Well, we were on our way to having both of our vehicles paid down when our 2012 Kia Sedona with 108,000 miles decided to bite the dust.
The transmission completely failed, the diagnostic computer was hallucinating and many other issues have emerged on this 4-year-old wonder. The repairs were projected to run between $5,000 and $7,000! We’ve already spent nearly $3,000 in various repairs on this thing over the past two years and 50,000 miles (failed oil pump, leaking oil pan, failed oil pressure switch, etc…).
Unfortunately, we purchased it used from CarMax and as such, the factory warranty was void since the full-length only applies to the first owner (according to Kia). I’ve usually been happy with CarMax, but not with this purchase. We’ve done business with them on 8 other vehicles over the years.
As we were very upside-down on this vehicle, we knew our only option was to purchase a vehicle we could roll that substantial negative equity onto. Actually, you don’t roll the negative equity onto the loan, the dealership reduces the price of a vehicle but keep the finance amount at the full price of the vehicle. Unfortunately, this only works on vehicles that are either over-priced or that the dealership wants to get rid of.
In our case, we got a little bit of both. We got two new cars:
2016 Honda Civic
2016 Honda CR-V
While we were not exactly planning to go out today to purchase two new vehicles, we were relatively happy with the final outcome. I very impressed with the staff at Rusty Wallis Honda in Dallas.
I will miss my 2005 Honda Pilot, which was the other vehicle involved in the transaction which we had equity in to offset some of the losses from the Kia.