The Paperwork Protection
The Paperwork Protection
How Not To Get Burned When Buying Or Selling A Bike.
David D. Mallet
This is your mother talking. All of us hate paperwork. The only reason lawyers and bankers and bureaucrats seem to love excessive paperwork is because that’s how they earn their livings. We, the freedom-loving motorcycle purists, could give a hoot about paperwork. There are times, however, when it becomes a matter of self-protection. Buying or selling a used bike is one of those times. Typically, the only paper involved in this kind of transaction is paper money.
As an enlightened motorcycle consumer, you’ve probably read a few of those great, practical articles that give you the expert low-down on how to inspect a used motorcycle for its mechanical condition before you buy it. As the seller, all you want is a top price for your machine. As a buyer, you want a bike in good condition for the price. Armed with these basics on how to purchase or sell a used machine, you know everything you need to know, right?
Maybe.
What happens if:
( 1 ) The buyer takes the bike for a quick spin and never returns?
(2) The buyer takes the bike for a quick spin but returns on foot, since he hit an oil slick at 95 mph (or blew up the engine of your Honda 90 while coaxing 95 mph out of it, downhill)?
(3) While on a test ride, the seller injures the buyer (or the buyer drives and injures another party)? Or
(4) The buyer buys a lemon?
There is no foolproof method of protecting yourself as either the buyer or the seller. However, with a minimum of precautions, you can lessen the risk of losing out.
There are a couple of Real Life examples to point out the pitfalls. Several years ago, the author attempted to sell a used 1974 TX500 Yamaha. The first potential buyer to come along was a law school buddy who claimed he was nothing less than a junior-grade Mike Hailwood, experience on a Yamaha RD 350, that sort of thing. Unfortunately, while test riding the bike, which had been lovingly cared for, including 30 coats of wax on the tank, the (ex-) buddy failed to negotiate a 70-mph sweeper (even though he took it at 20 mph). The author located bike and exbuddy at the bottom of a 15 foot gully. Fortunately, the bike only sustained $400 worth of damage. The ex-buddy probably remains at the bottom of the gully, for the author didn’t bother with small details.
The same TX500, once repaired, was put back on the market. Along comes buyer No. 2, who pays $650 cash down, takes possession of the bike, leaving the seller with the pink slip (title). The first installment of $150 via check, clears the bank. Upon second and final installment, also via check, the seller (silly me), gave the buyer the pink slip. Then the check bounced. To complicate matters, the poor 500 stopped running. Buyer, of course, was none too happy. Seller was even unhappier, since he seemed to have sold the bike at a $150 discount.
The story had a happy ending, as seller bought the bike back at a discount and later discovered that the only mechanical defect was in buyer’s brain, since the 500 was simply out of gas. However, the result could have been a bad one.
The third instance involves the case of a test rider who took an old 250 dual purpose machine, jumped on it in a supermarket parking lot and panicked when the throttle stuck wide open. The rider was killed instantly when he ran head-on into a stationary mobile home. The personal injury damages were excessive, and the owner of the bike was extremely lucky not to be paying off a million dollar claim.
Now, for the mother angle. Sure, we would much rather be collecting bugs on our face shields than worrying about how not to get screwed on the purchase or sale of a bike. However, there are some short steps that will make things easier and more secure.
TEST RIDES.
Mother says that test rides are a no-no. As the seller, you have no way of knowing how well the buyer rides. If he doesn’t ride well, he can damage the bike and/or damage another human being. As the owner of the machine, you can be held liable. Even if you have theoretical recourse against the buyer, it won’t help if he has no money. Too, there have been instances where the buyer has simply run off with the bike. If you do allow test rides, be certain that the buyer leaves some kind of a comparably-valued hostage (i.e., his car or bike).
' For those of us little mothers who know the hazards of test rides and are absolutely unwilling to allow them, there is an alternative: have a local shop mechanic check the bike out for basic reliability. As a buyer, you can generally rely on the shop mechanic’s ability. It is no guarantee that the bike is in top shape, but it is better than tire-kicking in most instances.
METHOD OF PAYMENT.
Cashier’s checks and cash are wonderful. Personal checks, unless you jointly cash them at the bank, may bounce. Granted, you have legal recourse, but take it from the author’s experience: chasing down a deadbeat is an agonizing procedure that is almost not worth the trouble. If you take installment payments, keep the title but be certain that the registration is immediately transferred to the buyer. This will relieve you to some degree from liability should the new owner injure someone.
WARRANTIES.
In the typical sale of a motorcycle, practicalities rule out having a ‘bulletproof (or airtight) written contract. As either buyer or seller, though, you do want some statement of the terms of the sale, including any warranties that apply or are disincluded.
Surprised by the mention of warranties in the sale of a used bike? Yes, even used motorcycles sold by the ‘casual seller’ may be covered by implied warranties (or express ones, if the seller makes verbal statements guaranteeing a certain quality about the machine). Briefly, unless otherwise disincluded, a used motorcycle carries with it the implied warranty that it is of ‘average’ quality (whatever the heck that means). For both buyer and seller, to avoid any misunderstandings about any warranties, write out whatever the terms are.
Most of us believe that, if we buy a used bike and it goes boobies-up, we are S.O.L. unless the seller has intentionally concealed a defect or otherwise made a misrepresentation.
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The buyer, naturally enough, would like the seller to provide an express warranty that the bike will be free of defects and that the seller will foot the costs of repairs for a certain length of time.
The seller, just as naturally, wants nothing to do with the bike after sale.
In a transaction, you are free to negotiate with the other party as to any terms. But whatever they are, be certain that warranties are discussed and put into writing. As a practical matter, very few sellers are willing to give any warranties. For this reason, the best manner in which the buyer can avoid buying a lemon is to have a qualified mechanic inspect the machine prior to purchase.
THE SAMPLE BILL OF SALE
The main problem with the cash transaction is that there is nothing in writing to show the bare essentials of the agreement. Since the transaction usually doesn’t involve a great sum of money, you don’t need a 42-page custom contract. But, it does pay to have the essentials written down:
BILL OF SALE
(Seller) , of (Address) m consideration of (Brice)
($ xxxx.OO) paid me by (Buyer) " of (Address) , receipt of which is hereby acknowledged, sells and delivers to Buyer the following used motorcycle:
Make:
Identification No.:
Engine Number:
Year Manufactured:
Engine Size:
Buyer shall have all rights and title to the good in himself and his legal representatives.
Seller hereby warrants that he is the legal owner of such motorcycle, that it is free from all liens and encumbrances, that he has the right to sell the same, and that he will warrant and defend the title thereof against the claims and demands of all persons.
Seller makes no warranties, express or implied, about the merchantability or fitness for a particular purpose of the motorcycle. The motorcycle is sold ‘as is.’ Buyér acknowledges that he has inspected the motorcycle and expressly waives all such warranties.
DATE:_ By_
Seller
DATE:_ By_
Buyer
So. That’s a little bit of paperwork to ease things should anything go wrong.
See? Mother’s medicine isn’t so bad, after all.
