Should we buy new?

[Astro14]

The only time that leasing makes sense, financially, is when you own a business and the vehicle is provided by that business. You can write off the entire lease, instead of estimating mileage, etc.

My neighbor leases a new MDX every 3 years, his wife, a new Acura RL...company pays the lease cost (including insurance), they just buy gas.

It makes much more sense to do that than draw a salary sufficient to pay for the car, and then pay income tax on that salary, etc...he's getting the car pre-tax...it's a business expense to the company.

 

[PandaBear]

Originally Posted By: Astro14
The only time that leasing makes sense, financially, is when you own a business and the vehicle is provided by that business. You can write off the entire lease, instead of estimating mileage, etc.

My neighbor leases a new MDX every 3 years, his wife, a new Acura RL...company pays the lease cost (including insurance), they just buy gas.

It makes much more sense to do that than draw a salary sufficient to pay for the car, and then pay income tax on that salary, etc...he's getting the car pre-tax...it's a business expense to the company.


If the business buy the car with cash, or with financing, it can still pay for the entire thing but not at the moment the check is sent to bank. It has to be depreciated and when the car finally sold or retire, write off the differences. It is still likely to be more expensive to lease than buy, but it is probably cheaper than a commercial loan to the business for general expense.

 

[JHZR2]

It may be sensible if a business, from an ease of bookeeping or some other aspect.

Issue is that leases crept over to the consumer side in the early 1990s, because the consumer is payment minded (not how much can I really afford, just how much monthly payment am I willing to pay for the rest of my life), because of the false impression that you could get more car for your money. In the end you get nothing for your money but vanity, but people do get the chance to swap cars.

But peoples' condition is worse and worse, and this kind of thing causes it to be ever more dire.

 

[Pesca]

I have just read an article about the Kia Sorento, and thought about you:
In Canada, they sell more Kia Sorento than Jeep GC and Ford Explorer. They are built in the USA (West Point, Georgia), and the current generation started in 2009.

Since nobody have a good opinion on these cars (Is it justified? I don't know), you may be able to find a pre-2009 for not too much $$. Not too old, not too expensive. Fuel economy with the V6 is not that great but for your use, it may not matter much.

The V6 can tow 3500lbs, the I4 1650lbs.
There is a lot of space in it for kids and dog, and it exists in AWD (reactive only but you can force it up to 30kph).

That could be a good option for you to consider.

Hope this helps.

 

[cptbarkey]

speaking from experience (3 toddlers), we had to lug around quite the entourage for the first 2 years for family visits. portable cribs, high chairs, clothing, coolers (milk), toys, and non perishables. Our decision was easy and we chose a toyota sienna minivan, and never looked back. It easily swallowed everything, and the return trip christmas presents too. A 4 door sedan will work just fine for two children, but expect long distance trips to be a chore.

i dont think an SUV will do you much good because they suck gas, and offer very little benefit except if you are paranoid and want 4x4 to go along with it for a zombie apocalypse.

 

[JHZR2]

The sienna gets what? 20 mpg in common v6 trim?

A 2wd suburban gets 21 EPA highway and has a ton more space. Without the suburban, I'd agree on the sienna.

 

[hattaresguy]

Originally Posted By: Astro14
The only time that leasing makes sense, financially, is when you own a business and the vehicle is provided by that business. You can write off the entire lease, instead of estimating mileage, etc.

My neighbor leases a new MDX every 3 years, his wife, a new Acura RL...company pays the lease cost (including insurance), they just buy gas.

It makes much more sense to do that than draw a salary sufficient to pay for the car, and then pay income tax on that salary, etc...he's getting the car pre-tax...it's a business expense to the company.


Exactly, leasing also makes sense if you make so much money that a vehicle is not really a big expense.


In the OP's situation he should really look at getting out from under the payments he is in, he can't afford the cars he has. I'm sorry if your paying on an 8 year old car you can't afford it.

I'd recommend buying beaters and learning how to be handy with a wrench until his financial situation improves.

Or buy out and keep the Mazda so the wife has a decent car to cart the kids around, and get a $2k beater or whatever you have the cash for, for yourself.

 

[supton]

Also speaking from experience, having two of your own will mean at times needing to haul around a third, if not a fourth. Not quite enough of a reason to automatically get a minivan; but at times one really wonders why they didn't get one in the first place.

 

[scurvy]

Originally Posted By: crinkles
we have three child seats across in an 05 Camry. Can be done. Two seats in the back of a Jetta? Don't see the problem.

Me either. We've done two across in both my Golf and her Beetle without issue. Two sets of ISOFIX anchors in the NB and three in the Golf makes it easy in both cars.

Had we not bought a bulky Britax, we could probably fit three child seats across the Golf without issue. Not that I want to, mind you, but that we could.

 

[SteveSRT8]

Originally Posted By: Shannow
I'd get a guzzler, like a 4Runner.

Reliable and rugged, can go anywhere, people are leaping out of them for mileage, but at only a couple thousand miles a year, it doesn't really matter.


This is great advice. If you don't drive it much, who cares about the mileage?

 

[Thermo1223]

I am really getting tired on this armchair financial adviser stuff. There is nothing wrong with my financial situation. I sold the Forester because I was just sick of a high monthly payment, the money could be put to good use elsewhere like savings. It does not mean I couldn't afford it.

I did not ask you whether you think I can afford the payments on the Jetta, I know I can and whether it's an 8 year old car is not a concern.

My wife gets to make decisions with her money. She needs a reliable daily car. She cannot call into work for the car not starting. So that is why she leased it was her decision and she pays for it not me. Especially since we'd knew our family would grow. Trading in a car is a big pain in the rear most of the time.

I know the Jetta can hold 2 car seats but I worried on how comfortable it will be for the long haul. Jaunts in town are not an issue but packing the car full and being comfortable are also again we are thinking forward as to if we had a third, forth...etc

She wanted to do home improvements with her money so that's it. Would you listen to someone telling you what to do with your money? It's a loan, it will be paid back in 2 years time. I merely thought it might be prudent to instead of buying newer used car that she drive the Jetta daily. It would allow us to save a bit more. I could then buy a used older SUV in cash and be done with it.

I'm glad some of you think it's smart to pay for new cars in cash. I don't, if I had $20k in cash the last thing I do is spend it on a car. I would invest it as the rate of return would most likely exceed the interest we'd pay. Which btw would be low based on the numbers I got when I applied for a low APR car loan.

As much as a minivan would make sense she can't be sold on the idea. I personally don't like them either so you will never see me driving one willingly.

 

[Dakota1820]

I have one exellent reason why a minivan is a bad choice. If you di your own work do you really want to be stuck working on a van? They're the worst vehicle to work on and anyone who thinks putting an engine against the firewall an bending the firewall around the engine And sloping the front end into a wedge is a good idea. Is crazy Its an awful vehicle to work on and they were designed by people who haven't ever turned a wrench . If you need tins of space get an suv much easier as they actually have a front end

 

[Thermo1223]

Originally Posted By: chevyboy14
I have one exellent reason why a minivan is a bad choice. If you di your own work do you really want to be stuck working on a van? They're the worst vehicle to work on and anyone who thinks putting an engine against the firewall an bending the firewall around the engine And sloping the front end into a wedge is a good idea. Is crazy Its an awful vehicle to work on and they were designed by people who haven't ever turned a wrench . If you need tins of space get an suv much easier as they actually have a front end


I don't work on my Dad's Caravan for just that reason. Painful to wrench on...

 

[Dakota1820]

A lady that I'm friends with bought a 96 caravan from a guy for 800 bucks he screwed her bad. It needed New rack new p/s and transmission. I did it all for the price of parts trying to help her. It got done but I thought I was going to go insane and I probably almost did. Just recently I did the intake on my finances parents caravan it was a miserable job as well. I wouldnt wish a van on anyone.

 

[supton]

Well, to be fair, buying a 16 year old car for $800 isn't a screwing to anyone. It's worth nearly half that in scrap metal. Buying something that old and cheap should have raise warning signs; although to be fair did it have those problems initially, and the seller hid them? Or did they just spontaneously break?

I tell, my wife and I have a dilema over paying off her Camry. Normally we pay extra on loans, to drive down the money lost to interest. On this car though we got 0% APR. Makes more sense to hold onto that loan instead, for its full term; and use any extra instead to pay down the house, which does have an interest rate. [We still pay extra, just not as much as we normally would.]

Stupid cars. They barely last long enough to get to the end of the loan period before they start breaking things. I do hope to save up enough for next time to buy outright; but I fear freak accidents and what-if's.

 

[Dakota1820]

He hid a bunch of stuff and lied to her pretty bad. This lady is on disability and is dirt poor and she gives every dime she has to help others but she is very gullable. She took him at his word that was the problem but she has out about 3,000 into this van . It was crazy some of the stuff he did to this thing.

 

[dishdude]

Originally Posted By: Thermo1223
I am really getting tired on this armchair financial adviser stuff.


You did ask the question...just sayin'.

 

[KrisZ]

Originally Posted By: supton
Stupid cars. They barely last long enough to get to the end of the loan period before they start breaking things. I do hope to save up enough for next time to buy outright; but I fear freak accidents and what-if's.

Are you serious? What kind of cars are you buying?

 

[supton]

Saturn, Honda, VW. And now a Toyota.

2000 Saturn SL: Cylinder head, barely got that done under warrenty (caught just prior to driving out of it, porous casting); mentioned because it stranded me when I needed the car for a long road trip. AC was fixed once, not sure what else. Oil burner, of course. At least two sets of front rotors, as they warped if you looked at them wrong. Bought new, traded in after 4.5years/116.5kmiles for the VW, as the seats were worn out and I suspected it needed new struts.

2004 VW Jetta Wagon: wheel bearings at 105k (3 years of ownership), struts/shocks at 133k, EGR work at 168k along with new rear calipers/rotors/pads, front rotor/pad at 175 after loosing brakes (pad rusted off), intake flap ($500) at 200k, clutch at 249k (bad flywheel--disc was barely worn). Bought new, still going at 253k, but it needs another intake flap for this winter, along with a glowplug harness.

2001 Honda Civic: This was my wife's car, so I don't recall all the history. AC repaired three times, fourth time dealer wanted to replace entire system (so it wasn't done). CV joint blew out, stranding my wife with my infant son (luckily not far from home), so IIRC entire axle shaft was replaced. Entire exhaust system, manifold and all. I think new drums/rotors after sitting for one or two months; one drum had frozen and dragged a wheel for at least 100 yards. Front wheel bearings at 150/160k. Oil pan was "rusted out" according to dealer; air box replaced also. Traded for the '11 Camry after 173k, as it had no a/c, no ABS, no side airbags, and I feared the next thing to go was a brake line.

2011 Camry: no issues yet, but it's only been 10 months and 23kmiles so far.

All our previous cars were bought well-used, didn't get nearly the usage, and wouldn't count 'em anyhow, due to age.

 

[Dakota1820]

A^^^ you either have really bad luck or have really screwy mechanics or are really hard on cars LOL. Probably bad luck . Saturn was probably the sohc I bet all the trouble with the civic suprises me the vw not so much.