8th Generation Honda Civic Forum banner
1 - 17 of 17 Posts

·
Registered
Joined
·
5 Posts
Discussion Starter · #1 ·
I test drove a GG 2008 LX Civic 5-speed today and really liked it. The internet sales manager quoted me roughly $16,800 OTD price...does this sound like a fair deal??? The only problem here is my trade...I am getting ripped hard, but I kind of expected to take a little loss but it was more than I was planning. I would be trading in a 2006 Dodge Magnum SXT...which new was roughly $25,000...I owe about 15.5k on it and could only get 11.5k on trade in...talk about depreciation...lol. So I would be taking the hit for 4 grand...sounds rough, but I am even more worried about what the value will look like in 6 months to a year if I wait. I was hoping to get around 14k trade since thats what the Dodge dealer quoted me when trying to get me to buy a Charger RT from them 2 months ago (I declined because I am sick of the poor quality of the Dodge cars). The Honda sales manager said that the reason Dodge offered me more on a trade is that they "pad" their deals a little and that there is more margin for negotiation on a domestic car than a civic. ANy advice guys??? The dealer said that I would recoup some of the losses in saved gas and probably lower insurance. I don't know...I have owned several Hondas in the past and still own my 91 Accord with 214k miles on it...I would really like to make this deal work...:xyxnervou
 

·
Registered
Joined
·
3,126 Posts
Attempting some basic math:
Dodge - 25 mpg I figure? - 1800 yearly gas for 15K miles
Civic - We'll use 30 and assume you'll have a lead foot? - 1500 yearly gas for 15K miles
Civic savings gas: $300 per year give or take.

Sales difference - $5300 = 17.6 years to break even on costs.

We'll the civic at least should historically speaking cost less to upkeep and have a higher value to resell down the road. Of course we don't know if dodge has increased quality or not and can't read the future.

Up to you, if your gonna make up the money from work easy enough just go with the civic. If your really looking for the economical choice in money savings stick with what you have or get a used Honda.
 

·
Registered
Joined
·
5 Posts
Discussion Starter · #3 · (Edited)
The dodge gets like 15-20 mpg max, I am more afraid of the reliability. The mag has been in the shop a ton with all kinds of problems, I know from experience that the civics I have owned (4th, 5th, and 6th gens) have all been super reliable and fun to drive. Dodge cancelled the magnum after this year, so I am really afraid that the resale will bottom out and parts will become very expensive to replace since they arent cheap now with all the Mercedes/300 C technology in the thing. Plus the Mag gas proven to be VERY boring to drive, little aftermarket support, and expensive on gas since I do alot of driving out of town. I am just flustered at having to pay 20 grand for an LX, but it seems to be a well built car as I would expect from a Honda. Thanks for the response btw.
 

·
Registered
Joined
·
117 Posts
Everytime you trade in your going to get screwed. Shop around and see if you can find another Honda dealer that will give you more for the trade. The price of the LX doesnt sound bad. Good luck!
 

·
Registered
Joined
·
5,705 Posts
Yea that price does not sound bad at all, i paid $19,800 OTD for mine including the gap insurance.. back in early 06.. so it is to be expected that the price of the cars went down..
 

·
Registered
Joined
·
5 Posts
Discussion Starter · #6 ·
Yeah I think I will try and get a few more quotes, the only reason I went to the dealer here is the fact that they had the exact car I was looking for and I have heard nothing but great praise from people regarding their sales and service staff. This is a Honda town after all...they are I believe the #1 employer in the area, I mean they actually had the unveiling of the new Accord in the downtown square here which was a HUGE event. I think I will go down the road to Columbus and see what the dealers there say...hopefully I will have a new civic to post some pics of before too long. Thanks again, all of the input is appreciated.
 

·
Registered
Joined
·
5 Posts
Discussion Starter · #8 ·
Thought about that, I am not sure how it works trying to sell a car that you still owe money on, every car I have ever sold I have had the title in hand. Any of you sold this way before??? How does it work when you don't hold the title. I am not needing this car like right now and I do have another car to drive if I sold the Magnum...so I would have time to sell it no problem as long as I know how. Sorry for sounding like such a noob at this, just never sold a car that has a lein on it.
 

·
Registered
Joined
·
385 Posts
sounds like a fair deal on the Civic... but I wouldn't necessarily expect lower insurance rates with the Civic. my dealer recited the same thing to me and my insurance ended up going up almost $600 a year coming from a 2006 Chevy HHR... and I feel your pain with the depreciation issue too... the HHR stickered for like $5 under $20k in December 2005 and in April 2007... not even a year and a half later... I only got $11,500 trade from Honda, which was only $300 less than KBB at the time.
 

·
Registered
Joined
·
5 Posts
Discussion Starter · #10 ·
Yeah I checked my insurance a little bit ago online and it said that it would stay the same...bummer, but I wasn't paying much for insurance for the Magnum anyway. I am gonna try and figure something out...going to another dealer tomorrow and see what I can do. I looked on KBB, Edmunds, NADA etc and the trade in values are very different...KBB is the lowest by far and that is the one the dealer showed me when trying to rationalize his lowball on my trade. The Edmunds and NADA are a full 2 grand higher..at least. I will tell ya, this is the last flippin' domestic I buy...you lose your a$$ on them with horrible resale. Who would have thought that a car could lose over 50% of its value in 2 model years...geez...
 

·
Registered
Joined
·
385 Posts
Yeah I checked my insurance a little bit ago online and it said that it would stay the same...bummer, but I wasn't paying much for insurance for the Magnum anyway. I am gonna try and figure something out...going to another dealer tomorrow and see what I can do. I looked on KBB, Edmunds, NADA etc and the trade in values are very different...KBB is the lowest by far and that is the one the dealer showed me when trying to rationalize his lowball on my trade. The Edmunds and NADA are a full 2 grand higher..at least. I will tell ya, this is the last flippin' domestic I buy...you lose your a$$ on them with horrible resale. Who would have thought that a car could lose over 50% of its value in 2 model years...geez...
Yeah I think I'm done with domestics as well for that reason... since I only keep a car for 2-3 years max anyway. But a good way to get an idea of your trade's value beyond an online valuator is to look at what your exact or near-exact car is advertised as on some used cars lots in your town... then take about $2000-2500 off that number and you've got your trade value.
 

·
Registered
Joined
·
13 Posts
I don't know what your monthly payments are on your Dodge Mag, but the best thing you can do for yourself is increase your monthly payment to close in on that negative equity. There is always going to be a Honda Civic in your color and options on a lot somewhere. Rolling $4000.00 into your loan will yeild you a higher interest rate if you finance it.

You could try to privately sell it for $14,000 - $15,000, this will leave you with less out of pocket to make up the difference. If you don't have any money for down payment then you need to stay in your current car.

Rule of thumb is 6 months worth of living expense, a separate savings account, low to no additional debt.
 

·
Registered
Joined
·
3,036 Posts
I don't know what your monthly payments are on your Dodge Mag, but the best thing you can do for yourself is increase your monthly payment to close in on that negative equity. There is always going to be a Honda Civic in your color and options on a lot somewhere. Rolling $4000.00 into your loan will yeild you a higher interest rate if you finance it.

You could try to privately sell it for $14,000 - $15,000, this will leave you with less out of pocket to make up the difference. If you don't have any money for down payment then you need to stay in your current car.

Rule of thumb is 6 months worth of living expense, a separate savings account, low to no additional debt.

additional money in a loan will not yield you a higher interest rate.

loan interest rates are based on several things:

credit score/credit history
term of loan

The rate of your loan will be the same for borrowing $16k for a car or $20k for a car.

The additional $4000 will effect your monthly payment amount.

When my wife and I bought her CR-V, we discussed with the dealer buying a new Civic concurrently, and looked at the finances. For a 5 year loan for just the CR-V, the rate was 6.78% for $24k. For a 5 year loan for a CR-V and a Civic Si, the rate was 6.78% for $44k.

Our monthly payments were different, but the rate was the same. Even if I went to go buy said Civic now, my rate would still be 6.78%.
 

·
Registered
Joined
·
13 Posts
cderalow,
Higher interest will appear if you are financing more than the car is valued at. The higher interest covers the bank in case you default the loan.

Agreed, other factors will determine your final interest rate but rolling in massive amount of negative equity will be one of those.
 

·
Registered
Joined
·
353 Posts
Is the OTD price with or without sales tax? What you need to look at is the total ammout financed. If they are low balling you on your trade AND asking MSRP for the Civic, then I would say NO. If you are getting the civic for a few hundred over invoice and a low trade, then I guess it depends.....


I bought my 07 Civic EX sedan auto for $19,150 OTD (no sales tax in OR) and I put about 4 k down. After 9 months of payments I owe about 13K. My civic KBB private parties for $20,XXX and the MSRP to begin with was $20,150!

Point being is Honda's hold around 60% of their value over 5 years, while most american brands are as low as 40% value retained over 5 years.....So you wont get burned as bad....But If I was you, I WOULD NOT go upside down in a loan for a Civic LX. I would at least get an EX, if not SI.

Though the LX and EX are mechanically the same, I am glad I got the EX over the lX. In my area, LX's are a dime a dozen......

good luck
 

·
Registered
Joined
·
385 Posts
I bought my 07 Civic EX sedan auto for $19,150 OTD (no sales tax in OR) and I put about 4 k down. After 9 months of payments I owe about 13K. My civic KBB private parties for $20,XXX and the MSRP to begin with was $20,150!
I hope you don't actually think you could get that Private Party "value"...

to the OP, how's the decision coming?
 
1 - 17 of 17 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top