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I have previously mainly owned Honda and Toyota and even Chevy. I bought a Kia Optima S in 3-2019 for 27900. The car has a lot of top features and is nice to look at. However, it is a rough uncomfortable ride. So Saturday, I had 3 pre apporvals in hand and went to my local Honda to trade for an Accord ( mid model), I owe 21300 on my Kia and the Blue Book was only 14000. HOLY Cow , of course I left in my Kia. But to be 7 grand upside down is freaking me out , I have never been upside down on an auto loan and while I think Kia is a good car I will not purchase again once I am rightside up. My car has 14000 miles and no damage. So I am going to double up and get this thing paid off ASAP
I just did a quick google Search on kbb.com. It looks like brand new you're right on the money with the price of about $27,000. And it looks like trade-ins right around $14,000 but private sell is $16,000 to $18,000. So I would list it for sale for $18,000. And save up the different or get a small loan for the different.
Its not worth it to me to lose or invest more money, as the car is a great car. Going to pay extra and trade when I break even. I think thats the best option financially. And not buy again , even though it had great options.
The KIAs are actually very reliable as a whole. I have a 2012 Optima bought new that year. Still runs well. I use it as my commuter vehicle.
What kills the resale on KIA's is, the manufacture sells so many vehicles to the car rental companies. Those companies flood the market with used KIA's, destroying the resale value.
I did own a 2016 Honda purchased new, up until a few months ago. Started having issues and had to dump it.
The KIA to my surprise was a more reliable vehicle..go figure.😆
I thought it would have been the other way around.
I'm glad Honda doesn't sell to rental car companies. This did make it easier getting a better selling price on the Honda.
I'd keep the KIA and drive it until the wheels fell off. 😆
You could always buy a 2nd vehicle after paying it off.
@Sbrooks1 wrote:I have previously mainly owned Honda and Toyota and even Chevy. I bought a Kia Optima S in 3-2019 for 27900. The car has a lot of top features and is nice to look at. However, it is a rough uncomfortable ride. So Saturday, I had 3 pre apporvals in hand and went to my local Honda to trade for an Accord ( mid model), I owe 21300 on my Kia and the Blue Book was only 14000. HOLY Cow , of course I left in my Kia. But to be 7 grand upside down is freaking me out , I have never been upside down on an auto loan and while I think Kia is a good car I will not purchase again once I am rightside up. My car has 14000 miles and no damage. So I am going to double up and get this thing paid off ASAP
I have never been upside down on an auto loan.
Anyone with a long auto loan, or high interest and little or no money down is upside down first couple years.
Cars depreciate faster than you are paying them off at first.
Average #'s about 24% year 1, 15% each year 2 and 3
40% @ 24 months = 1.66% a month depreciation
You would be upside down with a Honda or Toyota also.
Less than 10% depreciation difference between Kia, Honda, and Toyota at 3 years age
As others have said dealer and private party values are thousands apart.
It is the long term loan or high interest that is making you upside down at 2 years
27900-21300 = 6600 paid over 18 months = 330 month
330 / 27900 = 1.2 % payment per month in the years that your depreciation averages 1.66%
You need another year or as you said "double up".
As Gmood1 said:
I'd keep the KIA and drive it until the wheels fell off.
For what its worth, most new cars depreciate a lot within the first 3 years of ownership and this isn't just something that affects Kia's...it affects most new cars on the road today.
That is my plan or at least until it is paid for. Like I said I love the car other than its a rough ride. Definitely will not trade upside down, poor salesman was sad because I came in with multiple approvals with great rates.
It is long term 72 months which I will never do again, but my interest rate was not terrible 3.2 , all of my scores then were over 760 and now over 800. I will not finance again over 60 months for sure.
Remember, just because you finance for 72 months, doesn't mean you have to pay on it that long.😉
I financed my KIA for 72 months.
Paid it off in 10 months.
The only real way to stay upright instead of upside down, is to put down a sizable down payment.
3.2% is a decent rate.