Can You Return A Financed Motorcycle? (Law, Motorcycle Loan)

Can You Return A Financed Motorcycle

Have you ever asked yourself or your friend if you can return a financed motorcycle? Well, you are at the perfect place to find the answer to such a question.

If you have financed a motorcycle and are curious about whether or not you are able to return it, you are likely to be dismayed to learn that the answer is probably not. However, certain conditions need to be satisfactorily fulfilled and agreed upon by a number of parties in order to make this possible. 

So, can you return a financed motorcycle? Yes, you can return a financed motorcycle if the lemon law applies, that mean that the item is defective in such a way that the seller knew before the transaction and hid the information from the buyer.

Keep reading to find out more about the circumstances under which you can and cannot return a financed motorcycle, as well as the terms and conditions that must be satisfied and the potential consequences that may result if these are not. 

Can I Return a Financed Motorcycle? 

If you financed the purchase of a motorcycle through a business rather than paying the full amount of the purchase price with your own cash up front, there is a slim chance that you would be able to return it if you did not have a valid reason for doing so.

The answer to the question of whether or not you can return a financed motorcycle for reasons such as buyer’s remorse is almost certainly going to be no. 

How Can a Financed Motorcycle Be Returned? 

There are times when a financed motorcycle can be returned, however, the situation must meet certain terms in order to do so. Many states across the country have lemon laws. Lemon laws are specific laws that address the notion of a ‘lemon vehicle’. 

Lemons, when referring to any type of vehicle, motorcycle, or boat, mean that the item is defective in such a way that the seller knew before the transaction and hid the information from the buyer.

Lemons are in effect, duds, that have to have been sold nefariously. Lemon laws are designed to protect buyers and allow them to return their item for a full refund of the price without the buyer incurring any penalties for doing so.  

Read also: How to Take Over Payments On a Motorcycle (Harley Davidson Bike)

Can I Return a Financed Motorcycle for Buyer’s Remorse 

If you purchase a motorcycle without giving it proper thought and consideration, you could be faced with buyer’s remorse after you make your big purchase.

Buyer’s remorse is a specific feeling attached to the purchase of a big ticket or high priced item that hasn’t been properly vetted beforehand. Buyers’ remorse is quite common after the purchase of motorcycles. 

Unfortunately, finance companies are not going to let you return your motorcycle for a refund if you experience buyer’s remorse. Why would they? They are making money on your loan! If you experience serious buyer’s remorse, and you’re set on returning your motorcycle, there will be a hefty fee attached to the transaction.  

Most likely you will have to return the motorcycle to the dealership where it was purchased to receive a refund of the purchase price.

You will then have to use that money to pay the financed loan amount. However, you will have to then pay the difference between the purchase price and the loan amount. That could be thousands of dollars.

You will also not be able to be refunded the taxes or license plate tags that were bought in the original purchase.  

Read also: How To Get A Vin Number For A Custom Motorcycle (Homebuilt, No Frame Number)

Other Ways to Return a Financed Motorcycles 

Unfortunately, there are not many other ways to return a financed motorcycle, especially if there is nothing wrong with it and it is not considered a lemon.

You could try to find a private buyer who could buy it in a private transaction, however, unless the motorcycle is considered rare or a classic, most dealerships will have lower prices for the same make and model than what you would need to sell it for to recoup 100% of the costs incurred.  

Can I Give a Financed Motorcycle to the Finance Company? 

Another option is to simply hand it over to the finance company, as they will remain the legal owner of the item until the debt is settled.

Even though this is a real possibility, choosing this path will put you in a more difficult situation than any of the other choices. 

This is due to the fact that if you simply hand the motorcycle back to the finance company, you will have effectively given up possession of the vehicle. The financing company will continue to bill you for their losses until they are paid, and your credit score will suffer as a result of the repossession being reported on your report. 

Return Your Motorcycle to the Dealership 

There are a lot of dealerships that will not take back motorcycles, especially if there’s nothing wrong with it. In spite of this, in recent years an increasing number of motorcycle dealerships have begun providing customers with hassle-free return windows in an effort to attract more clients into their stores.

The motorcycle industry, which had been experiencing stifled financial growth, has been experiencing a boom as a result of this.  

Make it a point to comparison shop in order to ensure that you are finding the best deals and the best dealership for your needs.

You not only want to ensure that you are getting a good deal on the vehicle, but you also want to ensure that the dealership you choose to buy from provides a lot of value for the money you spend there. 


Marissa K.

Hi! I'm Marissa. A personal finance nerd, content writer, and Managing Editor. I'm here to bring you all the latest cool ways to save, make and invest extra money. So, helping you to live your dream life!

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