Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

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ReadySetMillionaire
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Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by ReadySetMillionaire » Wed Nov 27, 2019 1:14 pm

I owned a 2014 Honda CR-V EX (second nicest trim) that was paid off. I also heavily researched it before buying it back in 2015. Unfortunately, this got totaled this past weekend when my brother (acting as DD) hit a deer.

So now I have to get a new car within a couple weeks. My insurance company is going to give me around $15,000 - $16,000. My car, with roughly 70,000 miles, with my trim, etc...there are two within 300 miles, and they are goofy colors that I'm not willing to spend that money on.

I'd like another CR-V, but I'm really confused as to what to get, especially since I have $15-16k to throw at it. I really like the 2015 models.

Note: my finances are good. Plenty saved up, having a good year with my law practice, etc. I can afford well more than what I'm listing below.

Option 1: 2015 Honda CRV EXL ($19.5k)
-Nicest trim package (nicer dash, doors, etc.)
-White
-Tan leather seats
-52,000 miles
-Has rubber mats, trunk cargo stuff ($300 value)
-Cons = not “certified” by the dealership (need to find out why)

Option 2: 2015 Honda CRV EX ($19k)
-Second nicest trim (doors are less nice, different control panel, etc.)
-Black
-Black cloth seats
-37,000 miles
-“Certified”

Option 3: 2019 Honda CRV EXL (Roughly $26k)
-New
-Obviously zero miles
-Extremely nice
-Have to say, I don't like all the bells and whistles on the newer cars

I personally think the 2015 Honda EXL for $19.5k is a good sweet spot. Spending roughly $30k (which is what it would be after taxes, fees, registration, etc.) on a new car makes my head hurt; but...maybe it's a better long term value?

I'm not in love with the 2015 CRV EX. But, it does have really low mileage and it's certified, and is perhaps a really good bargain.

But I really like the 2015 CRV EXL. There's a "wow" factor with that higher trim level (I'm 31, and yes, a really high trim package, even in a Honda, is a novelty I've never experienced). It seems like a reasonable price. My only concern is that 52k is a little high in mileage and it's not "certified.

Last issue -- I'm assuming I finance the car? They are running a Black Friday 1.99% financing special. So I'm assuming I deposit my insurance funds, finance as much as possible, and enjoy cash versus throwing it all in another vehicle.

Any thoughts would be appreciated.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by Jack FFR1846 » Wed Nov 27, 2019 1:22 pm

If you have the cash to buy a car, then why not just buy a car? If one of these is not CPO and you want the factory extended warranty, then just buy it. When you get right down to it, all a CPO car is, is a car that meets the manufacturer's age and mileage requirements, then they tack the cost of the factory extended warranty on top of it and put a "CPO" sticker across the windshield. I've purchased a CPO car and the dealer gave me the explicit choice to buy it non-CPO for $1000 less. Same car, without the added warranty.
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ReadySetMillionaire
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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by ReadySetMillionaire » Wed Nov 27, 2019 1:27 pm

Jack FFR1846 wrote:
Wed Nov 27, 2019 1:22 pm
If you have the cash to buy a car, then why not just buy a car? If one of these is not CPO and you want the factory extended warranty, then just buy it. When you get right down to it, all a CPO car is, is a car that meets the manufacturer's age and mileage requirements, then they tack the cost of the factory extended warranty on top of it and put a "CPO" sticker across the windshield. I've purchased a CPO car and the dealer gave me the explicit choice to buy it non-CPO for $1000 less. Same car, without the added warranty.
I guess this is the second part of my question -- should I just apply all the insurance funds to the vehicle, even when rates are two percent? My initial plan was to do just that, but rates being two percent has me wanting to keep the money and just make the car payment.

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Watty
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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by Watty » Wed Nov 27, 2019 1:46 pm

Be sure to check out the oil dilution issues with the CRV to see of the model year and engine you are looking at was affected by it. There is an epic thread on this.

viewtopic.php?f=11&t=244271&start=400


Also be sure to go through the list features when you are considering a 2015 model to a 2019 model. The 2019 may have things additional like;

1) Advanced safety features like automatic braking( Like if you are about to hit a deer :D )

2) Backup camera.

3) Better audio system that integrates with your cell phone.

4) There may have been a major model redesign so it may be a very different car.

5) Brand new tires. The 2015s you are looking at may be about due for new tires and those can be expensive.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by squirm » Wed Nov 27, 2019 2:34 pm

Here's my simple advice for what it's worth. If you have to finance a car, you're paying too much, get something less expensive until you can pay cash. If you can comfortable pay cash, you're doing well and enjoy.

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ReadySetMillionaire
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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by ReadySetMillionaire » Wed Nov 27, 2019 2:57 pm

squirm wrote:
Wed Nov 27, 2019 2:34 pm
Here's my simple advice for what it's worth. If you have to finance a car, you're paying too much, get something less expensive until you can pay cash. If you can comfortable pay cash, you're doing well and enjoy.
I don't have to finance anything; the rate is just so low that I think I want to hold onto the cash.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by delamer » Wed Nov 27, 2019 3:04 pm

You could broaden your horizons a bit, and consider other used vehicles.

If the CRV is what you want/need in terms of seating, cargo capacity, etc., then look at Consumer Report, edmunds.com, and other sources for reviews of comparable vehicles.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by Minty » Wed Nov 27, 2019 3:16 pm

I'd buy the new one and finance it at 2%. With a used car you never know, and the price difference is not that significant.
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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by Artful Dodger » Wed Nov 27, 2019 4:29 pm

$6500 extra for the new EXL. Brand new. Zero miles. Four years newer than the 2015 non-certified EXL with 52K miles. I'd go new. Either buy outright or use the 2% financing. That's better than what you'd get on a 3 year CD. Maybe just finance the difference for one year.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by Svensk Anga » Wed Nov 27, 2019 5:56 pm

I think Hondas depreciate slowly enough that used is rarely a screaming good deal. See if you can’t work the dealer down on the new one. It helps that it is a 2019 so close to 2020. Also good that you don’t have a trade. I think dealers often hold a bit back so that they can offer an impressive amount on your trade. You might also run the multiple dealer internet sales competition to find the best value. Approaching month end, someone might be hungry for one more sale.

I think the new safety bells and whistles are worth something, but hard to put a number on it.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by BolderBoy » Wed Nov 27, 2019 6:04 pm

How many miles do you drive per year? If a very little - buy used. If average or more - buy new and keep it "forever".
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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ReadySetMillionaire
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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by ReadySetMillionaire » Thu Nov 28, 2019 7:16 am

BolderBoy wrote:
Wed Nov 27, 2019 6:04 pm
How many miles do you drive per year? If a very little - buy used. If average or more - buy new and keep it "forever".
I would say about 10,000 miles per year, which is why I'm leaning towards used.

***

I did the email hustle yesterday regarding new EX-Ls. Looks like the best price I can get around here is about $28,000. This is about $10,000 more than the used one. Sigh.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by gtd98765 » Thu Nov 28, 2019 8:41 am

The old car is gone, you can't get it back. It's kind of a "sunk cost" (https://en.wikipedia.org/wiki/Sunk_cost ... st_fallacy). I would try to put it out of my mind.

Rather, I suggest you mentally add the $15K you will get from insurance to your assets, then, de novo, think about what kind of car you want and what you would have to pay, as if you never had a 2015 CRV in the first place.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by researcher » Thu Nov 28, 2019 10:40 am

ReadySetMillionaire wrote:
Thu Nov 28, 2019 7:16 am
I did the email hustle yesterday regarding new EX-Ls. Looks like the best price I can get around here is about $28,000. This is about $10,000 more than the used one. Sigh.
One day's worth of "email hustle" is not going to net you the best price, so I bet you can do better than $28K for the new model. Call or walk into a dealer Saturday (last day of month) and offer $26K (or less).

But regardless, even if $28K is the best price, it is still a better deal than the used model.
The used price is only 30% lower than the new model, yet 35% of the best miles are used up (assuming you keep cars to 150K miles).

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by Cycle » Thu Nov 28, 2019 11:35 am

I try to keep transportation costs as low as possible.

I would consider a private party purchase

I used to look at trim packages and the latest models and think "I love the way that looks," which is kinda silly bc now that I don't own a car they all look the same.

My point is simply that your brain has been programmed to like certain things by ads, and you should think hard about the functional purpose of any given vehicle feature before trading lots of your money for it.

Some of the new features in cars present distractions to the driver or not used by most people.

You see this with bikes too, with people going nuts for thru axels, Belt drives, disc brakes, and 1x11 drivetrains. Marginal functional benefits, mostly just luxuries with a trade-off of more difficult/expensive repairs.
Never look back unless you are planning to go that way

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by krb » Thu Nov 28, 2019 12:15 pm

For me, my priority is I want it to last as long as possible and stay out of the shop.
You’re already achieving that by buying Japanese. Buying used means you’re at least taking a chance that it’s a lemon. Unlikely with Honda/Toyota but possible. It’s the end of the year and the new car is the old model so they have to want to move them out. The new car as mentioned will have improved safety and other features. I’d say the money is worth the peace of mind to buy new, knowing there’s no real chance it’s a lemon (or if it is you can return it). Plus you would assume you will get four more years use out of it. I would go new. It’s going to be four years later extra that you have to do this again.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by j9j » Thu Nov 28, 2019 3:15 pm

It is disappointing to lose a perfectly good working car that was familiar to you. I have been driving my total for nearly 10 years and would be super inconvenienced if I had to pick another car. I agree with you on all the latest models have too many bells and whistles. That being said, given the choices listed. I would absolutely buy the new 2019 CRV. It does have a nicer interior and quite a bit safety items. Not worth the savings and unknown on a 4 year older car. They are doing a refresh for the 2020 model year so I would shop hard for a discount for the 2019.

Financing at 2% or less is good option, if you changed you mind you can always pay off the loan. If you tried to finance after you bought then you might not get a loan at that rate as the car would be then considered used.


Good luck in your choice.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by Lalamimi » Thu Nov 28, 2019 5:28 pm

Just how "totaled" is the car? If it can truly be fixed, see if you can buy it back and have it fixed. You still get the insurance money. Just make sure they don't do a salvaged title on it. My DH gave his elderly father our 2007 Trailblazer we had purchased in 2010 (pressured by siblings) when we purchased a 2015 Explorer (another mistake). D MIL wrecked it and her insurance totaled it. Husband and son checked the damage and I think paid about $1K for the vehicle. She got the insurance money. Son fixed it for minimum amount and DDIL is driving it these days. We all love that car. It also has a 3rd life= son's truck was stolen in Dec, then the Trailblazer was stolen from a different location in Feb. Months later, it was recovered 70 miles away. Gang was stealing cars and cutting them up and selling for scrap.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by inbox788 » Thu Nov 28, 2019 7:44 pm

Is the settlement with the insurance company over? Looks like it's about $3k more to replace with a one year newer used car. You could go back and ask for more. That's the only reason to buy used replacement IMO. Otherwise, you might as well take whatever the settlement and pay a little more and drive a new car. The total cost won't be that much more as it's spread over more than a decade, and it will last longer for more miles than your totaled car.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by whodidntante » Thu Nov 28, 2019 7:50 pm

ReadySetMillionaire wrote:
Wed Nov 27, 2019 2:57 pm
squirm wrote:
Wed Nov 27, 2019 2:34 pm
Here's my simple advice for what it's worth. If you have to finance a car, you're paying too much, get something less expensive until you can pay cash. If you can comfortable pay cash, you're doing well and enjoy.
I don't have to finance anything; the rate is just so low that I think I want to hold onto the cash.
At a 1.99% interest rate, and all things being equal, I agree with your decision to finance. That rate is approximately 0% real because you'll pay it back with inflated dollars. However, if you can get a better price without financing, all things are not equal.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by ReadySetMillionaire » Sun Dec 01, 2019 6:37 pm

Just to put a bow on this, I spent about 3-4 days playing the email game regarding a brand new EX-L. The best I could get was around $27,800.

I ended up getting a 2016 EX-L that popped up on my radar this weekend. While most of these were about $20,000, I got this for $18,900. It has 34,000 miles, certified, very happy with it.

I understand that there may be more of a long term cost here, but my old car was paid off. I am simply not mentally ready to pay $30,000-plus on a car. I also plan to drive this until 200,000 miles, if not more. Both Hondas in my family are at 180,000 and 175,000 and chugging along well.

Also, FWIW, I ended up financing the entire thing at 1.99 percent.

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by atikovi » Sun Dec 01, 2019 9:31 pm

ReadySetMillionaire wrote:
Sun Dec 01, 2019 6:37 pm
I am simply not mentally ready to pay $30,000-plus on a car.
Why not? Don't lawyers make that much in one month?

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by random_walker_77 » Sun Dec 01, 2019 10:29 pm

atikovi wrote:
Sun Dec 01, 2019 9:31 pm
ReadySetMillionaire wrote:
Sun Dec 01, 2019 6:37 pm
I am simply not mentally ready to pay $30,000-plus on a car.
Why not? Don't lawyers make that much in one month?
Objection, irrelevant! It's not about what you make, it's about what you keep (after all, this is bogleheads :mrgreen: )

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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by atikovi » Sun Dec 01, 2019 10:32 pm

Just couldn't imagine a good lawyer tooling around in a 5 year old CRV.

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ReadySetMillionaire
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Re: Totaled My Paid Off Car; Incredibly Indecisive About Replacement/Insurance Funds

Post by ReadySetMillionaire » Mon Dec 02, 2019 8:06 am

atikovi wrote:
Sun Dec 01, 2019 10:32 pm
Just couldn't imagine a good lawyer tooling around in a 5 year old CRV.
Not sure if my sarcasm detector is malfunctioning at this early hour, but I’ve found that most clients like you being relatable. I worked for an attorney who drove a Porsche and multiple clients have left reviews for her saying, “I feel like she took my money to pay for her car,” or something of the sort.

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