Selling a motorbike that is still on finance
Outstanding finance does not stop you selling. It just adds one step: the agreement has to be settled as part of the sale. Here is how that works in practice.
First, know what kind of agreement you have
- Hire purchase or conditional sale: the finance company owns the bike until the final payment, so it cannot be sold without settling.
- PCP: same principle, with an optional final payment. You can settle early and sell, or hand the bike back under the agreement's terms if that suits you better.
- An unsecured personal loan: the bike is already yours, the loan is a separate debt, and the sale is a normal private sale.
Get a settlement figure
Ask your finance company for a settlement figure. It is the amount needed to clear the agreement today, and it is usually valid for a set period, often around 28 days.
It is not the same as adding up your remaining payments. Get it in writing, and note the expiry date before you agree a sale.
Nothing can complete until the finance company confirms the exact amount owed.
When the bike is worth more than you owe
This is positive equity, and it is the straightforward case. The finance is settled from the sale, and the difference comes to you.
When you owe more than the bike is worth
This is negative equity. The sale can still go ahead, but you have to pay the shortfall yourself so the agreement clears in full.
Knowing the number early avoids an unpleasant surprise at collection, so get the settlement figure before you start.
What to have ready
- The finance company's name and your agreement number.
- A current written settlement figure and its expiry date.
- The V5C in your name, plus service history and both keys.
- Confirmation of who will pay the settlement and who pays any shortfall, agreed before collection.
How it works on FROTL
When you build your bike profile you tell us the finance company and the approximate settlement figure, so dealers bid knowing the position rather than discovering it on the driveway.
Settlement is arranged directly between you, the buying dealer and your finance provider. FROTL never holds the money. Always keep written confirmation from the finance company that the agreement is cleared.