Motorcycle Loan Deficiency Balance

Summary

In Oregon, if a motorcycle is voluntarily surrendered or repossessed, the owner may still owe a deficiency balance, which is the difference between the loan balance and the auction sale price. It is advisable to review the contract terms or consult a legal expert for specific advice.

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I have a contract question. My brother bought a Harley Davidson from a dealer. He is now ill, in a nursing home, and can't afford it anymore. He owes more than it is worth to sell it. If her goes with a voluntary surrender where the company takes it back, he will still be 'on the hook' for the balance of whatever it is sold for at auction. If he quits making payments, they will repossess it eventually. Will he still be 'on the hook' for the cost of the bike if they back it back through repossession?
In Oregon, if your brother voluntarily surrenders the motorcycle or it is repossessed, he may still owe a deficiency balance. This is the difference between the loan balance and the amount the bike sells for at auction. It’s advisable to check the contract terms or consult a legal expert for specific advice.