2015 Honda Civic v.s 2023 Honda Civic – What would you do?

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June 22, 2023 at 3:52 pm #83786 Reply
Heather
I have been receiving offers in the mail for at least a year now as well as phone calls from Honda wanting to buy my vehicle back and get me into something brand new. I have been ignoring them because I know how over valued the market is right now and don’t want to have to deal with payments again.

I have a 2015 Honda civic with 102,850 miles on it. I bought it brand new off the lot in 2015 with $6k down and I financed $21k. I paid it off 3 years early and paid less than $1000 in interest.

The lady on the phone today from Honda said she has 2023 civics going for as low as $26k and they would buy my vehicle back and put that money towards a new car.

I must admit I am intrigued and it’s tempting because who doesn’t want a brand new car? I can definitely afford it, and my strategy would be to finance for the longest term possible just to get the lowest interest rate and monthly payment OR to just pay the remaining balance off outright(after trade in amount Is applied) so I won’t have to deal with a monthly payment at all.

Used cars are definitely an option too, but I like the idea of a brand new car only because I won’t have to worry about any maintenance for at least the first 5 years except oil changes and maybe tires. Thats was a huge plus when I bought my civic brand new so I have no regrets buying a brand new car.

I do know however that my insurance rates will go up a lot with a brand new car, so I’m trying to take that into consideration. Of course I’d call my insurance company and get a quote for whatever model and year I was interested in before buying it. I won’t get a new car if it means my insurance rates will go up $800 in a 6 month period or something crazy like that. $200-300 maybe.

I am happy with my civic and when I bought it brand new I had it in mind that I would drive it til the wheels fell off. It’s in great shape, very clean, etc. I take care of it because I want it to take care of me. It gets great gas mileage as well and it fairly small and compact which I love.

What would you do? I’m supposed to be going to meet with the lady today to get an appraisal for my car and see what I can qualify for and talk numbers and all that. Should I go or stick with what I have? And why?
June 22, 2023 at 3:53 pm #83787 Reply
John
The biggest piece of the puzzle is missing…how much are they going to “buy your car back” for? If they’re buying it back for something like $18k and you’re getting a comparable new car for $26k, go for it.

You’ll likely find out they’ll buy your car for $8k and the $26k car they have for you is actually $30k out the door. Congrats, you’re back to a $22k car payment.

They’re not sending flyers and making offers for your benefit. Whatever the “deal is”, it’s in their best interest.
June 22, 2023 at 3:55 pm #83788 Reply
Bo Avakian
One of the ways to achieve FIRE is to never buy a new car and drive the one you have until the wheels fall off. I have been driving since 1980 and I am on my 4th used truck. 1976 El Camino in 1980, 1989 Mazda B2200 in 1994, 1996 Ford Ranger in 2001 & 2010 Ford Ranger in 2012. Invest your money and don’t spend it on a depreciating vehicle.

You can check also: We need a new car. I think financing interest rates are 7-8%?
June 22, 2023 at 3:56 pm #83789 Reply
Rosemary
We had a similar situation and went for the new car. We understand that the new car (and payments) are setting us back a bit and is more than we *need* to spend, but we really enjoy the new car! And it’s a hybrid so the gas mileage is way better. So glad we made this decision and glad we bought a Toyota that we’ll have for years to come.
June 22, 2023 at 3:57 pm #83790 Reply
Tom
You’re describing lifestyle creep. It’s not a good financial decision but if it’s something that would bring you a lot of joy then it’s worth considering. Just understand that the first few years of a new car is when it costs the most.

Suggested: Friend of my sons bought a new car and is being pressured by the dealership to purchase a ‘total loss protection addendum’
June 22, 2023 at 3:57 pm #83791 Reply
Jules
Unless there is any reason to ditch this one or trade for a different car I would keep going it has a lot of life left in it.

Ask them to take you off their mailing list!!! Your getting sucked in by their targeted marketing 🤣

IF you decide to buy I would buy new right now cause its almost the same price as a gently used one… the market is all backwards and used ones are even more inflated because new ones have waitlists and a lot of people CAN’T wait cause their old car crapped out.

But I would honestly just keep your car, save the monthly payment. The tech advances right now yearly in cars is insane so in a couple years your going to get something with so many more bells and whistles and MPGs and maybe phev or ev depending on how infrastructure advances might make more sense… which will make 2023s so much more dated in 2 years than a 2020 is now.
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