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 Who knows anything about the "Honda Buy-Back Program?"
maddog_enigma  [Team Member]
4/26/2008 1:36:57 PM
PLEASE, I don't want a full discussion here about leasing vs. buying cars, etc. I want to know if anyone here has SPECIFIC INFORMATION about Honda's program. Thanks in advance.

Wife drives a 2005 Honda Accord with 32000 miles on it. We owe about $5600 left with a little less than 2-1/2 years left on the loan. Monthy payment is $210.

Generally, we drive our cars for about 8-10 years so we aren't shopping for a new one yet.

Anyway, get a letter in the mail from Honda. Says our local dealer where we got the car is doing a special vehicle exchange and financing event. They give you 100% of the market value of your car comvbined with either up to $5,500 in discounts or 0.9% financing on a new car.

So anyway, my thinking is that it might not be a bad idea to do this IF they payments on the new car come out below or right around what we're paying now. Yes, I will have a new 5 year loan to pay but 2 years from now the car will only be 2 years old instead of 5. Sort of like leasing, but we can always own the car and keep it 10 years like we normally do.

So anyway, I have to go to the dealer to see about it but I thought if any of the hive mind here was "in the know" it could either save me some grief or get my ass in gear and run out the door to Honda.

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metalsaber  [Team Member]
4/26/2008 1:38:51 PM
Most likely they are going to tack on the remaining loan amount onto your final price for the new vehicle. It isn't like they are going to give you free money or lose money.
maddog_enigma  [Team Member]
4/26/2008 1:42:13 PM
Obviously the equity in the car (sounds funny I know) will have to pay off the old loan.

Example: Value of 2005 car: Approx 11,000 kelly blue book. - 5,500 loan balance = 5,500 towards the new car.

I'm not stupid. That's why I'm not asking for general advice so much as I want to know specifically about this particular program.
maddog_enigma  [Team Member]
4/26/2008 2:38:37 PM
bump
308Sako  [Member]
4/26/2008 11:22:36 PM
It's about the money, they can and will write off significant amounts in the correct situation to move new cars.

It doesn't hurt to ask

Long ago before retirement I was the GM of an Auto value guide, similiar to KBB, but based in NY.
fishstix  [Member]
4/26/2008 11:31:36 PM
Its called "trading in".

Not sure what the confusion is? I work in the auto industry. All makers and dealers do this, almost on a monthly basis.

Market value is what the dealer will give you. Rebate "up to" amount is the rebate available on the vehicle you choose. Finance the rest or forego rebate and use their special interest rate.

Youd be surprised how many people say they are going to run their vehicle for 8-10 years but never do.
sq40  [Member]
4/26/2008 11:45:14 PM
The "Buy Back" programs are nothing more than scams.. Do you really think the Dealler is so desparate to get your used car that they will take some sort of loss on it in some way?
sq40  [Member]
4/26/2008 11:50:01 PM
Read this; Its marketing Trick #4


http://www.aaimarketing.com/new_ttp.asp


A Real Buy-Back is for defective cars under the Lemon Law;

http://www.ftc.gov/bcp/lemon/nada.htm

Tannim  [Member]
4/26/2008 11:50:01 PM
I get the same thing for my car all the time. It's just another way of marketing a trade in.

"WE HAVE URGENT NEED OF 2001 XYZ CARS!! In exchange for the market value, we will give you a HUGE discount on a new car!"

Yeah, ok. Good luck with that.
mucknuggle  [Member]
4/27/2008 12:13:34 AM

Originally Posted By maddog_enigma:
PLEASE, I don't want a full discussion here about leasing vs. buying cars, etc. I want to know if anyone here has SPECIFIC INFORMATION about Honda's program. Thanks in advance.

Wife drives a 2005 Honda Accord with 32000 miles on it. We owe about $5600 left with a little less than 2-1/2 years left on the loan. Monthy payment is $210.

Generally, we drive our cars for about 8-10 years so we aren't shopping for a new one yet.

Anyway, get a letter in the mail from Honda. Says our local dealer where we got the car is doing a special vehicle exchange and financing event. They give you 100% of the market value of your car comvbined with either up to $5,500 in discounts or 0.9% financing on a new car.

So anyway, my thinking is that it might not be a bad idea to do this IF they payments on the new car come out below or right around what we're paying now. Yes, I will have a new 5 year loan to pay but 2 years from now the car will only be 2 years old instead of 5. Sort of like leasing, but we can always own the car and keep it 10 years like we normally do.

So anyway, I have to go to the dealer to see about it but I thought if any of the hive mind here was "in the know" it could either save me some grief or get my ass in gear and run out the door to Honda.




I sold Hondas up to a year ago. They have less incentives and discounts than any other brand, other than the really super premium brands.


They simply want your car as a trade in, and they want to sell you a new one. Period. You will get roughly the same deal as you would any other time. If the payoff on your car is not met by the trade in amount (which it sometimes is with Hondas, unlike almost any other car because of their very high residual value), the negative equity will be added to the new loan.


I cannot see how there possibly can be a $5500 discount on any new Honda. They simply don't do that. A Civic or Accord has less than $2k markup from invoice to retail (a Civic barely has $1200). I've never seen a Honda dealer make a practice of going more than 100-200 below invoice. They could if they wanted, but in my experience they don't.

Maybe there is some dealer cash that you could get thrown into the deal, and that's why they are saying $5500 off. There is almost 3k markup on a minivan, for example. If they have 2k dealer cash (and I have no idea if they do or not), they could throw it in the mix and you'd have 5k discount. That would be really rare though.

In reality, you will get a fair to middling trade in offer and around invoice price on a new Honda, which I truly believe is the best new car deal in town. I would much rather buy a Honda at invoice than a domestic with their thousands in rebates. They just plain don't break. If they throw in some dealer cash, even better. You can look on edmunds.com to try and see if there's dealer cash.


And almost for sure, the extra discounts (if there are any) and the special financing can't be combined. That's classic Honda, because both programs are supported by the factory and you can only use one.

www.edmunds.com/incentives/RebateController?styleid=100952863&popuppage=on

Edited to add: According to Edmunds, they have 2k in dealer cash on Odyssey vans right now. I didn't check the other models. So that's what it is. They sell you the van at invoice or right around invoice (about 3k off MSRP), and they maybe chuck in the dealer cash, so total of $5k off MSRP. That's about as good as it gets on a Honda.

Here's the info from Edmunds. You can follow the link to check other models if you want.


Rebates
There are no customer or dealer cash rebates or incentives available at this time.

Financing Start: 03/29/2008 End: 07/07/2008
.9% APR Term: 24 months
.9% APR Term: 36 months
2.9% APR Term: 60 months
Restrictions Vehicle must be financed through the manufacturer's captive finance company. Cannot be combined with $2000 dealer cash.
Comments Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement.

Leasing
There are no special lease terms available at this time.


Manufacturer to Dealer

Marketing Support
$2000 Cash to Dealer start: 03/04/2008 end: 04/30/2008
Restrictions Dealer Cash cannot be combined with other offers
Comments Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement.
$1000 Cash to Dealer start: 03/29/2008 end: 07/07/2008
Restrictions $1,000 APR Dealer Finance Cash is available only to those who finance through AHFC.
Comments Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement.
mucknuggle  [Member]
4/27/2008 12:25:31 AM
If you are looking for a new Accord, you won't get anywhere near 5k off MSRP. Probably 1500 to 2000, tops. And there are no incentives at all on Accords right now, at least not in my region.

On the other hand, the Accord is spectacular after the redo last year.

www.edmunds.com/incentives/RebateController?styleid=100939059&popuppage=on

ncentives & Rebates
2008 Honda Accord
EX-L 4dr Sedan (2.4L 4cyl 5A)
Manufacturer to Customer

Rebates
There are no customer or dealer cash rebates or incentives available at this time.

Financing
There are no low APR incentives available at this time.

Leasing
There are no special lease terms available at this time.

Manufacturer to Dealer

Marketing Support
There is no marketing support available at this time.
maddog_enigma  [Team Member]
4/27/2008 8:40:45 AM
Well thanks guys, that about answers that!

Especially to the sq40 I now see that this really is a scam (sort of) and from a dealer that I really like and trusted. They're just trying to drum up some buisiness.

And thanks alot to macknuggle. I realize that I could probably do just as good anytime if I so chose to trade in my wife's car for a new one.

This is nothing more than a marketing tool.
Tacberry  [Team Member]
4/27/2008 8:48:19 AM

Originally Posted By fishstix:
Its called "trading in".

Not sure what the confusion is? I work in the auto industry. All makers and dealers do this, almost on a monthly basis.

Market value is what the dealer will give you. Rebate "up to" amount is the rebate available on the vehicle you choose. Finance the rest or forego rebate and use their special interest rate.

Youd be surprised how many people say they are going to run their vehicle for 8-10 years but never do.


Hmm.. 97 accord DL payed off for the last 4 years. I may have to look into this. I just can't get past the equation:

(cost of repairs)/(12 months)=annual maintenance cost X.

If X is > monthly payment of new car then buy new car.
If X is < monthly payment of new car then keep old car.


A new Honda Enginge is roughly $2K or < $200/month.
vengarr  [Team Member]
4/27/2008 9:03:08 AM
Years ago a buddy have I think a Hiundai Sant Fe that he got a letter about selling to the dealership due to increased demand. He owed like 10 grand on it and it booked for 13 or 14 , they offered him 15 cash or 15 trade in on it.
AeroE  [Team Member]
4/27/2008 9:20:29 AM
I get these letters every month from dealers that "need" my pickup for their used car business.

Their lots have been swimming in all types of used cars since at least 1998. My truck will hit 210k miles and I can bet on another solicitation this week or next week, and I'm betting I would get a really high offer . Probably more like, "Leave the keys and let us dispose of that pickup for you. Can I show you a replacement gas guzzler? We have plenty."


sixgunsblazing  [Team Member]
4/27/2008 9:35:53 AM
scam to move a new car.
avoid and keep your money, you'd be a fool to trade in that car now
lancew  [Member]
4/27/2008 9:45:52 AM
2005 Accord with only 32K miles on it - sell it outright and you will be VERY pleased with what you can get for it. I know of a couple that paid nearly 16K for a 2004 with more miles on it than that (albeit a very loaded model). No better bargaining tool than a great down payment and good credit when it comes to negotiating a new car.
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