New Car Replacement

[dragonwalker]

I have a 2009 Honda Civic Lx with 135K miles that I currently drive about 12K year. The car functions fine but there are some cosmetic and trim issues.

My mother has a 2014 Acura RLX with 95K miles that she is looking to replace and offered to give me for free. The RLX is a full-size luxury sedan requiring premium fuel. It has leather seating inside and definitely feels nicer while driving. Gas would be much more expensive driving this car and potential maintenance would be higher.

I was considering getting a new Toyota Corolla Hybrid or Corolla Cross at the end of this year but my mother’s offer is tempting. My thinking of accepting my mother’s offer would be that I would sell my Honda and drive the Acura for another 4-5 years and replace later on down the line and sell that one. My Honda has a KBB of $5.3K and the Acura $12.3K.

If I were going to replace my existing Honda, which option makes the most financial sense? 

[six-car-habit]

 Accept Acura from Mom, get title transferred under gift exclusion rule to save $ on title transfer taxes/ registration . Trade both Acura and Honda in, towards the Corolla. That will equal a $17.6K downpayment on the Toyota, plus do not have to pay tax on that $17.6K portion when you register the Corolla.

- {These rules may not apply in your state...}

[Paper Chaser]

fueleconomy.gov estimates the Acura would cost about $850/yr more in fuel costs

https://fueleconomy.gov/feg/Find.do?action=sbs&id=25870&id=33517&#tab1

I don't think there's a bad move here. The Civic is a safe, efficient, reliable car with lots of life remaining. The Acura is fancypants, and less efficient, but would still be pretty reliable and it's free. Selling both would get you into a reasonable hybrid Toyota for very little money which is also a great choice.

[LD_TAndK]

If you're set on getting rid of the civic, the best financial decision for yourself does seem to be to take the Acura. It sounds like you also enjoy driving it. Assuming you shouldn't take the Acura and immediately sell it because it would be rude.

On the other hand, I tend to think of financials with my parents as combined "family wealth" decisions, in which case her selling the acura and you buying a corolla might be the best combined choice.

[GilesMM]

Your Honda should be good for another 100k miles easily. I would keep the more fuel efficient car. 

[Sandi_k]

fueleconomy.gov estimates the Acura would cost about $850/yr more in fuel costs

https://fueleconomy.gov/feg/Find.do?action=sbs&id=25870&id=33517&#tab1

I don't think there's a bad move here. The Civic is a safe, efficient, reliable car with lots of life remaining. The Acura is fancypants, and less efficient, but would still be pretty reliable and it's free. Selling both would get you into a reasonable hybrid Toyota for very little money which is also a great choice.

I would do the middle ground here - sell the Honda, and take the Acura. Wait a year, and then buy the Corolla hybrid, because you've realized how much more expensive the Acura is to repair and fuel up. Mom gets a nice feeling for a few months. Win-win.