Anyone go through with selling their new car?

[DeltaBond]

Back when I joined this forum, it was with the question of "How do I get out from under this horrid and annoying car loan?"  Things came up needing my savings and I didn't have the cash to pay down my car to sell it when I wanted to.  I'm still driving it, and not necessarily hating that, not in any financial bind (other than just not liking loans).  So I'm curious, did anyone go through with this trade off, and how have things worked out since then?

[Ricky]

It all depends. How new is new? You could do worse than paying it off and not buying another (used) car until/if something major happens. I've learned my lesson on new cars. If it's less than 2 years old, you could significantly cut your losses by selling and "downsizing" to something much cheaper. Totally depends on the car too. Something like a Mazda 2 or Honda Fit which is cheap to begin with tend to hold their value pretty well.

I've had my new car ~4 years. I paid it off within 2 years but that doesn't really change the equation (just calculate how much remaining interest you have). It was ~$25k new and is maybe worth $14k now? That's pretty horrible, but obviously at this point it wouldn't make sense to sell and buy something cheaper since it's already 30mpg.

[DeltaBond]

I was more wanting to know if any of the others who posted on here about plans to sell their newer cars ended up doing it. 

[Ricky]

Well, frankly, it doesn't matter what others do. Does it make sense for you? Sounds to me like you're trying to gauge what other people have done to get the confidence to do it yourself.

I read the thread in reference and I would suggest that there are significant savings to be had, but try Craigslist first. If you can pay $4-5k now, get $20k for your car, and purchase something under $10k, you'll instantly have =>$5k. Whether that amount is worth it to you is up to you. Freedom from the loan may be worth it alone.

[DeltaBond]

Well, since this is a discussion thread, that for some reason you don't want to happen, I was wanting to just hear from the others if they made the transition.  My transition is happening today, so its all good, my friend :)  Hopefully no one will be put off from sharing their experience on here.

[Ricky]

Aren't we discussing? Didn't mean to derail the thread, I was just reading between the lines. Sadly (but not really), our breed of new car buyers is pretty rare to begin with around here.

[neo von retorch]

I had a new 2013 Mazda CX-5. After 2 years, with ~36k on it, I traded it in for a 2008 Honda Fit with ~57k on it. I did not have a car loan. I just felt a) the Fit was more my driving style and b) I'd rather have the money invested :)

I like the Fit, and I've found myself working on my car (and my fiancee's) now that I don't drive a new one. I saved ~$300+ on her brakes last week. When I drove a new car, I always felt the need to take it to the shop for anything.

[SnackDog]

Cars are don't have to be such terrible investments if you just drive them forever.  The only time I have sold cars is at end of life or when moving out of the country.  Paid $5,000 (four year old European sedan) for my first car and drove it regularly for 14 years until it was demolished in a hit and run.  Sold second car when a guy offered me more than twice what I paid.  It was 23 years old.  Splurged on third car for $15,000 and drove it daily for 10 years before donating it to the church for a tax write-off.

[Chesterfield]

I did this 20 years ago with my first and only NEW car. First real job, bought a new car, woo hoo - 1995 Honda. Monthly payment. Drove it for 6 months, making my payments, HATED the payments- took it to the dealer and traded it in. Got another Honda, fully paid off, with about 100K miles on it. Was not on super savings journey then , just learned that I hated having a monthly payment.
Have had 5 cars since, one of which I still have. 2000 Toyota Echo, bought with 67k miles on it in 2005, ( for around $6500) currently has 125K miles on it (2015). 2 of those other cars were for SO, we only have one car now. One we had for 10 years, also bought at about 5 yrs old with 60-70,000 miles, put another 100,000 on it.
I lost a few grand on the new car to old car trade, but I saved 40 months of payments and untold money on insurance. When you buy a car outright and have a small cushion ( over 4k) you don't get the collision insurance, you just get liability. Drive safely and all you need is liability. 2 of those cars I no longer have were "totaled" ( rear ended in stop and go traffic). Bends the frame that holds the bumper, makes the bumper, smooshe in. The driver's insurance who hit you
gives you a $2000 payment and you keep driving your "totaled car".
Sell the new car. Buy a used car outright. Drive it for 10 years. Repeat.

[Paul der Krake]

It wasn't exactly a "new" car, but this thread came to mind:

http://forum.mrmoneymustache.com/share-your-badassity/reflections-after-selling-a-pristine-lexus-sc-convertible/

But yeah, people post case studies revolving around new cars all the time, and some do bite the bullet. Overcoming the sunk cost fallacy isn't easy, but it can be done.

[DeltaBond]

Well, my venture isn't over yet.  Carmax was a bust, which seemed odd.  I walked in and there were about 20 employees lounging around doing nothing, but one came to me and they did their appraisal and it came up to $2300 LESS than the trade in value of the car.  On top of that, the young guy who did the appraisal told me that a year newer model than my car sells for $19, when they aren't even available through them, and my car sells through them for $24K.  So offering me $16K seemed basically like they didn't want my car on their lot and wanted me to leave.

So... my car will be going on craigslist, and if it doesn't sell there, I'll be headed to my old dealership who has expressed interest in offering me a much better deal... but we'll see.  I know some have had good experiences at carmax, a few haven't.  I am now in the "haven't"category, but my spirits aren't crushed just yet.  Wish me luck this week, my fellow mustachians :D

[Bicycle_B]

FWIW, I suspect dealing with dealers when selling a car is only useful to find out what price not to accept.  Private party price is better than dealer trade-in for a reason (see edmunds.com, kkb.com, etc). 

I tried shopping my car yesterday to a dealer and was not pleased.  Just did it to check, quickly had guess confirmed.  Am waiting until fall for personal reasons, but am planning to sell expensive sedan around then (at last!)...so you will be one of my pathfinders.  Good luck for sure!

[DeltaBond]

I had my car on craigslist for a while a few months ago and got no responses.  I put it up there today at a lower price, but a fair price, so we'll see.  The dealer I go to is not an ordinary car salesman or dealership, they're shockingly honest and fair within the range that they can be.  I call them Tuesday to see if they have something used I can deal with, but we'll see.  Hell, they'd at least give me trade in value for the car, that's $2300 more than carmax, ha ha

BarrettSun are you having to pay your car down to get rid of it?

[Bicycle_B]

No, it's paid off.  There is no strictly financial reason to delay the sale.

I made a commitment to friends and self that I would make some income improving moves I've been procrastinating about. I pledged to do those before selling, and intend to keep my commitment.

[DeltaBond]

Chippewa, if you don't mind sharing, waht did you do to make the car worth keeping?

[SingleMomDebt]

Because its a new(er) car 2012 = less possible mechanical problems
I did and do not have money to buy a used car. So that meant I'd be borrowing more money at a higher interest rate for a used car.
In doing so, I came out to maybe a $2-3K less difference saved (but higher interest rate, so not really)
but because I'm upside down on my loan, car dealerships want to sell you a higher priced car - something about minimizing their risk and making it worthwhile (aka, just to lock you in a long painful car payment deal that's potentially worse than the current one).

My best bet is to pay the upside down portion $5K. Save up to buy a used car $5K Sell the car to a private buyer. Buy used car.
But after all that time, I will pretty much have my car - with a useful 125K mile warranty - paid off.
So I keep it.