oonowindoo

i know there is one way.. paid it off first then sell it.. but i dont have that kind of $ right now.
is there any other way?

360

you can just sell the car and use the $ to pay it off and keep the diff. or you can have them pay you a couple off thousand and have the person take over the payments. depending on what you owe.

Shawn S

You can’t do that because they would have to qualify for the loan and the payment history would still show up on YOUR credit report.

As far as the payoff, I just realized I’ve never sold a car that I didn’t already hold the Title for.
I would imagine the title company would need to verify the balance still due on the loan and hold that much money aside during the transfer.
You would then get the difference back from the buyer.

Shawn S

NOLACLS

This is exactly what you do Call HFC and see what the payoff is and then go from there...everything you get above the payoff price is extra cash in your hand

'03CL&'03AV6EX

Keep in mind that no one will give you money until you can provide a clean (no HFC lien) title.

kensteele

Selling and buying a car in most states strictly involve the automobile title. That title must be transfered from owner to owner.

The Title must be free and clear of all liens in order to transfer ownership. In other words, no one else must a security interest (i.e. if the IRS is on you are you used your title for a collateral loan).

In order to remove the lien(s) for the purposes of transfer, you must obtain a lien release form. This is important because not anyone can just pay the balance on the title and get that title. Lien release allows the balance to be paid in full and then you get the title transferred. There is usually a time-sensitive payoff involved, too.

Once you get clear title, ownership can be transferred, either to the new owner or a lienholder.

The buyer with money cannot use his/her money to pay the balance on your car in order to get your title unless you sign a lien release form that will allow the buyer to do this. This is an important concept because no one would give you cash money for you to use to pay off your balance and get a free/clear title still in your name, hoping you will get the title, travel downtown next week and make the transfer. And you certainly aren't going to use your own money to pay the bank to get a clear title so that you MIGHT be able to transfer it to the (uncommitted) buyer. If there is a contract involved, no problem; but private sales???? Money and title always change hands at the same time for your own safety.

I've done this a few times...but I might have missed something.

oonowindoo

THAT sounds confusing..... So basically, first i need to call HFC and ask for the balance and tell them i m going to sale the car so i need a proof of clean title or something... then i show the person who wanna buy my car the paper work and he/she would give me the $$ then i use the money to pay off the balance and give that person the car?

chef chris

The only thing Honda needs to know is you want a payoff quote. Most people don't expect a newer car to be lien-free because most people don't pay cash for their cars, they finance them. So, you get a buyer, he gets a loan on his own, pays you for the car & then you pay Honda. Once Honda recv's their money, they will release their lien on the vehicle & send you the clear title. Then, you give it to the buyer, he takes it to his bank & so on & so on, etc. BUT***it really depends on how vehicles are titled in YOUR state. There may be a seperate lien form that goes with the title, or it may be all in one transaction(like in DE). You really need to know this up front in order to determine how'll you'll handle the whole process. Call your local Motor Vehicle Dept...they should be able to give you the scoop.

'03CL&'03AV6EX

Wrong, no bank will provide a loan on a vehicle that does not have a clear title.

Listen to Kensteele he is right on.

BC

I once got out from under a problematic '67 Alfa Guilia I owed money on. Met the new owner at the bank that held the title and he signed up for payments and I walked out (literally, but I was used to it) with some bux and less headaches.

chef chris

I just happen to do this for a living. You're saying no one has ever bought a car that had a lien on it...ever heard of trading a car in???



As long as the VIN# & description are in the loan docs, the bank is covered. They normally state in their loan docs that the customer has x number of days to provide a clean title(usually 90 days) after signing. Which means after all title work is done, you give the clean title to your bank & they place the lien(via limited power-of-attorney, etc).

What's most important here is he needs to find out for sure how title work is handled in his state, each state does their own thing.

CL22

Well, my CL that i just bought last month was still under HFC with the previous owner. I got a loan from a Credit Union, and they paid off HFC, and I got the car. The guy got his difference from the credit union.. So basically, I took over the payments, only HFC was paid off by my credit union, and now I'm paying them.

kensteele

That's not the same thing as taking over the payments.