Author Topic: Which car should we sell?  (Read 2222 times)

squatman

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Which car should we sell?
« on: May 20, 2014, 08:21:15 AM »
My family recently moved, and since I'll be taking public transportation to work every day we'd like to sell one of our cars. We have no idea which to sell, however, and don't even know how to go about making the decision. Our cars:

1) 2012 Honda Fit, 15k miles. Bought new (oops?), has $11.6k left on the loan at 1.49%. $292/month payments. It's in excellent condition.
2) 2006 Honda Civic, 80k miles, bought used. $9.2k left on the loan at 2.24%. $200/month payments. We've only had it for 9 months, but all signs point to it being in wonderful shape.

My wife thinks we should keep the Civic because it has a lower payment and she feels it's a superior car. I originally agreed, but now I'm leaning towards the Fit because it has so few miles on it, has better storage options for the rare times we need it, and given our driving habits (10k miles/year) we should be able to give it to our son when he learns to drive in...2027.

Is there a formula of some sort for figuring this out? Both cars have higher kbb values than the loan amounts, so there's no issues with being underwater.

stpetesean

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Re: Which car should we sell?
« Reply #1 on: May 20, 2014, 08:29:24 AM »
Keep the Fit.  Great quality car, 6 years newer and not much more money than the Civic. 

I've got a 2009 Fit with just over 125,000 miles on it, love it.

CarDude

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Re: Which car should we sell?
« Reply #2 on: May 20, 2014, 08:55:58 AM »
Keep the Civic. It's a safer and cheaper car.

BlueMR2

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Re: Which car should we sell?
« Reply #3 on: May 20, 2014, 10:07:34 AM »
If your hair's on fire, keep the Civic since it's the best immediate boost to your situation.  Otherwise keep the Fit since it should be better in the long run.

frugaliknowit

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Re: Which car should we sell?
« Reply #4 on: May 20, 2014, 10:09:20 AM »
Preferably keep the Civic, sell the Fit and pay off both car loans (minimum investment in a vehicle) or get rid of the Civic and keep the Fit and its loan.  It makes absolutely no sense to have a loan on an 8 year old car.

Thegoblinchief

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Re: Which car should we sell?
« Reply #5 on: May 20, 2014, 11:02:19 AM »
It depends on how useful the hatchback is. Some people complain about the Fit being bad/noisy in the highway.

Either one is a good choice, to be honest. Even the Civic will last a ridiculously long time unless you are in salt country. I had a twenty year old Civic that ran like a dream but the body just disintegrated.

Kyle M

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Re: Which car should we sell?
« Reply #6 on: May 20, 2014, 11:47:15 AM »
I'd say, keep the civic. It's a reliable car and you owe less.

vacman

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Re: Which car should we sell?
« Reply #7 on: May 24, 2014, 12:48:26 AM »
IMHO-Keep the fit if you can sell the civic for what you owe for the following reasons.
1- the fit has a lower interest rate (small difference) and will be paid off sooner.
2-maintenance costs will be less on the fit as it is much newer, still has warranty and much lower mileage.
3. fuel economy of the fit is better.
4. in the event things change, and you  sell the car you keep in two years, the fit will have better value at 40k miles and you will owe less ( the higher payment makes it a bit of a savings vehicle)