HELP: Have to get new vehicle!

[MemoryMakers2669]

I knew this was going to happen, but was hoping for later, than sooner. My vehicle is dying, poor old girl, she has been good to me all these years. 97 Ford Expedition, 160K miles. Not one issue with her at all, until recently and she is just falling apart, one new thing everyday is seems. Just not safe anymore.

So, I am now looking for a new car, a minivan this time! I really really want the Honda, but a new one (or used for that matter) will run us $500 plus per month on a car payment, just can't do it!

I do see on their website that they have some lease special for $300 a month, which is doable!

I could get something used, a Chevy Uplander, for that same payment though. I like the Uplander a lot, from having rented one a few times now while In Disney, so would be happy with it....found several with less than 10K, for about $16K, 2006s.

Tell me about Leasing a vehicle though??? Is it a really bad move? Considering it would be a brand new 2007 Honda, I think in the long run it is a smart move, but I don't want to end up spending a ton more because we did a lease.

 

[Mommy Poppins]

For us a lease doesn't work because we put way too much mileage on the vehicle. If you don't put on a lot of mileage, you may be okay. Just remember that at the end of your lease, you own nothing. You can always buy your vehicle at the end of the lease, but then you're probably looking at another 4 year loan for a 3 year old vehicle. Seriously though, keep the mileage in mind. They usually give you 12-15,000 per year and then you pay so much per mile for whatever you go over the set limit.

 

[HayGan]

It really depends on a variety of things including how long you keep a vehicle, how many miles a year you put on it, etc.

I personally like leasing but I am a vehicle snob. My current vehicle is one I purchased (Ford Explorer) and right now I am saying never again. My next vehicle is more than likely going to be a lease (I want to lease a Volvo XC-90) I put less than 12K miles on a year as I only go into my office 3 days a week. I like to drive a new vehicle every few years. I don't want to drive a vehicle till it dies! I look at a car payment as a mandatory expense (like electricity or water) so I expect to have it forever.

Leasing is a great option if you don't put a lot of miles on each year and you like to get a new vehicle every few years. Buying is the way to go if you want to keep the vehicle for a significant period of time.

 

[mtblujeans]

I think Chevy and GMC are still having their Reg Tag Sales. We recently got a 2004 lease return and 2006 new GMC vehicles and we felt we got a good deal under that sale. They even took our 1997 Suburban for a trade in and gave us a fair deal there, too. We wanted lease returns for used vehicle in the hope that they had been well maintained. Good luck on whatever you decide!

 

[MemoryMakers2669]

If I go the used route, I will just feel like I am wastiing my money! I just can't see putting out $18K over the next 5 years for a van I am most likely not going to be happy with. I will have to settle for it. UGH!

 

[mtblujeans]

But, on the other hand, DH took the 2004 and it was loaded! We would have never been able to afford a new vehicle with those same features. And it was clean! It had 34,000 miles on it and he felt that someone else had "worked the bugs out of it" for him. He loves it and I always tell him I am jealous of his heated leather seats

 

[czycropper]

We looked into leasing but it's not feasible for us since my DH drives 20 miles each way to work everyday and I'm constantly on the run with the girls taking them to their activities.

I have a Honda Pilot which I absolutely , at the time we bought it I really wanted the minivan but my DH talked me out of it and it's the best thing he ever did. You can probably get some of the 2006 models for a good prize especially this week!

 

[Darcy03231]

I went the certified pre-owned route when my old van died. Car still came with a warranty. I got a 2001 in 2001 that had 9,000 miles on it and paid about $12,000.00 less than I would have with a new one. I've been very happy with it and wouldn't hestitate to go that route again. I wouldn't lease as I'm a drive it until it dies person. I would hate to make payment for 3-4 years and then not own the vehicle. DH did the same thing in 2005. Got a 2005 in 2005 with 14,000 miles on it and saved $10,000.00 over buying it new. We'll never buy new again.

 

[Toby'sFriend]

don't lease.

 

[disneymom3]

We leased once and swore never again. We didn't like having nothing to show for it after all those payments. Plus we are not low mileage people so that fee right there killed us.

We now only buy preowned vehicles. One or two years old, in the 30,000 mile range is fine. We let someone else suffer that horrid depreciation for the first two years and we take it when it is not going to go down so much. We will drive our cars for a good long time though. Sounds like if you have a 97 that is dieing that you are a keep it for a long time type of person too.

We feel like Hondas with 36K are still basically a new car. Our last Honda we got 198K on it before we traded it in. Got a decent trade in price and the dealer resold it within a couple of weeks. I know the Honda vans are still pricey used but if you can swing it all that is the way I would go. We couldn't swing it so we got a Chrysler T&C which I am happy with but we hope to do the Honda next time around.

 

[Jim5150]

Do not lease. Period...

 

[shelly3girls]

If you like the Honda minivan you will probably like the Toyato also. My sister just bought a 2006 Toyota with 0% financing and got a good deal b/c they want to get rid of them. Check them out, you may be surprised at what you can afford b/c of the free financing.

 

[TomD]

Leases are not for everyone. I lease and I drive 30k a yr. It makes more sense for me to lease then for me to own.

I would have to take out a 5 yr loan. In 5 yrs the truck would have high milage and not be worth a heck of a lot. If I had to trade in 3 yrs on a 5 yr loan I would have to cough up alot of $ so I did not roll over any inequity.

I sold cars for 10 years. I left the industry last Oct. Any questions I will be glad to answer them

 

[branv]

The only time I would ever lease would be if I absolutely had to get a car unexpectadly (old one died) and only had a little bit to spend a month...but didn't want to buy the type of car that I could afford for that much. In other words, didn't want to tie myself into a car note for a car I knew wouldn't be the best quality long term. I would then lease for just a few years while I tried to save up the money for the car I really want...i.e. a Honda

I would NEVER lease a Honda b/c the darn things just last and last. By the time you leased it for 3-4 years, you would have been close to owning it with a regular payment, and then had no car payment for years to come. For instance, I just had to take my 2000 Civic in for the 120K maintenance $350, and I went ahead and replaced all the belts and the water pump for $530. Stuff you'd have to do in any car, except this is the most I've ever had to spend on my car (I've never had to do a real repair). and it's been paid off for 3 years. If I'd leased that would have been $9000 in payments on top of that maintenance I just paid for..which every car requires. It's a no brainer. Our Ford Taurus years ago...in the 2 years we owned it we probably poured $2000 into it in repairs. DH's 1998 Isuzu has probably cost us $1000 in repairs every 8 months. Nowadays you couldn't get me to buy any car that wasn't either a Honda or a Toyota (ok, maybe a Lexus, Acura or Volvo...but someone else has to pay for it though

The original monthly cost of my Civic was $350/month. In January I'll have owned it for 7 years. If I'd leased it for say, $250/month, I would have paid $21000 over that time. Instead, I paid $16000 to own it outright, and due to the high resale value of my car, I can still sell the darn thing for about $6000. That means the car has really only cost me $10000 in 7 years time, a savings of $11,000! (though yes, I am aware that is not including the new tires and every 36K maintenance I've had to do b/c I owned it outright...but still!)

That being said, get a used Honda Odyssey...since Honda's last so long, used is still a good bet. Or get a Pilot...or one of the new CRV (drooool). Just make sure to get your own mechanic to check it out, as much as I love Honda, each dealer is different.

 

[SarahKate]

I have a Honda Odyssey that I've had on a lease for about 2.5 years. It's great, and it came w/ built in DVD player.

Look at what your average mileage is.....if you don't drive more than 15k a year, then it's possible. I live very close to work, and I think I only have about 24k miles so I'm well under. I think 12k is the normall allotment, but you can probably negotiate. You can also "pre-pay" for miles beforehand, it's much cheaper than paying for overage miles at the end. I don't stress over the mileage at all....we're able to take all the normal road trips, going shopping on the weekend, errands, etc. To me 15k a year is VERY adequate.

My payment is $321 a month, and this is the ONLY way I'd ever be able to afford a $28k van!

I know some people are adamantly against leasing. But think about this. The moment you BUY a vehicle and take it off the lot, it is depreciating. Every time I have traded in a vehicle, I've been upside down on the loan and end up out a lot more money. With a lease, after the lease period, you turn it in. You have it inspected a few months before this date and they will tell if there are any issues that either need to be corrected or they will tell you how much it will cost (a penalty I guess you could call it) if you just leave it alone. My husband had a Honda lease several years ago and it was GREAT. They were very lenient on the wear and tear and he didn't have to pay anything. At the end of the lease, you basically have started with a CLEAN SLATE. You can either turn around and lease another vehicle or buy one, whatever you decide.

I have read from NUMEROUS financial gurus that it is financially SMARTER to lease a vehicle. When you buy a car, you are investing in something that DEPRECIATES. When you buy a house, you are investing in something that APPRECIATES. If you normally don't keep a car til it's paid off, it makes more sense to lease (if you are ok w/ the mileage).

My attitude about the lease is that I'm paying to drive a nice vehicle for a few years. I don't own it. It's not something I think about on a regular basis....but I do try to keep it relatively clean (it's cluttered a lot of the time, we have a 4.5 year old DD.....but we don't leave food in there, don't let her eat in there unless one of us is sitting by her and it's something that can't make a nasty mess). I don't panic if i get a rock chip or a small ding in my door.....because I know that when it's turned back in, it is expected that some of these things are likely.

If you do decide to lease, you really should opt for one of the Japanese vehicles. They do not depreciate nearly as quickly. I have read in a number of articles that many times the residual (the payoff if you decide to purchase the vehicle at the end of the lease) is LOWER than what the actual value of the vehicle is. So some people will just buy the vehicle at the end, then turn around and sell it and make a little money. I don't think I'll do that, it still worries me a bit.

My lease was actually up earlier this year. I got a letter from Honda saying I could extend it up to 2 more years. So all the terms are the same - payment, mileage, etc. And if I decide that I want to end the lease, I just give them 30 days notice and schedule the inspection. Basically I am now on a month by month lease. i'm very happy about that, because I really wasn't tired of driving my Odyssey, and hadn't saved up much money for the next vehicle.

A lease is definitely NOT for everyone. But educate yourself on it, and weigh the pros and cons. I think you will hear a LOT of people say negative things about it - but if you know what to expect and have done your research, you will be satisfied.

I think that the biggest thing people say is that they get to the end of the lease and think they want to buy the vehicle, but then they end up with 4-5 more years of payments and it feels like they never made any progress during the lease. But you KNOW your residual when you sign the lease papers. Plus, you are paying a TON less for your lease payments, so of course you're going to owe more if you keep it at the end. Basically, your lease payment is the amount a vehicle is anticipated to depreciate during the however many years you lease it...then they divide it by the number of months.

Sorry so long, I got gabby!!!!

 

[jennifer293]

I knew this was going to happen, but was hoping for later, than sooner. My vehicle is dying, poor old girl, she has been good to me all these years. 97 Ford Expedition, 160K miles. Not one issue with her at all, until recently and she is just falling apart, one new thing everyday is seems. Just not safe anymore.

Can I ask what it is doing that you feel is not safe anymore other than it dying? Reason I ask is that I too have a 97 Expedition with 197,000 + miles on it. Mine makes weird noises and just doesn't feel right anymore. We have always just had routine maintenance done on it, but while it is fine for now we have talked about replacing it very soon. We plan to pull our 26ft camper to Myrtle Beach this summer with it and I wonder if it will even last that long..

 

[MommyTo5]

I have a Honda Pilot which I absolutely , at the time we bought it I really wanted the minivan but my DH talked me out of it and it's the best thing he ever did. You can probably get some of the 2006 models for a good prize especially this week!

Just before Thanksgiving this year, we purchased a new 2006 Honda Pilot.

We needed a vehicle that seats 8 so we were semi-limited in our vehicle choices but looked at everything we could find... vans and SUVs... new and pre-owned... we also compared resale, depreciation, insurance costs, etc... We found that because the 2007s are now on the lot, you can get a heck of a deal this time of the year on a new vehicle! A used Honda didn't make financial sense to us since they tend to keep their value. We found the 1-2 year old used vehicles with approx. 30,000 miles were going for the same price as the new vehicles after rebates! I was originally thinking we might be able to manage the payment of a base model Pilot LX if we took out the longest 6 year (72 month) loan but we ended up with a much better fully-loaded EX which includes the DVD system which the kids just love! Anyway, as far as the deal we got, we paid thousands below the sticker price... I'd have to pull out my paperwork to get an exact figure but it was somewhere around $6K - $7K LESS than the sticker!!! There is no difference between the 2006 and 2007s so this was definitely the way to go for us. We are thrilled with our purchase and plan on keeping our new Honda well beyond the point where it is paid off.

Good luck with your decision! I don't think you can go wrong with a Honda... I would have considered the Odyssey myself but after owing 2 minivans in a row, I was ready to make the switch to an SUV!

 

[MemoryMakers2669]

Can I ask what it is doing that you feel is not safe anymore other than it dying? Reason I ask is that I too have a 97 Expedition with 197,000 + miles on it. Mine makes weird noises and just doesn't feel right anymore. We have always just had routine maintenance done on it, but while it is fine for now we have talked about replacing it very soon. We plan to pull our 26ft camper to Myrtle Beach this summer with it and I wonder if it will even last that long..

The main thing is, it won't go into Park anymore, which causes huge problems in certain places....hills being one. I have to use the parking brake, if the incline is too steep, I can't park at all. Then last night, the left brake line just broke in half. DH, who used to be a mechanic, said he had never seen that happen, very scary! It has been breaking down a lot too, running really rough, etc. The dinger also goes off all the time, for no reason. You know, the one that warns you that you have left lights on or the keys in the ignition. Not a safety issue, but annoying. Until six months ago, she ran like new though and now, she is just old and senile!

 

[adisneymama]

Also, in addition to making payments and not owning the vehicle afterwords, there are also additional fees when you turn the vehicle in. Lease termination fees, excessive wear and tear etc. These things are evaluated at the dealer and could end up costing you more in the long run. Be very careful when leasing.

 

[mtblujeans]

....Until six months ago, she ran like new though and now, she is just old and senile!

So go we all...