Thursday, May 27, 2010

Good Price for a Used Honda Civic?

Every now and then I get a query from a reader asking about a good price. In this case, I was asked about a good price for a used Honda Civic. The writer is from Canada but I have converted the dollar amounts to U.S. Read what she asks and comment below on what you think the right answer is and read what I had to say.

I'm looking at a 2006 Honda Civic coupe LX, standard (which I like) with [47,500 miles] and a top of the line extended warranty to [100,000 miles]. The guy needs to sell as he moved [...], bought a truck, got a company car and his girlfriend got a company car too. His uncle (a teacher ...) is helping to sell it as he has access to the teacher's website. I'm a teacher too. We usually trust each other. No accidents, some tiny nicks here and there around front and wheel wells. Nice on the test drive. They've had trouble selling it, my guess because it's standard and everyone's buying new these days with the 0% financing everywhere you look. I'm the only one interested currently. They're motivated and the 20 something owner owes on it. He bought it from [a] Honda dealer in 2007 when it came off a lease and spent a good penny on the extended warranty. I looked at the paperwork in the file in the car and it appears he paid [$11,750] in 2007 plus whatever he spent on the warranty. I'm not sure what they starting asking for but I do know they realized it was too high as the uncle said he was having trouble selling it. They're now hoping for [$10,350]. I'd like to pay [$9400]. Is that a reasonable offer?

I told the reader the $9400 seemed fair, plus 35% of the cost of the warranty because I think it has some value left to it but only a fraction because the warranty is unique to the car. She's a harder negotiator than I am. She's going to offer the $9400 warranty included because it's got no value if the new owner doesn't want to pay for it.

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