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Guide

Selling a motorcycle with an outstanding loan

Yes, it is possible, and simpler than people think. Here is how it works in Belgium, step by step.

You can sell, on one condition

An outstanding loan does not stop you selling a motorcycle. The condition is that the lender is repaid at the time of the sale. With most motorcycle financing in Belgium you own the bike from day one and the loan is a plain loan: you sell freely, then settle.

Some instalment sale contracts contain a retention of title clause: the bike stays the property of the original seller until everything is paid. In that case repayment must come before or together with the sale. Check your contract, or ask your lender: one phone call answers it.

Step 1: ask for the early repayment statement

Call your bank or lender and ask for an early repayment statement dated on the planned sale day. You receive a document with the outstanding capital, interest up to that date and any fee. It is free and commits you to nothing.

In Belgium that fee is capped by law: at most 1% of the capital repaid if more than one year of the contract remains, 0.5% if less than a year remains. On €4,000 outstanding, that is €40 at most.

Step 2: compare the statement with the offer

If the offer for the bike exceeds the amount on the statement, the difference is yours. If it is lower, you have to make up the gap to close the loan. That mostly happens in the first two years of a loan on a new bike, when depreciation runs faster than repayment.

Step 3: payment, in one or two parts

The cleanest way is to pay the lender directly out of the sale price: one part to the lender to close the loan, the rest to your account, the same day. The lender then sends a closure certificate. That is what we offer as standard when a bike is still financed: you send us the statement, we pay the lender and you, on the spot.

Guide

Frequently asked questions

Do I have to tell the buyer there is a loan?

A private buyer, yes, out of honesty and because they could find out. Us, yes too: it only changes how the payment is split, not the price.

The loan is in my partner’s name, not mine.

The borrower must sign the early repayment request. The holder of the bike (registration certificate) must sign the sale. If they are two different people, both signatures are needed.

Can I transfer the loan to the buyer?

In practice, no: consumer credit is personal. The buyer, if they need to, takes out their own financing.

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