taking over payments
Seasoned HDF Member
Joined: Apr 2015
Posts: 6,863
Likes: 3,727
From: St. Charles, MO
If that is the case, then the OP ought not be purchasing something like a Harley yet.
Road Master
Joined: Aug 2018
Posts: 766
Likes: 651
From: Reno, NV
The terminology "take over payments" means that the loan stays in the original person's name and all payments applied help increase his credit score. The bank is not involved or knowledgable of this situation and could care less as long as all payments are made on time. This is highly illegal and only benefits the original purchaser if the payments are made according to the loan terms. His credit score goes up and yours stays in the *******.
If you have the income to qualify for buying this bike, go to the lender and apply for a "Loan Assumption". You're basically applying for the credit so that you can assume the loan under the same terms as the current owner's loan. If the terms are favorable this may help you if he's made some of the payments already.
If the terms are not favorable then you go to a bank of your choice and apply for a loan to purchase the bike. The bank that makes the new loan pays the other bank and buys that note on your behalf. This only works if there is enough cash to pay off that original loan. So if the guy is "Up-side-down" you'll need to add cash to the deal, above and beyond what the new bank is willing to lend you to make this happen.
Pick a scenario and then compare that scenario to just going out and buying a bike from a dealer or another private party to see if you can get a better deal. My assumption is that if you're seriously considering "taking over payments" (which we just said is illegal) you probably don't think you can get a loan yourself. So if you're going to do it the illegal way, understand that your friend can walk in and take that bike back any time he feels like doing so. Most department of motor vehicles will not allow you to become a registered owner unless the lien holder agrees. It will remain registered in his name. So now you have to get him to renew registration every year for you, in his name. Do you trust him enough to do that?
If you have the income to qualify for buying this bike, go to the lender and apply for a "Loan Assumption". You're basically applying for the credit so that you can assume the loan under the same terms as the current owner's loan. If the terms are favorable this may help you if he's made some of the payments already.
If the terms are not favorable then you go to a bank of your choice and apply for a loan to purchase the bike. The bank that makes the new loan pays the other bank and buys that note on your behalf. This only works if there is enough cash to pay off that original loan. So if the guy is "Up-side-down" you'll need to add cash to the deal, above and beyond what the new bank is willing to lend you to make this happen.
Pick a scenario and then compare that scenario to just going out and buying a bike from a dealer or another private party to see if you can get a better deal. My assumption is that if you're seriously considering "taking over payments" (which we just said is illegal) you probably don't think you can get a loan yourself. So if you're going to do it the illegal way, understand that your friend can walk in and take that bike back any time he feels like doing so. Most department of motor vehicles will not allow you to become a registered owner unless the lien holder agrees. It will remain registered in his name. So now you have to get him to renew registration every year for you, in his name. Do you trust him enough to do that?
Road Warrior
Joined: Jul 2015
Posts: 1,937
Likes: 254
From: US
Dont make it so it could be complicated if an insurance claim is needed. Get a loan and get the bike in your name, get insurance with your lender as lien holder. You dont want Judge Judy involved.
Are you wanting to take over payments to avoid sales tax?
Are you wanting to take over payments to avoid sales tax?
Last edited by CVO SG; Nov 16, 2018 at 11:00 AM.
Seasoned HDF Member
Joined: Aug 2013
Posts: 35,794
Likes: 38,536
From: Post Falls, ID
Since the OP has disappeared from the discussion, I think you are correct.
Supporter
Joined: Oct 2009
Posts: 2,056
Likes: 248
From: Milton Mills NH
The terminology "take over payments" means that the loan stays in the original person's name and all payments applied help increase his credit score. The bank is not involved or knowledgable of this situation and could care less as long as all payments are made on time. This is highly illegal and only benefits the original purchaser if the payments are made according to the loan terms. His credit score goes up and yours stays in the *******.
If you have the income to qualify for buying this bike, go to the lender and apply for a "Loan Assumption". You're basically applying for the credit so that you can assume the loan under the same terms as the current owner's loan. If the terms are favorable this may help you if he's made some of the payments already.
If the terms are not favorable then you go to a bank of your choice and apply for a loan to purchase the bike. The bank that makes the new loan pays the other bank and buys that note on your behalf. This only works if there is enough cash to pay off that original loan. So if the guy is "Up-side-down" you'll need to add cash to the deal, above and beyond what the new bank is willing to lend you to make this happen.
Pick a scenario and then compare that scenario to just going out and buying a bike from a dealer or another private party to see if you can get a better deal. My assumption is that if you're seriously considering "taking over payments" (which we just said is illegal) you probably don't think you can get a loan yourself. So if you're going to do it the illegal way, understand that your friend can walk in and take that bike back any time he feels like doing so. Most department of motor vehicles will not allow you to become a registered owner unless the lien holder agrees. It will remain registered in his name. So now you have to get him to renew registration every year for you, in his name. Do you trust him enough to do that?
If you have the income to qualify for buying this bike, go to the lender and apply for a "Loan Assumption". You're basically applying for the credit so that you can assume the loan under the same terms as the current owner's loan. If the terms are favorable this may help you if he's made some of the payments already.
If the terms are not favorable then you go to a bank of your choice and apply for a loan to purchase the bike. The bank that makes the new loan pays the other bank and buys that note on your behalf. This only works if there is enough cash to pay off that original loan. So if the guy is "Up-side-down" you'll need to add cash to the deal, above and beyond what the new bank is willing to lend you to make this happen.
Pick a scenario and then compare that scenario to just going out and buying a bike from a dealer or another private party to see if you can get a better deal. My assumption is that if you're seriously considering "taking over payments" (which we just said is illegal) you probably don't think you can get a loan yourself. So if you're going to do it the illegal way, understand that your friend can walk in and take that bike back any time he feels like doing so. Most department of motor vehicles will not allow you to become a registered owner unless the lien holder agrees. It will remain registered in his name. So now you have to get him to renew registration every year for you, in his name. Do you trust him enough to do that?
Get your own loan and tittle in your name.
Club Member
Joined: Aug 2008
Posts: 21,726
Likes: 22,812
From: North Carolina
Hey OP, how did you find this forum?
Did you Google "Financial Advice" and we popped up?
What color is this bike you are considering buying?
What color helmet do you wear? Does it match the bike?
Where do you plan to place the gas cap when you fill up?
Did you Google "Financial Advice" and we popped up?
What color is this bike you are considering buying?
What color helmet do you wear? Does it match the bike?
Where do you plan to place the gas cap when you fill up?
Tourer
Joined: Feb 2017
Posts: 280
Likes: 79
From: Tennessee
I bought mine for what was owed on it, but did it through Harley rider to rider. Very easy payed a good bit down. It cost a little to do this I think around 400 but. It transfers everything to your name you sign and its yours. If he is financed with Harley easy way to go
Outstanding HDF Member
Joined: Sep 2017
Posts: 2,008
Likes: 788
From: Great State of Texas
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My Dad passed away
My Dad passed away on 9/11/21. His HD is financed thru HD financial services. How do I go about being able to keep his bike? I have continued with the payments at this time. I took my HD to his local dealer and they bought me out of my lease for my bike so I could make the payments on my Dad's.
Club Member
Joined: Apr 2016
Posts: 11,531
Likes: 8,368
From: Inland NW
My Dad passed away on 9/11/21. His HD is financed thru HD financial services. How do I go about being able to keep his bike? I have continued with the payments at this time. I took my HD to his local dealer and they bought me out of my lease for my bike so I could make the payments on my Dad's.