Tips on Buying Cars: Buying used motorcycle without clear title, legitimate options, lienholder

Question
Hi Ray,

I'm trying to purchase a used motorcycle from a private seller, but the seller still has a lien on the bike. As I understand it, there are two legitimate options for getting the title "free and clear" and signed over to me. My question is this: which method below would you recommend, both legally and practically?

Option 1: Find out the balance of the lien from the lienholder, and pay the lending institution directly. Subtract that amount from the total sale price and give the remainder to the seller. The lender then sends me the title to the bike.

Option 2: Go with the seller to one of her lender's branches and complete all transactions on the spot. I pay the seller the full amount, she pays the bank, and we get the title signed and notarized right there. This would be a hassle for both of us, since we'd have to take time off work and go during normal banking hours.

Thanks!

By the way, I'm in Tucson, Arizona.

Answer
you can go with either option, if you go with option # 1 only the seller can obtain the payout amount and should have a note stating the lender will have no further interest in motorcycle when $$$ is submitted, you can't except verbal amount, you must see proper documentation.

I am happy to see your doing the right steps, you will be surprised as to how many buyers end up with a vehicle where seller never paid off the loan.

Ray
 http://www.usedcartips.org/