DumbasSi

Here is the scenario…

I am currently financing my 1998 Honda Civic SI through Honda Canada. I purchased the car for $15000 3 years ago. I owe about $6000 on the car and pay $313 a month and $157 for insurance. I am returning to school full-time next spring and I was thinking of selling the car to save some money in payments and insurance. I was going to replace it with an older EJ coupe/hatch, EK hatch or maybe even an Integra. Basically something relatively cheap and reliable that I can still have fun with. The wife has an 03 Civic that I have taken an interest in modifying, so my car is basically used to get to and from work and school.

I am wondering how would I go about selling my car if Honda still “owns” it till I pay it off. Does a potential buyer pay Honda then I get the difference? Does the buyer pay me then I pay off the difference and keep the rest? The car has a lien on it correct, so how do I turn over ownership?

Ideas, thoughts, comments?

shlammed

Usually what happens is the person gives you a certain amount and then they take over the financing if they get approved.

Nova_Dust

I think it is like this:

You will get what the car is worth now minus the balance. Regardless of what you have paid so far, if the car is worth 10,000 (for instance), you will get 10,000 - 6,000 = 4,000 dollars. The buyer of course buys the car as 10,000 dollars.

Or, you can "sell" the car back to Honda Canada, and they will consider the case as a "buy back" and might only want to pay 8,000 dollars, since the dealer needs to make money off each and very car that leaves their lot. So that only gives you 8,000 - 6,000 = 2,000 dollar cash.

If I am wrong, please correct me.

imported_JookSingKid

After you and the buyer agree on a set price, you and your buyer should go to the financial institution that holds your loan and lien against your car.

A payment is made in full against any amounts owing and ask for a letter stating that the financial institution no longer has any interest in the vehilce.

The signed ownership and a copy of the letter is then given to the buyer of the vehicle along with a letter signed by you and your buyer stating the transaction occured on said day for said price.

but in IMO... you might as well keep what you got. i think buying another car you will lose out on the taxes and the only capital you would have towards your next car, would be anything above $6000, the amount you owe left.

The question then is, what do you think you can sell your car for?

imported_Cablerat

imported_t_dot_SiR

i don't know your driving record... but 157 is relative cheap for insurance... i'm paying 330/mth (3rd party liability on an EG hatch)... and consider 331 monthly payment on a car is a good deal..... and i don't think someone is gonna take over your finance contract straight off... if there's 6000 left... i think you would only get around 3500-4500... and if you buy another car, the tax probably cost u roughly 500-1000 depending on what you're getting... so in that case, you're losing out on 3000 just to get rid of something you thought that would save you 6000...
just my 2cents... i might be wrong...

imported_cet_civic

I always thought it was like this:

Honda of Canada doesnt own the car, Mike/Bank does - its in his name. The Dealership financed him through an institution - RBC, CIBC, etc. Therefore his loan is through them, not Honda..

If he has a buyer for his car, for lets say $10K...he can do as he wishes with the cash...pay off the remainder of the loan, and pocket the balance remaining.

He can even keep the cash and continue to pay monthly payments, if he wants too. At this point its just a loan from the bank.

imported_MY SiR

If he has his car financed through Honda Canada Finance Inc., then the loan is with them, not a bank.
By the way, Honda Canada Finance is a separate company (but joined) from Honda Canada Inc.

How to go about selling it, yeah, as JSK stated...

imported_cet_civic

thanks

DumbasSi

Thanks for the replys guys. My loan is through Honda, not a bank. I thought that if I sold the car, paid off the loan and put the rest of the cash left over, I could buy an older car just to get to/from work/school and save myself the $450 a month I'm paying for payments and insurance.

The only problems I see are finding a decent car with the cash I have left. At least with the car now, it's very reliable and relatively cheap to maintain (gas, parts,ect). And I think finding a buyer to go through all the crap to get it released might prove diffacult. Besides, in another year or so, the car will be might to do what I want with and I'll have some equity for a house or another car loan.

Double_B

As long as you let them know you are selling the car, and the buyer makes probably a bank money order payable to you and Honda finance, that is all you would need. I have done this twice. All they want is the car to be payed off. You should request a letter from Honda finance for the buyer that the lien has been taken off the car once the payment has cleared. If you are getting more money than you owe on it, then you have him cut you two cheques. One for the total amount owing on the car and the other would be just to you for the remainder. I would suggest calling Honda finance and finding out how much you owe before your next payment if you get a buyer before then.

Chigga1

NO this is how i did it

first of all if your financing through HONDA, call them and ask them how much of a Lein u have left for the day of September 15 for example get the full amount!

now you cannot lift the lein yourself.
if the person who is going to go deal with there bank buy your vehicle for so much amount of $$$$$ u would both have to go to the bank that person is dealing with,

they will cut u a cheque for your asking price and a cheque to HONDA! they will mail it to them.... automatically.

then once all is done.... they will get there car and thats it, u will get a letter about a month later or a couple of weeks stating u owe nothing on that vehicle

if it was at a Bank, it would be done the same way!