Looking(ed) into a Fiesta - now driving a CR-Z

[Willard]

I currently have a 2009 Subaru WRX and Im looking into the Fiesta and a Honda CR-Z. Increased MPG is my main motivator as well as overall cost of ownership: insurance premiums, maintenance, premium fuel etc... I have not driven either, just kinda kicked the tires and sat in each. Thinking the Fiesta has MUCH more utility that the 2 seater CR-Z, especially in the hatchback form.
The WRX is a super fun car with its neck warping 0-60, blink of an eye 1/4 mile, and merciless AWD grip. However its difficult to exploit those without going to a track... which I do not do. I've owend some cool performance cars recently, 2003 SVT Focus, 2005 Mazdaspeed Miata, now the Subie. I think Im ready to make a change from speed to MPG.

So my question: Has anyone traded a newer car with inequity for a Fiesta? Is there enough bank wiggle room in such a low priced entry level car? I suppose talking to a dealer would be the best option, but this seems like a good forum for asking as well.

Thanks!

[XI MAXIMUS IX]

I traded in my 2008 Chevy Cobalt 2dr sedan and it had the "Revolution Edition" limited edition package (red w/grey stripes). However, anyone knows that these cars had nothing special to them - they were just a bit sportier in appearance. Upon trading it in, I actually received an off WITH equity. I had bought the car 3 years ago with zero down as well mind you, and had put 56K+ highway miles on it - but the used market here is at a premium.

I think you may do better than you think. I can tell you that my Cobalt was a pretty solid car, but given the fun driving experience this car offers - along with the gas mileage - I couldn't have done better. I wasn't about to go with another GM - always have been a hatchback fan and this model finally made me jump on one after years of putting it off.

My insurance for the Fiesta went down about $10 on a 6 month policy, which isn't a lot - but it's better than going up. As gas rises I will save even more in the long run.

[BondiBlue]

Originally Posted by Willard

Is there enough bank wiggle room in such a low priced entry level car?

That depends greatly on the amount of negative equity and your credit score. It's usually a small percentage over MSRP that banks will loan for. That makes it harder to roll that upside down Subie into a "lower level" car. Now if you were rolling that into an Escalade or something, it would be much easier to do with a huge window sticker.

The following is just my opinion, so you can just stop reading right here if you don't wanna hear it.

Negative equity is caused by not putting enough money down. Which means you didn't save enough for a vehicle purchase. Which is a bad idea, I know, I've done it in the past and paid for it (interest adds up). Rolling negative equity into another purchase that you haven't saved up for is also a bad idea.

I'm assuming you're going to be a "payment buyer". Roll over your negative and stretch your loan out to 72+ months to keep your payment as low as possible. 72 months of whatever interest rate (depends on credit score) on that negative equity will really add up. Run some figures on how much you'll save on gas, maintenance, etc. versus what you'll lose compounding interest on your negative equity, plus tax, title, license and other fees. I'm sure you'll be unhappy with the results of how long it will take you just to break even.

As I said, all that is just my opinion, so if you read it, take from it what you want. The Fiesta is a great car and I would hate to discourage anyone from buying one. At the same time, I hate when I hear people rolling over negative equity just to get another new car.

Oh yes, and welcome to the forum.

[archenok]

Look out from inside the drivers' seat

[Willard]

Nice replies, thanks. The financial aspect is my only concern, I dont want to wind up paying $500 a month for an entry level car. Just dosent make sense. I plan on running some numbers through the dealer just to see how things align. If I dont like what I see, Ill hold out for a while until my current lease is up. By then there will be a facelift and some new options the the Fiestas.
I did take a test drive yesterday. Its a fun little car and holds my 6' frame comfortably. Its eager, but sounds very angry and buzzy at higher RPM. It will be difficult adjusting, but I think I can live with a major reduction in power if the MPG is wort it. Though, the computer was registering 17.6 MPG


Thanks again!

[Cobra348]

Two added words for you: regular fuel.

[BondiBlue]

Originally Posted by Willard

Though, the computer was registering 17.6 MPG

Probably hadn't been reset after putting around and idling on the lot.

[Willard]

Well, just a quick update:

I went ahead and traded the Subaru. After doing some searching on what its worth vs. what I owed, I didnt come out too bad. Armed with that I went car shopping. I cross-shopped the Fiesta, Cruze, and CR-Z. The Cruze was eliminated almost immediately after checkig it out. Typical GM build 'quality', rental fleet styling and lead balloon depreciation. Not for me. I had previously drove the Fiesta and really liked it, knew it was a safe buy and a quality car.

I then headed to the Honda dealer to drive the CR-Z. Love the striking lines and overall looks of the car. Very high interior fit and finish, up to par with the Ford's. Took her for a spin and was hooked. I signed the papers on a red 6MT with Navigation. I know its a bit of an odd bird, not the best hybird and not the most sporty 2 seater, but it is a well executed fusion of the two. Dont let the EPA sticker fool you (31 City & 37 Highway). In reality it gets 34 City and routinely gets 42 highway. Driven conservatively people are getting as high as 50 highway.

I believe I made the right choice for me, although I still do doube-takes when a lime green Fiesta drives by.

Thanks FF!

[Audrey]

It's hard to compare the Fiesta directly with a CR-V when the starting point of the CR-V is the topped-out price for a Fiesta. That said, if you're not worried about the money definitely go with what suits your style best. Glad you have a car you can love. (:

[PowerShift]

A CR-Z passed me today and I was thinking how stunning it was. Even if the the MPG or performance aren't that great I could see buying it for looks alone.