Zachary Newton

Hi All,

Looking for some advice as to what I should do given the current facts on my 2012 A4. I definitely overpaid for it, but current financing situation is as follows:

2012 CPO A4 Premium Plus S Line Package
Mileage: 80,000
Balance on Loan: $20,000 (1.9APR — $442 payment)
KBB @ Fair Value — ~$15K.

So, I've got the CPO warranty good through 100K (I drive almost 2K miles/month, 80% of which are from commuting to/from work 75 miles round trip daily) or the end of 2017.

I'm at a point where honestly I'd rather have a more reliable / affordable car (maintenance wise) and don't care about having a luxury car anymore. Given that I'm upside down around $5,000 on the loan, and am trying to get into a used Honda, what is the best course of action at this point?

Do I try and sell it private party to minimize the loss and then eat the difference in cash? This gets me out of the loan and I would then go buy a CPO Honda Civic somewhere in the $15K range. My payment would be closer to $250-$300 (depending on the down) and I wouldn't have to worry about encountering an INSANELY expensive repair like I will with the Audi when the warranty is up at the end of the year.

Do I wait until the CPO is up to get rid of it at the end of the year? I figure it'll be easier to sell it Private Party with some CPO left, but I guess continuing to drive it is still an option. I'm simply afraid of owning this thing without any kind of warranty on it as I've already had one $7K repair that was covered under warranty.

Any advice here would be highly appreciated as to the best course of action!

slonela

I would just ride out that loan, since there is no guarantee your other used Honda will be any more reliable. If you are all up to date on the maintenance then that should give you some peace of mind since you already know your car.

I have a 2010 A4 and approaching the 150K miles mark currently. I would replace the PCV valve every 50K miles which will always go bad at some point. This should prevent other expensive work (for me it was bad at 105K miles, and cause the rear main seal leak $1K fix). I will be replacing the timing chain tensioner soon which I hear require an engine replacement if it ever goes. However, the car has always been able to get me from point A to B, have not been stranded yet.

uberwgn

There isn't really a single "best" solution. It seems like you need to find a commuter car assuming no change in your long commute scenario.


The least expensive strategy would be to sell the A4 outright and reach into your pocket and make up the net difference, assuming you can do that.


I think the general public is becoming wary of these hi-mileage Euro cars when things start to go wrong. I don't know how much of a struggle it would be to sell.


Lots of folks have been in your situation. I've seen people go out and roll the deficit from the old car into a new car. People often find a domestic product that has huge discounts and it can easily absorb that $5k shortfall you are seeing.