I’ve been whining about owning a truck (2006 Honda Ridgeline) that I don’t drive much anymore for months now. I keep swinging back and forth over whether to sell it or not, and I’ve been basing my decision on what I thought I could get for the truck. I was looking at asking prices for similar trucks on Cars.com and Autotrader.com, as well as the “Clean” True Market Value on Edmunds.com.
Last night, while entering my net worth updates into NetworthIQ, I did the standard lookups for the private party price for our three cars to determine the value of our assets. I use the “Clean” value for Edmunds’ TMV for the truck and MINI, and the Average value for the Pontiac to determine the value.
As of July 1, 2008, the values of our 3 vehicles (rounded off) were:
2006 Honda Ridgeline: $18,500
2005 MINI Cooper: $16,900
1997 Pontiac Grand Am: $1,200
Based on what was listed on car sales websites, I figured I could list my truck for just under $20,000 and work down from there (since I wasn’t desperate to sell). Plus, my truck would have been the only used Ridgeline for sale within 20 miles, so I figured I could easily unload it for about $19,000.
But when I ran through Edmunds’ TMV last night, I was a bit shocked that even my very highly-rated truck had taken a bit of a hit in value.
The new truck value as of July 31st is $17,600. In just a month, my truck lost 5% of its value or $900! I didn’t think I would be immune, but I also thought the Ridgeline would retain more of its value. Granted, I haven’t compared value drops for competitors like the Tacoma, F-150/Ranger, Colorado, Dakota, Frontier, etc., so maybe the Ridgeline is still doing well.
So what else does this mean? Well as of right now, if you look at my debt scales in the sidebar, you’ll notice that I owe about $18,000 on the truck. So that means I owe more on the truck than it’s worth. I was ahead in June, but no longer. However, technically, I owe less on the actual truck because about $1300 of that loan is a fully-refundable extended warranty straight from Honda. I could always cash it out and then I would owe about $16,800 and be in the black again.
So for now, I’m holding onto the truck. Not because I might lose money on the sale, but because I really don’t want to sell it. I’m just too emotionally tied to owning this truck that I don’t want to part with it yet. It’s a stupid, selfish reason, but for once my emotions are overruling my logic. I just really like having a truck, and no other truck right now offers the configuration, hauling capacity, safety ratings and a trunk in an AWD powertrain. I still think it’s the best truck ever made, but I may be biased.