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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Kaplin261 on April 17, 2015, 08:16:19 AM

Title: Sell or keep my 2011 Hyundai accent?
Post by: Kaplin261 on April 17, 2015, 08:16:19 AM
I currently own a 2011 Hyundai Accent hatchback that I baught brand new at the end of 2010 for $8,999 from the Hyundai dealer. Ithas 75k miles on it and that leaves me with 25k more miles for the power train warranty.

The little car has been great with no problems till recently, one of the coil packs went out and I replaced all four and it ended up costing me 3 hours of work and $75(includes time sourcing parts). I also had the window hand crank brake inside the door, that also costed me 4 hours of my time plus $90 for parts. Over the weekend I was driving and heard a loud clunk sound and the followed with a exhaust leak and a loss of power. I took it to the dealer and the dealer found the problem . the catalytic converter and exhaust manifold were completey rusted and came apart. The dealer had to order the parts and it was covered under the warranty.  So this is three problems in the last 4 months. I'm worried that this is what is in the future for this super cheap car.

I can sell the car for $5,500 and that would be a depreciation of $3,500 for 4 years of driving and it got great gas milage. Making it probably almost the cheapest way to commute with a car.

Now that the car is plagued with repairs is it cheaper to buy a new accent and keep selling every 4 years? I haven't priced a 2015 accent yet, I'm thinking I won't get one for $9k new again.
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: The Beacon on April 17, 2015, 09:06:58 AM
>>$3,500 for 4 years of driving
This is good. But none of the issues you had was big.  They were all tear and wear.  I have a 2005 CRV, the water pump and one of the window regulars went 2 years ago.  It cost me 1000 dollars to fix them.  The car has been good ever since. I would dump a car only when either the motor or transmission is gone.
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: Kaplin261 on April 17, 2015, 09:09:36 AM
4/$3500 is $875 a year to own this car

Depreciation should not be as much now but I speculate it will continue to depreciate $500 a year now. Now add in the cost for repairs and high milage maintenance. This will probably be $1300 a year.

There is no interest paid I have more then enough funds to buy any car I want within reason, how ever it would be money not earning interest.

Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: The Beacon on April 17, 2015, 09:30:34 AM
4/$3500 is $875 a year to own this car

Depreciation should not be as much now but I speculate it will continue to depreciate $500 a year now. Now add in the cost for repairs and high milage maintenance. This will probably be $1300 a year.

There is no interest paid I have more then enough funds to buy any car I want within reason, how ever it would be money not earning interest.

I have another 10 year old Nissan i bought new. Total cost of repairs and maintenance so far is 2000 dollars inclusive. That is 200 dollars a year average. I will keep it at least 3-5 more years when I FIRE. Then I will reduce it to just one car.

The money you put into a new car would generate passive income for you. That is the cost you need to think about. There is a lot of life left in your Accent.  If you are on this board and your car is not over 200k when you want to dump it, then you perhaps need to think about it.

 
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: Kaplin261 on April 17, 2015, 09:38:30 AM
$13500 is the price on a new base model accent. The old accent had about %40 depreciation rate over 4 years. If %40 is true depreciation for all new accents then the cost to own the 2015 would be about $5500.

5500/4 is $1375 a year to own the car for four years.  And has better gas milage.

So it looks like the new car is a better finicial deal, plus it will not cause a disruption while commuting.
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: Kaplin261 on April 17, 2015, 09:56:22 AM
4/$3500 is $875 a year to own this car

Depreciation should not be as much now but I speculate it will continue to depreciate $500 a year now. Now add in the cost for repairs and high milage maintenance. This will probably be $1300 a year.

There is no interest paid I have more then enough funds to buy any car I want within reason, how ever it would be money not earning interest.

I have another 10 year old Nissan i bought new. Total cost of repairs and maintenance so far is 2000 dollars inclusive. That is 200 dollars a year average. I will keep it at least 3-5 more years when I FIRE. Then I will reduce it to just one car.

The money you put into a new car would generate passive income for you. That is the cost you need to think about. There is a lot of life left in your Accent.  If you are on this board and your car is not over 200k when you want to dump it, then you perhaps need to think about it.
What is the fair market value of your car now and what did you pay for it ten years ago?
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: The_Crustache on April 17, 2015, 03:15:16 PM
A lot of people have been talking about RelayRides here.
Have you considered keeping the car for that, while replacing it, or biking?

Do a quick google search, and look into some common problems with your model of car, or ask the service guys at the dealership, and that might give you a better idea of whether to replace it or not.
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: Sofa King on April 17, 2015, 10:32:06 PM
I have the same car, same model year also got it in 2010. I love this car and it is fun to drive!  2 of the ignition coils went a few months ago and was covered under warranty but besides that only regular maintenance and trouble free for the last 5 years! I will be keeping this car until it dies which I hope it anywhere past 200,000 miles!!
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: Exflyboy on April 18, 2015, 09:59:15 AM
Definitely keep it.

You have a few minor problems and the only expensive one was covered under warranty. Those motors are good for 200k miles, sure one or two things might go wrong but heck otherwise you got a solid little motor there!
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: The Beacon on April 18, 2015, 02:37:15 PM
What is the fair market value of your car now and what did you pay for it ten years ago?

I paid 20,000 out of door.  It is worth 6000-7000 now because I only have 70,000 miles on that car.  If it had 150k miles , it would still have 100k miles of life left in it. Nowadays, if you treat your car well, it will serve you for a very long time.

Mathematically speaking, keep your car.  Think about the money you put in this new car might generate 8% a year for you in the long run.
Title: Re: Sell or keep my 2011 Hyundai accent?
Post by: Davids on April 18, 2015, 03:06:47 PM
Do not sell it. You have had a couple minor problems that cost $165.00 and one that was covered under warranty. All part of wear and tear. I do not see a need to sell it. Hyundai is a great car and they will last a long time. My mom has a 2004 Hyundai Elantra and it is going quite strong.