used car dilema

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
User avatar
Topic Author
riptide
Posts: 843
Joined: Thu Jul 17, 2014 2:38 pm
Location: Coastal, South Carolina

used car dilema

Post by riptide »

I have two nice cars, a 2019 Acura RDX, and a 2021 Acura TLX. I need two cars, for my wife and I. I got the RDX before this craziness with prices started. I bought the TLX as a demo that the manager was driving so it was 'used' but had only 2500 miles on it. I got an fantastic price. Due to the insurance, taxes, and monthly payments I can barely afford both vehicles. I want to sell one for a simpler used vehicle (likely sell the RDX). I do love both cars and have much equity in both. I owe only $11,600 to pay off the RDX, the payments are just $227.00 a month on a 5 year lease. I owe $17,600 on the TLX. Payments are $318.00 per month. Very good again. 5 year lease. I have looked for months for a used SUV like a Honda CRV, but all used cars are + 30% or more. Just no good deals, all overpriced. Any solution to this?? I can try to keep the vehicles and pay them off early. If I can pay off the RDX I will cancel the collision coverage and drop the insurance deeply. Thank you for any insight.
Last edited by riptide on Tue Jan 18, 2022 5:22 pm, edited 1 time in total.
Brokerage account-100% stocks | VG total Market 55% | VG small cap value 20% | VG Reit index 25% | | TSP Account 75C/25S | C Fund75%, S25%, | | Bonds: U.S. Treasury 5 year Note, 1 year T Bill
Silk McCue
Posts: 8912
Joined: Thu Feb 25, 2016 6:11 pm

Re: used car dilema

Post by Silk McCue »

Why do you need/want 2 cars? If it’s want, I wouldn’t. Invest, pay down other debt or build up your emergency funds.

Cheers
psteinx
Posts: 5785
Joined: Tue Mar 13, 2007 2:24 pm

Re: used car dilema

Post by psteinx »

You haven't indicated a need for 2 vehicles. Are these for you and your spouse? If you only need 1, then obviously consider downsizing.

In general, I don't think most folks will come out ahead by swapping around vehicles. There's a lot of overhead to selling one vehicle and buying another, including but not limited to any state sales taxes, dealer margins, and so on. Yes, used car prices are high, but assuming you must buy something else, and assuming that something else is not an ancient beater, then your gains on selling your overpriced used car will likely be mostly or fully offset by the cost of buying another.

That said, if you can "barely afford" both vehicles, then perhaps you should not be driving newer premium vehicles, and switch to older, more downscale makes. Hondas are likely cheaper than Acuras, and Ford/Chevy cheaper still, especially 5+ years old (used).
Boatguy
Posts: 233
Joined: Fri Apr 19, 2019 7:54 pm

Re: used car dilema

Post by Boatguy »

If it’s a struggle owning two cars, then why do you own two cars? You made the point that used vehicles values are high, so this sounds like a good time to sell one of them.

If I owned a 2019 RDX, I sure wouldn’t be comfortable dropping collision coverage. What if an uninsured driver totals your vehicle or you slide off the road in a rainstorm and cause $15k in damage to your car? You can always raise your deductible.
User avatar
Topic Author
riptide
Posts: 843
Joined: Thu Jul 17, 2014 2:38 pm
Location: Coastal, South Carolina

Re: used car dilema

Post by riptide »

Important to add: yes, I'm married, my wife usually drives the RDX. I need two cars. I've looked for a car like a Honda CRV (we had one before) for $15,000, this I could by outright and own. I prefer to have only 1 car payment. Thanks.
Brokerage account-100% stocks | VG total Market 55% | VG small cap value 20% | VG Reit index 25% | | TSP Account 75C/25S | C Fund75%, S25%, | | Bonds: U.S. Treasury 5 year Note, 1 year T Bill
User avatar
Beachey
Posts: 396
Joined: Wed Sep 02, 2020 9:54 am

Re: used car dilema

Post by Beachey »

riptide wrote: Tue Jan 18, 2022 4:55 pm I owe only $11,600 to pay off the RDX, the payments are just $227.00 a month on a 5 year lease. I owe $17,600 on the TLX. Payments are $318.00 per month. Very good again. 5 year lease.
Do you own these cars? Did you mean loan or is it a lease? If you have two cars on leases that you can barely afford you really do have a problem. My thought is if you really do need two cars then you need to find the cheapest reliable car you can find. It might even be 5-10 years old, I know many two-car couples with one nice car and a second 'beater' that typically the husband only drives to work.
adamthesmythe
Posts: 5761
Joined: Mon Sep 22, 2014 4:47 pm

Re: used car dilema

Post by adamthesmythe »

riptide wrote: Tue Jan 18, 2022 4:55 pm no good deals, all overpriced. Any solution to this??
You can wait, or you can keep looking and hope you find the unicorn, the lightly used, good condition car being sold by someone who doesn't know what's been happening.

It will be easier to find an unpopular American sedan at an acceptable price.
User avatar
Topic Author
riptide
Posts: 843
Joined: Thu Jul 17, 2014 2:38 pm
Location: Coastal, South Carolina

Re: used car dilema

Post by riptide »

Beachey wrote: Tue Jan 18, 2022 5:39 pm
riptide wrote: Tue Jan 18, 2022 4:55 pm I owe only $11,600 to pay off the RDX, the payments are just $227.00 a month on a 5 year lease. I owe $17,600 on the TLX. Payments are $318.00 per month. Very good again. 5 year lease.
Do you own these cars? Did you mean loan or is it a lease? If you have two cars on leases that you can barely afford you really do have a problem. My thought is if you really do need two cars then you need to find the cheapest reliable car you can find. It might even be 5-10 years old, I know many two-car couples with one nice car and a second 'beater' that typically the husband only drives to work.
Yes, I own the cars, not leased. I own them, but have loans on them....
Brokerage account-100% stocks | VG total Market 55% | VG small cap value 20% | VG Reit index 25% | | TSP Account 75C/25S | C Fund75%, S25%, | | Bonds: U.S. Treasury 5 year Note, 1 year T Bill
terran
Posts: 2966
Joined: Sat Jan 10, 2015 9:50 pm

Re: used car dilema

Post by terran »

Yes, used car prices are crazy right now. Assuming the car you want to sell will fetch a similar premium to the one you want to buy and you're planning to downsize to a less expensive type of car then it doesn't really matter that you're going to overpay since you'll also get more for the car you're selling, so you should come out ahead. If that's not the case then maybe this isn't the best market for the exchange you want to make, and you should be looking at other downgrade cars. Either way, you shouldn't own two relatively new luxury cars if it's stretching you financially, so it's really a question of how much car you can afford in the current market without overburdening your finances given the amount you expect to sell for.
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: used car dilema

Post by exodusNH »

riptide wrote: Tue Jan 18, 2022 4:55 pm I have two nice cars, a 2019 Acura RDX, and a 2021 Acura TLX. I need two cars, for my wife and I. I got the RDX before this craziness with prices started. I bought the TLX as a demo that the manager was driving so it was 'used' but had only 2500 miles on it. I got an fantastic price. Due to the insurance, taxes, and monthly payments I can barely afford both vehicles. I want to sell one for a simpler used vehicle (likely sell the RDX). I do love both cars and have much equity in both. I owe only $11,600 to pay off the RDX, the payments are just $227.00 a month on a 5 year lease. I owe $17,600 on the TLX. Payments are $318.00 per month. Very good again. 5 year lease. I have looked for months for a used SUV like a Honda CRV, but all used cars are + 30% or more. Just no good deals, all overpriced. Any solution to this?? I can try to keep the vehicles and pay them off early. If I can pay off the RDX I will cancel the collision coverage and drop the insurance deeply. Thank you for any insight.
I think you're just going to have to suck it until prices normalize. All used cars are going to be a crapshoot, especially SUVs.

While you could get top dollar for those cars, you're buying in the same market. Unless you buy something with 100,000+ miles, I don't think you've good options. Buying those types of cars can set you up for expensive repairs, especially since you have no idea how well they were maintained.

Dropping collision would be a huge mistake. You'd be better off upping your deducible to the maximum they allow / to the point of diminishing savings.
User avatar
Topic Author
riptide
Posts: 843
Joined: Thu Jul 17, 2014 2:38 pm
Location: Coastal, South Carolina

Re: used car dilema

Post by riptide »

terran wrote: Tue Jan 18, 2022 6:02 pm Yes, used car prices are crazy right now. Assuming the car you want to sell will fetch a similar premium to the one you want to buy and you're planning to downsize to a less expensive type of car then it doesn't really matter that you're going to overpay since you'll also get more for the car you're selling, so you should come out ahead. If that's not the case then maybe this isn't the best market for the exchange you want to make, and you should be looking at other downgrade cars. Either way, you shouldn't own two relatively new luxury cars if it's stretching you financially, so it's really a question of how much car you can afford in the current market without overburdening your finances given the amount you expect to sell for.
thank you. I'm looking for used car by sale by owner. I hope to find something.
Brokerage account-100% stocks | VG total Market 55% | VG small cap value 20% | VG Reit index 25% | | TSP Account 75C/25S | C Fund75%, S25%, | | Bonds: U.S. Treasury 5 year Note, 1 year T Bill
User avatar
Topic Author
riptide
Posts: 843
Joined: Thu Jul 17, 2014 2:38 pm
Location: Coastal, South Carolina

Re: used car dilema

Post by riptide »

thank you all for recommending i raise the deductible and not cancel collision. I understand and will do so.
Brokerage account-100% stocks | VG total Market 55% | VG small cap value 20% | VG Reit index 25% | | TSP Account 75C/25S | C Fund75%, S25%, | | Bonds: U.S. Treasury 5 year Note, 1 year T Bill
CMD1
Posts: 179
Joined: Tue Nov 28, 2017 7:10 pm

Re: used car dilema

Post by CMD1 »

To be sensible you really need to wait til late this year - the average used car price went from$17k to $30k. If you have to buy now the best advice would be to buy a beater and then get the car you want when prices retreat. Luckily you have 2 cars so you could just suck it up for 8 months and reevaluate.
sport
Posts: 12084
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: used car dilema

Post by sport »

You have two expensive vehicles. When you get rid of one, get something like a Honda Civic or a Toyota Corolla. You will have reliable transportation at a greatly reduced cost. These cars hold their value very well, so try to find one at least 5 years old. Otherwise, you will pay almost the cost of a new one.
User avatar
Watty
Posts: 28813
Joined: Wed Oct 10, 2007 3:55 pm

Re: used car dilema

Post by Watty »

riptide wrote: Tue Jan 18, 2022 6:34 pm thank you all for recommending i raise the deductible and not cancel collision. I understand and will do so.
Your car loan may require that you have a certain deductible so be sure to check on that.
riptide wrote: Tue Jan 18, 2022 4:55 pm I owe only $11,600 to pay off the RDX,
You may need two vehicles but you don't need two SUVs.

It would depend in the condition and mileage but I would suspect that you could replace the 2019 RDX with something like a 2019 Corolla in similar condition and maybe even net some cash out of the transaction that you could use to pay down the other car loan.

I just looked and CarMax is selling 2019 Corollas LEs for somewhere around $23K(+/-).
https://www.carmax.com/cars/corolla/le/2019

The costs for things like sales tax and registration could be significant so be sure to figure out what those would be in your state.

You can get online quotes on the CarMax or Carvana website to see what they will pay you for either of your cars but you can likely get a bit more by selling it yourself. Since you got a really great deal on the TLX they may even be willing to buy it from you for more than you paid for it.

You would not be getting every possible dollar out of the deal but you could even trade in one of your cars at CarMax and get a late model Corolla(or similar) and a check.
phxjcc
Posts: 1329
Joined: Thu Aug 23, 2018 3:47 pm

Re: used car dilema

Post by phxjcc »

Real world is that you would be better off selling one and buying a “grandma car”….like a 10 year old Camry/Accord with 50,000 miles.

Just saw a 20 year old Park Avenue on CL with the unkillable 3800 V6 with 35,000 for peanuts.
Cadillac Devilles from the early aughts, same thing…cars bought at the start of retirement cars then driven 3,000 miles per year.
People may laugh…you save $40,000…let them.

You are in the Carolinas?
Check Craigslist In some retirement areas.

Lexus LS’s will also run forever and are inexpensive once they reach 10 plus years old.
Try and find an Ultra Luxury model…radar cruise control, refrigerator in the back seat arm rest…all for about $10,000.
bubbadog
Posts: 1061
Joined: Wed Mar 26, 2014 9:17 pm
Location: Cincinnati,Ohio

Re: used car dilema

Post by bubbadog »

phxjcc wrote: Wed Jan 19, 2022 12:28 am Real world is that you would be better off selling one and buying a “grandma car”….like a 10 year old Camry/Accord with 50,000 miles.

Just saw a 20 year old Park Avenue on CL with the unkillable 3800 V6 with 35,000 for peanuts.
Cadillac Devilles from the early aughts, same thing…cars bought at the start of retirement cars then driven 3,000 miles per year.
People may laugh…you save $40,000…let them.

You are in the Carolinas?
Check Craigslist In some retirement areas.

Lexus LS’s will also run forever and are inexpensive once they reach 10 plus years old.
Try and find an Ultra Luxury model…radar cruise control, refrigerator in the back seat arm rest…all for about $10,000.
I purchased a Lexus LS 430 UL last spring. It is a wonderful road trip car and very comfortable. Since large rear wheel drive luxury cars have fallen out of favor with the buying public, older used examples are a great value. I paid $11,000 for mine in pristine condition with 44,000 miles.
User avatar
Topic Author
riptide
Posts: 843
Joined: Thu Jul 17, 2014 2:38 pm
Location: Coastal, South Carolina

Re: used car dilema

Post by riptide »

sport wrote: Tue Jan 18, 2022 6:50 pm You have two expensive vehicles. When you get rid of one, get something like a Honda Civic or a Toyota Corolla. You will have reliable transportation at a greatly reduced cost. These cars hold their value very well, so try to find one at least 5 years old. Otherwise, you will pay almost the cost of a new one.
Thanks everyone, this is my plan, I sold the RDX and got more than enough to buy a used Honda or Toyota from a private party. I'm looking.
Brokerage account-100% stocks | VG total Market 55% | VG small cap value 20% | VG Reit index 25% | | TSP Account 75C/25S | C Fund75%, S25%, | | Bonds: U.S. Treasury 5 year Note, 1 year T Bill
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: used car dilema

Post by exodusNH »

riptide wrote: Wed Jan 19, 2022 2:16 pm
sport wrote: Tue Jan 18, 2022 6:50 pm You have two expensive vehicles. When you get rid of one, get something like a Honda Civic or a Toyota Corolla. You will have reliable transportation at a greatly reduced cost. These cars hold their value very well, so try to find one at least 5 years old. Otherwise, you will pay almost the cost of a new one.
Thanks everyone, this is my plan, I sold the RDX and got more than enough to buy a used Honda or Toyota from a private party. I'm looking.
Make sure you bring it to a mechanic for a prepurchase inspection. There are a couple of things they'll check that will let you know if it has been maintained properly. If the original owner hasn't been keeping up with the routine maintenance, primarily oil changes, the car's life will be greatly reduced.

If you get one with only one key, the first thing you should do is go to a locksmith and get a second one made. You will be very sad should you ever lose the single key.
User avatar
Topic Author
riptide
Posts: 843
Joined: Thu Jul 17, 2014 2:38 pm
Location: Coastal, South Carolina

Re: used car dilema

Post by riptide »

exodusNH wrote: Wed Jan 19, 2022 3:29 pm
riptide wrote: Wed Jan 19, 2022 2:16 pm
sport wrote: Tue Jan 18, 2022 6:50 pm You have two expensive vehicles. When you get rid of one, get something like a Honda Civic or a Toyota Corolla. You will have reliable transportation at a greatly reduced cost. These cars hold their value very well, so try to find one at least 5 years old. Otherwise, you will pay almost the cost of a new one.
Thanks everyone, this is my plan, I sold the RDX and got more than enough to buy a used Honda or Toyota from a private party. I'm looking.
Make sure you bring it to a mechanic for a prepurchase inspection. There are a couple of things they'll check that will let you know if it has been maintained properly. If the original owner hasn't been keeping up with the routine maintenance, primarily oil changes, the car's life will be greatly reduced.

If you get one with only one key, the first thing you should do is go to a locksmith and get a second one made. You will be very sad should you ever lose the single key.
Thank you very much for the purchase tips. I know some basic things about cars, particularly Hondas/Acuras. I've had many of them. I have a retired mechanic from Honda that has a garage at his house that can fix anything. I can talk to the seller and will check things myself (timing chain, A/C system, etc).
Brokerage account-100% stocks | VG total Market 55% | VG small cap value 20% | VG Reit index 25% | | TSP Account 75C/25S | C Fund75%, S25%, | | Bonds: U.S. Treasury 5 year Note, 1 year T Bill
Post Reply