Should I buy a Honda?

[memo90061]

I really love the new Civic Hatchback and have thought about buying for quite a while. I didn't buy it before because it was missing some features that I got used to in the Mercedes Benz. The new Civic Hatchback Sport Touring seems to have most of what I look for in a car.

I currently have a Mercedes Benz E-350 coupe from 2014. I'm still paying for it and owe so much! I owe 18,500 and I've been to some Honda dealers and they've appraised it at 15k, so I'm upside down $3,500. My currently monthly payments are pretty high and I'm trying to save money to buy a condo in Los Angeles. It's very expensive! With the upside down trade in and the unwanted accessories on the Civic the monthly car payment is pretty high. I've been told $600 a month for a lease and $613 a month to finance.

I'm thinking of ways in which I can have extra money to save for a house/condo. Lower monthly payments, would save on gas, cheaper maintenance, and probably cheaper registration fee. What should I do? What do you recommend?

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[Mauiman]

You need to drive a $5K car until you get control of your finances. Stop getting loans for cars you can’t afford. You shouldn’t be looking at anything close to new.

 

[memo90061]

You're right! I should probably wait. I can pay off my car in full and still have money left, but then won't have for a downpayment for a condo.

I just want to get rid of my car right now before I have to pay car registration, maintenance and whatever comes up. It's so close to reaching 100k miles.

 

[ValkenDnB]

You're right! I should probably wait. I can pay off my car in full and still have money left, but then won't have for a downpayment for a condo.

I just want to get rid of my car right now before I have to pay car registration, maintenance and whatever comes up. It's so close to reaching 100k miles.

If you really need it and you’re going to save gas in the long run and know your maintenance is going to set you back a couple thousand (let’s be honest, Mercedes will sell you a car and the service center will sell you another one) then I guess do it. But I would be sure you’re going to keep the car to reap the $3500 back in gas savings and maintenance savings.

 

[ebhaynz]

You need to drive a $5K car until you get control of your finances. Stop getting loans for cars you can’t afford. You shouldn’t be looking at anything close to new.

This is the correct solution to your finances.

 

[memo90061]

This is the correct solution to your finances.

I can fully pay off my car right now. Would you do do that? Just pay it off and save to buy a condo?

 

[memo90061]

If you really need it and you’re going to save gas in the long run and know your maintenance is going to set you back a couple thousand (let’s be honest, Mercedes will sell you a car and the service center will sell you another one) then I guess do it. But I would be sure you’re going to keep the car to reap the $3500 back in gas savings and maintenance savings.

My car is fine now, but I'm just nervous because it will reach 100k soon. I'm scared of unexpected things coming up in the car. I've always been good with taking it to the dealer for maintenance or whatever it needs. Gas is so expensive right now and car registration is in May. That's also so much money. haha

Thank you for the response.

 

[ebhaynz]

I can fully pay off my car right now. Would you do do that? Just pay it off and save to buy a condo?

It's definitely not a bad idea to pay off your car and any other bills you may have. I have real estate agents bugging the shit out of me all the time, saying "now is the time to buy" and "what about your future?" One agent who I barely knew showed me a list of all these crazy charges they add to buying a house, it was something like 12-15 charges on top of the 6% to the agent. I know it sounds harsh but I would tell anybody to pay cash for everything. There is approximately one person in the world that cares about your finances, the other 7 billion people don't care if they take everything from you and force you out onto the street.

 

[memo90061]

It's definitely not a bad idea to pay off your car and any other bills you may have. I have real estate agents bugging the shit out of me all the time, saying "now is the time to buy" and "what about your future?" One agent who I barely knew showed me a list of all these crazy charges they add to buying a house, it was something like 12-15 charges on top of the 6% to the agent. I know it sounds harsh but I would tell anybody to pay cash for everything. There is approximately one person in the world that cares about your finances, the other 7 billion people don't care if they take everything from you and force you out onto the street.

That's how my mom is. We always bought cars cash, and most of the ones that I had broke down or ended up paying more because one thing kept messing up. I had such bad luck with cars which is why I ended up buying from the dealer.

I spoke to a lender from my credit union and she explained all the fees for buying a house. She did mention 3% down and then 4% down for fees. Another thing that was brought up was the debt to income ratio. She said eliminating debt is best or if I couldn't refinance to have low monthly payments to be able to pay the mortgage.

 

[ebhaynz]

That's how my mom is. We always bought cars cash, and most of the ones that I had broke down or ended up paying more because one thing kept messing up. I had such bad luck with cars which is why I ended up buying from the dealer.

I spoke to a lender from my credit union and she explained all the fees for buying a house. She did mention 3% down and then 4% down for fees. Another thing that was brought up was the debt to income ratio. She said eliminating debt is best or if I couldn't refinance to have low monthly payments to be able to pay the mortgage.

GOD knows what those fees are.
I won't go onto a dealer lot ever again, my Si is a salvage but runs great for half price. I used to be overseas and when I came back it's the greed that depresses the shit out of me. Now I'm going back overseas I'll miss driving my 2017 Si but that's about it. In your case just do the right thing don't buy anything on credit and save every single month. It's about the only thing that works.

 

[mis3]

I went from a MB-CLK350 to a 2018 SI Coupe. So, I feel your pain.

CLK350 was my DD for 11 years; it was a great car to drive with excellent engine/ 7-speed transmission. Unfortunately, maintenance costs was very high and gas consumption was high as well.

My SI is now 4 years old and the only problem was the AC condenser which was replaced twice under warranty. Honda has since extended the warranty of the AC condenser to 10 years.

I also owned a Honda Prelude (last generation) back in the days and it was very reliable as well. So, general consensus is correct and based on my personal experience, MB is nowhere as reliable as Honda.

If I were you, I would get rid of the MB if I can. The maintenance fee will increase significantly as the car gets older. I am talking about transmission, serpentine belts/tensioner/pulley, etc. which would cost thousands to replace. How about an used 10Gen Civic?

 

[memo90061]

That's what I'm scared of! I know something with the transmission or anything could come up. The inside of the Mercedes is starting to show some wear, and the paint is wearing off! I feel like 15k for the car is good given the condition.

 

[mis3]

To be honest, I do miss my CLK. In my opinion, it looked great even in today’s standards. The ride quality was solid and centered that the Civic cannot even come close.

However, if I buy another MB, I would probably lease it and return it before the warranty expires.

 

[wilbur_the_goose]

Pay down your debt first. Identify interest rates for all your debts and pay off the highest rate first.

You don't want to pay down your car loan at 5% if you have credit card debt at 20%, for example.

Right now, until you get a more solid foundation, it might be best to purchase a car for around $10k or less. Focus on a home, and plan on 20% down - save, save, save.

PS - Cars are fun, but are generally horrible investments.

 

[Patel]

I really love the new Civic Hatchback and have thought about buying for quite a while. I didn't buy it before because it was missing some features that I got used to in the Mercedes Benz. The new Civic Hatchback Sport Touring seems to have most of what I look for in a car.

I currently have a Mercedes Benz E-350 coupe from 2014. I'm still paying for it and owe so much! I owe 18,500 and I've been to some Honda dealers and they've appraised it at 15k, so I'm upside down $3,500. My currently monthly payments are pretty high and I'm trying to save money to buy a condo in Los Angeles. It's very expensive! With the upside down trade in and the unwanted accessories on the Civic the monthly car payment is pretty high. I've been told $600 a month for a lease and $613 a month to finance.

I'm thinking of ways in which I can have extra money to save for a house/condo. Lower monthly payments, would save on gas, cheaper maintenance, and probably cheaper registration fee. What should I do? What do you recommend?

A condo, house, apartment, should ALWAYS be your first priority over any car

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