Automotive

Need advice on potentially keeping or trading...

  • Last Updated:
  • Nov 5th, 2020 12:58 pm
[OP]
Member
Nov 5, 2006
258 posts
39 upvotes
Toronto

Need advice on potentially keeping or trading...

I’ve got a scenario to propose to the great minds within this forum, and I’ve been scratching my head trying to figure out what makes most sense to do.

I’m currently two years away from paying off my 2016 Honda Accord Touring V6. It has fairly low kms at 80k, and factory extended warranty until 2023 or 130k. I have about $15k with tax to pay it off. In typical Honda fashion, it’s been trouble free.

My wife’s car is a grand caravan that’s not been very reliable, but it’s paid off. She wants a midsize SUV next (think RAV4, CX-5), and suggested I trade in my Honda for a used SUV in a similar price ballpark. This would allow me then to get a truck as I’ve always wanted in 2 years when this car is payed off.

Seems like a sensible approach, right? I’d likely get near the base model of those SUVs to keep the price near my Accord, so I’d be giving up on features. I’d have to stomach driving the van for 2 years before then getting whatever truck I want. Note that my wife will not get a truck as she doesn’t want to drive it, so if I don’t make this move now I’ll be handcuffed later as we don’t want to have 2 concurrent car payments.

Anything else to consider? I like the accord but don’t love it (would rather have a truck for weekend warrior trips along with my holding my mountain bikes and towing my camper).
8 replies
Deal Expert
Aug 22, 2011
35653 posts
21738 upvotes
Center of Universe
My advice, you both get the new vehicles you want.
At the end of the day, it's just money and your either have it or you don't.
Deal Guru
User avatar
Mar 13, 2004
11544 posts
3251 upvotes
Toronto, Ontario
In my opinion it does not make sense to keep the unreliable Van and get rid of the reliable Honda, I would get rid of the Van as a trade in or private sale however I understand you don't want 2 car payments either. I would probably do some major saving so you can have a nice down payment for the new SUV & trade the Van in with it OR use the money to pay off the honda.

but regardless in my opinion right now is not a good time to be making a big purchase, the way things are right now with new lock downs and people loosing their jobs at any time I would wait until mid next year to buy something when things settle down (hopefully) You don't want to be put in a bad situation because you or your wife loose their job.
[OP]
Member
Nov 5, 2006
258 posts
39 upvotes
Toronto
sickcars wrote: In my opinion it does not make sense to keep the unreliable Van and get rid of the reliable Honda, I would get rid of the Van as a trade in or private sale however I understand you don't want 2 car payments either. I would probably do some major saving so you can have a nice down payment for the new SUV & trade the Van in with it OR use the money to pay off the honda.

but regardless in my opinion right now is not a good time to be making a big purchase, the way things are right now with new lock downs and people loosing their jobs at any time I would wait until mid next year to buy something when things settle down (hopefully) You don't want to be put in a bad situation because you or your wife loose their job.
Thanks for the response and insights. I’m not too worried financially as my employment is fairly stable even within a pandemic, and my wife doesn’t work so she can’t lose her job (is that a pro? Thinking Face).

While I haven’t told her this, it’s really more of a selfish reason for me to consider this lol. She would get the vehicle she wants, and in two years I get to go shopping for another car again (sadly, and rather expensively, I love it lol). The Honda is a great car though, but really a same year RAV4 or CX-5 is nothing to sneeze at either.
Deal Fanatic
User avatar
Jun 3, 2008
7751 posts
3919 upvotes
I love car shopping too, but everytime you transact (e.g. buy or sell), you're losing money because of HST, and because someone out there is making the profit (this can be reduced, but never eliminated), so the smart financial decision is to make fewer transactions.

Now, if you like buying cars, all the more power to you. I like browsing, but the actual buying process is like pulling teeth.
Deal Addict
Jun 14, 2008
3325 posts
2101 upvotes
Montreal
What trade in value can you get for the accord? It seems if you trade it in, at best you break even and threw away all your payment for the past 4 years, or even owe more money on a car you no longer have.

It seems to me that the "best" option is to keep the accord and buy the SUV if you can do payments on both.
[OP]
Member
Nov 5, 2006
258 posts
39 upvotes
Toronto
jzmtl wrote: What trade in value can you get for the accord? It seems if you trade it in, at best you break even and threw away all your payment for the past 4 years, or even owe more money on a car you no longer have.

It seems to me that the "best" option is to keep the accord and buy the SUV if you can do payments on both.
Honda has said they’d give me $17k on a trade, which essentially lowers whatever I’m going to buy by $3000 since I owe only $15k with tax (a quick scan of autotrader shows my car selling for at least $20k at Honda without the extended warranty). If it helps, I got it two years old so I’ve only been paying 2.75 years so far.

Unless I get a dealer to give me what I want on a trade, I’ll keep it. If they do play ball, and it’s a lateral move I’d be ok with it.

Thing is my wife wants a small SUV next to replace the van, and while I understand that, we (I) need a larger SUV or truck to handle our lifestyle. It’s really the driver for this potential trade, and then I can find myself in a new GMC Sierra SLT :)
Deal Expert
Mar 23, 2004
29155 posts
9700 upvotes
Can see why you don't love the Accord, I mean it's a large sedan with little character. V6 or not, never really heard many people going on about how much fun one is to drive. Truck OTOH won't be much fun either (unless off-roading is your idea of fun) but sounds like you'll be happier with it either way.

TBH I wouldn't count your chickens before they hatch--I mean look what has already happened this year with covid. I mean maybe you think it can't get worse and you're fine now, but you never know. There are seemingly still layoffs in the pipeline at my own workplace, for example.

That said, though I wouldn't count on getting that exact truck you want in two years for sure, I'd still probably get rid of the Accord lol.
Newbie
Jun 20, 2019
9 posts
1 upvote
Mississauga
You can always trade in your accord to Honda and get a CR-V or Pilot and receive a 1% rate reduction (If financed with Honda) with a lease payment you might be close to what you are paying now. Ride out the van for another year until GM has another 10K off on a truck you can lease.

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