I have a 2007 Honda Accord with about 31,000 miles. It will be 2 yrs in Feb. 7 that have had this car.
Can you give me some advice if its a good idea to trade it in. I still owe about 19,000 on it. Can you advice me if i should consider trading in for new one.
I*m not sure what trim level of the Honda Accord you have.... If it*s a base model, an LX, or an EXL Model... this could make the difference if this is the right time to trade...
If it is not the EXL it may not be the right time...Only a dealer can give you a real number for the value of the vehicle....although there are many resources online to consumers... these are meant to be more "guidelines" which do vary....If not, holding on to the vehicle a little bit longer when the value of the vehicle is more in sync with the balance owed...may not be a bad idea...Usually 3.5 to 4 year mark on say a 60 month term. Of course, this depends on many other factors as well.
One factor can be the APR on the loan based upon your credit at the time of purchase....
Another: Condition of Course...Is it Clean or trashed? Your miles are ALMOST right - they actually need to be at 15,000 miles a year or less, you*ve had yours ALMOST two years...You are just over the 15,000 miles per year...
Another factor would be if any "negative equity" from a trade-in was "built-in" or "rolled" into the Accord Loan.... Your ratio between the current Trade Value of your vehicle vs. the Amount Owed will be affected by this amount.
The last factor would be if your was loan over 60 mos (5 years)... Then it will take you longer than the typical 3.5 to 4 year trade cycle...to get the ratio right to trade the vehicle...
HAVING SAID THIS, There are some CRAZY DEALS and INCENTIVES OUT THERE...Like I*ve NEVER seen before in 25 years....REBATES and CRAZY APR*s!
It couldn*t hurt to go out and kick some tires and let them look at your car...get an idea of what it*s really worth.... Who knows? If it doesn*t work out, the positive is you have a Honda Accord which is a great car and you*re protected by factory warranty...(for a little while anyway...)
In fact, if trading doesn*t work out...You may want to consider adding additional time to your factory warranty. (If you haven*t already done this or financed this into your loan)
This will at least give you the peace of mind if you have a mechanical breakdown...until you are in the right position to trade. This way you don*t have the WORRIES of PAYING FOR THE REPAIR AND YOUR PAYMENT....No FUN when you are on a budget! You can extend your Honda Warranty at the dealership you bought the car from...Or you can shop the dealers by phone if you prefer. The pricing will be based upon the year, model and miles of the vehicle and possibly purchase date...and they should have different deductible options as well...
Hope this presents some choices...Good Luck and Happy Hunting! Diane
〉 Answered on Jan 18th, 2009 by Diane Uzelac, President and CEO at DealerClassified.com
It is an educated guess that you are going to owe more on your vehicle than the market value. This is known as being "upside down" or many other terms that describe this issue. The biggest problem is that the balance owed on your vehicle will be added to any loan you might take out on a new vehicle. You need to check some of the web sites that give you an estimated value on your current vehicle, ie: Edmunds.com, Kelly Blue Book.com, etc.) Also check the local listings in your paper to see what this vehicle is being sold for so you will have a good idea of what your situation truly is. If you financed for 60 months or more with a small or no down payment you won*t hit an equity position until you get to the 50 or more payment. So if you can it would be more equitable to keep the car longer, pay extra on your payments to bring down the balance due until you get in a better position. Or if you can sell the vehicle outright for more than you owe that is another good option.
〉 Answered on Jan 18th, 2009 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)