Author Topic: Sell Current Car or Keep it  (Read 3695 times)

Broadway2019

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Sell Current Car or Keep it
« on: May 13, 2017, 06:11:26 PM »
So I made the mistake of buying a 2015 Subaru Outback Loaded w/ crash detection (eyesight). Needless to say this cost me $36k and I financed it. I can make the payments and have no trouble except now I realize I should be investing that money instead of paying down a vehicle. I owe $26k on it still and most dealers are giving around $24k for the car.

Should I keep it longer and just pay it off? Or should I eat the difference and buy a $10-15k vehicle? My thought is I paid most of the depreciation so there will not be much in the coming years.

Blackeagle

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Re: Sell Current Car or Keep it
« Reply #1 on: May 13, 2017, 06:23:27 PM »
What's the mileage difference (expected lifetime) between your Outback and the used cars you could get for $10-15k?  Do you drive enough to use up that mileage during the useful life of the car?

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #2 on: May 13, 2017, 06:26:44 PM »
I have 27k on the Subaru and the cars I have been looking at are around 80k. I put about 10k miles a year on currently.

Blackeagle

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Re: Sell Current Car or Keep it
« Reply #3 on: May 13, 2017, 06:29:52 PM »
I have 27k on the Subaru and the cars I have been looking at are around 80k. I put about 10k miles a year on currently.

Well, on one hand, 10k  miles per year means you can probably buy a car with 80k miles and get good use out of it.

On the flip side, 80k miles seems kind of high for a $10-15,000 used car.  My last vehicle purchase was a 2-year old Ford Escape (2wd) with 27k on it for $16,000.  What sort of cars are you looking at where you're seeing 80k miles for $10-15,000?

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #4 on: May 13, 2017, 06:32:19 PM »
I am looking at another Subaru, probably a 2009-2011 Tribeca. I want to stay with an SUV or crossover and AWD. Besides, Subaru's drive well and last a long time.

Blackeagle

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Re: Sell Current Car or Keep it
« Reply #5 on: May 13, 2017, 06:39:38 PM »
I am looking at another Subaru, probably a 2009-2011 Tribeca. I want to stay with an SUV or crossover and AWD. Besides, Subaru's drive well and last a long time.

They do, which means they hold their value pretty well.  This is a good thing if you buy new, but it makes buying used more expensive.  If you're intent on going with a Subaru it may make sense to stick with the one you've got.  If you're willing to look at other used cars (that have depreciated faster) then you may be able to find a better deal.

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #6 on: May 13, 2017, 06:46:42 PM »
I was also looking at Acura SUVs mainly because I hear they hold up well. In addition, the 2008-2010 models look almost the same as newer models today since they have not changed them. The toyota rav4's and honda crvs are quite expensive for what you get. I have not looked at fords because I had a bad experience prior.

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #7 on: May 18, 2017, 12:42:23 PM »
Anyone else have any input or thoughts? I keep going back and forth on what to do.

marielle

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Re: Sell Current Car or Keep it
« Reply #8 on: May 18, 2017, 01:09:26 PM »
Don't get a Tribeca. The gas mileage is awful compared to the Outback!

Why do you need an SUV? That's the main reason any of these cars are costing you so much. Can you get away with a mini van or full size sedan? Plus snow tires? Do you go off-roading or something?

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #9 on: May 18, 2017, 01:23:59 PM »
Sometimes we take road trips and such and enjoy a bigger vehicle - My fiance has a Mazda 3. Also, I have a 70 pound dog I travel with sometimes. In addition, we are thinking of having kids soon. I could go down to a honda crv or something similiar. I really just do not want a small car- I hate driving in the mazda 3.


marielle

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Re: Sell Current Car or Keep it
« Reply #10 on: May 18, 2017, 01:35:20 PM »
Sounds like a mini-van is perfect for your needs! Like a Mazda 5 or similar, though I think that's on the smaller side of mini vans. You'd get better gas mileage and better reliability compared to an SUV. All wheel drive has more parts so more potential for failure. Honda Odysseys also seem pretty popular around the forum. You can find one for under $10k easily.

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #11 on: May 18, 2017, 01:47:46 PM »
I will definitely look into the Mazda CX-5. Thank you for the suggestion! So would you recommend I sell my current vehicle then? That's really what I am debating. It could easily last another 10-15 years and was bought brand new. In addition, I feel I already paid the depreciation so on one hand maybe I should just keep it. On the other, I could easily get a cheaper vehicle and pocket $10k.

marielle

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Re: Sell Current Car or Keep it
« Reply #12 on: May 18, 2017, 02:15:46 PM »
The Mazda CX-5 is an SUV, I was referring to the 6 passenger Mazda 5 minivan. I don't know anything about either car, I was just throwing out an example of a minivan that is fairly popular. If you still owe 26k I wouldn't say that you've paid for most of the depreciation, one day the car will only be worth $5000. It's your call weather the fancy features are worth the extra $15k+. Personally I think a used van that you buy for $10k or so will last you just as long as this car but obviously there are a lot of variables.

405programmer

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Re: Sell Current Car or Keep it
« Reply #13 on: May 18, 2017, 04:44:56 PM »
Mini vans are great because they have fallen out of favor in pop culture. That means you can buy a reliable mini van dirt cheap!

I've heard the Mazda 5 drives great as well if you're looking for a car that is somewhat fun to drive. I heard the manual transmission Mazda 5 is more fun to drive than most sedans.

nick663

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Re: Sell Current Car or Keep it
« Reply #14 on: May 18, 2017, 04:56:34 PM »
The Mazda CX-5 is an SUV, I was referring to the 6 passenger Mazda 5 minivan. I don't know anything about either car, I was just throwing out an example of a minivan that is fairly popular. If you still owe 26k I wouldn't say that you've paid for most of the depreciation, one day the car will only be worth $5000. It's your call weather the fancy features are worth the extra $15k+. Personally I think a used van that you buy for $10k or so will last you just as long as this car but obviously there are a lot of variables.
I wanted to fact check that last statement because I didn't believe it was realistic.  Found a 2014 Mazda5 with 41k miles for 10k in Chicago.

Good tip.

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #15 on: May 18, 2017, 07:06:37 PM »
I honestly do not think I will drive a mini van, but thank you for the tips. Maybe in 10 years it will be a good option. Sometimes I wonder if this site is not for me.

Jaayse

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Re: Sell Current Car or Keep it
« Reply #16 on: May 18, 2017, 08:20:10 PM »
kwarden13, this site is for anyone who is interested in making smarter financial decisions... now, that doesn't mean you have to dive in 100% head first, but you will get advice to that effect.  So take that into account.

However, even if you make one change for the better, it is a step in the right direction, and we will applaud you and encourage you.  Remember, Rome wasn't built in a day.

Best of luck!

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #17 on: May 23, 2017, 06:52:47 PM »
Okay so I have given up the idea that awd is a must. I am considering a Toyota RAV4 or a Hyundai Sonota. I have driven both these vehicles and like them. The Toyota is much more reliable but more expensive.. Right now, the vehicle specifics are:

2013 Toyota RAV4 w/ 45k miles - $16k otd  ( maybe 1-2k cheaper)
2014 Hyundai Sonota certified with 45k miles - $11-12k otd
2012-2015 mazda6 - still researching

Also, right now I listed my Subaru on Craigslist and cars.com for what I owe. Hoping to get some bites. Dealers offered $24k and I owe $26k.

405programmer

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Re: Sell Current Car or Keep it
« Reply #18 on: May 24, 2017, 10:37:09 AM »
Okay backing down from the mini van advice (for now anyway), what else do you need your car to do? If solely for transporting yourself never buy an SUV. You have to carry all of the extra weight of an SUV ruining your MPG and also have to buy more expensive tires / brakes / etc because all of these things have to be designed to carry the larger car and additional passengers.

If on the other hand you do often travel with a group or go camping then an SUV could be more easily justified. Do you often carry dogs? Kids? Large packages?

What I'm getting at is a lot of people today prefer sitting a little higher in their cars and don't take the time to think about what that means for their bottom line. Often times sitting higher only creates a false sense of visibility (thus security) and people use this secure feeling to be more distracted by texting and driving. Definitely don't let yourself think you're the only person who can safely text and drive. ;)

So definitely get the car YOU want. This forum is a great place to challenge any of your preconceived ideas about finances and life's big purchases. You definitely don't need to be an extreme frugal hermit but you shouldn't go around throwing $100's in the air just because math is hard sometimes!

 

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #19 on: May 26, 2017, 07:44:43 AM »
I went car shopping today and test drove a 2014 Toyota Camry and a Subaru Legacy just to see how a sedan would feel. I actually liked them both. However, the Subaru Legacy did seem to drive much better and it felt just like my Outback. So the one I drove was a 2014 Certified Subaru Legacy base model w/ 50k miles. The vehicle comes to $15k out the door including my trade in, which is a 2015 Subaru Outback Limited w/ eyesight where I owe $26k. Based on the KBB, I think this is a good deal.

The dealer fee was $299, no tax because I was trading in a more expensive vehicle, and then just tag/title.

Thoughts?

405programmer

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Re: Sell Current Car or Keep it
« Reply #20 on: May 26, 2017, 12:32:22 PM »
Awesome! That sounds like a much more reasonable car than your current outback.

You're the one that has to drive it so the choice is always yours, but at least one stranger on the internet approves!

I don't know if you've already done this, but if you're financing the $15k make sure to double check that your current bank or credit union doesn't have a better rate than the dealership. Never hurts to call and ask!

Broadway2019

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Re: Sell Current Car or Keep it
« Reply #21 on: May 27, 2017, 08:01:24 PM »
Awesome! That sounds like a much more reasonable car than your current outback.

You're the one that has to drive it so the choice is always yours, but at least one stranger on the internet approves!

I don't know if you've already done this, but if you're financing the $15k make sure to double check that your current bank or credit union doesn't have a better rate than the dealership. Never hurts to call and ask!
So I went to look at the 2014 Subaru Legacy I had my eye on and it did not drive well so I did not purchase that one. Something felt off. Anyways, I test drove another 2014 Subaru Legacy and loved it, however, it had 88k miles on it and they were asking $14k. It had crash detection, leather, and nav though. It was actually $1k less than the other one, however, obviously more miles. Also, they give a 12 month/12,000 mile warranty.

Wondering if buying a vehicle with that high of mileage would be a mistake?
« Last Edit: May 28, 2017, 03:54:19 PM by kwarden13 »

the_fixer

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Re: Sell Current Car or Keep it
« Reply #22 on: May 28, 2017, 05:08:41 PM »
Nevermind
« Last Edit: May 28, 2017, 05:27:13 PM by the_fixer »