Selling a bike with $$ still owing. | GTAMotorcycle.com

Selling a bike with $$ still owing.

JP0160

Well-known member
Looking to upgrade my bike within the next month or so. Still owe about 900$. Is it acceptable to put the bike up for sale (with full disclosure of still owing $$), then get a statement from Honda saying exactly whats owed, then meet the buyer at the bank and have him write up a draft to Honda for the owed amount, and the remainder to me? Will a UVIP show the amount still owing?

I've never sold a vehicle before, forgive my ignorance! I have a friend interested in buying but we want to know the exact process in this situation. Thanks!

edit: I fully realize its not a lot of money and I can pay it off beforehand easily, just inquiring.
 
It means your bike has a lien on it. If you can pay it off and get the lien released, do that. Bear in mind that from the potential buyer's point of view, if yours has a complicated transaction they'll just move on.
 
Looking to upgrade my bike within the next month or so. Still owe about 900$. Is it acceptable to put the bike up for sale (with full disclosure of still owing $$), then get a statement from Honda saying exactly whats owed, then meet the buyer at the bank and have him write up a draft to Honda for the owed amount, and the remainder to me? Will a UVIP show the amount still owing?

I've never sold a vehicle before, forgive my ignorance! I have a friend interested in buying but we want to know the exact process in this situation. Thanks!

edit: I fully realize its not a lot of money and I can pay it off beforehand easily, just inquiring.

UVIP will show the lien, i'm not sure how accurate this will be I imagine it would be easiest to get this in writing from the lien holder, they typically have a website where you can view this.

I'm not sure if he can make the payment. Even if you transfer ownership the contract has your name on it.

I suppose the long way around is he could write you a draft for the balance owing and once he confirms you've paid it off write you a draft for the rest and complete the sale. Otherwise he's making a deal at your word you will take care of it, if you don't and they come repo the bike it will be from his drive way.

I realize you know the person, etc. Just a 'what if' answer for you.

As Brian said, easiest way to get this done is just pay it yourself and absorb it in the sale price.
 
Last edited:
As stated earlier, the UVIP will show the lien. It's my understanding it will just show that a lien exists, not the amount (perhaps that has changed).
At any rate why would a buyer jump through hoops just to buy your bike?
Prime motorcycle buying season is fast approaching.
There will be several bikes similar to yours without liens.
 
It's 900, just pay it and make your life easier. It may take a while for the lie to clear, so do it asap and keep the documentation that it is done.

If he pays it off and doesn't give the buyer a uvip(I know, technically he should but most buyers dont), what happens at the office when the buyer tries to transfer it and the lie hasn't cleared on paper yet?
 
It's 900, just pay it and make your life easier. It may take a while for the lie to clear, so do it asap and keep the documentation that it is done.

If he pays it off and doesn't give the buyer a uvip(I know, technically he should but most buyers dont), what happens at the office when the buyer tries to transfer it and the lie hasn't cleared on paper yet?

Liens don't affect transfers as far as i recall. I imagine a savvy admin may point it out to you but i doubt they have the ability to do anything about it.
 
I'll end up paying it off before the sale most likely. I just wasn't sure about how long it would take for the payment to clear, if he could pay off something in my name, etc etc. Thanks for the info. How long does it take for the UVIP to clear after paying the lien?
 
I'll end up paying it off before the sale most likely. I just wasn't sure about how long it would take for the payment to clear, if he could pay off something in my name, etc etc. Thanks for the info. How long does it take for the UVIP to clear after paying the lien?

I've heard this can take some time. Best to just get something in writing from the company saying the debt has been cleared.
 
lender, when accepting the loan, enters the details in the
Ontario Personal Property Security Registration
after it's paid off, they are required to remove the lien registration
but they are not always good at doing this
some lenders will never get around to doing it, unless you force them to
this is where Service Ontario UVIP pulls the lien data from

when making the final payment in person
it should suffice to get a statement of account showing zero balance
as OP, you indicate buyer is a friend, that should work
 
For the record your friend "can" pay off the balance for you. Honda doesn't give a crap where the funds come from...lol, as long as the payment is made, and noted to the proper account #. If he paid in cash then they don't even get a name just record, that the final $900 payment was made.
 
I bought a van that had a bank lien on it but the owner was open about it giving me the bank details. I called the bank and they were aware of the pending sale. The manager said if I was worried I could make the cheque out to the seller and the bank.

That wouldn't work as well with Honda so call them and see what gets the lien cleared fastest. $900 on a low interest card shouldn't hurt if the payback time is short. If Honda forgets to clear the lien the new owner could have it hanging over his head at some point down the road.
 
In Ontario the Ministry of Transportation will not transfer ownership if there is a lien on the vehicle.
PERIOD
If a lien is still on the vehicle record you would need a written release from the lienholder which tells the MOT the lien has been removed.
 
In Ontario the Ministry of Transportation will not transfer ownership if there is a lien on the vehicle.
PERIOD
If a lien is still on the vehicle record you would need a written release from the lienholder which tells the MOT the lien has been removed.

From the MTO website

[h=3]Buyers[/h]Did you know?
If the lien is not paid, the secured party (debt holder) can repossess the vehicle from the person who owes the money or from the buyer of the vehicle.

http://www.mto.gov.on.ca/english/dandv/vehicle/used.shtml#liens
 
In Ontario the Ministry of Transportation will not transfer ownership if there is a lien on the vehicle.
PERIOD
If a lien is still on the vehicle record you would need a written release from the lienholder which tells the MOT the lien has been removed.

This is incorrect. I deal with vehicles that have liens on them almost daily and you can certainly transfer the ownership with a lien still I place.

Lots of people have been burned buying a vehicle privately, not doing the proper due diligence and end up having the car repossessed because of the previous owners outstanding loan.
 
In Ontario the Ministry of Transportation will not transfer ownership if there is a lien on the vehicle.
PERIOD
If a lien is still on the vehicle record you would need a written release from the lienholder which tells the MOT the lien has been removed.

using caps
in false statements for effect
doesn't actually make them true
 
In Ontario the Ministry of Transportation will not transfer ownership if there is a lien on the vehicle.
PERIOD
If a lien is still on the vehicle record you would need a written release from the lienholder which tells the MOT the lien has been removed.

Yeah, incorrect.

You most certainly can.

That’s one of the very reason the UVIP came along, to help better inform buyers and not have them get stuck in situations of unknowingly purchasing a vehicle with a lien still registerd against it.

OP, The lien can technically be removed in a matter of days if the financing company is on top of their homework, however as others have mentioned it can sometimes take much longer – personally I would be very reluctant to buy any vehicle with a lien showing registered still on the UVIP even if the seller tried to show paperwork of it having been paid off – still too much fraud potential in my mind.

I suppose if it’s a friend things may be different.
 
Yeah, incorrect.

You most certainly can.

That’s one of the very reason the UVIP came along, to help better inform buyers and not have them get stuck in situations of unknowingly purchasing a vehicle with a lien still registerd against it.

OP, The lien can technically be removed in a matter of days if the financing company is on top of their homework, however as others have mentioned it can sometimes take much longer – personally I would be very reluctant to buy any vehicle with a lien showing registered still on the UVIP even if the seller tried to show paperwork of it having been paid off – still too much fraud potential in my mind.

I suppose if it’s a friend things may be different.
Makes sense, I agree. It will be paid off before the sale, we are not in a rush and he's still not 100% on the bike he wants. I got a loan payout statement from Honda finance and they said once paid they will update in 1-3 business days and can issue a statement showing 0 balance.
 
I plead guilty to spreading false information.
At one time it was the law that a vehicle with a lien could not have the ownership transferred.
It would appear that is no longer the case.
I don't know why this was changed. It was a good law.
 

Back
Top Bottom