Help a newbie out with a trade-in

[2Xtreme21]

Hi, first post about a car in the garage forum (have posted about my sv650 a bunch of times ).

I bought my first car about a year ago (end of March 2009)-- brand new, 2008 Hyundai Tiburon GS. I kind of bought it in hesitation because the dealer offered me some incredible incentives. MSRP was around $17k and I walked off the lot paying $11.5k. It's a great car... sporty looking, zippy, comfortable... but it's only two door and I'm finding myself more and more cramped in it.

With all that said, I paid it off last week, so I own it. And aside from being egged once a month after I got it (got a buddy who details cars to touch up the paint job on the ~1 inch across spot), I've pretty much kept it in excellent shape.

Now that it's starting to get warmer out, I keep looking at the nicely clean cars on the road and salivating a little at the thought of owning one. Now I by no means make a good deal of money, but I have some disposable income left over every month (from my previous $330/mo. car payment) that I was thinking about maybe using for a new car.

If money were no object, I'd pick something like a 2010 Acura TL, or a 335i, but I know those are well out of my price range. I have my eye on a 2010 Mazda 3i sport sitting on the lot of a Mazda dealer close to me for $15,900. It's that gunmetal blue color, which I find to be incredibly sexy.

I know it's not this easy, but I'm a newbie as far as trade-in's are concerned, so this is where you experts help. KBB lists my suggest trade-in value for my Tiburon @ 25,000 miles at $11,300. Doing the math, assuming I get the KBB value and assuming no dealer incentives, I'd only have to come up with ~$5,600 with tax, etc. That's a very do-able amount in my case, since I had to initially finance $8000 for the Tiburon.

So, correct my newbie logic. I know trade-in's aren't that easy. Help me out.

Also, without divulging too much of my financial situation, that ~$330/mo. I have is AFTER I drop a good deal into savings per month. Yes, I know with my car paid off I have an extra $330/mo going into savings for that Acura TL, but I'm sure I'm not the only one here who's toyed with an idea such as this. Also, I know there's nothing wrong with my current car, and I can live my life just fine without getting a new(er) car. However, I keep thinking that every mile I put on my car and every day I keep it, it's slowly losing more and more value. If I want a new car I can be happy with for a while (e.g. be able to freaking transport people around in it in a back seat), now's the time to do it with a) a high trade-in value, and b) a still generally-deflated car market.

Thoughts? Sorry for the long post. I might add cliffs later.

 

[JulesMaximus]

List it and try to sell it yourself. Dealers will always low ball you, I wouldn't be surprised if they tell you your car is worth $8k on trade in. Personally, I don't know why you want to trade in a Hyundai for a Mazda 3. Seems kind of like a lateral move if you ask me and not one worth going into debt over.

 

[slashbinslashbash]

I agree, you will usually get a better deal doing a private sale, but it can't hurt to walk into the dealer and talk over some numbers. As long as you're willing to pay the asking price on the Mazda and don't try to talk them down, they should show some flexibility on your trade-in.

It also couldn't hurt to take your Tiburon to the nearest CarMax and get a quote on it. That's how I got rid of my '08 Silverado, and I felt their offer was reasonable.

 

[PhoKingGuy]

You're the only person on the planet that thinks the 2010 TL looks good, congrats

 

[StageLeft]

I could not possibly in good conscience give any advice about how to get rid of your car. I believe it's a monumental mistake for you. You need to become stronger and not replace it.

 

[2Xtreme21]

I could not possibly in good conscience give any advice about how to get rid of your car. I believe it's a monumental mistake for you. You need to become stronger and not replace it.

I need advice like this. Please explain? I know I'm being retarded heh...

 

[HarryLui]

Sell it yourself

 

[CraigRT]

You're not necessarily being retarded... I made some "bad" money wise purchasing decisions when it comes to cars in my past... But looking back on it, despite that... I really don't regret the bad decisions. I love cars and even though I had to get rid of my Altima before I went back to school 2 years ago and lost money on it, I still loved having it. Cars are never a good investment, you do it because you like them. As long as you don't go overboard and go beyond your means you're perfectly fine wanting and justifying a nicer car IMO.

 

[StageLeft]

I need advice like this. Please explain? I know I'm being retarded heh...

You paid off your car and for some reason already became addicted to the payment so now that it's paid off you are going to start another car payment. You have basically a new car, so to replace it is an act of pure consumerism. And that's one thing, but a Mazda 3? Come on, that's like upgrading from a civic to a corolla. Or would that be a corolla to a civic. Do you see my point? If you're going to make a stupid financial decision at least end up with something that's an upgrade. If you cannot afford a TL or 3series put your dick back in your pants for a year or two, save up money, and wait for something special.

The whole post wreaks of my younger brother who, whenever he'd get any money at all, just absolutely had to spend it come hell or high water. You could literally see the smoke coming from his pocket. He once spent $80 on fvcking habitrail for his damned hamster and I told him do not do that! He did, he regretted it. But, I am basically always right when it comes to these kinds of things. He still doesn't realize that. I'm digressing.

BTW I just looked up your car. I've looked up Tiburons before. It's amazing to me how a car that size with that amount of power can get some egregious gas mileage. I swear on my life Hyundai must have deliberately built into the thing a way for it to get worse mileage than it had to. Like, I truly think they tried.

 

[2Xtreme21]

Thanks for the hard-knock advise, Skoorb. One thing though-- my car will continue to diminish in value. Now I don't know by how much usually, but if it's enough, wouldn't simple economics tell you that selling it now for $11k is a better option than selling next year, for example, for $9k? Especially with the deflated prices of vehicles now?

Not trying to argue with you, but it's something going on in my head. And yes, a Mazda 3 isn't a major jump up, but my rationale is it's still a sporty car with better mileage and four doors-- 3 things I'd like in my next car.

 

[HarryLui]

How many months of payment will you saved?

12x$300 = $3600...

I have no problem with you buying new car every 2 years. More used car for the rest of us.

 

[Hellotalkie]

skoorb was explaining that a car isn't an investment...why are you so worried about your car depreciating? Every car depreciates; when you get that mazda3, you'll like it for a good couple months but then you're back in routine of car payments. If you had the cash straight up i would do it but if not, the tiburon isn't a bad car. I have a 2005 and I really do like it, terrible gas mileage for the size though.

 

[StageLeft]

Thanks for the hard-knock advise, Skoorb. One thing though-- my car will continue to diminish in value. Now I don't know by how much usually, but if it's enough, wouldn't simple economics tell you that selling it now for $11k is a better option than selling next year, for example, for $9k? Especially with the deflated prices of vehicles now.

No. Every non-collector vehicle loses value over time. The more expensive and newer the faster. If your car loses $2k in a year the Mazda 3 is likely to lose even more.

 

[jlee]

Thanks for the hard-knock advise, Skoorb. One thing though-- my car will continue to diminish in value. Now I don't know by how much usually, but if it's enough, wouldn't simple economics tell you that selling it now for $11k is a better option than selling next year, for example, for $9k? Especially with the deflated prices of vehicles now?

Not trying to argue with you, but it's something going on in my head. And yes, a Mazda 3 isn't a major jump up, but my rationale is it's still a sporty car with better mileage and four doors-- 3 things I'd like in my next car.

If you trade it in and buy another car now, your new car also continue to diminish in value.

 

[SearchMaster]

Yes, and your new car will depreciate much faster than your 2 year old car.

You did a great job of getting a good deal on your car upfront, and an even better job paying it off quickly. If you hate your car and really want a Mazda 3, try to do a straight up swap for a similarly aged model. Your best bet financially, BAR NONE, is to keep your car for a while and bank the amount of money you'd be making in payments and after a couple of more years, you'll be in a great position to get a better car.

Here's something to chew on: if you keep your cars for 10 years, and repair/maintain accordingly, you will have saved enough cash over your lifetime to retire 5 YEARS EARLY compared to the average time people keep cars. That's a lot of freaking money spent over a lifetime for new cars. I'm not suggesting you should keep this car 10 years if you don't like the car but it shows how much money goes up in smoke when you buy new cars regularly.

 

[soulcougher73]

Thanks for the hard-knock advise, Skoorb. One thing though-- my car will continue to diminish in value. Now I don't know by how much usually, but if it's enough, wouldn't simple economics tell you that selling it now for $11k is a better option than selling next year, for example, for $9k? Especially with the deflated prices of vehicles now?

Not trying to argue with you, but it's something going on in my head. And yes, a Mazda 3 isn't a major jump up, but my rationale is it's still a sporty car with better mileage and four doors-- 3 things I'd like in my next car.

Cars always diminih in value wether you are driving a TL or your Tiburon. I agree its only a 2 year old car with 25k miles on it. Enjoy the no car payments or as others have said if you are going to get into car payments again make it a worthwhile mistake Upgrade to something more then a lateral move.

 

[Vetterin]

If I could get $11,300 for a 2 yr old car with 25,000 miles that I paid $11,500 for I would be jumping at the opportunity.

 

[lurk3r]

Actually getting out of the 2 door hyundai is probably a good idea, there isn't much that will depreciate faster. Unfortunately your best bet for a trade in is probably another hyundai, since you will be able to beat them up more when they lowball you for the value, ask them if the new call is going to be this 'worthless' next year as well and pretend you're horrified, tell them you'll have to go get a honda quick before this car just rusts away into nothing, have some fun.

 

[Lotheron]

Actually getting out of the 2 door hyundai is probably a good idea, there isn't much that will depreciate faster. Unfortunately your best bet for a trade in is probably another hyundai, since you will be able to beat them up more when they lowball you for the value, ask them if the new call is going to be this 'worthless' next year as well and pretend you're horrified, tell them you'll have to go get a honda quick before this car just rusts away into nothing, have some fun.

No. Just .. No.


Anyway, to the OP. Each year you keep that car is $3600 in your pocket. The car is very low miles and has a 100k mile warranty anyway so it will most likely be at least a while before any repairs or needed as long as routine maintenance is kept. Save your money for something you really want.

 

[Uppsala9496]

You have a CarMax near you? If so, go in for a free appraisal. They will give you a written offer that is good for 7 days. I was surprised at the value they gave me a month ago.
Worth a shot, and will give you some leverage if you go to a dealer (you know the minimum you should get).