Selling a bike, bank holds title..need some quick answers

[R7]

Pretty sure I know the right answer to this, but just want some of your opinions before I squash the idea.

I'm selling my R6 and the bank holds the title, it's Yamaha finance through GE Capital. The amount owed on the bike is a bit more than half the sale price, so there would be a check coming directly to me, and another to the bank for payoff. This is an authorized Yamaha dealer who deals with the same bank as part of the finance programs.
The dealer wants to take the bike (basically paying no upfront money), make the payoff amount, then wait to pay me my balance until they get the title from GE Capital. I told the guy forget it!
I called GE Capital and the dealer did contact them for the payoff amount as they said would. I also asked the time it would take to get the title and they said it depends how fast the dealer pays, and if they pay for overnight delivery of documents..anywhere from 7-45 days.

Does this seem like normal business?
I don't think so! While I do have trust for the dealer and a good friend at a local dealer vouched for them, I'm letting a bike go with no money and no confirmation the loan is paid off...and me getting my check for the balance is dependant on how fast (or slow) they move documents.

Thoughts?

I already ran this by a friend at my local shop and he said no way!

[TTD]

I don't see any problem with that as long as you get something in writing that clearly spells everything out.

By the way, I would have definitely snatched this up if you were selling earlier... would have saved me $3000 compared to what the CBR1000 cost me!

[R7]

I don't see any problem with that as long as you get something in writing that clearly spells everything out.

By the way, I would have definitely snatched this up if you were selling earlier... would have saved me $3000 compared to what the CBR1000 cost me!

The numbers were cut and dry as far as money, but the duration it takes for them to pay it off was not spelled out...pretty much a "it takes what it takes" type answer.
When I called my local dealer, he said it sounded crazy and he would never ask that of a customer. You buy something, you pay for it, period...was his answer.

I would have loved to have sold you another bike...BTW, it's make a great bike for Renee

[Awesome]

I wouldn't go for it. I just traded in a car that was financed, and I didn't have to wait until they cleared up the payoff and title on it to pick up my new one, or have the money put toward it. You get yours before they get the bike, and they have the means to confirm all the other stuff through the finance company.

[TTD]

You buy something, you pay for it, period...was his answer.

I would have loved to have sold you another bike...BTW, it's make a great bike for Renee

Yeah, but you don't really "buy" something until you get the title, right? They can't sell the bike until the title comes in. I don't know, I guess I am looking at it like a private sale and if I was buying the bike I would want the title before giving over all the money... otherwise what protection do I have?

As for Renee - she loves the CBR600 and now that it is finally all hers (instead of sharing) - she loves it even more.

[hawk]

The title will be in your name and until you sign it and hand it over they can't sell the bike.

[gumby]

They should give you a check for the equity you have into it. You will then sign a form authorizing them to pay off the loan(in NH this is TDMV 25A).
I can understand their position as many lienholders can delay releasing the title for 2-3 weeks even after they have received payment.

[R7]

They should give you a check for the equity you have into it. You will then sign a form authorizing them to pay off the loan(in NH this is TDMV 25A).
I can understand their position as many lienholders can delay releasing the title for 2-3 weeks even after they have received payment.

This is the way it should happen IMO as well. And as mentioned above, it's really no different than a trade...you don't wait until the dealer gets the title on the trade before you drive away in your new vehicle.

[mycirus]

If they dont pay in full, they dont take possession. Sounds like they want to try to sell the bike with 3K invested instead of the full amount. If they want to pay half and pay you the other later, thats fine but you hold bike till paid in full. Thats how it works.

[SVRACER01]

Wirelessly posted (HTC EVO "DROID" )

Thats dumb. Why wouldnt they just cut you a check for the payoff difference and be done with it?

[jasnmar]

So... not trying to be an ass, but at some previous point on this forum when someone was buying a bike that was not paid off I recommended that they

1. Cut a check (cashiers /bank) for the current balance owed to the finance company.
2. Take possession of the bike.
3. Wait for the title to be delivered to the PO.
4. At time of title sign over, cut a check (cashiers /bank) to the PO for the remainder.

Gumby provides another way to accomplish this, which is different and means that the title is basically "presigned".

There should be a bill of sale that explains the terms described above (or whatever they are). The bill of sale is a contract between the parties that describes the responsibilities of both.

[mycirus]

1. Cut a check (cashiers /bank) for the current balance owed to the finance company.
2. Take possession of the bike.
3. Wait for the title to be delivered to the PO.
4. At time of title sign over, cut a check (cashiers /bank) to the PO for the remainder.

Number 1, Yes
Number 2, no way. You are going to let a stranger take possession of your bike at half price with the only guarantee they come back and pay you is for a piece of paper, and then pay you the rest. Setting yourself up to be taken advantage of. No way.

[R7]

Wirelessly posted (HTC EVO "DROID" )

Thats dumb. Why wouldnt they just cut you a check for the payoff difference and be done with it?

Everyone I've asked that works at a dealer, or has worked at a dealer, says the same thing...what they want to do is unusual.

[crowspeed07]

The title will be in your name and until you sign it and hand it over they can't sell the bike.

When i bought my bike it was partially financed the title was in the banks name until i paid the bike off then when i got the title it was put in my name.

[jasnmar]

Number 1, Yes
Number 2, no way. You are going to let a stranger take possession of your bike at half price with the only guarantee they come back and pay you is for a piece of paper, and then pay you the rest. Setting yourself up to be taken advantage of. No way.

It is a rather important piece of paper. Without said paper the bike is worth roughly half as much. They can't sell it. They can't register it.

Putting yourself in the buyer's shoes, are you willing to give someone $3000 (I don't know the actual amount and it really doesn't matter) with hopes that at some point in the future they will call you and let you know that you can come pick up the bike and title? In this case there is nothing (not even a piece of paper) keeping them from never contacting you again. Not even a piece of paper.

If you can't come to agreement there are always escrow companies. They, of course, will charge a fee, but you'll both be protected.

[jwm2k3]

Dealer should have you sign an authorization for payoff, take the bike, write you a check and they wait for title. Done deal.

Heres how I didi it in the 8 or so years I worked in dealers.....

Price of bike 5000, payoff amount is 2556.00
Dealer sends in 2570, bank sends any overages directly to you, the seller.
You walk out with a check from dealer for 2430 and copies of that signed authorization for payoff.
Spend money on hookers and blow.

[mycirus]

It is a rather important piece of paper. Without said paper the bike is worth roughly half as much. They can't sell it. They can't register it.

Putting yourself in the buyer's shoes, are you willing to give someone $3000 (I don't know the actual amount and it really doesn't matter) with hopes that at some point in the future they will call you and let you know that you can come pick up the bike and title? In this case there is nothing (not even a piece of paper) keeping them from never contacting you again. Not even a piece of paper.

If you can't come to agreement there are always escrow companies. They, of course, will charge a fee, but you'll both be protected.

If the buyer wants the bike now, pay in full, take bike, I will send you the title. You dont get possession until its paid for. You dont get it until the money is there. You dont buy something and say Ill owe you the other half when I get the peice of paper. With your logic what does the seller have with half the money and no bike to make sure the buyer comes back. A thief could use the bike as a track bike, use parts, sell parts or whatever and not care about the title.

[SteveM]

Two thoughts.

1 the cash flow needed to pay you, pey the bank and then wait for the title is normal cost of doing business for the dealer. they should cut you a check.

2 I'm sue Ray Ray could be helpful with this transaction. He will take you bike now and pay you even more money than the dealer offered when he pays off the loan and the title comes in.