I'm in the market for a car next spring, at the latest, next summer, and am currently looking at cars for $20k or less. I'm considering a new Civic, Aura, etc, but I just realized that 2004 model TLs will be coming off-lease soon (or already).

How soon should I be able to see 2004 TLs on the lot for less than $20k, with under 60k miles? Thanks.

 

I've spent the last couple of weeks researching prices here in the SoCal area, including used TL's.

I saw dozens listed and not a single one was even close to below 20k. Probably some time in the summer or fall of '07 you will begin to see some listed in the 19k or very low 20k area... manual trans. versions with no nav.

 

Based on the current values, you may find a VERY high mileage, early model year '04 "slightly" under $20K in about 9 months (End of '07). Right now, a ragged out '04 with 70K miles are still bringing in around $22-$23K

 

Unfortunately for people in the used car market, Honda Products are one of the best at retaining value... The good news though, is that when you do buy (either new or used) your losses on the car will be less than most other vehicles out there! If you are able to put a little more money in for a used Honda product, it should pay off in not loosing as much value (meaning you will get more of your money back in resale).

For example, lets say TL drops in value 15% per year, and brand X drops 20% per year (these numbers are examples only, I have not done the research to see what the actual percentage of depreciation is on the TL):

TL Cost $22K to buy
X Cost $20K to buy

In Three Years the value of each would be:

TL = $13510.75 ($22K x.85(year 1)x.85(year 2)x.85(year 3))
X = $10,240.00 ($20K x.80(year 1)x.80(year 2)x.80(year 3))

Total Cost to own each (exluding fuel and maintenance of course):

TL = $8,489.25
X = $9,760.00

The point is, that if you can squeeze a little more money out for the car with a better resale value, you will minimize the cost of owning the vehicle. Both will loose money (the nature of a car), it is just a matter of which one will loose more money.

 

To lose money is bad, but to loose money is worse.

 

Loose money make more rattles in your car.

 

My bad on not running a spell check or something. Working on actual work stuff and replying at the same time... must have hit the "o" button one too many times! So far none of the work stuff has come back to bite me!