Buying a motorcycle with lien | Page 2 | GTAMotorcycle.com

Buying a motorcycle with lien

Update after chatting with the seller:

Seller called the lender and the lender advised that we follow this process.

1) buyer gets 2 certified cheques, 1 to the lender, then the other to the seller
2) hand over the cheques, sign needed papers, etc.

I think that sounds good.

The only worst case scenario would be if he doesn't send the cheque to the lender but what would he gain from that right?

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All well and good but do this transaction at a National Bank (lienholder) branch. You might want to call the branch first and give them the heads-up for what you plan to do and book an appointment. You and the seller should both be there.

This way you're not relying on the person selling the bike to forward the check, you're not relying on the mail, etc.
 
All well and good but do this transaction at a National Bank (lienholder) branch. You might want to call the branch first and give them the heads-up for what you plan to do and book an appointment.

Wise advice.

My financing was through Scotiabank - never dealt with them aside from this (financing was done through the RV dealer) and they freaked out a little when the guy buying the trailer from me brought $15K in cash to the bank with him and we did the whole transaction in cash. I found that weird myself (it's a BANK, what's the big deal about cash?) but it was their policy I guess to avoid large amounts.
 
anything ove $10k in cash has to be reported....so paperwork to deal with. Even if you withdrew the $10k from the same branch and was going to re-deposit it.
 
anything ove $10k in cash has to be reported....so paperwork to deal with. Even if you withdrew the $10k from the same branch and was going to re-deposit it.

Interesting, you are correct.

That could explain their desire to deal with something other than cash...but I was happy dealing with cash myself. I guess we made some paperwork for them, too bad. ;)
 
Yep, that one I knew about, but I wasn't aware of the domestic reporting requirements.
 
Same goes for when travelling, must declare anything over 10 grand, if not it can be seized....that goes for leaving Canada or coming back in...

It's to make sure it's not funding terrorism, or going to fund it elsewhere..

This has been in place for a while and is mostly aimed at people money laundering drug, organized crime and non declared income money. More recently it helps re terrorist funding as well.

The certified check to the lender route is the way to go. That way you know the payment has been made and then you just have to wait for the lien to be removed.

I wonder what dealers do when they accept a used bike with a lien on it in trade for another new or used bike. They must have a pretty rigorous process in place to protect themselves. Anyone know how the paper process works?
 
Typically if a dealer is taking in something on trade that has a lien on it, the customer involved is upgrading their vehicle and will have a loan on that vehicle as well. The financing is all arranged before that customer takes delivery of that vehicle.
 
Yep, that one I knew about, but I wasn't aware of the domestic reporting requirements.
I knew that. But only because of all the times that I bring wads of cash in to deposit. Lol (I wish)

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I wonder what dealers do when they accept a used bike with a lien on it in trade for another new or used bike. They must have a pretty rigorous process in place to protect themselves. Anyone know how the paper process works?

Same methods being discussed here, either mail a certified cheque to the finance company or pay at the branch. If it's financed through another Manufacturer then what the dealer sells other dealers who represent that manufacturer will usually pay it out for them as a courtesy.

In the case of a trade-in any equity would usually be applied to the new vehicle.
 
Problems abound with this entire scenario.
1. He banks at BNS but the lien is with the National Bank. Why doesn't he still do his banking at National?
2. He says he will pay off the lien but there is no way to ensure he does it.
I don't wish to cast aspersions at anyone but this has all the makings of a scam.
If you truly wish to purchase this motorcycle, reduce the price by the amount of the lien and YOU pay it.
Personally, I would walk away.
 
Man lol so many different opinions.

I believe I've done all I can and will to minimize my risks taking in advices except for walking away.

I will update how it turns out

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1. He banks at BNS but the lien is with the National Bank. Why doesn't he still do his banking at National?

Plenty of people shop around for loans at places other than their main bank. Other institutions may offer better rates than where you keep your chequing account. My mortgage was with Laurentian. I don't know anyone with a Laurentian chequing account.

Also, different dealerships may have relationships with a particular bank and finance their vehicle sales through them. So instead of the buyer shopping for his own loan, he just goes with whoever the dealer recommends.
 
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I like this option better. I wish I had known of this when I bought my first bike.

I came to know of the lien the day we agreed to meet and close deal. He never disclosed this info until the day. I even paid with full cash 4k as this was the preferred payment method by seller. There were so many signs saying don't go forward but I got emotiionally attached with the bike cause it was clean, low clicks and good value. I pulled the trigger only because he seemed to be a good guy and his gf was there as well who also assured she'll make sure he pays off. I just went ahead and got the deal done. First few weeks I just kept getting that feeling I hope I don't get screwed. I kept following up with the guy and Luckily after few weeks he contacted me saying it was paid off.

It's definitely a big risk. I would not want to deal with this situation again if I had known ahead of time.
 
Problems abound with this entire scenario.
1. He banks at BNS but the lien is with the National Bank. Why doesn't he still do his banking at National?

Lots of people deal with multiple financial institutions. If he routinely did his banking at BNS but the dealer where he bought the bike dealt with National then this is how it's going to end up. My credit card is CIBC even though nothing else is. My RRSP is with National Bank even though nothing else is. It's just how things worked out over the years.

2. He says he will pay off the lien but there is no way to ensure he does it.

Sure there is. Make an appointment for everyone involved in the transaction at the closest National Bank branch and give them the account numbers and fill them in on what's going on in advance, and do the whole transaction there.

I don't wish to cast aspersions at anyone but this has all the makings of a scam.
If you truly wish to purchase this motorcycle, reduce the price by the amount of the lien and YOU pay it.
Personally, I would walk away.

To me, it seems that the seller has been upfront, and I wouldn't have any qualms about doing the transaction in this fashion.
 

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