Old Acura TL vs new Honda Accord

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Tirebiter
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Old Acura TL vs new Honda Accord

Post by Tirebiter » Thu Aug 16, 2018 1:15 pm

I currently own a 2012 Acura TL. It has relatively low miles on it for its age (around 45,000). I've been more or less happy with it but was recently tinkering with Edmunds' "True Cost to Own" site and was surprised to see that the estimated cost of owning my Acura for the next 5 years, was nearly equivalent to that of a brand new Honda Accord EX-L.

https://www.edmunds.com/acura/tl/2012/s ... st-to-own/

https://www.edmunds.com/honda/accord/20 ... st-to-own/

The new Accord's performance metrics (acceleration, braking, etc.) are largely better than the Acura, and it has many new technology features (including Apple Carplay which I have on my other car and use constantly). If the costs really are the same over time, I'm wondering if it would actually be the better financial decision to just buy the new Accord once I can save up the cash. IF the costs are roughly the same, I'd probably be a bit happier with the new Accord, but I'd be happier keeping the old Acura if it saved me thousands of dollars.

Questions:
1- Do any Bogleheads have opinions on the reliability of Edmunds True Cost to Own data? I'm wondering if the site tends to overestimate the cost of old cars in order to motivate its users to purchase new cars. Keep in mind I do not do maintenance work on my own cars and would have to pay for all maintenance.
2- Are there other factors not included in the True Cost to Own data, that I am overlooking, that would weigh in favor of keeping the older Acura?

azanon
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Re: Old Acura TL vs new Honda Accord

Post by azanon » Thu Aug 16, 2018 1:25 pm

There's the cost in the loss of cash equity, right? I'm assuming the new Accord costs most than what you'll get for your used Acura TL. If that's, say, 10K delta, that's 10K that's no longer invested in something making money. Now I admit, I think from the standpoint of a car being paid for in cash, since that's how I buy mine.

Topic Author
Tirebiter
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Re: Old Acura TL vs new Honda Accord

Post by Tirebiter » Thu Aug 16, 2018 1:35 pm

azanon wrote:
Thu Aug 16, 2018 1:25 pm
There's the cost in the loss of cash equity, right? I'm assuming the new Accord costs most than what you'll get for your used Acura TL. If that's, say, 10K delta, that's 10K that's no longer invested in something making money. Now I admit, I think from the standpoint of a car being paid for in cash, since that's how I buy mine.
This is helpful, as I would most likely be paying in cash. The initial delta would be around 15k I think.

sport
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Re: Old Acura TL vs new Honda Accord

Post by sport » Thu Aug 16, 2018 1:40 pm

OP, you already own the Acura. Therefore, the costs of purchasing do not apply. If you sell it or trade it, you will not get a retail price for it. In other words, the comparison you referred to assumes you are deciding which of the two to buy now. Since you already own one, it is not a valid comparison.

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bottlecap
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Re: Old Acura TL vs new Honda Accord

Post by bottlecap » Thu Aug 16, 2018 1:43 pm

So are you going to pay sales taxes and financing on the Acura if you continue to own it? Otherwise eliminate those costs.


I would highly question the repairs and maintenance as well. Even if accuruate, you are driving the car about half as much as Edmonds assumes. That means slower depreciation, maintenance and repairs. I would halve those and they'd still probably be high.

Your real savings with the Accord is gas. You might save $300 or $400 a year, but the sales tax you pay up front immediately wipes that savings out over the entire 5 year period.

JT
Last edited by bottlecap on Thu Aug 16, 2018 1:50 pm, edited 2 times in total.

abonder
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Re: Old Acura TL vs new Honda Accord

Post by abonder » Thu Aug 16, 2018 1:46 pm

It’s almost always a losing financial proposition to exchange a newish functioning car. Your loss would be somewhat tempered by the fact that you are dropping from entry level luxury to sedan, but you’ll still lose money. You always pay transaction costs (tax, licensing) and often higher insurance for newer car. It’s not totally unreasonable to make this change but I would keep a low mileage 2012 Acura. Also, you’ll never get as much for the car when you sell it trade as you’d like. You can do aftermarket stereo install will Apple CarPlay and it can integrate into steering wheel controls etc if that is of interest. The new safety features are god and might be worth an upgrade but only you can decide if it’s worth the cost.

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monkey_business
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Re: Old Acura TL vs new Honda Accord

Post by monkey_business » Thu Aug 16, 2018 2:07 pm

The private party KBB price on a 2012 TL in very good condition with 45,000 miles is $13-14k in my area. A new Accord will cost $25-35k with taxes and fees. That's $12-22k extra on day 1.

I also agree with a previous poster that the Edmunds maintenance costs seem very high for the Acura. What maintenance does a 6 year old Acura need almost every year that's $2k+?
Last edited by monkey_business on Thu Aug 16, 2018 2:16 pm, edited 2 times in total.

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sunny_socal
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Re: Old Acura TL vs new Honda Accord

Post by sunny_socal » Thu Aug 16, 2018 2:09 pm

No way I'd make this switch.

- Consider the transaction costs. You'll lose some money selling the old one and even more buying the new one.
- Edmunds is ok for a quick check but don't use it as gospel. I'll bet "cost of ownership" is roughly the same between those cars.
- Your Acura is very likely more comfortable. A Honda is an appliance, there's no luxury whatsoever (I know, I own one.) (Ok, I have a leather steering wheel wrap and leather shift knob, yay...)
- The Acura isn't that old and is only now getting broken in! It has many reliable miles left.

If you're just bored with the Acura then the points above don't apply. But you'll be even more bored with the Accord! Be happy with what you have, Acura is probably the best Boglehead vehicle in existence: not insanely expensive, not totally ugly, fairly comfortable, rock solid reliable.

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jimb_fromATL
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Re: Old Acura TL vs new Honda Accord

Post by jimb_fromATL » Thu Aug 16, 2018 2:24 pm

sport wrote:
Thu Aug 16, 2018 1:40 pm
OP, you already own the Acura. Therefore, the costs of purchasing do not apply. If you sell it or trade it, you will not get a retail price for it. In other words, the comparison you referred to assumes you are deciding which of the two to buy now. Since you already own one, it is not a valid comparison.
Agreed. It is not a valid comparison at all. That comparison might be valid IF you were buying a used Acura for retail price, but I have some doubts about the maintenance and repair costs too.

Plus you do not suffer any depreciation unless you sell the car and have to buy another one. And the longer you keep the car, the lower the yearly appreciation.

However, it's a great way to rationalize buying a new car when you just want one but don't really have any valid financial reason.

jimb

Topic Author
Tirebiter
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Re: Old Acura TL vs new Honda Accord

Post by Tirebiter » Thu Aug 16, 2018 3:02 pm

Thanks for all of the responses everyone. Very insightful. I'll be keeping the Acura.
abonder wrote:
Thu Aug 16, 2018 1:46 pm
You can do aftermarket stereo install will Apple CarPlay and it can integrate into steering wheel controls etc if that is of interest.
This is intriguing - I hadn't thought of that as an option. I'll have to look into it - thanks for mentioning it!

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bottlecap
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Re: Old Acura TL vs new Honda Accord

Post by bottlecap » Thu Aug 16, 2018 3:11 pm

Torger wrote:
Thu Aug 16, 2018 3:02 pm
Thanks for all of the responses everyone. Very insightful. I'll be keeping the Acura.
abonder wrote:
Thu Aug 16, 2018 1:46 pm
You can do aftermarket stereo install will Apple CarPlay and it can integrate into steering wheel controls etc if that is of interest.
This is intriguing - I hadn't thought of that as an option. I'll have to look into it - thanks for mentioning it!
A new Bluetooth radio on an older car is well worth the investment if you enjoy that sort of thing.

JT

mhalley
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Re: Old Acura TL vs new Honda Accord

Post by mhalley » Thu Aug 16, 2018 3:59 pm

I love my 2012 TL SHO, plan on keeping until at least '22. It would take a heck of a deal for me to get rid of it as I feeel it is the best car I ever had. The only thing I wish it had is a backup camera, considering buying a rear view mirror one

abonder
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Re: Old Acura TL vs new Honda Accord

Post by abonder » Tue Aug 21, 2018 2:06 am

I have friends who have done the backup camera plus Apple CarPlay stereo upgrade combination. It can be 500 bucks well spent if it keeps you in your car longer and makes it safer/more enjoyable. Certainly cheaper than buying a new car!

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