Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

I'm very happy with my 2005 HCH CVT, but after reading about the 2006 and how much better it is, I'm thinking aboout trading up. My current car is only 6 months old, in perfect conditions, 4000 miles on it. I'm hoping I can get like $20K trade in for it if I decide to do this.

Is the 2006 worth it? Is the MPG that much better? How's the GPS system?

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Even though it does get better mileage than the '05, the best thing about it is simply that it's a better car. Same reason why buying the regular '06 civic is better than buying an '05: it's better. I find it more comfortable, vastly better steering, better handling, much better interior and exterior, etc. Take one for a test drive and see if you like it more.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Yeah, from what I am reading, it's just better all around. My main problem will be convincing the wife that a trade up is a good thing! I wonder how much my payments per month will go up?

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

My vote is no. This early in the game, you'll lose too much money on the trade. Not to mention, you'll have to pay sales tax all over again. In CA, wasn't the tax around $2K for your '05? You'd be paying that again with the '06. Although, some of it will be offset by the tax deduction you'll take this year with your '05 and the tax credit you'll take next year with your '06.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Oh you're married! Good. Sell the wife's car, let her drive the '05, and get you the new '06! :)

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Hahaha! Yeah right, my wife will NOT get rid of her 1998 Toyota 4-Runner! It's her baby, gas guzzling and all. Actually, for SUVs it's not terrible with gas, but it's mostly in the teens (ouch).

I hadn't thought about the tax implications, although it would be cool to get a tax deduction 2 years in a row :)

Is waiting better? I mean, the car will get more miles on it and trade-in value will drop. What's the benefit of waiting? Sorry, I'm not too good with the financials...wifey takes care of those things ;)

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Then let the wife decide. ;)

Seriously, there's absolutely no economic sense to trading in a new car that has 4000 miles on it. It's financial harakiri. If you're going to do it, recognize that you're spending a lot of good money to stroke your ego. Some people don't mind doing that. If you do, you'd be a lot better off selling your vehicle on the open market than trading it in. At least that won't be harakiri with a dull knife.:D

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

My advice, if you are hankering for the 06 bad enough:

Wait until Jan 1 2006 and get the fatter, better tax benefit.
Sell your 05 yourself, do not rely on the dealer to give top value.
Get the non-Nav 2006 and pay $600 for a TomTom.
Have Fun...........:D

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

[QUOTE=lars-ss] and pay $600 for a TomTom. /QUOTE]

How are those TomToms anyway? Care to put up a review?

Don

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Have not used one myself, but they are apparently pretty nice. Here are a couple of reviews:

http://www.pcmag.com/article2/0,1895,1706805,00.asp

http://reviews.cnet.com/TomTom_GO/45...2.html?tag=nav

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Thanks! Those were very informative reviews. Lots of good user reviews, too.

Don

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Thanks for the info guys. You're all probably right about it not making financial sense. It was a whimsical idea I had after reading about the 2006 :)

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

its moments like these whom im glad forums like this exsited.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

My vote is also no.. you will lose a lot of money in the trade in... kind of offsets the gains.

Just think... in 3 years they will redesign it again and you will once again be tempted.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Okay, I change my vote. Well, not really change it. More like, add to it. I still vote no. But now I'd like to add that I agree with blueskies. Wait for the next redesign! :) THEN I'll change my vote to yes. ;)

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

I think you're misled about the tax implications though. You would actually pay tax on the difference of the trade in value and of the new car itself. Say for example you got 18k for your trade-in nad you got the new 06 for 22k. So you would only pay the tax on the 4k.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

I don't know if this works the same in CA, but in Washington when you trade in a vehicle you get that value as "credit" on the new vehicle, so you only pay sales tax on the difference. For example, if you're buying a $20,000 car and you have a $12,000 trade in, you only pay tax on the $8,000 difference (not the full $20K). Note they use the cars value, not what you owe or how much equity you have. This would be worth asking the dealership to know what you're in for.

The financials of what you want to do will depend on a number of things. Did you put any down on your 05? What interest rate do you have? I'm not looking for those answers, but both factor in to how much you owe vs. how much it's worth. If your loan is at 5% + you've mostly paid interest the last 6 months. If you got a 1-2% deal you've at least paid more on the loan. For the first 1-2 years, cars generally depreciate faster than you pay them off, so getting out of them is ususally a loosing proposition. So on the bad side, your move to an 06 is likely going to cost you.

On the pro side: if you know you'll eventually want an 06, and it's just a matter of when, there is something to be said about just getting on with it. For example, if you get 48 month car loans, driving your 05 for 18 months then getting an 06 (or 07) on another 48 month contract means you have 66 months of payments total. Making that change at 6 months means you only have 54 months of payments. The thing to factor in is whether the payments on your 06 are that much higher as to offset the difference. Also on the pro side, your 05 will never be worth as much as it is today in terms of trade in / resale value. A year from now, count on that car being 1.5 - 2.5K less in value.

So I agree with the others that financially it's a costly move. However you have to ask yourself is this going to be an annual temptation? It's likely the 06 will have a 3-4 year run before a redesign. If it's the 06 you want to be in during that time, then like I said, there's something to be said about getting on with it. If you'd be content with your 05 for a number of years, financially you're better of staying put.

Good luck with your decision!

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

I doubt you will get $20k for trade in. so i would advice against doing this. You are going to be taking a big financial hit but if you are made of money then go for it. ;)

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Hi Livvie:

___I do not know about CA. either but here in IL., you save the tax on the difference during trade. If this is the case in CA., it may behoove a trade in as $18K x 8% (that is CA. tax rate, right?) = $1,440. If the dealership can come within $1,500 - $2,000 of PP (Private Party), the trade begins to make sense. I just do not see even $18K for an 04 HCH-I w/ that many miles in trade. Remember that the 06 HCH-II costs the dealer something like $20.5K – a healthy hold back and there is no way they are going to offer $20K for a 2 year old with miles for any thing close to what they can stock there lot with a new one for. Unless their allotment for HCH-II’s is 12 per year/1 a month or some other such non-sense?

___Personally, a sale to a PP and then go pick up an HCH-II from Psyshack’s Honda dealership in OK at $1,300 under MSRP makes a lot more sense to me.

___Good Luck

___Wayne R. Gerdes

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

I bought an '05 over the '06 a month ago, because 1) Hey $19k wasn't bad and 2) I didn't want to help Honda "debug" a first year model (read: Prius II). And what someone else here said, new model just around the corner, I'm sure. It ain't cheap to keep being the "first kid on the block"! ;)

Bill

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Well, the Kelly on it is $20.3k in my zip code, so it's *possible* to get that. When I traded last week for my 05 HAH I was in danger of being upside-down on the trade vs. payoff on my BMW. Kelly wasn't even close, but NADA was actually *over* the trade-in (check both sources and take a printout to your dealer.) I managed to get closer to the NADA number but they were anxious to get the Accord off the lot - last of the 05s.

But the other posters are correct - the big hit is going to be on the taxes. At least in NC, tax you're paying is on the trade in $, and not the car you bought (where there's an additional highway use tax.)


The federal tax credit will just about balance all that out and net you back to $0-ish up front if you can cover the note on the 1st car with the trade.




I wouldn't worry so much about "debugging" a first model year because it's not all THAT different from the previous one, AND you have a warranty. If it breaks and it's a manufacturer defect, they fix it. If it's a recall, then the fix is free anyway. (like the one on the HCHI last year for the idle adjustment that could cause the catalytic converter to overheat.)

It's a muddle. And I'd be hard pressed (tho I'd probably stick with my new 4 month old car.) The 06 is slightly bigger (and there's an illusion of being a LOT bigger on the inside because of the large side windows and windshield. The new model has less road noise, but otherwise the driving feels very much the same. And the seats fit the same. And after spending a wintery week in an Accord, I'm really getting used to the heating system NOT turning off at auto-stop, the way it (also) does in the 06 Civic.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

I would like upfront that I too, have these urges. Cold sweat, clammy hands, restless dreams..... but it is not by any chance limited to the HCH or vehicles for that matter.

Besides posting in this forum, I also belong to a prosumer photography, and a high definition TV forums.

And just like here, whenever a new model comes around, your old "last year" photography equipment no longer looks appealing, although it still takes amazing pictures.

And once again, your perfectly fine HDTV looks dated because the next model has this new "feature", which one must absolutely have to go from from 1 zillion to two lines of resolution.

And don't even get me started on computers or cell phones

Well, it is all part of "planned obsolescence" taken to the max. Enticing you to replace perfectly good things, most of which still do its job very well.

So, I finally stick my feet to the ground, and I enjoy my '05 HCH which is a darned good car, take pictures with my Sony DSC F717, and enjoy my TV, computer, cell phone and everything in between.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Just curious: If you trade down in price, do you get a tax rebate? Taking the above example in reverse, if you buy a car for $12K, your trade-in is worth $20K, and your state's sales tax is 5%, will the state cut you a check for $400?

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

You know, I'm not sure. I'd bet money that you would not. It may be as simple as you only pay tax on the difference, and if that difference is zero then you pay no tax.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Be smart.
Sell your used hybrid in a market that is in a frenzy. (Large city with highly educated population.)

Buy your new one in Ford and Chevrolet country.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

Hi ED;

Hey I would not even think of pulling your Leg:

The answer is (YES) Trade right now and get that 2006 on order and take delivery the 1st Month of 2006 January and get another $2,000.00 or so back off the real purchase price with the new Tax credit for 2006.

Remember you can't take it with you.;)

I just traded in my 2005 Honda Civic Special Edition that had all the whistles and bells on it for a new 06 HCH ll and have not looked back.:) My car had only 6,900 miles on it but, hey if you want the new state of the art HCH ll you just have to go for it. You can never make a dollar for dollar accounting for it because it always comes down to, what do you really want, RIGHT??;)
I say go do Business and enjoy life while we can, it is too short at best:

Terry

BTW; I think it makes life a little more fun and interesting to do the wild thing once in awhile.

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

EDmunds has a range on 05 HCH cvt of 17418 to 20540. Dealer will NOT give you the high end at all..probably in range of 17-17.5 and probably off the list price of the new one at this time! I have same situation and did dome prelim checking and this seems to be the case. Better to sell yours on your own! See what Car Max will give you, they always give more that a trade at a dealer.


As for Tom Tom...for get it and look a t Garmin, they have a much better product than Tom Tom.. Garmin C320, C330, C340, 2720

Re: Should I trade in my 6 month old '05 HCH for a '06 HCH?
 

*ALWAYS* do a price compare between Edmunds/Kelly/NADA. I found that NADA was a significantly higher value quote for my car (it had pretty low miles for a 2001) and that's the printout I took with me to the dealer.

So I ended up getting a *higher* trade than the high-end of some of the other sites. (Of course all that stuff washes in the deal, so they just made back the bucks somewhere else on the page.)