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Cycle Chaos > Cyclechaos Forums > General > Motorcycle Financing > is possible to give back my motocycle the finance company?

is possible to give back my motocycle the finance company?

This is a discussion on is possible to give back my motocycle the finance company? within the Motorcycle Financing forums, part of the General category; I still owe additonal money on my motorcycle, but due to the inflation I can no longer afford to pay ...


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Old 12-16-2008   #1
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Default is possible to give back my motocycle the finance company?

I still owe additonal money on my motorcycle, but due to the inflation I can no longer afford to pay for the bike
MICHAEL S is offline   Reply With Quote
Old 12-16-2008   #2
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Michael -

Generally it's not possible to "just return the bike" to the finance company. If you don't make the payments the finance company will arrange to get the bike back in the form of a repossession. They will get the bike, you'll get several black marks on your credit report and a sizable reduction in your FICO score-and the finance company will still try to collect the balance from what they liquidated the bike for and the amount you still owe.

It's tough. When you but the bike, this is especially true if you didn't put much down, the moment you take delivery the value of the machine is less than the amount you owe on the bike. It's called "going upside down" and for the loan to be worth less than the bike takes several years of paying it off before the residual value is greater than the financed amount.

They way out of the mess is to get with the credit company and tell them what is going on (I lost my job sounds good) and tell them that you will try to sell the bike on their behalf. Once you have a buyer the rest of the transaction takes place at the lenders office. The buyer pays off the balance of your loan directly and in return the loan company will release the vehicle to the new owner and release you of your financial obligation to them.

Trouble is the payoff may be more than someone is willing to pay for the bike-so now you don't have the motorcycle and still owe the finance company; don't worry there is no chance of this occurring - the bike is loan is paid and full and the collateral is released or it's not going to happen.

Good luck. Finance companies have no sense of humor when it comes to these sorts of things.
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Old 12-17-2008   #3
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You can call them and ask about doing a"Voluntary Repossesion"
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Old 12-18-2008   #4
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Quote:
Originally Posted by jrrysimmons View Post
You can call them and ask about doing a"Voluntary Repossesion"
Dude! Repossession is repossession. You don't pay they come and get it. The banks start to get excited after first missed payment is more than 15 days late - the repossession suggestion comes up as a threat after the second missed payment - and right about the 90 day mark it's gone.

The "voluntary" means that YOU take the bike to a pre-selected location to give up your motorcycle. We had that happen several times over the years - some yutz drops the bike off at the shop and gives us the keys. Usually the finance company gave us a heads up so we could expect it. Usually we were instructed to store it for a time period (30 days sometimes more, clean it up for resale) then to place it on consignment for the bank.

You do not want to ever allow this to occur. Ever!

I have never had anything repossessed; I will do anything to make certain my obligations to the bank are met; and brother and you should too! Having worked in the retail end of motorcycles sales I have seen it happen several times. It's not fun to watch at all. Just because they get the bike back does not mean that your obligations to the finance company have been met...absolutely NOT....in fact you will owe MORE after the bike is repossessed than before and still not have the motorcycle. You see, all the paperwork to legally repossess the motorcycle is a legal document which you are financially responsible for (READ THE CONTRACT!) ...the only way to get out of it is to declare bankruptcy - then everything you own is on the line.

IMHO - credit is too easy to come by these days, people who don't qualify for a loan are still able to secure financing even if they can't afford it. This recession we are in? These shenanigans are exactly what put us in the mess.
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Old 12-28-2008   #5
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Giving it back to them would be called surrendering, otherwise know as a repo. Not a smart decision
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Old 02-20-2009   #6
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You should sell the motorcycle for as much money as you can and pay off the entire loan amount even if you have to use a charge card for the extra money. You WILL have to pay off the loan to get your title - assuming the finance company has a lien on it. If you let the finance company have the bike they will send it to a wholesale auction and charge you all the selling fees - and you are still responsible to pay for any shortage against your loan balance. If you don't pay the entire loan amount - your credit rating will be severely damaged (if that matters?) ------
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Old 08-30-2012   #7
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You cant sell the motorcycle as finance terms are not over yet, more information can be gathered by means of finance department of your location.
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