Go Back   EcoModder Forum > Classifieds > For Sale
Register Now
 Register Now
 

Reply  Post New Thread
 
Submit Tools LinkBack Thread Tools
Old 02-02-2015, 11:06 PM   #1 (permalink)
Growin a stash
 
Join Date: Jun 2014
Location: Austin TX
Posts: 818
Thanks: 417
Thanked 309 Times in 232 Posts
To trade or not to trade?

I'd like to get some input from some smart people.

Should I trade my almost-new Cruze for an older Honda or something similar? I still owe about $7k on the Cruze and I consider buying it to be my third worst financial mistake. It's a great car but I didn't realize how much it SUCKS to be in debt.

I figure I could sell the Cruze for $10.5k, leaving $3.5k for the Honda. Something like this might work if it's in good shape:
https://albuquerque.craigslist.org/cto/4855866349.html

Here are the pros of each vehicle as I see it:

Cruze
Covered by warranty out to 100k
Free maintenance for another year
Maybe 10 years of useful life left
Nice, comfortable, quiet ride
More respectable vehicle

Honda
Save $7k up front
Faster
Maybe 5 years of useful life left

After the initial purchase, I think it would be a wash, financially. The Cruze will save me on maintenance costs but the Honda would save on insurance.

Thanks for your input! I'm leaning towards keeping the Cruze, but $7k would be nice to have.

BTW my two worse financial mistakes were selling my bitcoin stash at $40 (D'oh!) and not selling some solar stocks when they were up 400% in a year. (Bitcoin is dumb-- it wastes soo much power).

__________________


2024 Chevy Bolt

Previous:
2015 Nissan Leaf S, 164 mpge
  Reply With Quote
Alt Today
Popular topics

Other popular topics in this forum...

   
Old 02-02-2015, 11:15 PM   #2 (permalink)
Master EcoModder
 
mikeyjd's Avatar
 
Join Date: Mar 2013
Location: Grand Rapids, MI
Posts: 838

Matchbox - '93 Ford Festiva L
Team Ford
Last 3: 70.16 mpg (US)

Salamander - '99 Chrysler Concorde LXI
Team Dodge
90 day: 30.3 mpg (US)

Urquhart - '97 Toyota Tacoma 4x4 V6 3.4L DLX
Pickups
90 day: 25.81 mpg (US)

Smudge - '98 Toyota Tacoma
90 day: 40.65 mpg (US)

Calebro - '15 Renault Trafic 1.25 dci
90 day: 39.39 mpg (US)
Thanks: 1,380
Thanked 209 Times in 155 Posts
I'm casting my vota for the Honda. After considering the interest that will be payed on the Cruz I think you're looking at saving more than 7k. I respect a 20 year old car in great shape more than most new cars. You should also factor in investment opportunity lost by keeping the money tied up in the Cruz. That money could be grown in appreciating asset and be doubled in 5 years if things went well. My 2 cents. Good Luck!
  Reply With Quote
The Following User Says Thank You to mikeyjd For This Useful Post:
ME_Andy (02-02-2015)
Old 02-03-2015, 12:04 AM   #3 (permalink)
Spaced out...
 
spacemanspif's Avatar
 
Join Date: Jul 2013
Location: Dirty Jersey
Posts: 748

The New Focus - '07 Ford Focus ZX5
90 day: 32.44 mpg (US)
Thanks: 142
Thanked 205 Times in 149 Posts
Quote:
Originally Posted by mikeyjd View Post
You should also factor in investment opportunity lost by keeping the money tied up in the Cruz. That money could be grown in appreciating asset and be doubled in 5 years if things went well. My 2 cents. Good Luck!
What money? He is planning (hoping) to sell the Cruz for $10.5k, use the money to pay off Cruz and take the rest to buy a Honda outright. Leaving little, if anything, left to be invested. I'm not one to wheel and deal cars and would rather have a car I know the service history on than take a step backward into an older car that could result in becoming a money pit. I say stay the course, especially since the Chevy shouldn't cost you anything in maintenance for a long while. Higher insurance does suck, have you tried shopping around for a new company lately?

That being said, I love owning my cars. I buy them cash and never have to worry about losing one because I don't have money to pay my payment this month and save on insurance by carrying basic coverage. I should note that my Saturn cost $1,500 and my Focus just cost me $1,100 so I'm at a little bit of a different price point...
__________________
-Mike

2007 Ford Focus ZX5 - 91k - SGII, pending upper and lower grill bocks - auto trans
1987 Monte Carlo SS - 5.3/4L80E swap - 13.67 @ 106
2007 Ford Focus Estate - 230k - 33mpg - Retired 4/2018
1995 Saturn SL2 - 256K miles - 44mpg - Retired 9/2014

Cost to Operate Spreadsheet for "The New Focus"

  Reply With Quote
The Following 2 Users Say Thank You to spacemanspif For This Useful Post:
Daox (02-03-2015), ME_Andy (02-03-2015)
Old 02-03-2015, 12:29 AM   #4 (permalink)
Master EcoModder
 
Join Date: May 2012
Location: Tampa, FL
Posts: 1,745

Volt, gas only - '12 Chevrolet Volt Premium
90 day: 38.02 mpg (US)

Volt, electric only - '12 Chevrolet Volt Premium
90 day: 132.26 mpg (US)

Yukon Denali Hybrid - '12 GMC Yukon Denali Hybrid
90 day: 21.48 mpg (US)
Thanks: 206
Thanked 420 Times in 302 Posts
I'd keep the Cruze. Pay it off faster and save a little on interest. If you do shop around for insurance, look at Erie insurance. We switched a few years ago from progressive and didn't save much but our coverage almost doubled.
__________________




  Reply With Quote
Old 02-03-2015, 12:48 AM   #5 (permalink)
herp derp Apprentice
 
Join Date: Oct 2008
Location: Lawrence, KS
Posts: 1,049

Saturn-sold - '99 saturn sc1
Team Saturn
90 day: 28.28 mpg (US)

Yukon - '03 GMC Yukon Denali
90 day: 13.74 mpg (US)
Thanks: 43
Thanked 331 Times in 233 Posts
i think it really just depends on your immediate financial situation, if you need to get out, i think you should be looking harder at the 35mpg for under $1500 category.

http://ecomodder.com/forum/showthrea...mpg-30489.html

$3500 for a shiny '96 doesn't sound like that much better place to me than where you are in the long run. if you were sitting in a 20, or even $15k car right now i think making a move would be alot easier to justify, but owing 7k on a '14 anything isnt too bad of a boat to be in
  Reply With Quote
Old 02-03-2015, 10:06 AM   #6 (permalink)
Master EcoModder
 
vskid3's Avatar
 
Join Date: Jun 2008
Location: Utah
Posts: 975

Civic DX (sold) - '97 Honda Civic DX
90 day: 34.15 mpg (US)

GTO (sold) - '04 Pontiac GTO
90 day: 22.62 mpg (US)

Green Brick (sold) - '06 Ford Escape Hybrid
90 day: 31.93 mpg (US)
Thanks: 193
Thanked 312 Times in 221 Posts
What does the free maintenance cover? Most plans I've seen seem to cover oil changes and tire rotations, which would cost you maybe $50 to DIY over the next year. So while its nice, its probably not all that valuable.

We own our Prius, but bought it with a loan. Paid off the loan in under a year to minimize interest payments/time in debt. Having it paid off is great and I think going into debt for a bit to buy it was worth it for us over buying a cheaper car with cash. You just have to decide whether or not its worth it for you. I personally would try to find a Civic that has had less work done to it, if you decide to go that route.

Quote:
Originally Posted by spacemanspif View Post
What money? He is planning (hoping) to sell the Cruz for $10.5k, use the money to pay off Cruz and take the rest to buy a Honda outright. Leaving little, if anything, left to be invested.
But from that point on, he could invest the money that he would have been paying towards the car loan. He might not have $7k more in the bank after selling the car, but he could eventually have that and more.
__________________


Camry Thread
E-Bike Thread
  Reply With Quote
Old 02-03-2015, 12:08 PM   #7 (permalink)
Master EcoModder
 
Join Date: Jan 2011
Location: na
Posts: 1,025
Thanks: 277
Thanked 218 Times in 185 Posts
Why would a 96 Honda have 5 years life and a Cruze only 10 years. No reason the Cruze won't last 20 years 300,000 miles. I had a 03 Malibu that was running strong minimal repairs(under $1,000) to 265,000 when wrecked a couple years ago.

How much are you going to budget for the Honda's replacement in 5 years?

If you have the 1.4 turbo, a few mail order parts and tune can bump the performance. 1.8 not sure what you can do.
  Reply With Quote
The Following User Says Thank You to roosterk0031 For This Useful Post:
fusion210 (02-03-2015)
Old 02-03-2015, 12:34 PM   #8 (permalink)
Master EcoModder
 
Join Date: Sep 2009
Posts: 5,927
Thanks: 877
Thanked 2,024 Times in 1,304 Posts
If you can clear the 3.5k over the owed amount, then you are basically choosing a fairly new reliable car or an older more potential maintenance intensive car.

You're also stopping the act of renting some other persons money.

My $300 Sentra, at $1k now with all maintenance current, new tires and struts is down to 14 cents a mile after 7.3k miles and dropping steadily. Anamazingly reliable car so far but it could crap out any day, at least beyond the point where I would fix it, maybe. Fuel cost is 5.7 cents a mile.

If you are willing to go through the used car and get it up to snuff, then consider a muich cheaper car like a 97-01 sentra and you would have some money left over, in the car maintenance fund. Hondas need timing belts and valve adjustments, Sentras don't.

regards
mech
  Reply With Quote
Old 02-03-2015, 04:44 PM   #9 (permalink)
Administrator
 
Daox's Avatar
 
Join Date: Dec 2007
Location: Germantown, WI
Posts: 11,203

CM400E - '81 Honda CM400E
90 day: 51.49 mpg (US)

Daox's Grey Prius - '04 Toyota Prius
Team Toyota
90 day: 49.53 mpg (US)

Daox's Insight - '00 Honda Insight
90 day: 64.33 mpg (US)

Swarthy - '14 Mitsubishi Mirage DE
Mitsubishi
90 day: 56.69 mpg (US)

Daox's Volt - '13 Chevrolet Volt
Thanks: 2,501
Thanked 2,588 Times in 1,555 Posts
I'd ditch the Cruze for the same reason you want to, debt really sucks. I personally don't think having a fancy car is worth going into debt. You're in it for maybe an hour a day? Take the ~$300 you save a month, put it into savings (or investments). By the time you need to replace that $3500 Civic, you'll be able to pay cash for a much nicer car (if thats what you want), or buy another $3500 car and keep those extra thousands kicking around for whatever. If that Civic lasts you 5 years, you'll have saved 18k (assuming $300/mo saved for 5 years)!

As a side note, I also do all my own maintenance on my cars and don't mind fixing things when/if they go wrong which does happen with older vehicles.
__________________
Current project: A better alternator delete
  Reply With Quote
Old 02-03-2015, 06:05 PM   #10 (permalink)
Master EcoModder
 
Join Date: Jan 2011
Location: na
Posts: 1,025
Thanks: 277
Thanked 218 Times in 185 Posts
But if the $3500 civic last 5 years then buy another $3500, why not just keep the nice car now and pay the rest of the $7000, interest rate should be no more than 3%, $210 in interest this year, even less in next. Insurance and registration suck for newer cars but will go down over time.

If he has 3 more years to pay on the $7000 that's just over $200 a month, in 3 year he can start putting that way and have a solid car payment free for a long time. Step up and pay $300 done in 2 years.

If cash today is a issue I'd consider refinancing it, $7000 for 48 months at 2.64% payment would be $154/month and $384 in total interest. The bank I use would even go to 66 months same rate. ($114/month $528 total interest) . Almost dumb to pay it off early as you can hopefully invest and make more than 2.64%.

How many more years will the 100,000 warranty last?

  Reply With Quote
Reply  Post New Thread






Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
Content Relevant URLs by vBSEO 3.5.2
All content copyright EcoModder.com