2004 vs 2005 Accord

Hello all,
I am interested in your thoughts on this....
2004 Accord with leather $21,300 (carsdirect price) Would you wait for the
2005 and pay the extra $1000 or so over the 2004 clearance price ??

Thanks for the time.

 

The only difference AFAIK is that the steering wheel controls will have
lights on the 2005. As a 2004 owner, I admit that would be nice, I
don't know about $1000 nice though.

 

The 2004 is already a model year old. It looks to me like the 2005 would be
a better buy assuming you can get one for $1,000 or less difference in
price? Wouldn't the 2004 have already dropped in value by $2,000-$3,000?

 

In part it depends upon how long you want to keep the car. If you plan on
trading it in or otherwise selling the car within the next five years then
the extra $1000 now will probably come back to you on the other end.

John

 

For 1000$ it is a no brainer. A 2004 would have to worth at least 15% than
the 2005 to have some interest. Most of the difference will be recovered in
resale value, even after 7-8 years.

 

The rear lights will be a little different but exactly the same shape.
More red area and lots less white/clear. I looked at the 2005's last
night; I like the old lights better.

At least the button lights are a meaningful change.

JM

 

if theyre both the same "generation", mileage makes a bigger difference
than years when you go to buy, sell, or trade.

in 6 years, id take an '04 with 90k miles over an '05 with 160k miles.

 

First, as a buyer I would agree with you, but you are not addressing the
relevant question. An '05 with 90k miles will have a higher market value
than an '04 with 90k miles several years down the road. Furthermore, the
fewer the clock year which have elapsed, the greater will be the difference.

To prove the point, I just used Edmunds.com to a hypothetical value analysis
of two identically equipped Honda Accord EX sedans with 90,000 miles in
clean condition. For these purposes you must hold mileage equal. A person
buying this month is going to put on the same mileage no matter if they buy
a 2004 or 2005 model year vehicle.

With all variables except model year the same, here is what I got:

Year .... Trade-In, Private Party Sale, Dealer Retail:

1998 7,162 --- 8,584 --- 10,187
1999 8,825 --- 10,366 --- 12,021

You can replicate the data gathering experiment any way you want and the
results will be similar. Model year matters a great deal in the market
value of a vehicle up until the vehicle is around 10 years old. A $1,000
buying price discount for taking an '04 instead of an '05 is not a good
deal. The discount would need to be in the $2,000 and up range to be
compelling.

John

 

hm... dunno bout that. say they get rid of it in 09...

the 04 will *appear* to have been driven 18k/yr- little above average
the 05 will *appear* to have been driven 22.5k/yr-bit more above average

although they may both have been purchased off the same lot, on the same
day.

i understand your point, im sure you understand mine, and i think we can
both agree there are hundreds of other factors as well, like
maintenance history, general maintenance/cleanliness, etc...

for example- when i sell my 98 cx hatch, a few things i plan on pointing
out to prospective buyers are...

service manual included
all work (except the ignition switch recall) done by me
never smoked or eaten in
seats covered and floor mats used since day 1
OEM ashtray
OEM armrest/cubby
and 46k miles.

 

if you want to sell it in 2-4 years, go for the 2005, other than that, 2004!

RAT

 

hm... dunno bout that. say they get rid of it in 09...

Go for it. All of that said, if your hatch was a '99 model year and all
other facts remained the same then the MARKET value would be higher than it
is as a '98. Such value might not be rational, but the data is out there.

Signing off from this silly thread,
John

 

Just compared a 97 Accord EX 4 door, 70K miles, good condition with a
98 using Kelley Blue Book. The 98 is worth $1470 more in trade. The
extra $1000 is well spent.

 

The data clearly shows that you will get the $1000 back and more if
you trade it even 8 years from now.

 

If one is worried about the money, why would one trade in?

 

Red herring. The issue was future value differences between a 2004 and
2005 in the same condition and mileage. Few people would keep a car
more than 8 years, so if you trade or sell it anytime within 8 years
you're ahead by spending an extra $1000 now.

People should always be concerned about the money. What sense does it
make to save $1000 now if the future value of it is greater than $1000