I did not reaffirm car loan---got discharge--can I use towards new purchase?

[gg5305]

ok, this may be confusing but here we go-
I did not reaffirm my loan with Honda--05 accord, 150k miles on it--currently paying around 360.00 per month-

The loan was discharged in december of 09---the car is starting to show the signs of mechanical wear and tear, and once something major happens I'm not sure if I really want to invest the money in keeping her afloat---

I was recently approved by capitol one for a car loan, and my plan was to buy something with reasonable miles (probably another honda etc)--

as it stands right now I owe around 9 grand on my existing car loan (yes it was discharged, however that is the balance remaining for me to recieve full title)

NOW... here is the question----could i use this car as a trade in since technically there is ZERO balance. Could the dealership that I am going to work with call honda and say---"we will give you $2000 for clean title to this vehicle" and then they use it towards my downpayment?

does this make sense?

[keepmine]

None of us can speak for Honda or the dealership. All you can do is approach Honda and see what they say.

[dumpinmydebt]

Do you have a clean title?

[gg5305]

I would assume no since the loan was never paid in full--
If I go online to the honda website (where I go to make my monthly payment) it shows a balance and my monthly payments---however I do not recieve a monthly payment, and on my credit the debt is discharged

[dumpinmydebt]

Well, then I guess if you don't have a clean title then you can't do it.

Your loan company will want to auction it to try and get something out of it. It's pretty typical of car loan companies, though I remember seeing a thread on here where they wouldn't repo and the person had to drop off the car & keys at the bank.

[gg5305]

So if I make the decision to give up the car I should call Honda and arrange for them to pick it up?

[backtoschool]

If you have not paid off the car if full, you do not have a clean title. Bankruptcy does not give you the right to get a clean title to your car if you still owe money on it and don't reaffirm. You will only get a clean title when the loan is paid off. Bankruptcy only gives you the right to walk away from the car if you don't reaffirm, and not have to owe the under water negative balance if you don't want to pay off the loan and don't want to reaffirm.

To get a clear title you have to pay off the balance of the loan.

[dumpinmydebt]

So if I make the decision to give up the car I should call Honda and arrange for them to pick it up?

Yes. Or just let them call you to arrange. Might as well drive around on a free car as long as possible!