ALT-2 How to Buy a used Motorcycle
When you are planning on buying a motorcycle that is used, you have a few options. You can go to a dealership, you can physically go to a person that has a bike for sale or you can search online for the motorcycle. If you choose the online approach, you will still need to see the bike in person before you send the cash.
Just like buying any used automobile, you are taking a risk. There is a reason that the person that owned it before got rid of it. The reason may be something that is benign like they wanted a newer model but more often than not, there is something wrong with the motorcycle and they want to get rid of it before it went to motorcycle heaven. If you aren't a mechanic, these problems can be expensive.
That may sound harsh, but it's not necessarily a bad thing. Whatever is wrong with the motorcycle might be devastating to the owner but an opportunity for you. If you know how to work on bikes, buying a used bike is not that much of a problem. If the inner workings of a motorcycle are like ancient Greek to you, buying a used bike may not be the best route to go. It may cost you more in the long run.
This is not about the risks of buying a used motorcycle, it is how to buy one. It is not that different than buying a used car. There are basic steps to follow and you will own a bike. Like anything in life, this looks fine on paper but when you actually put the plan in action, there are always complications. Be prepared for them (as much as you can) and everything should turn out all right.
The first step (which you have already made) is the decision to buy a used motorcycle. Once you have decided that this is the path for you, you have to decide what kind of motorcycle. Not the make or model, but the actual type. Are you planning on jumping dirt hills or riding across the country? Is it going to be a turn the key and you are set, or a project that could take months (or years) to complete?
After you know the type of motorcycle that you want, it is time for some homework. Unless you are well versed in the world of motorcycles you need to learn as much as you can about what you are (possibly) about to sink large amounts of money into.
While doing your homework, you should find out what the market value of the motorcycle is. This is not the same as looking up the value in Kellys Blue Book. The motorcycle market is very dynamic. It changes constantly. Bikes are worth what people will pay for them. You can buy a bike that is a few years old for 1/10 of the money that a 60 year old bike in pieces will cost you.
Now you are at the point that you have educated yourself on the motorcycle you want, what the market value is, assuming you haven’t had a minor stroke from finding out your dream bike is not going to happen, it is time to find the motorcycle.
As stated earlier, you can go to a dealership, private person, and or use the Internet. Whatever way you choose to use, seeing the motorcycle in person is of the up most importance. A test ride is also in the works (unless you are buying a “fixer upper”in which it may not run) because you do not ever want to go on the word of the person that trying to get your money in the first place. In a perfect world, you wouldn't have to be so careful but we all know that is not the case.
A quick ride will tell you if the major components of the bike are in order. Since it is used, problems will pop up in the future but anything that you notice within a 5 mile ride can be a serious deal breaker.
It keeps coming up, but it is relevant. If you are a builder, buying a used bike is a different sport than if you are just a rider. Neither is better than the other but it completely effects what you should buy.
Now, for the sake of brevity, we can assume that you have found the bike that matches all of your criteria (in reality this could take anywhere from days to years). How are you going to pay for it? If it is very inexpensive, you may only have to make a trip to the ATM. If you do pay cash, make sure that you get a receipt from the seller. If they will accept it, a check is great as well because then you have two documents to show what you have paid. This is more important in a private sale because you are still going to have to pay sales tax on the purchase.
If buying from a dealership, the sales tax will be buried somewhere in the list of “fees and costs”. The state (or whatever local government agency you fall under) wants it’s money. It is up to you and the seller to do this in a private sale. This means it will be up to you most of the time.
If it is a newer or very expensive bike, a loan may be necessary. This works just like it does with a car (except a little more difficult, banks don’t care for motorcycles very much). You can get the loan from your bank or the dealership, either way you will have a payment. Depending on the price of the motorcycle, this could be as much as a car payment. While it seems like it is worth it when you are riding almost every day in the spring and summer, the payment is still due in the middle of winter when the bike is in the garage. This is something to keep in mind before taking out a $20,000 loan. You also need to remember that you will be paying interest on the amount that you borrow.
By what ever means you have chosen, you have the money for the motorcycle. You have found the “perfect” bike for you. Once you pay the seller, they will sign the title over to you. While it may seem like your journey has come to an end, you have just started.
Depending on where you live, the laws will vary but it is almost universal that you are going to have to go to the Secretary of State’s office (or DMV or whatever the department is called where you live). Most states like for you to have a few things done when you purchase a new (to you) motorcycle. You have to have the title transferred into your name, you have to get all the proper registration as well as plates. It should come as no surprise, all of this costs money. Don’t be fooled by the smaller size of the license plate, you will probably be paying close to the same amount as you would for a car or a truck.
Because motorcycles are more dangerous to ride than cars are to drive, insurance is a mandatory thing (and required by law in most locations). This is another place that you may be spending more than you first thought. If you have a good driving record, have taken safety courses and have other vehicles insured with the company it will seriously help on the cost. Just like with car insurance, things like the kind of bike, your driving record, your age, and the value of the motorcycle all come into play. It is a good idea to have extra medical coverage on the policy. Anyone that has done a lot of riding will tell you it isn't if you wreck, it is when. Accidents are part of riding a motorcycle.
Now that you have found your bike, paid for it (or at least paid the seller, you may still owe the bank) and have made it street legal, get out and enjoy your new ride. If it is a bigger or faster bike than you are use to, don’t push it as soon as you get on it. All bikes have different characteristics. If you bought one with more power, you don’t want to be surprised in a bad way with the increase in power and speed.
Be careful, learn the new bike, and enjoy the ride. That was the entire point of finding a used motorcycle in the first place. As you can see, there is more in it than meets the eye. You have definitely earned the open road of a long ride.
Stay safe and stay alert.
