately selling with finance - settling on sale

[MillenniumFalcon]

Hi BB collective,

I'm looking to put my year old Vulcan S up for sale as soon as the cold snap goes.

Currently have around half of the bikes value on Blackhorse 0% finance.

Obviously have the option of taking a loan out and paying the finance off, but I will be buying another bike, but depending on what I go for, I might need to borrow for the new bike - so either another loan or finance. PX offers seem a bit low (all no more than what WBAB valued it at) so looking for a private sale.

Would be happy to advertise as such, but just wanted to check that I can settle the finance at the sale of the bike (by phone, online etc) and the prospective purchaser can be satisfied there's no outstanding finance.

Pretty sure it is, but doesn't hurt to check! (first time in 20-odd years of driving and riding I've ever had finance..)

[dibblecorse]

If the sale price is more than the finance settlement then the easiest way is to get the settlement amount and payment details and the buyer can settle the finance directly and pay you the balance.

Finance companies are used to this, i’ve bought two cars this way, I would never pay the vendor a trust them to settle.

[MillenniumFalcon]

Didn't think of that. Cheers

[Ed.]

I did this last month, I paid black horse directly, the seller and I got email confirmation.
Check their opening hours beforehand.

[MillenniumFalcon]

Thanks - will do!

[Rubin215]

dibblecorse said:

If the sale price is more than the finance settlement then the easiest way is to get the settlement amount and payment details and the buyer can settle the finance directly and pay you the balance.

Finance companies are used to this, i’ve bought two cars this way, I would never pay the vendor a trust them to settle.

I sold a bike years ago that still had finance on it.

The buyer insisted on meeting outside the company offices in Edinburgh so we could go in together and do the deal/pay off the finance together.

At the time I thought he was being a fanny about it, but in hindsight he was probably right.

[Biker 1]

+1 what the others said. We sold a van recently at work - buyer paid the settlement figure directly to the finance company.
However, it might put some buyers off, as they've not done this before & may believe its a scam....

[ash reynolds]

If the seller decided not to clear the finance the new owner could have it repossessed in the worst case or be responsible for the outstanding debt in the best case. Already been said I'm sure

[Harry H]

BenjiS said:

I did this selling a Bandit 1250 a few years ago. I rang up the finance company, got a settlement figure. Then on day of purchase I rang them again, told them I wanted to settle, then put the buyer on the phone who settled with his debit card. Back to me, got confirmation from the finance company it was all clear, buyer paid me the balance we’d agreed on in cash, and he rode off into the sunset.

I've bought two bikes in the past like this. Didn't put me off.

[MillenniumFalcon]

Thanks for all the comments, certainly helpful - I would be looking to either pay the finance on the phone and hand the phone to the buyer or have him pay.

I do also have the remainder of a car loan from a couple of years ago - looking at loans I could borrow enough at the same APR as the existing loan to pay the car loan, pay the finance and have enough left to get me right up into my budget for a new bike, with the new loan payments slightly less than the current loan and bike finance, albeit by adding a few months more repayments (worse case another year) but as long as I can make overpayments, I can knock that down.

Looking at it objectively, this might be a better option - no worries about putting off buyers and might put me in a better negotiating position with dealers.