Need Opinions on Dilemma

Some of you might remember a couple weeks ago I was the recipient of a Solstice GXP company car. I'll have this car for the next 2 years. After that, I'm not sure what will happen, as it was given to me as a bonus for personal use, not for business use. Last fall I bought a new Honda Accord EX-L V-6 coupe (yeah, I know. I needed a dead reliable daily driver, nothing more). Thing is, it hasn't moved since I got the solstice, but I'm still making rather big car payments on it. My original plan was to keep the Accord 10 years, which is when my kids will hopefully be out of college. So here's the dilemma: I have two (or more) options. One, I can keep the Accord, in which case it will be much more capable of lasting that 10 years. Or two, I could sell the Accord, take about a $2000 loss on it, invest the money saved, but may have to buy another car in two years. My decision will be 100% financially motivated, but so far I haven't been able to determine which way will be the most economical. Anyone care to offer an opinion?

I guess you could look at the free use of the Solstice as an offsetting factor for that $2K hit you'd take on the Accord. That's one way to look at it.

However, I doubt that Accord is going to spoil by being on deck for the next couple of years and if you don't mind making the payments...it'll probably be waiting for you then.

Sorry...I'm not much help, mostly because I don't have much experience owning anything within 10 years of new.

Clem

Dump the Accord fast. The only downside is the initial depreciation hit. The upside is, it sin't gettign any more valuable, you can invest the money now while the market is cheap and you stand to make more money, you have the added flexibility of not having your capitol tied up in something that isn't giving you any benefit, and you can always buy another new car. You will also need to set aside a chunk of money each month to pay for the tax hit of the extra income that the 'free' car represents.

Oh, you could also use the Accord money to buy a race car!

always get your capital out of a car in a situation like this, if it were a really old used car and you were sentimentally attached then that's one thing, but payments on a new car, get rid of it, save your money...

That "company car" could be gone at any time. I would hang on to the Honda.

but, that's just me.

dump the accord. how much is the insurance and payment each month? will 3-4 months cover the $2000 loss?

you can always pick up another one. better yet, get an old Datsun for grins.

In spite of the fact that I insist upon having at least one Honda in the fleet at all times, I have to vote for "Dump the Accord" for all of the above reasons.

As a bonus, I can add the the following:

In the early fall of 98, I thought that my 89 Civic Si had finally bitten the dust, so I bought one of the first 99 Civics to arrive at the dealership. I parked the 89 and drove the 99 for a few thousand miles, but I just never fell in love with it. Months later, I finally solved the electrical problem with the 89 and I pretty much drove that daily for about 14 months.

In June of 2000, I was flipping through KKB or Edmunds and looked up the value of my 99. Since I had bought it early, got a good deal, and there had been several price increases over the course of the model year, I discovered that my spotless 99 Civic with 11,000 miles on it was in the book for about $800 less than what I had paid for it. I knew it would be hard to sell a year-old used car, so I went to a couple of Honda dealers, talked to the used car managers and the second one bought the car from me. It was perfect for the customer who just couldn't quite swing the price of a new car.

It was my most pleasant experience at a dealership ever. I rid myself of a nice car that I didn't want, they handled all the paperwork without any hassles and cut me a bank check immediately.

Later that day, I bought my first Miata.

stumpmj wrote: Dump the Accord fast. The only downside is the initial depreciation hit. The upside is, it sin't gettign any more valuable, you can invest the money now while the market is cheap and you stand to make more money, you have the added flexibility of not having your capitol tied up in something that isn't giving you any benefit, and you can always buy another new car. You will also need to set aside a chunk of money each month to pay for the tax hit of the extra income that the 'free' car represents. Oh, you could also use the Accord money to buy a race car!

Actually, my boss is paying the tax for me. But you make some good points to think about. Thanks!

EricM wrote: That "company car" *could* be gone at any time. I would hang on to the Honda. but, that's just me.

I have 9 vehicles, so I would still have a backup. One of those vehicles is an old truck that I use frequently. If I sell the Accord, I will also sell the truck and buy a better used truck to replace both, so in addition to my other cars, I'll have that as a backup.

pete240z wrote: dump the accord. how much is the insurance and payment each month? will 3-4 months cover the $2000 loss? you can always pick up another one. better yet, get an old Datsun for grins.

I wasn't even thinking about insurance. This car runs $28/month, so it would take a bit longer to recoup the two grand, but it seems to me that although the car would hold it's value better than if I was using it, and Accords in general hold their value pretty well, my loss down the line would be more than my loss now, since it WILL depreciate. You guys are really helping me make this decision. Although I still need to actually sell it.

Woody wrote: In spite of the fact that I insist upon having at least one Honda in the fleet at all times, I have to vote for "Dump the Accord" for all of the above reasons. As a bonus, I can add the the following: In the early fall of 98, I thought that my 89 Civic Si had finally bitten the dust, so I bought one of the first 99 Civics to arrive at the dealership. I parked the 89 and drove the 99 for a few thousand miles, but I just never fell in love with it. Months later, I finally solved the electrical problem with the 89 and I pretty much drove that daily for about 14 months.

That's kind of funny. I have both a '89 and '90 Civic si. I love those cars. I bought the Accord partly because I thought the '90 civic that had been my dd was getting too old. The Accord is really nice, but also really doesn't do anything for me as an enthusiast. That was the plan, as I didn't need another car I would be tempted to modify. After the gas prices went up, I started driving the Civic sometimes to save gas, and realized I still loved it. So if I sell the Accord, the Civic will be my backup car for the Solstice, and I'm pretty sure I'll have to drive it a few times this winter when the solstice won't go through the snow. Those '89-'91 Civic si's were pretty special cars, if you ask me.

bravenrace wrote:

Woody wrote: In spite of the fact that I insist upon having at least one Honda in the fleet at all times, I have to vote for "Dump the Accord" for all of the above reasons. As a bonus, I can add the the following: In the early fall of 98, I thought that my 89 Civic Si had finally bitten the dust, so I bought one of the first 99 Civics to arrive at the dealership. I parked the 89 and drove the 99 for a few thousand miles, but I just never fell in love with it. Months later, I finally solved the electrical problem with the 89 and I pretty much drove that daily for about 14 months.

That's kind of funny. I have both a '89 and '90 Civic si. I love those cars. I bought the Accord partly because I thought the '90 civic that had been my dd was getting too old. The Accord is really nice, but also really doesn't do anything for me as an enthusiast. That was the plan, as I didn't need another car I would be tempted to modify. After the gas prices went up, I started driving the Civic sometimes to save gas, and realized I still loved it. So if I sell the Accord, the Civic will be my backup car for the Solstice, and I'm pretty sure I'll have to drive it a few times this winter when the solstice won't go through the snow. Those '89-'91 Civic si's were pretty special cars, if you ask me.

Okay, I just noticed your avatar and the parallels are starting to get spooky.

I bought the 89 Civic Si new and eventually put 300,000 miles on it. Best Car Ever. At the time that it started giving me trouble (around 240k) I also had a 65 Mustang fastback.

I am fairly certain that I am the only person in history who was forced to drive a 65 Mustang to work because he couldn't keep a Honda running.

One more thought: Trade the Honda in on a truck. Trucks aren't selling, so they're heavily discounted and dealers love having used Accords on the lot. That's probably your best move financially, as you would only have to pay tax on the difference between the two, which would be minimal.

That is spooky. Do you still have the '65 Mustang? If so, shoot me some pics.
I've been tempted to get a new truck, but really I can find what I need for around $7-8k. And I use a truck like a truck, meaning it will get beat up a little, so I don't really want to have something so nice I have to worry about it.

9 vehicles? Dump the accord. If it was the only other car you had, I say keep it, as it is nice to have a back up.

9 vehicles.....I hate you. I officially hate you. I mean your boss gave you a solstice gxp. I know you have earned them....but jeez my boss bought me a beer to show me his appreciation, not a car.

Don't hate me too much. Most of them aren't very nice, are half restored, or are boring.

bravenrace wrote: That is spooky. Do you still have the '65 Mustang? If so, shoot me some pics. I've been tempted to get a new truck, but really I can find what I need for around $7-8k. And I use a truck like a truck, meaning it will get beat up a little, so I don't really want to have something so nice I have to worry about it.

I had a 65 coupe in high school, sold it in college and then bought the fastback when I finally got a real job. I've loved early Mustangs since I was 5, but after building the Mustang to Shelby specs (but NOT a clone!), I was disappointed that I was still having more fun with the Civic Si. It sure did look good, though. I sold it and bought a new WRX. No regrets.

Actually, it should be easy to sell the Accord if that's the way you decide to go. Just be truthful in the ad. Your company issued you a car so you don't need the Accord anymore. That will dispel the usual reasons for selling a relatively new (now TWO model years old) car:

1. You're so buried in the car loan you can't afford it anymore.
2. It's a lemon.

People will look at it as a chance to buy a late-model well maintained car without absorbing the depreciation hit you took as the original owner. Hell, I'd buy it if I had the money.

Woody's idea of selling it back to a dealer is a great way to get a better price for a car than trading it in. Or one can trade a car knowing the value is set. Unfortunately you're not looking to wholesale this car so it doesn't apply in this instance.

sell accord

invest money make $

Wamu now JP morgan is selling 1 year 5% CD's.... backed by fdic

do some math for $15k you will make 750 a year letting it sit in there. (comounded yearly but with monthly compounding you will do slightly better) so 2-3 years of sitting in there and you've got your $2k back

Okay, I'm a little confused. A couple have mentioned selling my car to a dealer. Are you saying that a dealer may give me more for the car than a private owner? I've never heard of that before, although I've never looked into selling a car to a dealer either. Can someone explain?