Sell new car after four months?

**disneysteve** · 10-01-2008, 12:03 PM

How will you cover the 6K loss? Do you have savings or will you borrow that? In either case, owing $6,000 plus the cost of a good used car - let's say $10,000 - for a total of $16,000, is a whole lot better than owing $33,000. I would go for it.

**KC716** · 10-01-2008, 12:09 PM

I would have to borrow the 6K loss. Thanks for response.

**Pitman** · 10-01-2008, 12:11 PM

First off, Welcome to the site. Secondly, you and I have very similar tastes in vehicles, as I was thinking about purchasing an 07 TL a couple of weeks back, but talked myself out of it, which I'm happy I did.

Anyway to your situation, I concur with disneysteve, figure out your finances, and get out of that 33K hole. As for a cheaper car, I suggest a Civic, unfortunately not as flashy, but very reliable, and great on gas.

**tmvijai** · 10-01-2008, 12:18 PM

KC, you learned an expensive lesson but atleast you satisifed your dream. One goal accomplished :-)

It is really a bad timing to sell any expensive car or suv's. There is no takers and dealers are really going way under it. So be careful and don't sell for cheap. May be after six months once all dust settles, you might get a better value since you have less mileage and new car. So I wouldn't recommend selling it right away because of the bad financial weather. Weather it out.

If you can get a better value after 6 month and manage the payment, I would opt for that option.

**boosami** · 10-01-2008, 12:38 PM

Kelly Blue Book it and figure out the exact private price. It might be worth more than you think. It can't hurt to list it for sale at book value in some free or cheap media, someone might bite despite the state of the economy. You're losing enough on this deal... don't lose more just to expedite getting rid of the car. Trading secured debt for unsecured debt is rarely a good idea if it can be avoided.

**LivingAlmostLarge** · 10-01-2008, 12:47 PM

Sure it's dumping a lot of debt.

**tripods68** · 10-01-2008, 01:18 PM

Carmax can appraise and will make a good "full faith" offer. Their offer is good, but you best bet is try selling it privately or Buy New & Used Cars, Research Prices, Sell My Car, Find Auto Dealers. You can also have someone take over the car payment but must qualify their own financing.

Did you go directly to Honda Financing division, or did you go to your own bank?

I know giving the keys back to the back Honda/Bank sounds good under current market conditions. You should approach them and see if they are willing to cut you some slack. But it impacts your FICO scores a great deal no matter what.

**FoolFromAZ** · 10-01-2008, 01:26 PM

Originally posted by tmvijai View Post

KC, you learned an expensive lesson but atleast you satisifed your dream. One goal accomplished :-)

It is really a bad timing to sell any expensive car or suv's. There is no takers and dealers are really going way under it. So be careful and don't sell for cheap. May be after six months once all dust settles, you might get a better value since you have less mileage and new car. So I wouldn't recommend selling it right away because of the bad financial weather. Weather it out.

If you can get a better value after 6 month and manage the payment, I would opt for that option.

I would think hard before selling. I dont think its right comparing 33K debt (new acura) vs 16K debt (say, 5 yr old camry). difference is 17K. obviously everyone wud go for less debt. but with your new car, you may have to spend very less on maintenance for the next 5 yrs whereas the old one that you buy for 10K may need some regular maintenance. Also after 5 yrs if you are planning to sell your car, you wud get atleast 12 K for your acura, i doubt you get more than 3K for 10 yr old camry.

with 7.5% intrest rate, for 33K new acura you will have paid 40K after 5 yrs.
for next 5 yrs you will hardly spend anything towards maintenance other than oil car, brakes, etc.,

with 7.5% intrest rate, for 16K 5 yr old camry you will have paid 19K after 5 yrs.
you may have to change belt, struts, tires, brakes, etc., in the next 5 yrs. say you spend about 5K towards maintenance (1K per year).

For acura:
Money you spend for using acura for 5 yrs = 40K

value of acura after 5 yrs = 14K

Total money spent = 40K - 14K = 26K

For 5 yr old camry:
Money you spend for using old car for 5 yrs = 16K

value of the old card after 5 yrs = 3K

Maintenance = 5K

Total money spent = 16K + 5K - 3K = 18K

difference is something like 26K (to drive new car or dream car) vs 18K (for old car). not as bad as 33 vs 16.

I am in pretty much same situation like you, bought brand new odyssey about 6 months ago for 27K. I was thinking of selling that and buy 5 or 6 yr old odyssey for 12K. later on I decided against it. planning to keep my odyssey.

**DebbieL** · 10-01-2008, 01:42 PM

Well, the mistake has already been made unfortunately. I'm not sure if there is any great way to get out of it without losing a lot of money. It is sure going to cost you either way. As soon as you drove it off the lot it was no longer a new car.

Sell new car after four months?