Anyway, I just feel used.
Why do you feel used? You are assuming the guy was just trying to get a test ride and had no intention at all to buy. Maybe during the ride he realized the bike wasn't for him. Maybe he didn't like the power, or the way it shifted, or something...But either way, who cares? He had the bike for 1/2 hour and brought it back undamaged.
Wanna hear somethign funny? At least 1/2 of the guys that posted above me have either ridden a bike or given someone advice to ride a bike just to check the model out. It's a common theme here. A guy asks about test rides at dealerships, and then everyone here says, "Go find a used one for sale and get a test ride on that. Then go buy the new one if you like it." It's a common occurrance, and happens a LOT.
Personally, if the owner of a used bike refused to let me test ride it, I would walk away. I would feel like the owner is hiding something he doesn't want me to find during the ride. There's tons of bikes out there, especially now, and I will find another one that looks just like it. If a seller told me he wanted my cash in hand before I rode the bike, I would again walk away. At that point, there is no knowledge of a clean title, whether the bike even runs as advertised, and whose to say the seller isn't selling a stolen bike, or gonna walk away with my cash.
Like others here, I try help ease the sellers mind by showing up on a bike, having a helmet, gloves and boots, and having my driver's license. I usually spend some time talking bikes with the seller for a bit so they know I'm not just posing. If that's not good enough, I leave.
As for selling bikes...I have sold three and let every buyer test ride it. I have made sure they have MC endorsements on their license and they have to have a helmet, gloves and decent shoes. Insurance? Well, in NM, it is the vehicle that is insured, not the driver, so if the rider crashes the bike, whether insured or not, my insurance is covering it. Like others, I keep their DL and try to limit it to 10 minutes. I haven't been hosed yet, but it could happen. However, I have low deductibles, so I don't really care.
Long story short...Use your head. If someone gives you a bad feeling, trust your gut. Do what you can to be sure you have their info, and if it makes you feel better, copy Mr. Moto's little contract thing. It's not a legal document, but it will help if you have to goto court. I actually like it and may use it too. I think it will give a ******** the idea that I'm serious and will do what I can to recoup any losses caused by him.