Question: I'm selling a car that I still owe money on. How do I get the title so I can transfer it to the new owner?

September 10, 2005

Hey Tony

I went through your website. Nice tips. However, I need your help on a problem that I am going through.

I bought a Brand New Honda Accord 2 years ago and I am still making payments to American Honda Fin Corp. I still owe $15,000 of payments on the car.

I can sell it for $19,000 and use the $4,000 excess as a down payment on a used civic. However, I do not have the title for my Accord; it is with American Honda Fin. Corp.

So if an individual comes to my house and checks out my car and likes it, how am I suppose to sell him the car? I assume he has the money in cash or took out a loan. How would I get Honda to release the title under his name?

Any ideas? You have been in the business more that anyone else, so I figured you are the best t ask.

Please let me know what you think

Thanks a lot . . .

Answer:

Hi I.R.

Thanks for the kind words about my website. The problem you face is fairly common and throws quite a few people for a loop!

First contact American Honda Fin. Corp. and find out what your exact payoff is so you know what you need to pay it off in order to get a clear title.

Also explain to them that you are selling your car privately and ask them if they have any recommendations for getting the title quickly so you can complete your sale.

Normally, your buyer will pay your lender the payoff amount and pay you directly for any excess balance left. American Honda Fin. Corp. will then send your buyer the title which you will then have to sign off.

If your buyer is getting the money in the form of a loan his or her finance company will probably give advice on the best way to handle the transaction. In some cases the banks will work directly with each other and your buyer's bank will then pay you what ever is left over.

Once American Honda Fin. Corp. releases the title to you or your buyer or your buyer's bank, you will have to coordinate with them to sign off on the title. Once you sign off on the title it will have to be transferred into your buyer's name with or without a lien depending on if he is financing or not. This can all be done through your local title agency once you have the title in hand.

I'm sure that once your buyer is ready all the pieces will fall into place. Don't worry about it. It's just a matter of a little coordination between you, your buyer and the lenders.

I hope this helps . . .

All my very best...

Tony Iorio