At some point you are going to find yourself in the position of buying or selling a motorcycle or motorcycle related items. There are pros and cons to private party buying and selling. This article is going to cover some of those things.
Whether you're buying or selling a used motorcycle, you need to make sure to file all the paperwork and close the deal properly. While the laws governing the sale of motor vehicles vary from state to state, the general outline of the deal is similar. For the specific steps, make sure you check with the Department of Motor Vehicles in the titling state and the state where you plan to register the vehicle. Not having the proper paperwork or not having the paperwork filled out correctly can cause you a big headache, especially if you travelled a distance to purchase the motorcycle.
As a private seller: You will need to make sure you receive the proper payment and bill of sale for your motorcycle to limit your liability (in case the new owner crashes the motorcycle right after driving away with it you have a bill of sale showing they took ownership of it). Cold, hard cash is the easiest way to collect payment for your vehicle. The buyer might request a receipt for the cash. If you provide a bill of sale, this will serve as a receipt. Additionally, if you or the buyer prefers to use a cashier's check, make sure you verify it with the issuing bank before turning over ownership of your motorcycle or letting anyone take a test drive.
When vehicles are being sold remotely, you can use an escrow service to facilitate the transaction. The escrow service essentially verifies that the funds are paid and transfers them from the buyer to the seller.
It's unwise to accept a promise of future payment from a buyer, even if it is someone you know. If the vehicle is wrecked, the new owner's motivation to pay you back plummets. You are well within your rights to refuse to float loan payments, and in most cases the buyer will understand and quietly back down.
What if someone drives away in the vehicle you just sold and gets into an accident? Can you be held responsible? There are two ways to deal with this concern. First, record the odometer reading, and sign the vehicle's title over to the buyer. Second, in most states, a release-of-liability form can be downloaded from the registry of motor vehicles website.
What if the buyer calls the next day and wants you to take the vehicle back? Or what if the buyer claims you didn't reveal something about the vehicle or that a mechanical problem has been discovered?
Both buyer and seller should keep in mind that most states assume a used vehicle is being sold "as is." That means there are no promises or guarantees after the sale is concluded. If you are a buyer, it's imperative you thoroughly inspect the car before purchase. Sellers can head off trouble by encouraging buyers to have an inspection.
As a buyer: You will have to prove you are the new legal owner of the vehicle in order to register it. In most cases, this means you will have to get the signed title from the seller and a dated bill of sale. With the proper documents in hand, go to your state's DMV or motor vehicle registry, where you may be required to pay sales tax before you receive the new registration, title and (in some states) new license plates. Some states require the signature of the seller to be notarized. Always check before with DMV, you may not be able to locate or get the seller to notarize it later.
Buyers need to be particularly cautious when buying a used motorcycle online from a private party, sight unseen. You could be the target of a scammer.
It is not uncommon for a seller to not let you take a test ride before purchasing a motorcycle. Private-party buying and selling involves some trust, but it goes most smoothly when you are well acquainted with the laws and common practices governing the process. Take the time to acquaint yourself with the laws.
Private party sales of parts and merchandise: We hear people say, the seller sold it on me without giving me notice. Remember, until you pay, the item is not yours. Buyers should not expect anyone to hold anything without payment. Many sellers have been screwed over holding something for someone that never returns or backs out later.
Also for sellers, it's always best to get paid in full at the time of sale. Never hold anything on promises. Holding items for promises only ties up your item and could make you potentially lose out on a legitimate sale.
Please leave a comment on your experiences with buying and selling.
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