05 TSX to an 2006 - Would you do it
08-25-2006, 01:26 PM
#41
If your gonna do it, do it right: Go for the 6MT/Navi or no deal. That would feel more like a different/better car. Dont go to the trouble/expense for a car so similar to the one you already have.
08-25-2006, 01:30 PM
#42
Originally Posted by chimchim
yes, my taxes will only be $245.00. Since I am trading in the 2005...I am getting $22,000 for the trade and approx $1700.00 is tax savings!!
Also, I have the aspec wheels and I am keeping the wheels and just trading the tires, so I get new tires.....
All this, for additional $4K (which translates into 12 more payments).
I am still on the fence....
ChimChim
Also, I have the aspec wheels and I am keeping the wheels and just trading the tires, so I get new tires.....
All this, for additional $4K (which translates into 12 more payments).
I am still on the fence....
ChimChim
08-25-2006, 01:34 PM
#43
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Originally Posted by bbbuzzy
I definately would NOT do the swap. Unless the added features are so compelling, you're getting the same car. Sure it has lower miles and a longer warranty, but Honda products are reliable and you can always buy an extended warranty. Since you've said you would keep the car 8 years, the earlier post about depreciation being meaningless is quite true. However, since you are already pondering the switch after only one year, I'd bet you won't last another seven. There are also additional costs which need to be factored in. The tax alone will run you over a grand. I'd rather put that money into the new TSX or another model rather than the same car with 5 additional HP and a few new options. In fact, I prefer the look of the '04/'05 TSX with the seven spoke wheel and blackened fog light surround. It's just a more flattering look to me. Sorry to rain on your parade, but you asked our opinions. Good luck with whatever choice you make.
I will drag this out unitl Monday and make a decison then...
Thanks for your help
ChimChim
08-25-2006, 01:41 PM
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Originally Posted by newbie28
Sounds like a good price! I am in the market for a TSX. What is the name of the dealer?
Baranco gave the best price, but others will match....
08-26-2006, 10:50 AM
#46
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Originally Posted by chimchim
No problem...I appreciate your honesty.....in fact, I need someone to tell me to shut up and quick thinking about it. This whole thing happened when I was waiting during an oil change at the dealership and a salesman sparked a conversation with me. Well, we went back/forth for a week or so and then I started talking to other dealerships and then about a week later...this deal strikes me.... this truly is an awesome deal, but it may not make sense b/c you know that I am going to want that 2008 TSX.....
I will drag this out unitl Monday and make a decison then...
Thanks for your help
ChimChim
I will drag this out unitl Monday and make a decison then...
Thanks for your help
ChimChim
It is a difficult decision.
That is why I decided to stop "shopping" the TSX for now..... when I do that, and I get what sounds like a great deal, my mind gets a little blurred, and I think, Oh man, will that deal ever come around again?
I gave myself a few days and realized that, for me, I have to ensure that I get the car I want, first. For me, I know that, if I decide on the car first, I won't mind if I paid a little more because I decided later.
I know because I've made that mistake before. Buying a car on impulse because it was a great deal.
Just my story.
08-26-2006, 11:43 AM
#47
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Tough decision.
You could always take that $4000 and apply it to your loan to knock down the interest over the life of the loan (I don't know your specifics, but I think you said 5%?).
If you take that $4000 and invest it at 5% (most online banks will give you that, and you may be able to get more worry-free) for TWO years you would have $4,400. Use the extra $400 towards your '08.
Or use the $4000 now and save $400 over the next two years in payments.
Or just go to Vega$ with it
Seriously though I like that fact that you would be getting a BRAND new car for $4,000 more. Resetting the milage and wear and tear on the tires, brakes, paint -- everything. Doesn't nearly add up to $4000. Like other people mentioned there really isn't much of a difference between models either. Would you do it for $8500 after 2 years and 45k miles? You have to weigh how much those payments are hurting you.
My first new car, a 1997 Grand Am GT, I kept it for 7+ years and ~240,000 miles. It was VERY nice not making payments after I paid it off. However it became way too unreliable. Now Acura is a much better car than a Pontiac so you would probably spend less than I did in repairs (I did have an amazing LIFETIME warranty from Geico however which got me a new engine for $250).
If you do go for it, you are spending $30,000 + another year of interest on a TSX (you said your payments go down but I assume you are stretching them out another year so you are really paying MORE than the $4000 with the interest). And like everyone else mentioned more tax).
I haven't been helpful at all have I. My only other question would be "What would you do with the $4,000 otherwise?" Just remember: Your money doubles every 10 years at 7% interest.
You could always take that $4000 and apply it to your loan to knock down the interest over the life of the loan (I don't know your specifics, but I think you said 5%?).
If you take that $4000 and invest it at 5% (most online banks will give you that, and you may be able to get more worry-free) for TWO years you would have $4,400. Use the extra $400 towards your '08.
Or use the $4000 now and save $400 over the next two years in payments.
Or just go to Vega$ with it
Seriously though I like that fact that you would be getting a BRAND new car for $4,000 more. Resetting the milage and wear and tear on the tires, brakes, paint -- everything. Doesn't nearly add up to $4000. Like other people mentioned there really isn't much of a difference between models either. Would you do it for $8500 after 2 years and 45k miles? You have to weigh how much those payments are hurting you.
My first new car, a 1997 Grand Am GT, I kept it for 7+ years and ~240,000 miles. It was VERY nice not making payments after I paid it off. However it became way too unreliable. Now Acura is a much better car than a Pontiac so you would probably spend less than I did in repairs (I did have an amazing LIFETIME warranty from Geico however which got me a new engine for $250).
If you do go for it, you are spending $30,000 + another year of interest on a TSX (you said your payments go down but I assume you are stretching them out another year so you are really paying MORE than the $4000 with the interest). And like everyone else mentioned more tax).
I haven't been helpful at all have I. My only other question would be "What would you do with the $4,000 otherwise?" Just remember: Your money doubles every 10 years at 7% interest.
08-26-2006, 12:28 PM
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Sales tax stuff
Steeltown writes: If I recall correctly, you only pay tax on the difference between purchase and trade-in, so that 8% sales tax will not be that much...
STEELTOWN is correct. The sales tax is applicable only on the difference between new car price and trade-in value.
That is also the case in California, Joerockt. I hope that you were not 'had' by any dealer.
Cheers.
Originally Posted by joerockt
Not in CA. Don't know about tha ATL y0...
STEELTOWN is correct. The sales tax is applicable only on the difference between new car price and trade-in value.
That is also the case in California, Joerockt. I hope that you were not 'had' by any dealer.
Cheers.
08-26-2006, 12:42 PM
#49
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Guess what, you're wrong.
Originally Posted by Katz
Steeltown writes: If I recall correctly, you only pay tax on the difference between purchase and trade-in, so that 8% sales tax will not be that much...
STEELTOWN is correct. The sales tax is applicable only on the difference between new car price and trade-in value.
That is also the case in California, Joerockt. I hope that you were not 'had' by any dealer.
Cheers.
STEELTOWN is correct. The sales tax is applicable only on the difference between new car price and trade-in value.
That is also the case in California, Joerockt. I hope that you were not 'had' by any dealer.
Cheers.
sales tax is calculated on the purchase price less trade in. Currently California, the District of Columbia, Hawaii, Maryland, Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax on autos.
Are trade-ins taxable?
Yes. The value of a trade-in is considered taxable. For example, if you sold a car for $20,000 and accepted a trade-in valued at $4,000 as partial payment, tax would be based on the $20,000 selling price (that is, you would not deduct the value of the trade-in from the sales price of the car being sold when computing sales tax).
Yes. The value of a trade-in is considered taxable. For example, if you sold a car for $20,000 and accepted a trade-in valued at $4,000 as partial payment, tax would be based on the $20,000 selling price (that is, you would not deduct the value of the trade-in from the sales price of the car being sold when computing sales tax).
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