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Trade it in NOW?

2K views 18 replies 14 participants last post by  CheezyPoofs 
#1 ·
Hey Enthusiasts!

Ok, first I will tell you this:

1.I have a 2013 Honda Accord Sport with 20,000km
2.My lease ends August 2017. I pay $300CDN/m.
3.Went to a few dealerships in Canada and got quotes
4.There are extremely good deals for me right now (info below)
5.I am debating if I should wait for new models next year or not

Yes, my 2013 Accord only has 20,000km on it due to me being away from the country for a year. The car has very good resale value and the more I drive it, the more value it loses.

So I had free time this month and decided to test drive some cars. The cars I have in mind are: 1. Going again, with a new Accord 2. 2017 Acura TLX.

Now I will tell you the deals they are offering me. First, let's start with Honda. This dealership REALLY wants my old Accord in their second hand lot. They told me it's the end of the year and have to clear inventory? I couldn't quite catch why, but they are in need of second-hand cars. Thus, they are giving me a great offer. Trade in my old Accord, and pay NOTHING for the difference towards a new Honda lease. Furthermore, they will offer 0.99% lease rate (original 1.99%) and can even work out even more discounts to the monthly payment. This is a great deal I know, but the problem is, as much as I liked driving my Honda - I don't mind driving a different brand and model. But you would agree this offer is very good, right? Obviously, I won't be able to get this deal if I stall too long.

So, for Acura, this is Honda's "premium" brand but there aren't much TLX models on the road so it makes it unique. However, I really like the look (especially with the A-spec package). So what they're offering me is 0.99% lease rate (being from Honda family), and a $2000 incentive. They are also interested in my old Accord and can lower the monthly payment if I trade it in. Again, if I stall too long, there won't be this deal after December. I am aware that I will have to pay a lot more to lease this, but do you think the deal is still good compared to what you know about leasing cars? The car will be $45,000 with all the options included. The thing is, I know that there will be a facelift on the 2018 model and it may look even nicer.

What do you guys think? Should I wait until next year before August to see the 2018 models and hope for good promotions or take one of these deals right now? Of course, what Honda is giving me will probably beat any other offers I will get from other dealers, but I feel that I should try a new car...that's why I'm asking if any of these deals should be passed up.

Thank you for your time and I appreciate any help you can give me!
 
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#2 ·
The "We really want/need your car on our used car lot" is a an old tale they tell to everyone who will listen, FYI. It is likely true, however, that special financing offers end Jan 3rd (as far as I know). Most dealerships make most their profit on used cars, contrary to what most people think. Margin on new is quite thin as everyone can find what invoice pricing is.

What they want is hook you into a new contract and get a high quality used car. Sounds like you are not upside down (or little) so they want to make you a deal.

Ultimately - it is up to you. There will be deals on 9th gen until late summer / fall 2017 I'd guess, with 10th gen coming out. You will likely NOT be getting a super deal on the 10th gen; look at the Civic. Honda is willing to bargain for those now but not as much as for the outgoing Accord. So while they will have special financing in a year, sure, you will not be getting a screaming deal.

I don't know anyone else can answer this for you. It's about what you want. If you are going to lease again and want to lease a current gen - go for it. None of us knows what 10th gen will bring. I personally bought a 9th gen 2 weeks ago but I buy my cars and keep them 10+ years so the whole continuous lease aka. rental thing is foreign to me. :)
 
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#3 ·
Thank you for your time and I appreciate any help you can give me!
You have a common malady, which can only be cured by getting "something new", or, an intervention from a team of highly effective psychological warfare experts.

At least you seem to realize this "something new" yearning is a want, not a need, as you don't seem to frothing at the mouth like you have rabies. If you have the disposable income available to get "something new", you perhaps help the economy by spending that money...but, that may not help your personal economy. Only you can make that call.

But, realize you seem to be attracted by the illusion that the only good deals are NOW, and you will miss out if you don't act NOW. In reality, there will always be a deal somewhere. Also realize money is just a tool, not a goal. So, if you have enough money, you don't have to turn down "something new" just to have more in the bank.

What about keeping your current Accord and purchasing it at the end of the lease? Truthfully, THAT is probably your best deal, unless you are in a very high residual value lease.

You will make the right choice for YOU, as long as you can make the decision without the pressure of doing SOMETHING NOW. That's just an illusion used by professional Salespeople.

Best of wishes in your decision!
 
#6 ·
Keep the 2013 or sell it... don't you dare trade it in... Im sure your car is worth a lot more than the residual buyout. I have 20k on my Accord and its 2 years newer and I barely drive lol.

Where in Canada are you? What province/city?
 
#7 ·
IMHO I would wait for the 2018 Accord and buy it instead of leasing. Honda introduced the 2017 model in June which makes me think the 2018 model will be out in April. Honda did this in 2006 with the Fit which was a new model in the U.S. Why buy instead of lease? Interest rates are still low and after you pay off the note you keep driving it for at least ten years. That's why I would wait for the new model which will be the 10th generation. Another choice is to buy your current car at the end of the lease and keep it until 2023 or longer. In either case after paying off your car keep making monthly payments to yourself. After ten years you will have enough money saved to buy your next car with cash. Interest rates are probably going to go up and having your car payments for your future car earning interest for you is better than paying out interest. I would rather have my self esteem tied to things other than a depreciating asset like a car. Well maintained Accords should last more than ten years and two hundred thousand miles.
 
#16 ·
I have had problems with new cars the first year of a new model. If I wanted a 2018 I would probably wait and get a 2019. Plus any time I do business with a car dealer I get screwed so I stay away unless I really need/want a new one.
I have bought new cars at the beginning of a new model and at other times without any problems. That's what your new car warranty is all about. Buying a new car at the beginning of a new model year is a myth like not buying a car manufactured on Monday or Friday.

Why do you think you have gotten screwed? Obviously, a car dealer is going to make some profit on your new car because only the dealer's general manager really knows the dealers invoice price including all the hold back money. What you hope to get is a fair deal compared to what others have paid. Several websites and True Car can give you that information. I have never bought an extended warranty or any dealer installed options such as paint protection or wheel locks. Just learn how to say NO to the finance salesman.
 
#10 ·
Former dealer sales guy here. I don't recommend anyone lease a car. Dealers routinely juggle numbers for payment buyers like yourself in selling and especially leasing, and make you think you have the most extraordinary deal if you buy NOW as others have pointed out. Your dealer has already made a boatload of money leasing you your 2013, now they want to put it on the lot, sell it at full retail and make even more.
 
#11 ·
you should make a post in dealer tactics/experience-as you have the behind the scenes experience most of us don't. Many of us know all tactics used by dealers but there might be some more useful information you can provide us. How much is really invoice price for a vehicle, how much does the dealer make off a vehicle (new or used on average), how much is commission on a new car for a sales person vs used vehicle, How much do actual service contracts cost to what the dealer sells it for, how many vehicles are sold a month on average, what is the hiring process and training process (How they teach you to gain most money off people?) etc.
 
#15 ·
It's a bit more involved. What matters from a strictly mathematical point of view is: How much money is this costing (include insurance and taxes) over time? If this person has equity in his current lease (which is possible with the low miles, depending upon his original terms), he could be losing that equity by turning the car in and starting over....even if the new payment is lower.

Even if this person decided he wanted to get a different car, he may be better off buying out the lease and selling it in order to capture the equity. He could then use the equity towards another car.

Dealerships always ask: What payment do you want? It's the wrong question for the buyer, as "payment" doesn't take into consideration anything else...such as taxes, nor does it take into consideration the residual value of the new vehicle if the new vehicle is leased. This person MIGHT be able to finance the balance of the current lease plus the payoff and be MUCH better off financially than turning in the vehicle and getting another one just because it has lower payments....because in 3 years, he may have a car with such a high residual that he then has zero equity. Not nearly as good as keeping his current Accord with only about 50,000 miles on it and perhaps 100% paid off....or nearly paid off.
 
#14 ·
The upside of leasing is you are always driving a late model car. The downside is you are paying that first 2 or 3 years depreciation every 2 or 3 years. Unless you must have a new car, that doesn't make sense financially. In the end, it's up to you because it's your money.
 
#17 ·
I was in about the same position u were now back 2015. My last accord lease don't due till 2016 but they offered me 0.01% lease and I ended up with a new lease with about the same payment. Now I am paying C$381/month for Touring 4cyc. I am in Toronto BTW if that matters.

Do what you think it's comfy. I didn't regret not waiting for the 2016. I will just get a new lease in a few years....no big deal. This is my 5th accord.....and I am so immute getting a new car in few year all the time and this "new car" thing don't excite me anymore.
 
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