Bought a new car for the wife

Started by crv16, September 06, 2005, 07:36:48 AM

crv16

Rising gas prices.... grrr..

I was reviewing our auto finances last week and came to the conclusion we have been spending way too much money on cars.  Car payments, gas and insurance on our two cars (03 Civic and 03 Sienna) added up to over $1,200 per month.  Over $400 of that was gas costs.

I looked at how often we used the full capabilities of our van, and found it was not very often.  

We considered buying used - paying cash for a used fwd Volvo wagon, but when I added up the costs, like depreciation, maintenance, gas, insurance, etc. on a Volvo, it wasn't significantly less than buying a new Honda.  If no repairs were required on a Volvo over 3 years, it would have been about $4,000 cheaper to own compared to a new Honda.

We traded in our van for an 05 Accord LX 5 speed.  That will bring our car pmt and gas costs down from $600/mo with the Sienna to $400.  The 2 or 3 times a month we transport 5 people (in comfort) aren't worth $200 per month.

Anyway, I'm really happy with the new Accord.  It handles soooo nice.  Great suspension, steering and engine.  The 4 cyl is very torquey, and the tranny has a nice spread between the gears.  5th gear is really tall, which I like.  The engine turns 2250 rpm at 60 mph.  It should average 30 mpg, compared to 20 for the Sienna.

We got a real good deal on it too - only $17,040 plus 4.9% financing thru Honda.

I just ordered a trailer hitch for it so I can use it like a pickup truck too. :)  
09 Honda Accord EX-L V6
09 Subaru Forester X Premium 5 speed

BMWDave


2007 Honda S2000
OEM Hardtop, Rick's Ti Shift Knob, 17" Volk LE37ts coming soon...

cozmik

They wife gets the 5 speed?  


Since when did wifes like that exist? :rockon:


How was the trade in on the Sienna?


2006 BMW 330xi. 6 Speed, Sport Package. Gone are the RFTs! Toyo Proxes 4 in their place

crv16

QuoteThey wife gets the 5 speed?  


Since when did wifes like that exist? :rockon:


How was the trade in on the Sienna?
Yeah.  I asked if she wanted an automatic, and she said "no way".  My kind of girl.  :D  :D

So now we're back to all manual tranny cars.

Got $13,500 for the Sienna, which was in line with kbb trade in value.  

The Accord is so much more satisfying to drive than the Sienna.  Taking a quick turn in the Sienna always gave me the feeling it was going to tip over.
09 Honda Accord EX-L V6
09 Subaru Forester X Premium 5 speed

Raza

Hey man, congratulations (on the wife and the car).  It sounds like you got a really good deal.
Quis custodiet ipsos custodes?
If you can read this, you're too close


2006 BMW Z4 3.0i
http://accelerationtherapy.squarespace.com/   @accelerationdoc
Quote from: the Teuton on October 05, 2009, 03:53:18 PMIt's impossible to argue with Raza. He wins. Period. End of discussion.

Tom

Quotea quick turn in the Sienna always gave me the feeling it was going to tip over.
Hmm, the one I was in had an amost carlike ride and handled pretty well.  You must really not like other vans then.  Anyway, congrats on the good deal.  We need smaller cars around.

Run Away

Our '98 Sienna is super sensitive and tippy on center too.

If you move the wheel a bit, you can feel the weight of the van throw itself into a lean.

thewizard16

Quote
Quotea quick turn in the Sienna always gave me the feeling it was going to tip over.
Hmm, the one I was in had an amost carlike ride and handled pretty well.  You must really not like other vans then.  Anyway, congrats on the good deal.  We need smaller cars around.
Was that a new Sienna, though? I think they do a bit better than the last generation.
92 Camry XLE V6(Murdered)
99 ES 300 (Sold)
2008 Volkswagen Passat(Did not survive the winter)
2015 Lexus GS350 F-Sport
(Murdered)
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Quote from: Raza  link=topic=27909.msg1787179#msg1787179 date=1349117110You're my age.  We're getting old.  Plus, now that you're married, your life expectancy has gone way down, since you're more likely to be poisoned by your wife.

Tom

Quote
Quote
Quotea quick turn in the Sienna always gave me the feeling it was going to tip over.
Hmm, the one I was in had an amost carlike ride and handled pretty well.  You must really not like other vans then.  Anyway, congrats on the good deal.  We need smaller cars around.
Was that a new Sienna, though? I think they do a bit better than the last generation.
It must have been an 03 or 04.

ifcar

03 was the old version, 04 was the new version. Big difference.  

Lebowski

#10
I thought the whole point was you were paying too much for cars?

You sold the Sienna for $13,500 and bought an Accord for $17,00.  How does shelling out $3500 constitute a reduction in your auto related expenses?  It would take one hell of a lot of miles driven to make that up on gas.

Tom

QuoteI thought the whole point was you were paying too much for cars?

You sold the Sienna for $13,500 and bought an Accord for $17,500.  How does shelling out $4k constitute a reduction in your auto related expenses?  It would take one hell of a lot of miles driven to make that up on gas.
Long-term savings.  I assume the Accord is new and obviously the Sienna is used.

Raghavan

QuoteI thought the whole point was you were paying too much for cars?

You sold the Sienna for $13,500 and bought an Accord for $17,00.  How does shelling out $3500 constitute a reduction in your auto related expenses?  It would take one hell of a lot of miles driven to make that up on gas.
lower insurance, better gas mileage, etc.

TBR

Quote
QuoteI thought the whole point was you were paying too much for cars?

You sold the Sienna for $13,500 and bought an Accord for $17,00.  How does shelling out $3500 constitute a reduction in your auto related expenses?  It would take one hell of a lot of miles driven to make that up on gas.
lower insurance, better gas mileage, etc.
It will take a long time for lower insurance and lower fuel consumption to add up to $3500.

Raghavan

Quote
Quote
QuoteI thought the whole point was you were paying too much for cars?

You sold the Sienna for $13,500 and bought an Accord for $17,00.? How does shelling out $3500 constitute a reduction in your auto related expenses?? It would take one hell of a lot of miles driven to make that up on gas.
lower insurance, better gas mileage, etc.
It will take a long time for lower insurance and lower fuel consumption to add up to $3500.
you also get a newer car. That's worth at least a grand to some people...

TBR

Whatever, but the purchase didn't make economic sense as he is claiming. His actual expenses will be lower for the short term, but he will have to make payments for two more years. But, it is his money so if he is happy with his decision than so be it.

Raghavan

QuoteWhatever, but the purchase didn't make economic sense as he is claiming. His actual expenses will be lower for the short term, but he will have to make payments for two more years. But, it is his money so if he is happy with his decision than so be it.
i guess...

ifcar

QuoteWhatever, but the purchase didn't make economic sense as he is claiming. His actual expenses will be lower for the short term, but he will have to make payments for two more years. But, it is his money so if he is happy with his decision than so be it.
What you're missing is that it will always cost extra to trade in a used car for a new one, and it was a cost that would have to come eventually anyway.

cozmik

Quote
Quote
QuoteI thought the whole point was you were paying too much for cars?

You sold the Sienna for $13,500 and bought an Accord for $17,00.? How does shelling out $3500 constitute a reduction in your auto related expenses?? It would take one hell of a lot of miles driven to make that up on gas.
lower insurance, better gas mileage, etc.
It will take a long time for lower insurance and lower fuel consumption to add up to $3500.
We don't know how much he owed on the Sienna though. If it was paid off, or he owed less than 10 grand on it, then he made off well.


2006 BMW 330xi. 6 Speed, Sport Package. Gone are the RFTs! Toyo Proxes 4 in their place

crv16

Even if one has no car payments, there still is a "cost", which is depreciation.

If I kept the 2003 Sienna, I would still have these expenses over the next three years:

Depreciation:  $6,500 (from edmunds TCO figures for yrs 3-5)
Gas:  $8,100  (18k per year, 20mpg, $3.00 per gal.)
Maintenance:  $1,000
Repairs:  $500
Interest: $800 (already paid the bulk of the interest on the car loan)



Same costs on the 2005 Accord LX:

Depreciation: $6,700 (from edmunds TCO figures for yrs 1-3)
Gas: $5,400 (18k per year, 30mpg, $3.00 per gal.)
Maintenance:  $600 (should need less maint. than sienna since everything is new)
Repairs:  $0 (under warranty)
Interest: $1662

So, in terms of absolute costs, keeping the Sienna for 3 more years would have cost me $16,900, compared to $13,362 for the new Accord.  In terms of monthly cashflow, the accord is costing me over $200 per month less.
09 Honda Accord EX-L V6
09 Subaru Forester X Premium 5 speed

Raza

Quis custodiet ipsos custodes?
If you can read this, you're too close


2006 BMW Z4 3.0i
http://accelerationtherapy.squarespace.com/   @accelerationdoc
Quote from: the Teuton on October 05, 2009, 03:53:18 PMIt's impossible to argue with Raza. He wins. Period. End of discussion.

TBR

Quote
QuoteWhatever, but the purchase didn't make economic sense as he is claiming. His actual expenses will be lower for the short term, but he will have to make payments for two more years. But, it is his money so if he is happy with his decision than so be it.
What you're missing is that it will always cost extra to trade in a used car for a new one, and it was a cost that would have to come eventually anyway.
Good point, though if he was really worried about money he should have gotten a used Accord.

crv16

Quote
Quote
QuoteWhatever, but the purchase didn't make economic sense as he is claiming. His actual expenses will be lower for the short term, but he will have to make payments for two more years. But, it is his money so if he is happy with his decision than so be it.
What you're missing is that it will always cost extra to trade in a used car for a new one, and it was a cost that would have to come eventually anyway.
Good point, though if he was really worried about money he should have gotten a used Accord.
I looked at used Accords, and they are just so damn expensive that it didn't make sense to buy one.  

Here's an 03 Accord LX manual, with 64k miles, for $13,900
03 Accord

It's only 3,100 less than what I paid for mine.  I'd consider it if it cost in the neighborhood of 10 grand, but they just sell for so much more than that.

09 Honda Accord EX-L V6
09 Subaru Forester X Premium 5 speed

TBR

Another good point, I guess you really did know what you were doing ;)

ifcar

crv16 strikes me as someone who always thinks extremely carefully through everything. That's why his post count is relatively low, he does a cost-benefit analysis study of every oppurtunity to make comment. :D

mazda6er

Only rape victims should by used Hondas. Anyone else would feel violated.
--Mark
Quote from: R-inge on March 26, 2007, 06:26:46 PMMy dad used to rent Samurai.  He loves them good.

Co-President of the I Fought the Tree and the Tree Won Club | Official Spokesman of the"I survived the Volvo S80 thread" club
I had myself fooled into needing you, did I fool you too? -- Barenaked Ladies | Say it ain't so...your drug is a heart breaker -- Weezer

Run Away

Not if you're smart and know where to get them.

mazda6er

QuoteNot if you're smart and know where to get them.
lol. Good smiley.  :D  
--Mark
Quote from: R-inge on March 26, 2007, 06:26:46 PMMy dad used to rent Samurai.  He loves them good.

Co-President of the I Fought the Tree and the Tree Won Club | Official Spokesman of the"I survived the Volvo S80 thread" club
I had myself fooled into needing you, did I fool you too? -- Barenaked Ladies | Say it ain't so...your drug is a heart breaker -- Weezer

Raza

QuoteNot if you're smart and know where to get them.
Junkyard Preludes don't count ;)
Quis custodiet ipsos custodes?
If you can read this, you're too close


2006 BMW Z4 3.0i
http://accelerationtherapy.squarespace.com/   @accelerationdoc
Quote from: the Teuton on October 05, 2009, 03:53:18 PMIt's impossible to argue with Raza. He wins. Period. End of discussion.

Run Away

#29
Quote
QuoteNot if you're smart and know where to get them.
Junkyard Preludes don't count ;)

Don't count as what?