Confused about selling a motorcycle with a lien
Currently paying about $200 a month, with about $2800 left on the financing (HSBC Retail, backing Yamaha Financing). Bike is worth about $6000 (2006 Yamaha FZ6).
So I'll need a UVIP, and it's going to show the $2800 lien. But no one is going to buy a bike with a lien on it, so I need to clear off that $2800 lien first, right?
If I pay the $2800 (would have to be on a credit card), it can then take the lien holder up to 30 days to submit proof of the lien being cleared to the MTO, who can then take a couple days to update the UVIP package info.
And *then* I can post ads and start trying to sell the bike without the lien scaring off buyers.
Here's my concern - $2800 is a nasty chunk of change to float on a credit card for over a month, probably over 2 months.
I kinda need the $6000 from a buyer so that I can pay that $2800 in one swoop - i.e. buyer gives me a bank draft for $6000, I deposit it and immediately pay HSBC the $2800 to clear the debt.
But no buyer in their right mind would trust a stranger (me) to do that, so that $2800 *has* to be gone, right? Paid, but floating on my credit card, dinging me 29.9% interest for a couple months if not more and clobbering my available credit limit.
OR, can I sell my $6000 bike for $3200 + the assumption of the $2800 lien? Would a buyer go for that, or is that a giant red flag too?
How do people sell used vehicles with a lien on them - I mean, what about people selling a couple year old SUVs with like $16,000 still owing? That won't fit on most people's credit cards!
How does this usually work in real life?