Sounds great to me! An 89 Accord is 2 years newer than my daily driver, and 5 years newer than my 27 year old sons current car. My starter car was whatever I could earn enough to buy, insure, and repair on my own, while I kept my grades up in school.
An acquaintance gave his twin daughters new Pathfinders, said he would cover everything. Neither daughter believed him about oil changes (or even checking the oil) and within 2 years they each needed a new engine, in addition to each having been in multiple accidents. Those cars are junk now, and it is a miracle that they lived through his 'generosity'. At 3 years he bought them each a new one!
Give your son the Honda if you will, but make him understand that the less care he takes of the car, the more it is going to cost HIM (not you), as he is responsible for paying for repairs to his car, or can walk. He will take a lot better care of the car and drive more carefully if mistakes/neglect come out of his own pocket.