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Car finance ›
Can you sell a motorbike on finance?
Updated: Monday, 26 February 2024
When you buy a motorbike on finance, you’re usually tied into the agreement for several years. If you still have money left on your finance agreement and want to sell your bike, it isn’t as simple as finding a buyer and transferring ownership.
Here, we explore how different types of motorbike finance can affect your options, and what you can do if you want to sell your bike when you still have outstanding finance.
Key terms around selling a motorbike on finance
We’ve broken down some of the jargon you need to know if you’re looking to end your finance agreement and sell your motorbike.
What is a legal owner?
The legal owner of a motorbike is the person or company who gained title (legal ownership) at the point of sale.
What is a registered keeper?
If your bike is on a finance plan, like a Conditional Sale (CS) or Personal Contract Purchase (PCP) agreement, you’ll typically be the registered keeper. The finance company is the bike’s legal owner until you make the final payment or, in the case of a PCP deal, pay the final balloon payment.
What is an Early Settlement Figure?
An Early Settlement Figure is the amount of money you would need to pay to end a finance agreement early. To sell a financed motorbike, you need to become the bike’s legal owner by paying this figure to the finance company.
This figure is usually valid for 28 days after you request it, and to get this figure, you’ll need to contact your motorcycle finance provider.
If you’re a Moneybarn customer, you can request your Early Settlement Figure via your My Moneybarn online customer account, or by calling our Customer Service team.
Can you sell a motorbike with outstanding Conditional Sale finance?
If your bike is on a Conditional Sale (CS) agreement, you will become the legal owner once you make the final payment. Until then, you are the vehicle’s registered keeper, and the finance company is the legal owner.
As you don’t own the bike, you can’t sell it. Doing so could be against the law, and your finance provider could take legal action against you.
To sell your bike with outstanding CS finance, you will need to request your finance provider calculates and confirms your Early Settlement Figure. The Early Settlement Figure is usually made up of the remaining monthly payments, minus future interest you won’t need to pay as you’re ending the agreement early (although note that the finance provider is entitled to still include one month and 28 days’ worth of interest). You’ll need to pay the confirmed early settlement amount within a certain time period (usually 28 days) to clear your agreement and take full legal ownership of the bike.
Can you sell a motorbike with outstanding Hire Purchase finance?
On a Hire Purchase (HP) agreement, you pay a deposit or part exchange for an old vehicle before making monthly payments. You’ll become the bike’s legal owner once you have made the final monthly payment.
If your bike is on an HP agreement and you want to buy it outright, you will need to pay the remaining finance. To do this, contact the finance provider for an Early Settlement Figure and pay it before the figure expires (usually 28 days).
Once the outstanding finance is paid, you will own the bike and can sell it privately or in exchange for a new model.
Can you sell a motorbike with outstanding Personal Contract Purchase finance?
With a Personal Contract Purchase (PCP) plan, you are the registered keeper of the bike until you have paid all the finance owed, including the final balloon payment. The finance company is the vehicle’s legal owner until the end of the agreement.
If your bike is on a PCP agreement and you want to sell it, you will have to ask for and pay the final settlement fee. This includes remaining finance payments and the final balloon payment.
Once you have paid the settlement fee, you will own the motorcycle outright and can now sell the vehicle. However, it’s important to note that there are no guarantees that the resale value will match the settlement figure, so you may end up out of pocket.
Can you sell a motorbike with outstanding Personal Contract Hire finance?
On a Personal Contract Hire (PCH) agreement, you can lease a bike without the obligation of owning it or paying a final settlement figure at the end of the contract.
This means that you will have to return the vehicle to the finance company or dealer at the end of the agreement because they remain the legal owner. Because of this, the bike is not yours to sell.
Additionally, as there’s no option to buy the bike outright, you cannot request a settlement figure for selling privately.
If you want to end the PCH agreement with finance outstanding, you should check the contract terms.
Can you sell a motorbike with outstanding Personal Loan finance?
If you have bought your motorbike with a personal loan, e.g. from a bank or building society, you will be its legal owner. This means you can sell your bike without seeking permission from the finance company.
Once you have sold the bike, you can use the money to repay outstanding finance or continue to make monthly payments and keep the lump sum in your bank account ready to make your next purchase.
What is the process of selling a motorbike on finance?
Selling a financed motorbike can be confusing, especially if you’re unfamiliar with it. You can’t sell a motorbike with outstanding finance until you’ve settled your agreement.
To simplify the process, we’ve summarised the main steps:
- Review your agreement’s terms and conditions to see if any early exit fees apply.
- Get an up-to-date bike valuation to see if the finance agreement is in positive or negative equity. If, for example, the bike is valued at £6,000, but you have £7,000 of outstanding finance, you will be in £1,000 of negative equity and will need to make up the difference out of your pocket.
- Request an Early Settlement Figure (ESF) from your finance company; by law, this must be provided within 7 working days.
- You can then part-exchange your motorbike and have the dealership pay off your ESF while the ESF is still valid. This is typically within 28 days, but it will vary depending on the lender, so make sure you check your contract.
Is it against the law to sell a motorbike with outstanding finance?
Yes, selling a motorbike while still on a finance plan without settling the agreement is against the law since you are not the legal owner until the end of your contract. You will be the registered keeper of a bike on finance until you have settled the finance.
What are the alternatives to selling a motorbike on finance?
If the type of finance deal you have will not let you sell your bike outright, and you want to end your finance agreement, you may have other options. Check your finance agreement, as it should outline the processes involved in ending your agreement.
Voluntary termination of your motorbike finance
If you can no longer afford your motorbike or don’t need it any longer, cancelling the agreement may be an appropriate option.
Under the Consumer Credit Act 1974, you can return your vehicle to the finance company at any point in your agreement. This is known as voluntary termination.
How much you’ll need to pay will depend on your agreement. If you’ve already paid 50% or more of the total amount payable as per your agreement, you’ll be able to return the vehicle to the finance company and you may have nothing more to pay, although it’s important to check this as you may need to pay charges if you’re behind on your agreement payments or if there is any damage to the bike outside of fair wear and tear.
If you haven’t paid off at least 50% of your agreement, you’ll need to return the bike and then pay the remaining amount of payments needed to reach 50% of your total agreement repayment value, and again there may be additional charges to consider.
It’s best to contact your finance provider so they can walk you through how the voluntary termination process will work and what costs may apply (plus what other support and options are available) so you can make a clear, informed decision on what to do.
Continuing with your monthly payments
If you only have a few monthly payments on your finance agreement, it may be cheaper to continue making them until the contract ends. It’s best to speak to your lender, as they will be able to discuss your options so that you can make a decision on the best way forward.
When you buy a motorbike on finance, you’re usually tied into the agreement for several years. If you still have money left on your finance agreement and want to sell your bike, it isn’t as simple as finding a buyer and transferring ownership.
Here, we explore how different types of motorbike finance can affect your options, and what you can do if you want to sell your bike when you still have outstanding finance.
Key terms around selling a motorbike on finance
We’ve broken down some of the jargon you need to know if you’re looking to end your finance agreement and sell your motorbike.
What is a legal owner?
The legal owner of a motorbike is the person or company who gained title (legal ownership) at the point of sale.
What is a registered keeper?
If your bike is on a finance plan, like a Conditional Sale (CS) or Personal Contract Purchase (PCP) agreement, you’ll typically be the registered keeper. The finance company is the bike’s legal owner until you make the final payment or, in the case of a PCP deal, pay the final balloon payment.
What is an Early Settlement Figure?
An Early Settlement Figure is the amount of money you would need to pay to end a finance agreement early. To sell a financed motorbike, you need to become the bike’s legal owner by paying this figure to the finance company.
This figure is usually valid for 28 days after you request it, and to get this figure, you’ll need to contact your motorcycle finance provider.
If you’re a Moneybarn customer, you can request your Early Settlement Figure via your My Moneybarn online customer account, or by calling our Customer Service team.
Can you sell a motorbike with outstanding Conditional Sale finance?
If your bike is on a Conditional Sale (CS) agreement, you will become the legal owner once you make the final payment. Until then, you are the vehicle’s registered keeper, and the finance company is the legal owner.
As you don’t own the bike, you can’t sell it. Doing so could be against the law, and your finance provider could take legal action against you.
To sell your bike with outstanding CS finance, you will need to request your finance provider calculates and confirms your Early Settlement Figure. The Early Settlement Figure is usually made up of the remaining monthly payments, minus future interest you won’t need to pay as you’re ending the agreement early (although note that the finance provider is entitled to still include one month and 28 days’ worth of interest). You’ll need to pay the confirmed early settlement amount within a certain time period (usually 28 days) to clear your agreement and take full legal ownership of the bike.
Can you sell a motorbike with outstanding Hire Purchase finance?
On a Hire Purchase (HP) agreement, you pay a deposit or part exchange for an old vehicle before making monthly payments. You’ll become the bike’s legal owner once you have made the final monthly payment.
If your bike is on an HP agreement and you want to buy it outright, you will need to pay the remaining finance. To do this, contact the finance provider for an Early Settlement Figure and pay it before the figure expires (usually 28 days).
Once the outstanding finance is paid, you will own the bike and can sell it privately or in exchange for a new model.
Can you sell a motorbike with outstanding Personal Contract Purchase finance?
With a Personal Contract Purchase (PCP) plan, you are the registered keeper of the bike until you have paid all the finance owed, including the final balloon payment. The finance company is the vehicle’s legal owner until the end of the agreement.
If your bike is on a PCP agreement and you want to sell it, you will have to ask for and pay the final settlement fee. This includes remaining finance payments and the final balloon payment.
Once you have paid the settlement fee, you will own the motorcycle outright and can now sell the vehicle. However, it’s important to note that there are no guarantees that the resale value will match the settlement figure, so you may end up out of pocket.
Can you sell a motorbike with outstanding Personal Contract Hire finance?
On a Personal Contract Hire (PCH) agreement, you can lease a bike without the obligation of owning it or paying a final settlement figure at the end of the contract.
This means that you will have to return the vehicle to the finance company or dealer at the end of the agreement because they remain the legal owner. Because of this, the bike is not yours to sell.
Additionally, as there’s no option to buy the bike outright, you cannot request a settlement figure for selling privately.
If you want to end the PCH agreement with finance outstanding, you should check the contract terms.
Can you sell a motorbike with outstanding Personal Loan finance?
If you have bought your motorbike with a personal loan, e.g. from a bank or building society, you will be its legal owner. This means you can sell your bike without seeking permission from the finance company.
Once you have sold the bike, you can use the money to repay outstanding finance or continue to make monthly payments and keep the lump sum in your bank account ready to make your next purchase.
What is the process of selling a motorbike on finance?
Selling a financed motorbike can be confusing, especially if you’re unfamiliar with it. You can’t sell a motorbike with outstanding finance until you’ve settled your agreement.
To simplify the process, we’ve summarised the main steps:
- Review your agreement’s terms and conditions to see if any early exit fees apply.
- Get an up-to-date bike valuation to see if the finance agreement is in positive or negative equity. If, for example, the bike is valued at £6,000, but you have £7,000 of outstanding finance, you will be in £1,000 of negative equity and will need to make up the difference out of your pocket.
- Request an Early Settlement Figure (ESF) from your finance company; by law, this must be provided within 7 working days.
- You can then part-exchange your motorbike and have the dealership pay off your ESF while the ESF is still valid. This is typically within 28 days, but it will vary depending on the lender, so make sure you check your contract.
Is it against the law to sell a motorbike with outstanding finance?
Yes, selling a motorbike while still on a finance plan without settling the agreement is against the law since you are not the legal owner until the end of your contract. You will be the registered keeper of a bike on finance until you have settled the finance.
What are the alternatives to selling a motorbike on finance?
If the type of finance deal you have will not let you sell your bike outright, and you want to end your finance agreement, you may have other options. Check your finance agreement, as it should outline the processes involved in ending your agreement.
Voluntary termination of your motorbike finance
If you can no longer afford your motorbike or don’t need it any longer, cancelling the agreement may be an appropriate option.
Under the Consumer Credit Act 1974, you can return your vehicle to the finance company at any point in your agreement. This is known as voluntary termination.
How much you’ll need to pay will depend on your agreement. If you’ve already paid 50% or more of the total amount payable as per your agreement, you’ll be able to return the vehicle to the finance company and you may have nothing more to pay, although it’s important to check this as you may need to pay charges if you’re behind on your agreement payments or if there is any damage to the bike outside of fair wear and tear.
If you haven’t paid off at least 50% of your agreement, you’ll need to return the bike and then pay the remaining amount of payments needed to reach 50% of your total agreement repayment value, and again there may be additional charges to consider.
It’s best to contact your finance provider so they can walk you through how the voluntary termination process will work and what costs may apply (plus what other support and options are available) so you can make a clear, informed decision on what to do.
Continuing with your monthly payments
If you only have a few monthly payments on your finance agreement, it may be cheaper to continue making them until the contract ends. It’s best to speak to your lender, as they will be able to discuss your options so that you can make a decision on the best way forward.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
