Price Received - Trade In, Sale, Total

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AlanSqB

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We have a "Price paid" thread. Given the number of years the Clarity has been out and the fact some of us have short attention spans for cars, I'll start this "Price Received" thread to track what was received on trade-in, private sale and total loss.

I'm starting the journey to sale or trade-in today as I've requested a cancellation of the Honda Vehicle Service Contract I paid too much ($2165) for. I suspect after the pro-ration, I'm probably going to get about 1200-1400 back towards my loan. My loan with HFCA is about $6k upside down per the KBB estimate (around $22k), which isn't really a problem because the interest is so cheap and I got $12,500 in tax incentives. I don't normally ever have upside down cars, but it really didn't make any sense to put any more down on this car than I did. I also overpaid for the car since they were "popular" and difficult to find in Colorado at the time I purchased and the dealers were very aware of the tax breaks.

The car is in good condition with a few dings I'll probably get popped out and needs a good cleaning. The main thing that lets the car down is extensive curbing on the wheels and the fact I have a mismatched tire because the originals were not easy to obtain in a timely manner. I'm thinking of taking the car to a local wheel repair shop to see what they can do, but I'm really not sure if it's worth the cost/trouble or if it will affect the trade in value that much. I may also price out a matching tire or see if I can pick one up used from ebay.

Once the VSC gets knocked off the loan, I'm going to head to Carmax to see what they're quoting and weigh my options from there. Washington State is waiving sales tax on used EV's here and there is a fairly good used market with some local dealers even specializing in them so I think the options are probably good. If I can offload it for a quick investment of $2-3k, I'll probably do it.

Vehicle Specs:
2018 Clarity Touring - MSM
22k Miles
Condition is good - curbed wheels, two small dings, one small hood chip and a small chip in windshield that needs filled (thanks Colorado)
 
You may find a buyer outside of CA, or after the Honda incentive disappears. We got a new, unblemished, 2019 Touring for your KBB price ($22K) after factoring in all incentives.
 
That’s actually one of the several reasons I’m looking to part with it. For now, prices outside of CA are higher. I want to drop it before the effects of the lower prices there start to bring down the new and used values everywhere else.

Having an orphan car with high repair costs, low parts availability and low resale value* is the opposite of why I usually buy Honda’s. It’s time to cut bait because this thing is no S2000.

*I fully admit and accept that this is offset by my having gotten a big tax refund so I’m not upset about it, just worried about how low it will go.
 
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It isn’t an orphan. The 2020 models is slated to arrive soon. Parts should become more readily available and we don’t really know what the repair costs will be.

When the Honda incentive is gone the out of pocket cost of a new car will increase. Same when federal and state tax incentives are reduced or phased out. Theoretically, the value of a used car will increase when the incentives for a new car are no longer available.

All the best, but this is not the best time to sell a dinged up 1-2 year old Clarity.
 
I for one love my Clarity and will try to keep it as long as possible... 12+ years, barring any major accidents, problems etc. I really think the Clarity is one of the best vehicles I have ever owned. I enjoy my car everyday.

But, for each his own... if you think there are better options out there for ya - go for it.
 
We will see how it goes. I don’t think there will be a 2020 Clarity. There are as many here now as there are ever going to be. The experiment is over. Honda will be back in a few years with production EVs based on what they learned from Clarity and the Fit EV.

Still love Honda’s. Still like my Clarity. As admitted above I just have a short attention span for cars (Is there a support group for that). I normally lease but the incentives made purchasing a much better option. My loan balance minus tax incentives is $16,500 and I think the car is worth way more than that any day of the week.

BTW, wife also thinks I’m crazy. She loves the car. Maybe I get it detailed and keep it for another 1.5 years.
 
Landshark said:
It isn’t an orphan. The 2020 models is slated to arrive soon. Parts should become more readily available and we don’t really know what the repair costs will be.

When the Honda incentive is gone the out of pocket cost of a new car will increase. Same when federal and state tax incentives are reduced or phased out. Theoretically, the value of a used car will increase when the incentives for a new car are no longer available.
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Actually, it kinda IS an orphan - outside of CA. Honda SAYS "any dealership can order one" but, in practice, getting a dealership to order a vehicle is like pulling teeth from a chicken. According to my Clarity dealership, all parts ordered are shipped from Japan - there is no stockpile location in North America.

As to the federal tax incentive phase-out, that begins when Honda sells its 200,000th EV and/or PHEV in the US. To date, Honda has sold just over 26,000 Clarity and 1,100 FitEV (before it was discontinued). So I'm guessing that - unless Honda starts offering a wide variety of EV and PHEV models nation-wide or the current administration manages to shut down the tax incentive program - Honda will not reach the 200K mark anytime soon...
 
An orphan vehicle is one where the manufacturer is no longer in business. I own a motorhome that meets that criteria.
It is 15 years old and I intend to used it for another 20. Honda is still in business and the Clarity is still in production. It isn’t even close to being an orphan.

More than 2000 automobile manufacturers are no longer in business. Some of their vehicles are still being driven. It is nothing to panic over.

I made no prediction on the timing of incentive phase outs. I simply noted that if a buyer can purchase a new vehicle, with current incentives, for $22K, they would be unlikely to spend $22K on the same vehicle in used condition, despite what the seller believes the vehicle is worth.
 
Landshark said:
An orphan vehicle is one where the manufacturer is no longer in business.

I made no prediction on the timing of incentive phase outs. I simply noted that if a buyer can purchase a new vehicle, with current incentives, for $22K, they would be unlikely to spend $22K on the same vehicle in used condition, despite what the seller believes the vehicle is worth.
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Perhaps I should have referred to it as a "foster child"? :) I agree with your point about pricing a used vehicle - I was referring to your initial comment about incentives as I doubt Clarity will be around long enough to reach the 200,000 mark - so the seller would have a long wait for the incentives to end.

I live in a state that offers no EV/PHEV incentives and do not have a tax liability equal to the full federal rebate - so your $22K price is amazing to me! I paid $29.9K for a base model and, with the that portion of the federal rebate I can claim, will STILL have paid more than you!
 
Kerbe said:
and do not have a tax liability equal to the full federal rebate
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This is a key to not applying the full tax credit.

1) Few people have $7500 tax liability (only ~ 50% households pay any income tax)
2) Even if they have tax liability, few people have a basic understanding of income tax. (Assume they'd need a $7k bill from underpayment, etc.) People are stupid.
 
What I've seen for dealer asking prices on used models is $22k for base and $24k touring. I do think as time goes on, the CA carpool sticker will be desirable for cars that come from outside CA.
 
Bender said:
People are stupid.
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I'd go with "under-informed" although "stupid" does apply in some cases... ;) Some folks have been able to "up" their tax liability by cashing in IRA's or selling investments so that they can benefit from the whole $7500 but I'm self-employed and rely upon the ACA for health insurance so have a $48K income cap to keep the tax credit: Without ACA my monthly premium would jump from $320 to $1150.
 
Kerbe said:
so your $22K price is amazing to me!
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We were amazed as well. We were not even considering buying a new car until next year at the earliest. In our minds we had targeted a non-plug-in hybrid and we’re willing to wait for new models to come out. One afternoon, with some time to kill, we pulled into a Honda dealer to look at the Accord Hybrid. We have no problem test driving a car and then leaving.

That’s when we saw the Clarity info, $7500 tax credit, of which we will be able to take full advantage and the $5000 Honda incentive. As it turned out we took delivery of a Ca car in Oregon, which has a $2500 rebate. It ends up being $15K off a $37.5K car. Net cost $22.5. Even with license, registration and Oregon’s new vehicle privilege tax we’re under $23K, no sales tax. We looked at each other and said, “Are you kidding me?”

When the Honda incentive goes away it may help increase used Clarity prices. Also, if the OP can find a buyer such as yourself, who does not qualify for the Federal credit, $22K would be a great price for the buyer. There certainly are scenarios for the seller to get the asking price and with the car currently only available in CA, there could be demand in other areas.
 
Being tight lipped, Honda may never release a verifiable schedule.

The comment was based on numerous automotive publications listing the Clarity as part of the Honda lineup for 2020.

Time will tell.
 
A reliable source relayed to me that the 2020 Clarity PHEV will arrive in the US very late in 2019 and be available (at least as inventory - not sure about special orders) only in CA and OR. Probably not coincidentally the same markets where the BEV is offered.
 
Got a quote from CarMax today on my 2018 touring with 25,900 miles. The only call out item was the curb rash on the wheels.

$20,000.

Disappointing but not surprised. I will probably be trading it in when I pick up my Tesla in a few weeks. They use the KBB “good” value as their value and from what I’ve heard they don’t even look the car over. It’s a few hundred more thank the CarMax offer as of today. At least that way I get the sales tax off of that portion of the purchase price. WA is also waiving sales tax for up to $20,000 on EVs under $45k (valid on new Clarities also) so I will basically be paying no tax.
 
AlanSqB said:
Got a quote from CarMax today on my 2018 touring with 25,900 miles. The only call out item was the curb rash on the wheels.

$20,000.

Disappointing but not surprised. I will probably be trading it in when I pick up my Tesla in a few weeks. They use the KBB “good” value as their value and from what I’ve heard they don’t even look the car over. It’s a few hundred more thank the CarMax offer as of today. At least that way I get the sales tax off of that portion of the purchase price. WA is also waiving sales tax for up to $20,000 on EVs under $45k (valid on new Clarities also) so I will basically be paying no tax.
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Do you live in Washington? I'm looking to buy a used Touring model this coming April but it's hard to find any in the Portland area. :D

EDIT: I wonder how much negotiating room I would have with that South Tacoma dealer, seeing as they probably did not want to have those Clarities in the first place. I'd buy new if I could get as low as $31k OTD. What do you think, given your experience with them?
 
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You could try. Their site lists the lowest priced unit at $33k. Seems like a fine start point.

I haven’t bought from them before, but I was working with a Michael Sylvan. He’s a nice guy and absolutely no pressure. I’d probably try to buy from him if I were to ever buy another Honda.
 
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