Alienated motorcycle is when the vehicle is linked to a credit operation, such as warranty in a loan or financing. But do you know how this works and what are the advantages and disadvantages for the owner?
Stay with us and understand what is alienated, if it is safe to have or buy a vehicle under these conditions and understand at once on the subject.
You will read about:
What is alienated motorcycle?
Alienated motorcycle is that vehicle that is linked to a loan or financing. For example, buy a funded motorcycle, order credit to buy a motorcycle or use the good for loan or financing. In all cases, until credit is paid, the motorcycle is the property of the financial institution.
Therefore, the buyer has the possession of the motorcycle, and the vehicle will only be his legal property after paying all installments of the loan or financing, before that, the bank is the owner. Therefore, it is so important to know what is alienated before entering a business.
It is noteworthy that by paying off the debt, it is important to request the registration of discharge with the financial institution. Thus, vehicle documents can be transferred to the name of the new owner.
Another form of alienated motorcycle is when the owner uses the vehicle as a guarantee to apply for a loan or financing. In this case, the property of the property becomes the financial institution until the loan amount is paid.
This type of business is done because using a vehicle as a guarantee can increase the chances of getting a credit approved and with lower interest rates.
How to know if a motorcycle is alienated?
To find out if a motorcycle is alienated, just go to the Detran or Senatran website and check if there are pending vehicle through Renavam or plate number. To do this, just have a Gov.br account, which will be requested to access personal data, besides Renavam.
On the Detran website of your state, look for the “vehicles” option in the service menu. Although department websites are different in each state, the consultation options are usually the same. With the vehicle’s Renavam number, you can consult data on your status.
Read more about: How to consult CNH by the CPF: Full step by step.
How to alienate a motorcycle?
To dispose of a motorcycle, the interested person needs to buy the vehicle using a financing or request a loan to buy the vehicle. In both cases, the financial institution analyzes the buyer’s profile of the interested party before releasing the credit through a contract signed by the parties.
To get the motorcycle financing, some steps are essential:
The financing interested need to choose the motorcycle they want to finance;
Choose the bank or financial institution that offers better conditions;
Consider business conditions (installments, interest and the financial responsibilities you will assume);
Fill in assessment forms of your buyer profile;
If approved, it is the time to sign the contract (which must be read carefully);
Detran will be informed of the agreement and the property of the motorcycle will be registered;
The motorcyclist must pay the loan or financing installments;
At the end of payment of installments, the bike becomes the property of the motorcyclist.
Vehicles such as a car and motorcycle are some of the most used goods as warranty in loan requests. Followed by real estate and even salary, which is known as private payroll loans.
Also read: Motorcycles 2024: Full guide with the best models and prices.
Do you know how many late installments you can search and apprehend? See below.
Can I use the alienated motorcycle during the loan?
Yes, you can use the alienated motorcycle during loan or financing. For the motorcyclist has the right to possession of the vehicle, while the financial institution has the property, to ensure that the debt will be paid. Therefore, you can use the motorcycle normally as long as the installments are still being paid.
However, the motorcyclist needs to get extra attention when circulating with a financed motorcycle. Because the vehicle is used as a guarantee in case of default, the bank or financial institution may take it, if the contract is disobeyed.
What to do when the bank takes the vehicle?
When the bank takes the vehicle through search and seizure, the debtor needs to look for a lawyer. He will guide the action to respond to the deadlines to pay the integral debt and to have the vehicle back. This is according to the Art. 3, § 2, of Decree No. 911/69, which deals with fiduciary alienation.
In cases of financing, debt is not automatically settled with the search and seizure. And if the buyer does not pay or respond legally on time, the alienated motorcycle goes to auction and the amount is used to cover the debt. But if not enough, the buyer is still in debt to the bank.
Therefore, it is very important that before entering loans and financing, knowing what is alienated. Make sure that you can afford the expenses, fees, interest and installments of the business.
How many late portions pursue and apprehend?
A late portion can search and seize the alienated motorcycle. There is a false idea that the buyer can delay up to three installments. However, legally, the bank or financial institution can file a lawsuit from the first delayed installment.
However, this is a decision of the financial institution, which is usually combined in the contract and can be negotiated between the parties before signing.
Is it possible to refinance a motorcycle?
Yes, it is possible to refinance an alienated motorcycle and the motorcyclist continues to use the property with guarantee the financial institution in case of default. However, not all institutions accept this type of business.
This type of business is called the unlocked vehicle warranty loan. But it is a little harder to get a credit offer by a motorcycle financed or used as a guarantee in another loan.
You might like to read: Financing: What are the models, risks and what to observe when hiring?
Can I buy or sell an alienated motorcycle?
Yes, you can buy or sell an alienated motorcycle, but you need to understand the risks of this business, such as the fact that the vehicle belongs to the bank or financial institution until the loan or financing is completely paid. See the ways of selling alienated motorcycle:
Financing transfer
The correct way to sell an alienated motorcycle is to transfer financing to the person you want to buy. She will assume the installments and debt charges.
It is noteworthy that this business needs to have the approval of the financial institution. After all, it was the one who granted the credit and owns the ownership of the vehicle until the end of the financing.
FINANCING DESIGN
Another way to sell an alienated motorcycle is to pay all the contract portions, so the vehicle is no longer alienated. With the property finally transferred to the biker, he can sell, transferring to another driver.
Advantages and disadvantages of buying an alienated motorcycle
Even with these pending issues, there are some advantages of buying an alienated motorcycle, see:
Reduced initial value, since the bike is financed and payment is in installments.
The buyer can plan financially as the installments are fixed.
Buying alienated motorcycle can be a good way out for those who do not have the value of cash.
After paying the financing, the new buyer becomes full owner.
But there are also disadvantages when buying an alienated motorcycle, see below:
Lack of property until financing discharge, limiting the sale or transfer of the motorcycle;
Search and seizure in cases of default;
Funding interest rates can make the new buyer pay more, depending on the fees;
Some institutions require compulsory insurance by increasing purchase costs;
The motorcycle may also be devalued during alienation, reducing the resale value after discharge.
Learn more about: Car financing: How to calculate interest for app driver.