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Hey,

I have an '02 Civic which i'm currently financing for 60 months, and i'm currently in my 7th month.. (w/ Honda Canada finance)

Basically my question is, is there any way to get out of this financing agreement? I realize that even if there was a way to cancel it, i'd probably end up paying some rough penalties, on top of throwing away what I had payed in the last 7 months...

My problem is that I was just an idiot when I bought the car.. I didn't realize how little I actually drive.. and the costs of the monthly payments + insurance just makes it SO not worth it for me.. I guess I thought it would be nice to not have to worry about stuff breaking on the car, etc.. but that's just not the case

Anyways i'll probably talk to the financial guy at the dealership in the next week or so.. but in the meantime I was just curious if you guys know anything about this / have any experience with it..

thanks for the help

 
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sell it privately and get the money and pay off
what you owe but make shur to get what you paid for it since its
pretty new or atleast get almost what you paid fot it so you have minimal loses

 
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Either pay the loan off, sell it or trade the car in. You can't just "cancel" it and keep the car. You can re-finance elsewhere (like a bank) for the remaining balance on the Honda loan, then pay off Honda and pay the bank instead, but you'd have to pay used car interest rates which tend to be higher.

 
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just sell the car and let someone else take over the payments. i think you can do that.

 
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thanks for the replies, if I can't work something out with the dealer i'll look into selling it privately.. I think i've seen other ads in the paper where they say the buyer will just take over the monthly payments..


In the meantime, I found my invoice with the "conditions of sale" agreement on it.. and it says in reference to cancelling the agreement:

"Cancellation of Agreement: In any event this agreement is cancelled by mutual consent of the parties, the dealer shall forwith return the deposit, if any, and either:

a) Return any used motor vehicle taken in exchange as part payment, in which case the Purchaser shall pay the Dealer, the cost expended by him on repair and improvements, or

b) If such motor vehicle has been sold, pay to the purchaser the trade in allowance shown on the face of this agreement." (which in my case is $0.00)


Sooo..anybody care to decipher this?

From what I can tell, if cancellation is agreed upon, I will be given back my down payment, and will give the dealer back the car in exchange for my previous 7 months of payments, and also will have to pay any costs that the dealer must pay to get the car sellable again.. (basically none) ...does that sound about right?

arg..I hate this legal mumbo-jumbo

 
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You typically have around 48hrs to back out of any contract. That clause is refering to backing out of the contract within a very finite period of time. You are DEFINATELY beyond that point. Forget about breaking the contract. The only way to break the contract is to stop paying them. Then they will repo your car, trash your credit, AND leave you with a very large bill for whatever BS they can tack on. Take the other member's advice and sell your car privately for ATLEAST what you owe. If you are upside down (meaning you owe more than the car is actually worth) you may end up having to throw in a couple of bucks to seal the deal. Remeber you don't have the title. Honda has it. They will only give it up after the loan is paid in full. Goodluck, if you have any other questions feel free to ask away.

 
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You can pay the balance in full, sell the car privately and pay off the balance, or trade it in.

Keep in mind, it is basically certain that you owe more than the car is worth. It is so new that you'll never come out of it on top. The most depreciation occurs in the first couple years and especially the first.

You can get out of it but you ARE going to loose some cash. Private sell will be your absolute best bet.