Car Research Project
Choosing a New Car
There are a lot of cars to choose from, but I chose the Honda Accord. Honestly, I picked this car just because I have heard a lot about it and it looks like a pretty nice car. Also, in my family there is already a big car that can fit 8 people in it; so I didn't really need to worry about having enough space for people or other things. Then for the trim level, I chose the Sport because I do want a little more than the "bare minimum", but I also could careless for the other luxuries provided in the other trim levels. One thing that did stand out to me, that was different between the first trim level and the Sport, was that the Sport has fog lights. I truly don't know how helpful they will be when I'm driving on a foggy day, but I have pretty bad eye sight and having the fog lights would make me feel better about driving when it's foggy.
The Honda Accord is a typical 4 door and trunk Sedan. For the Honda Accord, city driving is 27 miles per gallon ,and highway driving is 37 mpg. The Honda Accord contains a 2.4 liter i-Vtec 4 cyclone engine. Main safety features include alarm system, restraint system, and multiview rear view camera. The restraint system, as far as airbags go, include front and rear head curtain, dual front, and front side impact airbags. The basic warranty coverage is that Honda will repair any part that is defective, unless it is defective do to things such as improper maintenance and modifying the car without authorization. Then in the powertrain warranty parts that are additionally covered on top of the basic warranty are the engine, transmission, tansaxle, front-wheel-drive, and rear-wheel-drive.The basic warranty lasts for 3 years or 36,000 miles, which ever comes first, and the powertrain warranty lasts 5 years or 60,000 miles.
Consumer VS. Expert Ratings
The consumer rating for the Honda Accord is an 8.2. Pros mentioned by consumers were it's comfortable, efficient, and reliable. Cons that were mentioned were that the rear window seems distorted, loud "wind" noise at 40 mph and over, and limited options/colors. While consumer rating is at an 8.2, the expert rating is at a high of 9.4. Pros said in the expert rating were "class-leading reliability," variety in line up, and great resale values. On the other hand, some of the downfalls were not as good traction as other vehicles tires and not a high-mileage diesel. From reading the reviews on both sides, I believe the Honda Accord ranks in the top 10 of cars its size. I came to this conclusion because there were many comments of it being reliable, efficient, and great in performance. Also, quite a bit of of the negative comments were based on personal preference and that the inconveniences mentioned are fairly easy to deal with.
The MSRP for the 2016 Honda Accord Sport is $25,900. MSRP simply stands for and means the manufacturer's suggested retail price. The fair purchase price, an average of the range of prices most people pay dealers, is $23,009. The invoice price, what the dealer paid for a car, is $23,771.
Even though the fair purchase price is $23,009 on Kelly Blue Book, other sites may have different price points for the Honda Accord. On the Edmunds website, the fair purchase price, which is called Price Promise, is a bit more at $24,685. But, according to True Car, the fair purchase price, their estimate, is $23,999. How come the prices are different for each website? Lets start with the highest price, on the Edmunds website no where does it specifically state that the Price Promise is based on the area around me. While, in both Kelly Blue Book and True Car, somewhere on the page it says the price is based on the local surroundings. Also, to contribute to the difference, the price on the Edmunds website is based on the Honda Accord Sport with Honda sensing; my car doesn't have Honda sensing. Lastly, the difference between the Kelly Blue Book and the True Car price could be due to when was the last time it's been updated. For Kelly Blue Book, it states that it'll be re updated on September 22nd, but it does not give a date from the last time it was updated. As for True Car, the average price is being recorded on a time plot. It's recorded on the first and 15th of every month, but there isn't anything similar for their estimate.
Other cars similar to the Honda Accord Sport are the Nissan Altima 2.5 SV and the Kia Optima EX. While the Honda Accord has a fair purchase price of $23,009, The Nissan Altima has a fair purchase price of $24,201. Then the Kia Optima, squeezing right in between, has a fair purchase price of $24,188.
Out of the three cars I would still purchase the Honda Accord. I would purchase the Honda Accord because it is the lowest price and it has the highest rating out of the three cars. Between the three cars there were only a few things that were different and most things were within a slim range of each other. I think this is the better choice because it's amazing in safety and has the most room compared to the other two cars. I could negotiate getting a lower price by saying for only an extra $1000 dollars I could get a lot more and better features. Then, hopefully, they'll still really want me to buy their cars and lower the price even more to create a bigger gap in the prices of the cars.
Financing This Car
As said many times before, the fair purchase price for the Honda Accord is $23,009. I think a good amount to put down for the car is $400. So, the amount needed for a loan is $22,609. Once divided by 60, it comes down to about $377 a month. If I had a job, I think that I would be able to afford this car.