A different car purchasing question

[bluezy]

getting an older driver to stop driving only works if they are willing to. it is nearly impossible to get a doctor willing to put no driving in writing and even if an older driver loses their license (by whatever means) their auto insurance likely does'nt run their license more than once per year at annual renewal so they can still renew their registration and the tags will be up to date (so lower chance of being pulled over). if you're 'lucky' they might fail the vision test but if you live in a state like mine-even when you hit 70 you only have to go in and take the eye test to renew every 8 years.

I get it. I went through it with my mom and 2 of my grandparents. Yes, ultimately it's their decision, but if something happens, I would rather look back and know I at least tried to get them to stop driving before something bad happened. And that conversation can plant a seed. My 86 yo grandfather refused to stop driving even though he had severe emphysema and could barely walk from the house to the car and often had minutes long coughing episodes throughout the day -- usually with no real warning. At the time, our state was doing random driver retesting (full road test, not just an eye test) on people over a certain age (75 maybe???) and our family was thrilled when his name got drawn. And then we were all shocked when he passed!!!!! So finally, my uncle just secretly disconnected the battery in the car so my grandfather couldn't drive it. The car was pretty old and my uncle pretended to try and fix it and just said it couldn't be repaired.

 

[goofyernmost]

You said buy out was 24K so with a lease she could turn in the car and get a new one, downgrade for things not necessary, and have a brand new warrantee.

I leased my present car and because I really liked it, I bought out the lease at the end and financed the buy out. Now the warrantee is about to expire and I realize my mistake. Now I have payments close to equal to what my lease payments were and now in order to have any help with mechanical problems I have to pay around $100 per month for an after market warrantee. (Ouch) I could have turned it in, had a new car and another full warrantee for about the same thing I paid for the original lease.

I was 75 when this happened and I was aware of my mortality but for some reason (can't blame intelligence) I bought it anyway. Your Mom is in her 80's and odds are that it might indeed be her last car. If however, she can pay off the buy out without a loan, then either one will work. What happens if she were to pass before the lease was complete, the estate is protected from pay off of a loan and her estate is free of depreciation value loses. My opinion and or advise is get the best deal you can on a lease and do the simplest thing, Lease! However, if she can easily pay off the lease then a buying a new car is also close to the same thing.

 

[cabanafrau]

First you said buy out was 24K than you said it was 14K. That could make a difference. With a lease she could turn in the car and get a new one, downgrade for things not necessary, and have a brand new warrantee.

I leased my present car and because I really liked it, I bought out the lease at the end and financed the buy out. Now the warrantee is about to expire and I realize my mistake. Now I have payments close to equal to what my lease payments were and now in order to have any help with mechanical problems I have to pay around $100 per month for an after market warrantee. (Ouch) I could have turned it in, had a new car and another full warrantee for about the same thing I paid for the original lease.

I was 75 when this happened and I was aware of my mortality but for some reason (can't blame intelligence) I bought it anyway. Your Mom is in her 80's and odds are that it might indeed be her last car. If however, she can pay off the buy out without a loan, then either one will work. What happens if she were to pass before the lease was complete, the estate is protected from pay off of a loan and her estate is free of depreciation value loses. My opinion and or advise is get the best deal you can on a lease and do the simplest thing, Lease! However, if she can easily pay off the lease then a buying a new car is also close to the same thing.

I believe 14k was the mileage.

Another factor in the decision might be the fact that a lease or a new purchase could be cheaper because there may be interest offers on the new purchase, whereas interest on purchasing used is generally running higher.

 

[sam_gordon]

First you said buy out was 24K than you said it was 14K. That could make a difference. With a lease she could turn in the car and get a new one, downgrade for things not necessary, and have a brand new warrantee.

While I must not have made it clear in the OP, I did follow up in post #3 that the "14K" was the mileage on the current lease. $24k is what it would take to buy the leased vehicle.

I leased my present car and because I really liked it, I bought out the lease at the end and financed the buy out. Now the warrantee is about to expire and I realize my mistake. Now I have payments close to equal to what my lease payments were and now in order to have any help with mechanical problems I have to pay around $100 per month for an after market warrantee. (Ouch) I could have turned it in, had a new car and another full warrantee for about the same thing I paid for the original lease.

That is one of the concerns. When she's due to turn in the current vehicle, the warranty is expired. Now, if it's me, I'm not too worried about a 3 year old car needing a warranty repair. Most warranty repairs should have been found in three years IMO. But, she's not 100% happy with the current vehicle, and would prefer something slightly smaller, and without as many bells and whistles.

I was 75 when this happened and I was aware of my mortality but for some reason (can't blame intelligence) I bought it anyway. Your Mom is in her 80's and odds are that it might indeed be her last car. If however, she can pay off the buy out without a loan, then either one will work. What happens if she were to pass before the lease was complete, the estate is protected from pay off of a loan and her estate is free of depreciation value loses. My opinion and or advise is get the best deal you can on a lease and do the simplest thing, Lease! However, if she can easily pay off the lease then a buying a new car is also close to the same thing.

Can you explain more about the bolded? Why would the estate not have to pay off a loan?

 

[jimmymc]

Unless you have a specific plan for the car after she decides to stop driving, I would just lease another one. Knowing that maintenance is covered and you don't need to sell it later seems easier.

 

[kdonnel]

That is one of the concerns. When she's due to turn in the current vehicle, the warranty is expired. Now, if it's me, I'm not too worried about a 3 year old car needing a warranty repair. Most warranty repairs should have been found in three years IMO. But, she's not 100% happy with the current vehicle, and would prefer something slightly smaller, and without as many bells and whistles.

Edited:

Pasted the wrong info.

Granger offers extended warranties for $25 over cost for most any model.

https://grangerwarranty.com/

 

[SC Minnie]

If she's not 100% happy with her current car and would prefer something different then she needs to lease or buy a new car. IMO if she keeps the current one she will tell herself every time she gets in it she wishes she had something different. If possible have someone go with her and read over the lease agreement carefully to make sure there are no surprises if something happens to her before the lease is up.

 

[MICKIMINI]

Upon further research, such a clause is perfectly legal in New Hampshire.
Yes, you can sell a leased car in New Hampshire, but you should check your lease contract first. Your contract may have a third-party buyout restriction.

You have to call the bank that holds the lease regardless, to find out what the final payout is on the specific day you are selling.

 

[tvguy]

You have to call the bank that holds the lease regardless, to find out what the final payout is on the specific day you are selling.

Okay. I have only seen leases that were with the automaker, or their financial division. Toyota Financial specifically. No bank involved.

 

[goofyernmost]

While I must not have made it clear in the OP, I did follow up in post #3 that the "14K" was the mileage on the current lease. $24k is what it would take to buy the leased vehicle.

That is one of the concerns. When she's due to turn in the current vehicle, the warranty is expired. Now, if it's me, I'm not too worried about a 3 year old car needing a warranty repair. Most warranty repairs should have been found in three years IMO. But, she's not 100% happy with the current vehicle, and would prefer something slightly smaller, and without as many bells and whistles.

Can you explain more about the bolded? Why would the estate not have to pay off a loan?

If she has to finance a new car and she passes, the debt still has to be paid off. If she paid cash than it will still be worth something but not what the original cost was. Even if she buys out with cash the value will continue to decline and it is left for the family to either absorb in the family or sell. If it is a lease, the vehicle is just turned in and is no burden on the family to either buy it or sell it to but there is no refund either just no responsibility of an open debt.

I did not understand that the 14K was mileage so disregard.

 

[sam_gordon]

If she has to finance a new car and she passes, the debt still has to be paid off. If she paid cash than it will still be worth something but not what the original cost was. Even if she buys out with cash the value will continue to decline and it is left for the family to either absorb in the family or sell. If it is a lease, the vehicle is just turned in and is no burden on the family to either buy it or sell it to but there is no refund either just no responsibility of an open debt.

It will come down to how the lease is written whether the remainder of the lease term needs to be paid out. Definitely something I'm going to have her look into.

I did not understand that the 14K was mileage so disregard.