I have sold lots of bikes and no one ever gets a test ride without giving me the full price in cash and I also have them sign a waiver about my liability in case they crash during their ride. If they come back and they don't want to purchase the bike then I simply hand them their cash back no worries. I might also check with your insurance agent to see if test rides are covered under your policy.
Like Savage said. No cash, no test ride, PERIOD! In fact I would seriously doubt if I would let them test ride at all.
Yep, I agree the best way is to get the total cash for the bike and relief from liability. Basically you are selling them the bike and letting them ride it for a half hour or so with the option to return it for a full refund if they don't like something about how it rides. Providing it is in exactly the same condition it let in.
This will also weed out the joy riders and only a serious buyer will get to ride it.
Cash in hand.....I vote for that one.....
Ride on their insurance, not yours....
Yup cash in hand ,proof of insurance and whatever they showed up in