I did it. I traded in my truck. If you have been following my blog, you should recall that a couple of weeks ago, I wrote a post titled, Jesus rode a colt. I ride a stallion (see below). Well, I did a little more research and decided to trade my truck in for a 2007 Honda Civic. Now, like most of my friends, you are probably thinking, "Well that is not a donkey!" However, compared to the loaded SUV I was driving, it is—kinda.
First let me explain why I didn’t get a used Honda. For those that don’t know, Hondas really hold their value. So while I was looking for one that was maybe 2 or 3 three years old (I didn’t want one that was too old with too many miles for maintenance reasons), I noticed that most were within a couple of thousand dollars of a new car. Why buy a used car when you can get a new one for almost the same price?
Also, when it comes to trading in a car, you have to figure your negative equity into the total buying price. When trying to purchase a used car, while trading-in a car that has negative equity, the dealer is not as willing to negotiate prices. So, take the price of the used car, add in your negative equity, and you basically have the price of a new car. On the other hand, a dealer is more willing to negotiate prices, giving more for your trade-in and taking more off the sticker price when purchasing a new car. Thus, this is the reason why I went with a new car rather than a used one.
I am very happy with my trade. I waved good bye to my truck, and I currently hold no regrets. My new car gets 30 miles to the gallon in the city and 40 on the hwy. My truck maybe averaged 12-14 in the city and 20 on the hwy. It cost about $60 to fill up my truck and about $30 to fill up my car. My monthly car payment is lower. Insurance is lower. And I traded in my truck right before my payment and property taxes were due (YES!!!).
While my car doesn’t look like a donkey, it is more practical, not as excessive, and it will definitely help me to continue to serve my purpose in life.
Less is more.
God Bless!!!
9 comments:
I wondered whose blue car that was in the parking lot! I drive a Civic too. Go Civics!
I wish I had a civic!!!
Holly-Yes, I am now apart of the Honda Family.
April-Everytime I fill my car up, I smile.
Congrats on the smarter decision. I'm not quite sure I get how a new car is ever a better value than a used one but you got to do you.
You all should read Young, Fabulous and Broke by Suze Orman. GOOD STUFF!!!
Well Gene, I didn't want a car more than 2 years old because I didn't want one with too many miles. Take a 1-2 year old Honda Civic and add my negative equity and you get the price of a new Honda. So why not get a new one? At least that was my thinking.
I definitely understand the not wanting a car with too many miles on it. I am trading in my car next year. I am very sad. As my car and I go back like blue books and the old UL.
Why are you trading it Gene?
It has too many miles and is getting to the point where even though I don't have a car payment, the repairs average out to a car payment.
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