used car dilema
used car dilema
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.
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Re: used car dilema
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.
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Re: used car dilema
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).
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).
Re: used car dilema
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.
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.
Re: used car dilema
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.
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Re: used car dilema
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.
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Re: used car dilema
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.
Re: used car dilema
Yes, I own the cars, not leased. I own them, but have loans on them....Beachey wrote: ↑Tue Jan 18, 2022 5:39 pmDo 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.
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Re: used car dilema
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.
Re: used car dilema
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.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.
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.
Re: used car dilema
thank you. I'm looking for used car by sale by owner. I hope to find something.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.
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Re: used car dilema
thank you all for recommending i raise the deductible and not cancel collision. I understand and will do so.
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Re: used car dilema
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.
Re: used car dilema
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.
Re: used car dilema
Your car loan may require that you have a certain deductible so be sure to check on that.
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.
Re: used car dilema
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.
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.
Re: used car dilema
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.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.
Re: used car dilema
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.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.
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Re: used car dilema
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.riptide wrote: ↑Wed Jan 19, 2022 2:16 pmThanks 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.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.
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.
Re: used car dilema
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).exodusNH wrote: ↑Wed Jan 19, 2022 3:29 pmMake 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.riptide wrote: ↑Wed Jan 19, 2022 2:16 pmThanks 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.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.
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.
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