Purchasing a motorcycle is very similar to purchasing a car. If you do not have the money to buy the motorcycle straight out, the motorcycle purchase can be financed through a bank. Like with a car purchase though, you must have sufficient credit history and a qualifying credit score in order to finance the motorcycle. If you do not have a good enough credit score to finance a motorcycle through a bank, it is still possible to purchase a motorcycle through monthly payments by taking over the payments on a motorcycle that someone else has already financed.
Find someone who is trying to sell their motorcycle. If you do not know anyone who is looking for someone to take over their motorcycle payments, you can look online. Craigslist may have some listing of people in your area that want to get rid of their motorcycles and both Yakaz and Sell a Bike feature ads of people wanting to transfer their bikes to someone who can take over the payments.
Check with the lender who is financing the loan to see if they allow loan transfers. Some lenders actually provide methods of transferring the loan for a motorcycle into the name of another purchaser.
Draw up a legal contract that states the terms of the payment agreement. The contract should state the total amount of the outstanding loan, the payment that you are expected to make each month and that the person whose name is on the loan agrees to transfer the motorcycle title to you upon completion of the loan payment. Also include details about the motorcycle, such as type, VIN and registration number.
Sign the contract in front of a notary. The notary verifies both signatures, proving that the current owner of the motorcycle signed the contract, which gives you slightly more legal protection.
Make your payments on time. Skipping payments or making them late may void the terms of the contract.
A bank or lender always runs a credit check before transferring a loan from one person to another. If credit is the main reason that you were unable to finance a motorcycle directly from a dealer, you more than likely won’t be able to transfer the loan for the motorcycle into your name.
Taking over payments on a motorcycle is risky. Even with a contract, it is difficult to fight the title’s owner if they refuse to give you the title once the payments have been made. A safer course of action is to save up enough money to make a down payment on the motorcycle that will entice a lender to give you a loan, despite bad credit.