Many people have been airing their minds and opinions regarding this – how to get rid of a financed motorcycle, if you fall into this situation and are looking for the next step and action to take towards it we are here to help you.
Most times one of the risky assets to finance is a motorcycle because many risks may occur in the future which might cause regret for the owner.
A financed motorcycle
A financed motorcycle means a motorcycle gotten through the help of a loan or financing arrangement.
In other words, it means borrowing a loan to buy a motorcycle.
Getting rid of a financed motorcycle
This is the act of no longer becoming responsible for the financed motorcycle, or you want to get it off, and no longer bear the financial responsibility of it.
If you have already financed and gotten the motorcycle but unfortunately want to get rid of it due to the best decisions known by you, but you don’t know exactly how to go about it. Don’t worry we are here to list many options for you so that it will assist you in getting a rid of the financed motorcycle.
Normally, the future is unpredictable sometimes things don’t go as smoothly as they were planned, some situations may occur in the future that will make one to replan and take drastic decisions to cope with the current situation. When such untold situations befall someone he may decide to get rid of his financed motorcycle.
How to get rid of a financed motorcycle
You can go ahead to get rid of it following these steps and guidance.
- Discuss with the lender
- Sell the motorcycle to pay the loan
- Bring it back to the dealer
- Refinance it
- Surrender the motorcycle
Discuss with the lender
Firstly discuss this matter with the lender or creditor tell him your decision about getting rid of the motorcycle maybe he may be of help or recommend a solution for you.
If he is the motorcycle dealer He may even agree to take back the motorcycle from you at a lower price because some dealers also provide loans for their buyers. This way getting rid of the motorcycle may be more easier.
But if at all he was not cooperating with your move on, at least you have to air your mind to him.
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Sell the motorcycle to pay the loan
Look for someone ready to buy the motorcycle from you, sell it to him then use the money to pay off the outstanding loan to the motorcycle financer.
This option will be the best for you on how to get rid of a financed motorcycle
Although you will no longer sell the motorcycle at the exact price you bought it initially considering the fact it’s now a fairly used product.
You have to bear in mind that if you don’t sell it off the interest rate will be going higher day by day also the motorcycle will be depreciating.
It will be better if you sell it off and use the money to balance your creditor, this will help you to have rest of mind and get out of loan.
Bring it back to the dealer
The dealer is the place you bought your motorcycle from. This is another means on how to get rid of a financed motorcycle
You can bring it back to them and explain to them the situation at hand and your decision.
They may decide to buy it from you at a very low price, even if you bought it from them a few days or weeks ago as long as you have taken it away from their garage if you bring it back they will still reduce the price.
Then use it to pay the loan even if it remains, look for a way to pay it off.
How to get rid of a financed motorcycle – If your purpose of getting rid of it is because of its outstanding loan and interest rate which you are not able to pay then you can consider refinancing it.
In this case, refinancing means obtaining more loans to pay for your current motorcycle outstanding loan, this will help to maintain your credit score.
Surrender the motorcycle
You can decide to willingly surrender the motorcycle to the creditor this means handling the motorcycle keys and documents to the creditor for him to resell and take back his loan.
The above is some of the steps on how to get rid of a financed motorcycle.
How do I finance my motorcycle without regretting it in the future?
Follow this steps
- A clear understanding of the loan terms and conditions is essential you have to understand how the loan works its interest rate and all that from the creditor before applying for the loan.
- If you know the loan is too huge for your salary or income don’t apply for it.
- You may seek the help of a financial advisor who will guide you.
What will happen if I’m unable to pay for my motorcycle?
The following may happen
- It may affect your credit score negatively.
- The interest rate may go high, also a late fee interest may occur.
- The lender or creditor may repossess the motorcycle back
Are there any strategies to pay off your motorcycle finance loan?
Yes, there are some strategies to follow to pay it off
- Refinancing: it this will help to reduce the interest which may occur monthly.
- Plan to make auto payments which may be daily, weekly or monthly Eg Calculate the total outstanding loan then calculate how much you will be paying daily, weekly or monthly to clear the debt.I believe this strategy will help.
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Instead of you to put yourself on a loan because of a motorcycle that depreciates you can consider buying it from your fund.
Or you purchase the one you can easily afford without putting yourself on any debt which will give you restlessness in the future because of the loan and interest that follows.
If at all you were unable to purchase a motorcycle because of the high price start saving until you were able to buy it.
Don’t borrow a loan if you know you can’t afford to pay it.
Check out: Tips for achieving financial freedom.
How to get rid of a financed motorcycle means the steps and process of disposing the motorcycle completely from your care, this process may not be easy most times.
Bear in mind that you may incur a loss in the process because you won’t be able to get rid of it the exact amount it was bought.