Author Topic: Should I trade in my Subaru for a Honda?  (Read 3446 times)

I_hate_haggling

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Should I trade in my Subaru for a Honda?
« on: September 01, 2014, 03:18:46 PM »
I have a 2011 Subaru impreza that gets about 24 mpg. I could trade it in for a 2012 Honda civic and lose about 5k value in the car itself, but begin getting 32 mpg. I don't drive a lot (15 minute commute to work, 40 minute commute home), and rarely does my driving benefit from the 4wd of my Subaru.
I also have an extended warranty on my Subaru that I will get back if I do not use it for the lifetime of the warranty (I think it's worth a couple grand). I will (mostly) lose it off I trade in the car, it's worth a couple k.
Obviously, in hindsight, it's obvious that I should have just gotten a civic or similar vehicle to begin with, and opted out of the extended warranty, but I caved to my husband desire for a nice sporty car and heated seats.
Next time I need a car (15+ years hopefully) I will get the more practical option, but for now will I save enough on gas to make trading in the car worth it?

tyd450

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Re: Should I trade in my Subaru for a Honda?
« Reply #1 on: September 01, 2014, 04:40:44 PM »
If you don't drive a lot I don't think you will make up the $5k over the life of the honda.  I would just keep the Subaru.

Reddleman

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Re: Should I trade in my Subaru for a Honda?
« Reply #2 on: September 01, 2014, 05:15:23 PM »
I agree.  When you don't drive that much the much larger cost of a car is reliability and repairs- gas becomes a relatively minor expense. 

I drove a 98 Cherokee for years, even though it got 19mpg on a good day.  I only drove about 2000 mi. a year.  At that rate it's more about what car does fine sitting for extended periods of time while I biked to work. 

Luckily it was built like a tractor, so I spent pretty much nothing on repairs- so it was actually a good option.

As for Subaru vs. Honda- both of the ones you're looking at have similar reliability- so enjoy the heated seats.

DarinC

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Re: Should I trade in my Subaru for a Honda?
« Reply #3 on: September 01, 2014, 05:59:41 PM »
That depends on how much you drive over the life of the car. It's pretty straightforward to calculate.

miles/mpgcar1-miles/mpgcar2=extra cost of car/price of gas

Given your situation, if you expect to drive more than ~125k miles, get the Civic. Less than ~125k, you'll come out ahead keeping the Subi.

Bateaux

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Re: Should I trade in my Subaru for a Honda?
« Reply #4 on: September 01, 2014, 07:45:05 PM »
Keep the Subaru.   Nothing wrong with a Honda, just not a Subaru.

alsoknownasDean

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Re: Should I trade in my Subaru for a Honda?
« Reply #5 on: September 02, 2014, 01:54:20 AM »
If you're actually spending another $5000 as part of the change, then no. If you're able to free up a significant amount of capital (such as if changing it for a 2005 Civic rather than a 2012), then go for it.

Think about it, if you invest the $5000, you might make enough in returns to cover the extra gas anyway.

If the Civic is $5000 more than the Subaru, and it uses 32mpg, whilst the Subaru uses 24mpg. Let's assume that your post-tax investment returns are 7% and you drive 9600miles a year. If you keep the Subaru and invest the $5000, you'd earn $350 on that investment, whilst using 100 gallons of extra fuel. If fuel's $3.50 a gallon, all else being equal, it's pretty much line ball.
« Last Edit: September 02, 2014, 02:50:30 AM by alsoknownasDean »

RapmasterD

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Re: Should I trade in my Subaru for a Honda?
« Reply #6 on: September 03, 2014, 02:26:01 PM »
Keep the Subaru....but then don't ever buy another one....says the guy who has owned a Subaru for 14+ years. They're simply more quirky than Toyotas and Hondas.