Motorcycle purchase agreements

Why use a motorcycle purchase agreement?

A written agreement reduces the risk of misunderstandings and makes it easier to prove the terms of the transaction. It is particularly important when purchasing a used motorcycle, where its condition, mileage, modifications, and accident history may significantly affect its value.

The agreement should identify the motorcycle and record the information provided by the seller. It serves as important evidence if a dispute later arises concerning:

• the motorcycle’s condition and performance
• previous damage or repairs
• mileage and service history
• the purchase price, deposit, and payment
• equipment and accessories
• delivery and transfer of ownership
• warranties and liability for defects.

An oral agreement may be binding, but its exact terms are often difficult to prove.

What should the agreement include?

The agreement should be tailored to the motorcycle and the transaction. It should generally include:

• the buyer’s and seller’s names and contact information
• the registration number and vehicle identification number
• the make, model, and model year
• the recorded mileage
• the purchase price and payment terms
• any deposit paid by the buyer
• the date and place of delivery
• the motorcycle’s condition and known defects
• information about servicing, repairs, and previous damage
• the accessories, keys, and documents included
• any warranty or “as is” provision
• the date and the parties’ signatures.

If the motorcycle has been rebuilt or modified, the agreement should describe the changes and identify the available documentation.

Checks before purchasing the motorcycle

The buyer should inspect the motorcycle and verify the seller’s information before signing. Confirm that the seller is the registered owner and has the right to sell it.

The buyer should also check:

• the official vehicle information
• whether the motorcycle is registered for road use
• its inspection status
• whether it is subject to a driving or use prohibition
• outstanding vehicle-related debts
• any financing, leasing, or retention-of-title arrangement
• that the vehicle identification number matches the records
• the service book, receipts, and maintenance history.

Certain vehicle-related debts may allow the Swedish Enforcement Authority to seize the motorcycle even when the debt belongs to a previous owner. These checks should therefore be completed shortly before the transaction.

Buying from a private seller or dealer

When one private individual purchases a motorcycle from another, the agreement and the Swedish Sale of Goods Act generally apply. Many of the Act’s provisions may be modified by agreement, making the contract particularly important.

When a consumer purchases a motorcycle from a dealer, the Swedish Consumer Sales Act applies. These rules are mandatory for the consumer’s benefit, and the agreement cannot provide the buyer with less protection.

Consumer protection may also apply when a business arranges the sale on behalf of a private owner.

Condition and liability for defects

The seller should disclose known defects, damage, repairs, and modifications. The buyer should test and inspect the motorcycle or arrange for a qualified person to perform a technical inspection.

Stating that the motorcycle is sold “as is” does not eliminate all liability. It may still be considered defective if the seller provided incorrect information, withheld an important fact, or if its condition is substantially worse than the buyer could reasonably expect.

The buyer generally cannot rely on a defect that was known before the purchase or should have been discovered during an inspection that the buyer performed or declined without a valid reason.

Payment, delivery, and transfer of ownership

The agreement should state when and how payment will be made and when the buyer will receive the motorcycle, keys, and documents. If the buyer pays a deposit, the agreement should explain what happens to it if the transaction is not completed.

The parties should report the ownership transfer when payment and delivery take place. If the motorcycle is registered for road use, the buyer must also ensure that mandatory traffic insurance is effective from the date the buyer becomes the registered owner.

When to involve a lawyer

Legal assistance is recommended when the motorcycle has a high value, has been extensively modified, or the agreement requires specific terms concerning financing, warranties, delayed delivery, or liability for defects.

A lawyer helps ensure that the agreement accurately reflects the transaction and clearly allocates responsibility between the parties.