Repossessed Motorcycles

Did you know that in 2017, there were 2,006,954 motorcycles registered in the Philippines? This is according to the records of the Land Transportation Office (LTO). Meanwhile, according to the Motorcycle Development Program Participants Association or MDPPA, motorbike sales increased by 21% in 2018. The main reason cited for the increase in number and shift to motorcycles is the terrible traffic situation in Metro Manila and other urban areas across the country. With its compact size, motorcycles riders can get to their destinations faster. Motorcycles are also used for several modes of livelihood. From delivery services to tricycles and habal-habals, these versatile vehicles are more than a common sight on Philippine streets.

Another reason why there are so many motorcycles on the road right now is that they’re much cheaper than cars. Depending on the brand and kind of motorcycle you buy, downpayments and monthly installments can be as low as PHP 3,000. It’s a very tempting offer. However, falling into this temptation is also one of the reasons why there are plenty of repossessed motorcycles sitting unused in parking garages and dealers’ lots. Indeed, banks like Robinsons Bank have hundreds of repossessed motorcycles ready for viewing and sale.

Just like cars, motorcycles can get repossessed if you default on your monthly payments. It doesn’t matter how low the amount is. If you don’t fulfill your obligation, which is to pay the mortgage, your motorcycle can get repossessed.

Note that repossession doesn’t happen in a snap. Banks like Robinsons Bank, as well as motorcycle dealers aren’t allowed to repossess your vehicle after just a one day lapse on your payments. The standard process is that your lender must send demand letters and notices to remind you to pay. They can do this directly or use a collection agency. Moreover, these letters and notices can be issued through multiple channels like registered mail, text messages, phone calls, and email. If you don’t respond accordingly, your lender will begin the process of repossessing your motorcycle.

In short, preventing your motorcycle from getting repossessed is as simple as being diligent in your monthly payments. This is entirely possible as long as you’re financially prepared. Don’t make hasty decisions and consider all the pros and cons before you get a motorcycle. Once you’re prepared, you can go to Robinsons Bank to take a loan or go straight to the dealer to purchase your preferred motorcycle straight away.

Repossessed motorcycles are non-performing assets. In fact, keeping them for an indefinite period can cost banks, dealers, and lending companies a lot of money. That’s why repossessed motorcycles are sold or auctioned off at lower prices. This way, the vehicles will be more attractive to prospective buyers, and lenders can hopefully recover the cost of non-payment and reduce expenses for holding these vehicles.

In general, it’s a good idea to buy repossessed motorcycles if you’re looking for affordable options. Just think of it as buying a second-hand motorcycle. You’re getting it at a lower price in exchange for a few cosmetic issues and a bit of wear and tear. However, you have to be a little more cautious. Repossessed motorcycles are sold “as is, where is,” unlike second-hand motorcycles which owners get a chance to perform some fixing to get a higher reselling price. Make sure you check everything thoroughly before committing to buy. In the next section, we provide some tips on how you can get the best value for your money when buying repossessed motorcycles.

Buying repossessed motorcycles requires a lot patience. There are plenty of things you need to check but the most important is the condition of the engine. It won’t matter if you got it at a low price if the motorcycle conks out mid-ride while you’re on a highway. Not everyone is knowledgeable about motorcycles, though, so Robinsons Bank compiled a few tips to help you make a good decision.

• Bring a friend. If possible, bring a friend who knows about motorcycles. It would be even better if you could bring a mechanic with you. They’ll know what to look for and tell you if the repossessed motorcycle you’re eyeing to buy will be a good investment. Moreover, they can recommend you the best brands and models based on your intended purpose.
• Look at the lights, tires, and brakes. These parts are some of the most easily damaged and worn out in motorcycles. Some owners may also not have the time to replace the busted lights before their motorcycle got repossessed. If these parts need replacing, then you’ll need to shell out more money before you can safely use the motorcycle.
• Check cosmetic stickers. Accidents do happen, whether we like it or not. Sometimes, in an effort to save money, some motorcycle owners cover minor damages with cosmetic stickers. If there are stickers or decals that look out of place or “forced,” it’s possible that there are some small scratches or dings in that area. This is not always the case, however. Still, it’s better to be mindful of these alterations.
• Check all documents. The main thing to check is the body number and the engine number of the motorcycle. It should match the ones indicated in the original receipt. You don’t usually have to worry about any mismatches and other legal issues when you buy from Robinsons Bank and other legitimate lenders and sellers. However, it’s still a good idea to perform this check, for your peace of mind.
• Pay in full if you can. If possible, pay the price of the repossessed motorcycle in full. Again, they are a lot cheaper than cars. Depending on the kind you’re looking for, there are repossessed motorcycles that cost only Php20,000. Robinsons Bank even has selections that go as low as Php12,000. As such, paying in full is more manageable. You’ll also avoid paying interest and the risk of forgetting monthly payments when you pay in full. More importantly, you’ll have peace of mind that the motorcycle you just got is completely yours.

Robinsons Bank has a range of repossessed motorcycles available for bidding and purchase. It’s best to check often and make an offer or bid early, since Robinsons Bank (and most other banks) offer these vehicles in a first come, first served basis. Lending companies that offer personal and car loans are also likely to have listings of repossessed motorcycles.

Aside from various banks, you can also go to dealerships to find repossessed motorcycles. You can either go straight to the site or simply browse their website and send an inquiry to express your interest. Usually, these dealers have in-house financing or have bank partners that help customers acquire their preferred motorcycles.

There are also websites that are dedicated to cars and motorcycles, although most of their listings are for second-hand vehicles. You can place inquiries if you want, but banks, dealers, and lending companies are your best bet if you’re looking specifically for repossessed motorcycles.

In the Philippines, motorcycles often get lumped into general terms or categories. Motorcycle dealers and enthusiasts will tell you, however, that there’s a big difference between cruisers and sport bikes. To help you choose and also educate yourself on the various types of motorcycles, here are some of the most well-known categories around the world.

1. Scooters. Some may argue that scooters aren’t motorcycles and should be considered as an altogether different category. However, most motorcycle classification schemes include scooters on their list. Scooters are smaller than motorcycles and thus have smaller engines. They also have an enclosed body, giving them more storage space. Moreover, scooters are more quiet than standard motorcycles. If you’re a beginner at motorcycle, you’ll probably love scooters because they’re easier to learn.
2. Underbones. Underbones are like scooters, but with larger wheels and have pegs instead of floorboards where you can rest your feet. They’re very comfortable to drive and easy to handle, especially since a lot of underbone models have automatic clutches.
3. Street Motorcycles As the name implies, street motorcycles are meant for use on paved streets. The most common are the standard street motorcycles, which can also be called naked bikes or roadsters. You can often see these general-purpose motorcycles being used as delivery vehicles and tricycles. Other kinds of street motorcycles include the following:
   1. Sport motorcycles. Sport bikes are focused on speed and acceleration, powerful braking, and grip and handling. As such, they have lightweight frames equipped with a high-performance engine. You can identify sport bikes easily with their high foot pegs, which helps riders improve cornering. This kind of motorcycle is also designed so that the rider leans forward, which helps support the rider’s weight when reach upwards of 100 kilometers per hour speeds.
   2. Touring motorcycles. Touring motorcycles are designed to cover long distances. They have large-displacement engines and large-capacity fuel tanks so that you don’t have to stop often for gas. A distinguishing feature of a touring motorcycle is that the driver has a more upright seating position to ensure comfort.
   3. Sport-touring motorcycles. This kind of motorcycle combines the attributes of a sport and a touring motorcycle. They have more powerful engines than touring motorcycles, but they have a more comfortable seating posture than sport motorcycles.
   4. Dual sport. Dual sport motorcycles are also called on-and-off-road motorcycles. This simply means that they can be used for off-roading but are also legal for use in paved roads and streets. This kind of motorcycle usually has the body of an off-road bike, but with standard street motorcycle requirements like mirrors, signals and lights, and other instruments.
   5. Cruisers. Cruisers are built for comfort. They have low-torque engines, which means they feel lighter and easier to handle. Cruisers are often distinguished by a unique riding position: the feet are placed forward and the hands are higher up, putting the spine in a straight-up or a slightly leaned-back position.
4. Off-road Bikes. Off-road motorcycles, also called off-road bikes or dirt bikes, are meant for off-road events. They can’t be used on paved roads since they don’t have the required standard and safety features. Off-road bikes have a rugged construction, with long suspension travel and large tires with extra-deep treads.

   There are different kinds of off-road bikes, depending on the event or sport. The more popular ones include:

   1. Motocross. Motocross bikes are used on short and closed off-road race tracks with obstacles like ramps of different heights stacks of tires, and the like. Motocross motorcycles often have single-cylinder two-stroke or four-stroke engines.
   2. Enduro. Another kind of motocross motorcycle is a called an enduro motorcycle, which is used for longer race courses that usually include paved public roads. This is why enduro bikes also have horns, lights, and even plate numbers. For long-distance racing, rally bikes or “rallies” are used. This kind of enduro motorcycle have larger fuel tanks and have larger engine capacities as well.
   3. Track bike. Track bikes are used in high-speed racing. They usually don’t have brakes and only have two gears at most. There are also track bikes that can only take left turns, like speedway bikes.
   4. Trail bike. A trail bike is a kind of dual-purpose motorcycle, with a focus on recreational off-roading. It’s not usually intended for competitions, which means its design could be less rugged than enduro bikes or other kinds of “competitive” motorcycles.
   5. Trial bike. . A trial bike is used for off-road events that focus on the rider’s balancing and precision. As such, this kind of motorcycle usually only has a small seat or none at all. Moreover, trial bikes usually have small engines that help ensure snappy throttle response for better control.

All these types of motorcycles are available for purchase in the Philippines, although some may be uncommon and a little harder to find. Check motorcycle groups and ask for advice, especially for more specialized motorcycles.

There are plenty of reasons why you might not be able to pay the monthly amortization for your motorcycle. Medical emergencies, for example, can funnel a huge chunk of your income into hospital bills. This can then affect other regular payments and expenses, like food, utility bills, rent, and tuition fees. In turn, the monthly installments for your motorcycle can get relegated to second priority. Situations like these are understandable, although this will not stop banks and other lenders from repossessing your motorcycle.

The question is, is there a way that you can recover your repossessed motorcycle? The answer is yes. In fact, there are several options you can choose from, depending on your situation.

1. You can pay the full amount due to the bank. This might not be possible for everyone, however, especially if financial problems are what led to the repossession in the first place.
2. You can take out a new loan from another lender to pay the full amount. Ideally, the loan terms should be the same or more manageable than the loan you used to acquire your motorcycle.
3. You can buy your motorcycle during the auction or sale held by the bank or lender. You can also go to the parking lot of the bank or lender and buy your repossessed motorcycle there. This is assuming, of course, that you already have the required amount that you can shell out outright.
4. You can ask the bank or lender for a loan restructuring. If you can, you may also negotiate a new loan. This is ideal, since you’ll be dealing with the same party if the loan gets restructured and/or approved. It will also show the bank or lender your determination and willingness to pay the loan.

If you no longer want to reclaim your repossessed motorcycle and simply want to stop paying the loan, there’s another option. You can negotiate with the bank or lender if they can reduce the remaining amount you have to pay or if they can waive it altogether. This can be done after the sale of your repossessed motorcycle. The latter is ideal, of course, but even getting the amount reduced can be a big help to ease the financial burden.

If you’re interested in buying repossessed motorcycles for personal or business use, you can trust Robinsons Bank. From simple scooters to handsome sport-touring models, you’ll have a wide array of motorcycles to choose from. To help with your search, you can use our filters for location, make and model, and price.

Get in touch with Robinsons Bank today. Visit our Customer Care page and send your inquiries via email at C3@robinsonsbank.com.ph, or call 8637-CARE (2273) or 1-800-10-637-CARE (2273).