Trading 2016 ex-t coupe for Sport Hatch?

jdogcarroll

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Just wondering if anyone has done something like this on this forum. I really like the hatches (Wanted one but bought mine before they released) but was wondering if it would be worth it. The CTR is/will be too expensive for me with my school loans. Should I start talking to dealers of just stick with the 16 coupe? Thanks!
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Just depends on how bad you want it. Depreciation will likely cost you at least a couple of thousand, one way or another. My advice would be to negotiate the cash price of the car you want and then negotiate your trade.
 

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It's not worth it. Financially, it makes a lot more sense to keep your '16 coupe.
 

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Just wondering if anyone has done something like this on this forum. I really like the hatches (Wanted one but bought mine before they released) but was wondering if it would be worth it. The CTR is/will be too expensive for me with my school loans. Should I start talking to dealers of just stick with the 16 coupe? Thanks!

Makes no sense financially. You'll lose at least a few thousand dollars.
 

Leetcivx

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I asked the honda dealer where i purchased my EX-T sedan how much i would get for a trade. Keep in mind it is in Very very good condition. Nobody has ever eaten anything in my car. I have had winter tires on since Nov, so the stock alloys are perfect. The windows are tinted, but only 35% (looks good on WOP without being too dark).

The salesperson quoted me $13,200!!! I thought it was a joke at first.

i understand that the dealer has to resell it (and aims to make a profit on both the trade and the car being traded for), but that was quite a bit lower than i wanted to go. I am going to the NYIAS in April to see what is coming out and what i would like to buy. Once i make up my mind, i'll put my car up for sale privately.
 


Newflyer3

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I asked the honda dealer where i purchased my EX-T sedan how much i would get for a trade. Keep in mind it is in Very very good condition. Nobody has ever eaten anything in my car. I have had winter tires on since Nov, so the stock alloys are perfect. The windows are tinted, but only 35% (looks good on WOP without being too dark).

The salesperson quoted me $13,200!!! I thought it was a joke at first.

i understand that the dealer has to resell it (and aims to make a profit on both the trade and the car being traded for), but that was quite a bit lower than i wanted to go. I am going to the NYIAS in April to see what is coming out and what i would like to buy. Once i make up my mind, i'll put my car up for sale privately.
I think we can take all these lowball trade-in principles and say how everyone is usually overly optimistic about the fair value of their cars, especially since we can apply it to 'the other thread' cough cough*
 

jk147

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Most of the time if the car is newish you are better off selling it yourself.
Heck most of the time it is better if you sell it yourself, but obviously there is more work.
 

syncro87

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Yeah, trade in is wholesale value.

Dealers these days have instant access to auction reports. They can look at their local auction or the whole country, and see what a particular car is selling for at the auctions.

If they can buy a given car at $15k all day long (theoretical number) at the auction, no reason to pay an individual $16k for it.

The other thing to consider is proximity to new transaction price.

Example:

Our EX-T CVT cost us $21k. Sticker was $23k, but sticker is really irrelevant. What matters is what those cars are actually selling for. So what is a used '16 like ours worth? Well, if a new one is $21,000, then a used one probably can't sell for more than $17-18k retail, at best. There has to be a significant margin vs. new, or people will just go new.

Also, there are cheaper financing rates on new cars than used, so the used car will have a higher rate, eating into the payment difference new vs. used. A lot of folks are payment shoppers. 21000 at 0.9% x 60 = 358/mo. 18000 at 3.9% x 60 = 331. Payments are getting uncomfortably close. Might as well buy new to a lot of people.

So our car, as a guess, is worth $17-18k retail. On a good day. On a bad day, or market is a bit slow, say 16k. 16 grand, that means the dealer can only offer us $14k on trade. He has to have some wiggle room in pricing, plus has reconditioning costs, etc. They have to stick my car on the used lot and offer people a compelling reason to buy it versus a new one like it. That reason is going to be that the car is much cheaper than a new one.

So yep, a $23,000 sticker price car can easily be worth 7 grand less a year later.

My numbers are made up, but are reasonably accurate on how it works.

The $13,200 number in the example of the other poster might be a bit low, but not ridiculously so. They probably left themselves some negotiating room in that number, because that is how people work. They don't want the best number first, they generally prefer to feel like they "won" by negotiating a better number. So the store figures the car is worth $14500 on trade but hits at $13200 to test the water. They build in some room in the first appraisal presented to the client. Car dealerships have learned over time that you never give your best number out right away, because inevitably the client expects to negotiate that number, or will take it right out the door and shop your competitor with it, then buying from them to save fifty bucks.


Keep in mind, cars do not depreciate in a linear fashion. They lose more value in the first year or two than they do in year three or four.


One other thing. Selling a used $3,500 car is easy. Most people have that much cash. Simple transaction, you have the clear title in hand, etc. Your one year old car is a different animal. Most sellers don't hold clear title to their nearly new car. Most buyers don't pay cash for a $15k used car, they need a loan. So this adds to the hassle factor for both parties. To a lot of folks, the convenience of going to a dealer for a nearly new car and having them deal with all the BS is a selling point. It's a lot easier to move a cheap beater on Craigslist than a one or two year old car.


Lesson of the day: buying new and trading often is expensive.
 
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sykeoh

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Whatever makes you happy. I'd say it'd only be worth it if you were going from the EX-T to a Hatch Sport 6MT. I actually went from the 16 EX-T to a 17 EX-T because I had hated driving automatic CVT so much.. :thumbsup:

I would also recommend going to Carmax to get an appraisal, they gave me 3k more than what Honda dealers were willing to give.
 

Vantri

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Just did this today. Took my (owned free/clear) Aegean blue 2016 EX-T Sedan with 14,900 miles to Carmax and 2 dealers today. Carmax offered $16,000 and the two dealers offered $17,400 and $18,500. Wrote the better dealer a check for $3,999 and drove home a 2017 Aegean EX Hatchback with 10 miles. No Financing, No extras.

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