Buying a Bike- Lien Release
 

I found a great deal on a bike. Owner has title in hand, but it includes a lien from Harley Credit. We agreed on the price and purchase. He paid off the bike this Monday and provided me with a iPhone screen shot that includes his account #, and a zero balance, reflecting the payoff.

However, it takes 10 days or so for Harley Credit to issue/send the lien release to him, who then will mail it to me.

I'm thinking of taking possession of the bike, with title and bill of sale this Saturday, and having him mail the lien release to me.

Do you think this is a safe bet? By the way- this is in the state of OK if that might make a difference.

Thanks.

The lien holder has possession of the title which should also have the lien documented. Payoff of the loan initiates the signature release on the title for that lien. Usually this is followed by the title mailed to the address on the title, the original owner. The original owner will then need to reassign the title to you providing you the documented evidence of the purchase and authority to transfer title. I have never used Harley Credit therefore they may in fact allow the purchasers to hold title for the vehicle. If they do I am not sure what they are holding as collateral on the loan.

IMO - It is risky to purchase a vehicle without clear title and or all liens released. Stop by your local dealership and ask them how Harley credit handles titles and the lien release process. The go to the seller and ask to see the title looking for the documented lien and release.

If you are concerned about the seller not following through, get the name of the financial institution and contact info from the seller. Let them know you are taking possession of the vehicle and if they can, have them send a copy of the lien release directly to you.

I bought an FXDF yesterday from a private seller who had a lien on the bike through HDFS (HD Credit Corp). If the mortgagor (guy who owes HDFS) calls them, he can tell them to send the title to the new buyer. From the day of payoff of the laon, HDFS says it takes 10 - 14 business days to send out the paper title. If your state deals with electronic title liens (like Louisiana), if the mortgagor tells HDFS to release the title to the new buyer, HDFS will electronically advise the state DMV that the lien is satisfied, and to release the title to the new buyer. New buyer goes to DMV and will be issued a paper title. (You'll still need your bill of sale.)

The lien holder does not maintain possession of title in every state. SoDak went electronic title a few years back and everybody got their paper title, but liens are on file electronically with Dept of Motor Vehicles. I'm thinking your won't be able to transfer title until your Dept of Motor Vehicles gets notification of the lien release. That shouldn't be a problem other than I don't know what insurance implications might be. Every state is a little different. Actually my best source of information has been my credit union, they deal with these situations every day.