ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX
13 June 2009, 12:22 AM | #1 |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
All you finance experts
Hubby wants to save $$, and thinks a good start would be to sell his F150 truck (30,000 miles) and buy a Hinda Civic. However, we do still owe quite a bit on the truck loan - 3 yrs and $19,300 to be exact. And the dealer only offered $16,000 as a trade in, so we would take a $3300 loss to start. The dealer told us that a new Civic would be (for example) $365/month for 5 years.
To me, the best way to compare the cost of the vehicles would be to calculate the operating costs of each vehicle over a 5 year period - including gas. For the truck: $19,300 (loan) + $50/week (gas)x 52(weeks) x 5 yrs = $32,300 For the Civic: $365 payment x 60 months + (3300 loss on truck loan) + $25/week (gas) x 52 weeks x 5 yrs = $31,700 Thus, over the next five years, purchasing a new Civic (and allocating a gas savings of half over the truck) - we would save only $600 over that period. Obviously, this is not a substantial savings despite the fuel economy of the smaller car. We consulted with a relative about the numbers, as he is a finance nut - he used a whole bunch of complex equations which I honestly had a hard time following. And he came out with the new car saving us thousands of dollars. Considering that I love and respect this person, I don't want to disrespect him, but think my numbers are much simpler - and correct! Thoughts?
__________________
. .Member #5380 . |
13 June 2009, 12:40 AM | #2 |
"TRF" Member
Join Date: Dec 2007
Real Name: Buz
Location: Atlanta
Watch: Rolex Tudor Pam
Posts: 5,108
|
I would guess the other factors to include would be the costs of maintenance and insurance and resale value of each vehicle at the end of five years and having to rent a truck every time you went to Home Deport or the garden shop. Also does the $365 payment on the Civic include rolling the $3300 you owe on the truck? If so, you're off by 3300 out of the box. If you have to write a check for the $3300 then your math is correct. I sure wouldn't give up a nice truck for a civic if I was only going to save a few hundred dollars. I really don't believe you will cut your gas consumption by 50% in the real world either.
__________________
Buz The faster you move, the slower time passes, the longer you live. Peter Diamandis |
13 June 2009, 12:41 AM | #3 |
"TRF" Member
Join Date: Feb 2009
Real Name: Emil
Location: Bay Area, CA
Watch: U macallit
Posts: 2,645
|
You also have to consider the following for the next five years.
Maintenance on the Civic is probably cheaper.... Insurance on the Civic is probably cheaper.... Five years from now your Civic probably have a better resale value.... |
13 June 2009, 01:02 AM | #4 |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
The $365 does not take into consideration the $3300 loss on the truck.
Also, I think the truck is safer for hubby to drive (important to me). Insurance may vary a little, not sure - hubby's initial thinking was that the civic would be cheaper due to gas savings, and he says it will have a better resale value. We have a friend who has an extra truck that is at our disposal at any time, so we aren't losing too much utility. I'm wondering if we would have better luck selling the truck ourselves for the cost of the loan? I see the exact same truck (same options, miles, etc) going for $25,000 at local dealers. Not sure how, but the ads are there.
__________________
. .Member #5380 . |
13 June 2009, 01:09 AM | #5 |
2024 SubLV41 Pledge Member
Join Date: Nov 2007
Location: USA
Watch: 126600, 116500LN
Posts: 12,849
|
You are taking a huge hit in depreciation, you've already bared the brunt on a new truck, now you are going to do it again for the civic. Buying a new car is a bad investment, but you compound that by doing it twice and handing the Honda dealer whatever equity you may have on the truck, taking a loss on the resale and then paying top dollar for the new civic.
If you have to then sell it privately, yes it’s a pain in the @$$, yes it will take longer but you'll get more for it. Personally I wouldn't sell it at all and I ABSOLUTELY would NOT trade it in! Think about it, you're rationalizing loosing thousands of dollars original value of the truck and purchasing costs for the civic all to save some money on gas. Sorry if this is coming off as harsh I'm just trying to be clear about my opinion and it is only my opinion but this is a bad move
__________________
"I'm kind of a big deal... on a fairly irrelevant social media site that falsely inflates my fragile ego" |
13 June 2009, 01:47 AM | #6 |
"TRF" Member
Join Date: Oct 2007
Real Name: Dennis
Location: Bay Area - 925
Posts: 40,018
|
I would not trade-in the truck, but sell it private party. You will definitely get a much better price that way. Research what that model of truck is selling for in your area, to get an idea of the recent sales prices. This is give you a good idea of the 'market value'. Then, make adjustments to your price accordingly (mileage, any special features, etc). You may find that you will be able to sell the truck to a PP for much more than the dealer will give you for it. Keep in mind that the dealer is buying for resale purposes and will ALWAYS low ball you on a trade-in offer.
__________________
TRF Member #6699 (since September 2007) |
13 June 2009, 01:48 AM | #7 | |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
Quote:
__________________
. .Member #5380 . |
|
13 June 2009, 01:48 AM | #8 |
"TRF" Member
Join Date: Aug 2006
Real Name: Robert
Location: Angelus Oaks, CA
Watch: 116713
Posts: 6,828
|
In three years Ford may not even be in business!
__________________
SS GMTII "D", TT GMTIIc "Z" |
13 June 2009, 01:54 AM | #9 |
"TRF" Member
Join Date: Nov 2007
Real Name: Jon
Location: Chicago
Watch: IIc,DJII,P244,A1-Z
Posts: 2,857
|
I think that any proposition that begins with saving/making money by selling a used car is flawed. A used car is almost always worth more to you to keep than you can get for selling it, and this only gets more true as the car gets older. From an economic standpoint, you should drive your cars into the ground and then sell them just as parts. They simply depreciate too fast.
If you are going to sell, sell to a private party if possible -- it will be smarter than using the car as a trade-in. With a trade-in, they're going to get you by hook or by crook. If they give you a good value on your trade, they're going to be less willing to come off the sticker price of the new car. My trick with car dealers is to not trade in and negotiate a big discount off the sticker price. They usually assume they can do this and make their money back on the financing end. Then I sit down with their finance guy and say "oh, no, I'm just gonna write a check for it." |
13 June 2009, 01:54 AM | #10 |
"TRF" Member
Join Date: Nov 2007
Real Name: Jon
Location: Chicago
Watch: IIc,DJII,P244,A1-Z
Posts: 2,857
|
|
13 June 2009, 01:56 AM | #11 |
"TRF" Member
Join Date: May 2008
Real Name: Darren
Location: Arizona
Posts: 66
|
Don't do it! I just sold a 2003 F150 (paid off) and got into a VW Jetta back when gas his $4.00.
Long story short, I'm miserable! I miss my truck. I too can borrow from friends and neighbors but hate to ask. Just think how you would feel when a friend asks to borrow your rolex for the weekend. :) |
13 June 2009, 02:28 AM | #12 |
"TRF" Member
Join Date: May 2007
Real Name: Ron
Location: NJ
Posts: 726
|
Don't do it.... My F150 is almost 4 years old (next month) and still drives beautifully.
|
13 June 2009, 02:34 AM | #13 |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
Ron, that's a nice looking truck. Our is grey, and it's hubby truck, but I have to admit that I really like it too!
__________________
. .Member #5380 . |
13 June 2009, 02:46 AM | #14 |
"TRF" Member
Join Date: Jan 2006
Real Name: John
Location: Canada, eh
Watch: can I?
Posts: 6,240
|
Only $50/week for gas in the truck.
Don't sell it. Cost to keep it is not that much. At least you did the math BEFORE you traded it. I have a couple friends who didn't. One guy, sold his F150 for $15,000 and bought a $30,000 car to save gas. He will NEVER recover $15,000 in fuel savings, plus he needed the truck to haul a boat to the lake & back.
__________________
Something witty to go here. Member # 293 |
13 June 2009, 03:04 AM | #15 |
"TRF" Member
Join Date: Aug 2006
Real Name: Robert
Location: Angelus Oaks, CA
Watch: 116713
Posts: 6,828
|
A friend in NC has a Ford F150, 1971, with 32k on it. :-)
__________________
SS GMTII "D", TT GMTIIc "Z" |
13 June 2009, 03:13 AM | #16 | |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
Quote:
The issue is that my husband has been consulting with someone who convinced him that the monthly bottom line is the way to go. I tend to look at the bigger picture. When you do the math, it's a wash really.
__________________
. .Member #5380 . |
|
13 June 2009, 03:24 AM | #17 |
"TRF" Member
Join Date: Jan 2006
Real Name: John
Location: Canada, eh
Watch: can I?
Posts: 6,240
|
You also missed the interest on the remaining truck loan over the next so many years.
__________________
Something witty to go here. Member # 293 |
13 June 2009, 03:25 AM | #18 |
"TRF" Member
Join Date: Jan 2006
Real Name: John
Location: Canada, eh
Watch: can I?
Posts: 6,240
|
Saying this, I have a friend, bought a Civic, they have 270,000km on it, only change the oil, timing belt every 100,000 & just recently a head gasket.
Besides that, it is tight.
__________________
Something witty to go here. Member # 293 |
13 June 2009, 03:28 AM | #19 | |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
Quote:
In a 50 mile radius, I am only able to find a few private sellers - mostly older trucks. The one that is closest has twice the mileage, and is asking below blue book value. The dealers who are selling trucks similar to my husband's are asking $25,000 and up.
__________________
. .Member #5380 . |
|
13 June 2009, 04:19 AM | #20 |
"TRF" Member
Join Date: Feb 2009
Real Name: Emil
Location: Bay Area, CA
Watch: U macallit
Posts: 2,645
|
Tell your husband to be a man and keep the truck so he can keep on trucking.
|
13 June 2009, 05:38 AM | #21 |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
Please - someone help me explain why the below analysis is not correct. I know it isn't but can't put it into concrete terms. BTW, this is an excerpt from an email I just received from a friend. Obviously, it does not match my cost comparison I stated in the first post:
"I think we're all getting paralysis from analysis. What you need to do is think of it in more immediate terms: 1. You get rid of a gas guzzler and some "down the road potential repair problems," not likely for some time on a new car, especially a Japanese one noted for quality. 2. You reduce your car pymnt. by $40.mo 19,300 you owe on the truck divided by 42 mo's. = $460/mo vs. 21,900 for the Honda + 3300 you will owe after CarMax = 25200 divided by 60 months = 420/mo. Savings: $40/mo. from car pymnt. + $100/mo. on gas = $140 in your pocket for 42 mo's + the gas savings keep on coming. 3. Yes, you will still have to keep paying on the Honda and that is what it finally comes down to. Is it worth putting $140/mo. in your pocket for the next 42 mos. or are you better off without the extra money now in exchange for a shorter payment period at the end of which you are still looking at a far more expensive vehicle to run. Still looks like a good deal to me"
__________________
. .Member #5380 . |
13 June 2009, 05:40 AM | #22 |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
My husband really enjoys his truck. He is considering sacrificing it if it helps the family finances. I do have a headache, and maybe I took your post the wrong way.
__________________
. .Member #5380 . |
13 June 2009, 05:53 AM | #23 |
"TRF" Member
Join Date: Jan 2008
Real Name: Martin
Location: UK
Posts: 7,023
|
I think your figures are right, the email seems all over the place.
I suppose the factors to consider are which vehicle fits in better with your life style Q's Are gas prices going to soar in the next few years? This may even be a political stance by the govt if they increase duty on gas to encourage people to run more fuel efficient cars as they do in Europe. What would the resale value of the car be now and in the future when larger or less fuel efficient cars may not be so desirable |
13 June 2009, 06:01 AM | #24 |
"TRF" Member
Join Date: Feb 2009
Real Name: Emil
Location: Bay Area, CA
Watch: U macallit
Posts: 2,645
|
I apologize if I gave you headache. I was just being happy and kidding because of being Friday. I think the last analogy from your friend's email makes alot of sense.
|
13 June 2009, 06:04 AM | #25 |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
No, you didn't give me the headache and I apologize as well. I'm feeling a little snappy as this car thing is driving me nuts. Please keep making jokes - we need them around here.
__________________
. .Member #5380 . |
13 June 2009, 06:07 AM | #26 | |
"TRF" Member
Join Date: Jul 2007
Location: North Carolina
Watch: it, Bubba!
Posts: 6,271
|
Quote:
__________________
. .Member #5380 . |
|
13 June 2009, 06:13 AM | #27 |
"TRF" Member
Join Date: Nov 2008
Real Name: Fernando
Location: North Carolina
Watch: SS White Daytona
Posts: 1,944
|
Keep the truck.
The going rate at a dealer auction as of last week for a Ford F150 4WD V8 Reg. Cab 5.4L XLT is: $8,350 A 2007 Honda Civic 4D Sedan EX Auto is selling at the auction for: $ 13,014 A 2006 "same as above" $8,233 A 2006 Toyota Camry 4C 4D Sedan LE is selling for $9,440 |
13 June 2009, 06:30 AM | #28 |
Member
Join Date: May 2009
Location: nowhere
Posts: 283
|
well, my take is (being a car dealer among other things)sell your truckbprivate and buy a used low milage 2007-08 civic..
you get the most money out of your truck and a Civic that has already depreciated ... I never understood buying a new car(unless you are a company)..pay cash for a good used car and look how much you save monthly |
13 June 2009, 06:32 AM | #29 |
Member
Join Date: May 2009
Location: nowhere
Posts: 283
|
2007 Honda Civic 4dr Ex
05/19/09 BIG H Lease $15,400 7,057 Above SILVER 4G A Yes 05/29/09 NEVADA Lease $14,000 7,519 Avg GOLD 4G A Yes 05/26/09 FAAO Regular $14,100 11,374 Avg RED 4G A Yes 06/03/09 SEATTLE Regular $14,350 14,346 Above WHITE 4G A Yes 05/21/09 SO CAL Lease $14,900 14,939 Above GRAY 4G A Yes 05/15/09 MANHEIM Regular $13,500 15,627 Avg HLUE 4G A Yes 05/15/09 NEVADA Factory $15,000 16,903 Above GRAY 4G A Yes 05/22/09 MANHEIM Regular $14,300 17,051 Above RED 4G A Yes 06/01/09 AYCOCK Regular $14,000 17,329 Avg SILVER 4G A Yes 06/04/09 SO CAL Lease $14,800 17,495 Above BLUE 4G A Yes 05/21/09 CHICAGO Lease $11,200 17,786 Below BLACK 4G A Yes 06/04/09 CHICAGO Lease $9,000 18,679 Below BLUE 4G A No 05/29/09 NEVADA Lease $14,300 18,736 Above BLUE 4G A Yes 05/29/09 MANHEIM Lease $14,700 18,787 Above NIGHTBLK 4G A Yes 05/21/09 SO CAL Lease $14,200 18,837 Avg BLUE 4G A Yes 06/03/09 CADE Regular $13,400 19,225 Avg SILVER 4G A Yes 05/19/09 LOUISVLL Factory $13,750 19,231 Avg GREY 4G A Yes 06/11/09 W PALM Regular $12,800 19,481 Avg BLUE 4G A Yes 06/05/09 NEVADA Lease $13,900 19,866 Avg SILVER 4G A Yes 06/05/09 MANHEIM Lease $11,800 21,797 Below BLUE 4G A Yes 06/04/09 CEN FLA Regular $8,300 21,807 Below BLACK 4G A No 06/10/09 DALLAS Regular $13,000 21,837 Avg BLUE 4G A Yes 06/10/09 CEN FLA Regular $9,500 21,941 Below BLACK 4G A No 06/11/09 GTR TMPA Lease $13,400 22,296 Avg BLUE 4G A Yes 06/05/09 MANHEIM Regular $12,550 22,325 Avg GRAY 4G 5 Yes 06/04/09 CHICAGO Lease $13,900 22,928 Avg CHAMPGNE 4G A Yes 06/02/09 FAAO Regular $14,100 23,121 Avg BLUE 4G A Yes 05/21/09 CHICAGO Lease $11,100 23,788 Below SILVER 4G A Yes 05/15/09 MANHEIM Lease $11,500 24,104 Below BLUE 4G A Yes 06/04/09 CHICAGO Regular $13,200 24,359 Avg GRAY 4G A Yes 05/20/09 NADE Lease $11,700 25,126 Below SILVER 4G A Yes 06/05/09 MANHEIM Regular $13,800 25,133 Avg SILVER 4G A Yes 06/02/09 HATFIELD Regular $13,200 25,805 Avg Grey 4G A Yes 05/19/09 OHIO Regular $13,000 26,155 Avg BIEGE 4G A Yes 05/19/09 SO CAL Lease $11,400 26,206 Below GRAY 4G A Yes 05/29/09 NEVADA Lease $12,900 26,328 Avg BLACK 4G A Yes 05/28/09 SO CAL Lease $13,300 27,400 Avg GRAY 4G A Yes 06/03/09 KC Regular $12,200 27,658 Avg TAN 4G A Yes 06/03/09 NADE Lease $13,100 28,042 Avg WHITE 4G A Yes 06/09/09 FAAO Lease $12,600 28,165 Avg BLUE 4G A Yes 05/22/09 MANHEIM Regular $13,500 28,303 Avg GREY 4G Yes 05/28/09 GTR PHNX Regular $12,900 28,857 Avg GOLD 4G A Yes 06/05/09 LAUD/MIA Lease $13,300 29,219 Avg SILVER 4G A Yes 05/15/09 MANHEIM Lease $13,800 29,245 Avg NIGHTBLK 4G A Yes 05/26/09 FAAO Lease $14,000 29,763 Avg WHITE 4G A Yes 05/21/09 CHICAGO Lease $14,400 29,941 Above GRAY 4G A Yes 05/27/09 MINNEAP Lease $13,100 30,168 Avg BLUE 4G A Yes 05/26/09 FAAO Lease $13,400 30,251 Avg SILVER 4G A Yes 05/27/09 BUTLER Regular $13,500 30,483 Avg BLUE 4G A Yes 06/09/09 STATESVL Lease $11,900 30,905 Avg BLUE 4G A Yes 06/04/09 SO CAL Lease $13,700 30,932 Avg BLUE 4G A Yes 05/21/09 GTR TMPA Regular $12,900 31,703 Avg SILVER 4G A Yes 06/04/09 SO CAL Lease $9,300 32,360 Below BLACK 4G A No 05/19/09 STATESVL Regular $13,500 32,369 Avg BLUE 4G A Yes 05/19/09 LOUISVLL Factory $8,250 32,653 Below GREY 4G A No 05/19/09 STATESVL Regular $13,100 33,066 Avg BLUE 4G A Yes 05/22/09 MANHEIM Regular $13,400 33,444 Avg SILVER 4G A Yes 06/04/09 CHICAGO Lease $8,400 34,847 Below BLUE 4G A No 05/15/09 MANHEIM Regular $14,100 35,092 Avg WHITE 4G A Yes 05/29/09 MANHEIM Regular $12,300 35,179 Avg BROWN 4G 5 Yes 05/21/09 ATLANTA Lease $14,500 35,189 Above BLACK 4G A Yes 05/19/09 LOUISVLL Factory $13,250 35,559 Avg GREY 4G 5 Yes 06/04/09 W PALM Regular $12,500 36,081 Avg GRAY 4G A Yes 05/28/09 HOBBY Lease $12,000 36,102 Avg GOLD 4G A Yes 05/19/09 LOUISVLL Factory $13,250 36,144 Avg GREY 4G A Yes 05/21/09 CHICAGO Lease $12,700 36,606 Avg BLUE 4G A Yes 06/04/09 CHICAGO Lease $12,300 36,622 Avg WHITE 4G A Yes 05/26/09 FAAO Regular $12,950 37,726 Avg GRAY 4G A Yes 05/19/09 LOUISVLL Factory $13,000 37,788 Avg SILVER 4G A Yes 06/09/09 OHIO Regular $12,900 37,810 Avg GRAY 4G A Yes 05/19/09 LOUISVLL Factory $13,750 38,151 Avg WHITE 4G A Yes 05/26/09 FAAO Regular $11,800 39,000 Below Gray 4CY A Yes 05/20/09 DENVER Regular $13,200 39,471 Avg SILVER 4G A Yes 05/29/09 MANHEIM Lease $12,800 39,768 Avg NIGHTBLK 4G A Yes 06/09/09 FAAO Lease $13,600 39,833 Avg SILVER 4G A Yes 05/19/09 STATESVL Lease $12,200 40,321 Avg RED 4G A Yes 06/11/09 FRDKBURG Lease $12,200 40,696 Avg GOLD 4G A Yes 06/02/09 BIG H Regular $13,500 40,915 Avg BLUE 4G A Yes 05/21/09 CHICAGO Lease $13,300 41,077 Avg WHITE 4G A Yes 05/22/09 MANHEIM Regular $12,300 42,591 Avg BLACK 4G Yes 05/19/09 FAAO Regular $12,700 43,031 Avg GOLD 4G A Yes 05/27/09 NASHVILL Lease $5,000 43,224 Below BLUE 4G A No 06/11/09 166 Regular $12,600 44,759 Avg BLUE 4G A Yes 06/03/09 NASHVILL Regular $11,100 45,040 Below SILVER 4G A Yes 05/28/09 CHICAGO Lease $11,200 46,851 Below TAN 4G A Yes 05/19/09 LOUISVLL Factory $12,500 47,483 Avg MAROON 4G A Yes 05/19/09 LOUISVLL Factory $13,250 47,521 Avg BLUE 4G A Yes 06/09/09 STATESVL Regular $11,800 47,744 Below BLUE 4G A Yes 06/10/09 UTAH Regular $10,200 48,302 Below BLUE 4G 5 Yes 05/20/09 SEATTLE Regular $13,000 48,707 Avg RED 4G A Yes 06/11/09 FRDKBURG Lease $12,000 49,129 Avg DK RED 4G A Yes 06/10/09 BAY CITI Lease $11,200 49,625 Below GRAY 4G A Yes 05/21/09 FRDKBURG Lease $11,500 49,680 Below DK RED 4G A Yes 05/28/09 FRDKBURG Lease $13,200 51,830 Avg GRAY 4G A Yes 06/02/09 STATESVL Regular $13,000 52,001 Avg GRAY 4G A Yes 05/28/09 SO CAL Lease $10,200 53,205 Below BLUE 4G A Yes 05/19/09 LOUISVLL Factory $12,500 54,611 Avg BEIGE 4G A Yes 05/21/09 ATLANTA Lease $11,700 55,205 Below GRAY 4G A Yes 05/19/09 LOUISVLL Factory $10,250 55,495 Below BLACK 4G A Yes 05/15/09 MANHEIM Lease $10,000 70,459 Below GREY 4G A Yes |
13 June 2009, 06:35 AM | #30 |
"TRF" Member
Join Date: Jul 2007
Real Name: Peter
Location: Cambridge Ma
Posts: 2,331
|
My 10 cents.....
I would assume gas prices will rise as soon as the economy gets stronger, so use a price of today + 30%. With the F150 you are more at the mercy of speculators and any nut that decides to perpetrate murder and mayhem in the Middle East, or Venezuelan Marxist, or Nigerian tribal conflict, or Russian dictator Putin, etc., etc.,. Give a private sale a try. Maybe consider a late model Civic. I have recently rented a truck from Home Depot [3 times] to pick up gravel, stone dust and pavers, and each time I was able to use it for an hour and a half for $30--no surprises! I was able to get my stuff and satisfy my macho urges! Good luck, your husband sounds like a mensch!!! Bubba would not give up his truck.
__________________
Yunnoworameenmiduck |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
|
|
*Banners
Of The Month*
This space is provided to horological resources.