Will Nada Used Motorcycles Ever Rule The World

A motorcycle parked on the side

What is a NADA? The National Automobile Dealers Association is a non-profit organization established in 1965 with the express purpose of “assisting consumers in making their buying decisions.” They provide consumer education programs, including the NADA Used Motorcycle Guide, to help you make informed buying decisions. How do you know if this type of guide is the best source for you?

The NADA used motorcycle guide is designed for those interested in purchasing a pre-owned motorcycle, such as a used Honda or a new Kawasaki. A pre-owned motorcycle is defined as one that has been owned for more than six months and that requires a dealership, or the at-fault buyer, to obtain a dealership loan for the full retail price of the vehicle. In order to get such financing, the seller will usually have to sell the used vehicle on their own or to a private party. In a closed-end deal, the seller of the pre-owned vehicle essentially transfers the closing-end (or balance) on his or her personal loan to a new buyer. A closed-end deal usually makes borrowers responsible for paying back the entire loan amount, which includes the finance charges, regardless of whether the buyer extends or renews the loan.

Very Simple And Easy To Understand

A person riding a motorcycle down a dirt road

The terms are generally very simple and easy to understand. In a closed-end loan, the seller is simply selling the vehicle at a cost that does not include any interest or finance charges. In this type of deal, the buyer (usually a private party) makes an offer on the vehicle before any finance or loan terms are determined. Once the offer is accepted, the buyer then takes over the role of being the co-borrower. Therefore, if the buyer does not repay the loan, the seller is actually required to sell the vehicle at its current fair market value.

With a closed-end loan, there are several distinct advantages to the borrower. First, the borrower has no right to use any of the vehicle’s market value as collateral. The borrower’s loan amount is limited to the net equity, which represents the difference between the wholesale (less trade-in value) and retail value of the automobile. If the wholesale value of the automobile is higher than the retail value, the net equity will be greater. If the wholesale value is lower than the retail value, the net equity will be smaller.

A Closed-End Transaction

A motorcycle parked on the side of a building

Second, because the vehicle is sold without any interest or finance charges, the transaction will be considered to be a closed-end transaction. Because the cash buyer pays for the vehicle in cash, there are no payments that have to be made on the auto during the closing stage. These payments will be made by the seller, usually in monthly installments. 

Closing costs will be eliminated since the buyer will pay off the entire loan amount in one lump sum. This is good for the seller, since the closing cost associated with a closed-end personal loan will be substantially less than what is charged for an open-end loan.

A Bit Lengthy

Third, the process of obtaining a nada used motorcycle guide can be a bit lengthy. Since the transaction is considered to be a closed-end loan, it is typical that the application will take about six months to close. It also will depend on the state where the buyer lives and how the state regulates closed-end loans. For example, in some states the Department of Motor Vehicles must approve or deny the application within forty-eight hours. Applicants can expect a response within three months.

Lastly, the fees that are associated with the data used by motorcycle guides can be pretty expensive. Although the motorcycle guide is not expensive, it does come with a list price. This price is broken down into numerous categories, including the interest rate, finance charges, and other fees. While many people will be able to negotiate these fees down, others may wish to see their used motorcycle loan total immediately go down. For this reason, you should definitely consult a financial expert that has experience working with motorcycle loans before signing on the dotted line.


The nada used motorcycle guide is useful for people who want to get a used motorcycle. There are various ways to obtain funding, reduce interest rates, and eliminate the majority of fees associated with buying a used bike. A good used motorcycle guide is highly recommended for all motorcycle buyers. It should be considered as a resource that can greatly assist in finding the best used bikes in town.

Subscribe to our monthly Newsletter
Subscribe to our monthly Newsletter