What car would you choose?

[Kitzka]

HI all:

a little background-DH has a 13 year old Jetta with about 90k miles on it. I have a 10 year old Camry with about 170k miles on it. (clearly the Camry gets way more use)

Both cars are in good condition. but have the normal wear and tear that a decades old car has. The Camry needs to have the struts replaced and the Jetta needs the air conditioning fixed as well as a new timing belt.

Well, last night DH's great aunt said that she would give is about 25k for a new car but we have to use it for a new car. She is willing to gift us this money as she knows we work hard and will need new cars in the next 3-5 years.

I am truly grateful and know that if we were just given 25k (or inherited) we would not use the money on a new car but rather pay off my school loans and put money away for DD's college but seeing as it's being gifted for this particular reason DH wants to use it for what his great aunt wishes.

Now aside from my guilt over taking 25k from his great aunt (she is very well off and doesn't need the money i just still feel guilty). My question is what kind of car would YOU get?

My DREAM car is an infiniti fx35 AWD but i don't think that is going to happen as it is 20k more than we are being given and the practical side of me said "You are stupid to have a car payment since you ahven't had one in 8 years!" So i am just wondering what car would you choose?

DH who is the practical one is leaning towards a Subaru legacy which i like as well but don't love. (and i did LOVE my Camry when i got it 10 years ago. I actually still love her).

My practical side is thinking about getting a new Accord or Legacy in the 20k range and seeing is Great aunt will allow us to use that 5k with the money from selling the 2 older cars (i mean i could sell them for 3k combined right?) and the 3k of our own money and get DH and newer to us used car.

Anyway, sorry the question is in the 20-25k range what car would you get? We have 1 child who is 12. We don't usually have more than 4 people in the car and never have to transport anything.

Thanks for the advice

Lara

 

[MickeyDisneyFan]

Hyundai Sonata this will be my next car, it has the interior of a car much more expensive and has a great ride.

It starts at 18k

 

[hanutedmansionmomma]

A Honda or something comparable that will last forever! You guys are good at hanging on to vehicles, why not get something you know will last a long time?

I hear you about paying off stuff instead...I guess you could look at it like you won't have the car payment you would have had soon anyway.

Since you're on the budget board I'd say stay in the budget and buy something you won't have to have a payment on

Good luck

 

[TiggerTails57]

A Honda or another Camry (since they have great deals right now).

We have Both a Honda Odyssey (tens years old) and a Camry (3 years old). Love both!
DD has a Hyundai Elantra (9 years old) it was very cheap and has lasted.

 

[Green Tea]

Honda Accord or VW Passat

 

[MeggerasMa]

What a nice dilemma to have! I agree with the other posters and would not want a car payment. That said, I'd be test driving everything out there that would end up costing below your 25,000 limit (tax included). I also agree that the brands you know to be reliable are a great starting place, and I'd include the new Toyotas. Personally, I think they are getting a bad rap, especially with all the other company recalls over the years. No flames please. I do own one and wouldn't trade it for anything ( and I've owned lots of other brands as well). So get out and drive 'em. Take hubby and kids along and enjoy your good fortune and the kindness of a relative. Just be certain to do your homework. Go online and price out those babies with the options you want. Usually at the brand website you can "build your perfect car". Then calculate the sales tax, title, etc and go to your dealer with the facts in your hand. Get exactly what you want. FWIW - AAA has a great new car buying tool that eliminates the price haggling. You might want to check it out if you are a member. Congratulations on your good fortune!

 

[meriface11]

does it have to be a NEW car or just a 'new to you' car? depreciation on new cars is such a kick in the pants, that we now only buy gently used cars (1-2 years old). you can get a lot more bang for your buck with something that has 10-15K miles on it, which is basically like a new car anyway, especially for a japanese or german car.

 

[QVCshopper]

I would get two Hondas (Civic) and then have a smaller loan for the rest. You might even get a better deal buying two at once, and probably wouldn't need a new car in a long time. Our Civic is 1998 with 120K miles and still running strong.

 

[r&kmommy]

I am leasing a 2011 Hyundai Sonata and it is to-die-for. I have had it for 3 weeks and just filled it for the second time, and got 358 miles to my full tank... and only 100 of that was highway mileage. A total gearhead stopped me while I was loading my groceries into the trunk tuesday and said he couldn't believe my car was a hyundai, it was gorgeous, and what did I have under the hood (to which I replied, I have no idea... I'll pop it if you want to look LOL!!)

It runs great, and is very roomy inside - dd is in a car seat still, and ds is in a booster and someone can still fit between them!!

Not to mention you can't beat the Hyundai warranty!!

 

[cats mom]

My DREAM car is an infiniti fx35 AWD but i don't think that is going to happen as it is 20k more than we are being given and the practical side of me said "You are stupid to have a car payment since you ahven't had one in 8 years!"

NOT this one.

Listen to your practical side.

Anyway, sorry the question is in the 20-25k range what car would you get? We have 1 child who is 12. We don't usually have more than 4 people in the car and never have to transport anything.

Thanks for the advice

Lara

What a great dilemma to have!

I haven't done much car shopping lately (since we're busy driving ours into the ground) so I'm not a lot of help with specific models.

But would you be able to find a used FX35 in your budget?
Do any other crossovers appeal to you?
How about a Honda CR-V?
It's certainly not as upscale as the Infinity, but I think it's always rated well for that segment.

Good Luck with your search.

 

[Kitzka]

Thanks for the replies everyone. I definitely have not been doing my homework on cars. I figured we had another 2-3 yearsj before we had to replace one of them and was working on paying down my school loans.

I know DH is more excited than I am. Its overwhelming to see what is out there now. I guess that's one problem with waiting 10 years to get a new car. You don't know what's what. I think we are going to go out on sat and see what is out there.

To the pp with the sonata- which one do you have? The trim lines confuse me.

Thanks

Lara

 

[DOOM1001]

I would sell both cars and get two new cars in the 15K-18K range.

 

[marie1203]

I will say a Toyota if you love it because devaluation is how you lose the most money buying a car and Toyota and Honda are 2 brands that keep their value the most int your price range.

 

[akcire]

Since the money is coming from your husband's great aunt. I would let him pick a new car for himself. I would sell his VW (as is), and use the money to replace the struts on your Camery. If the Camery is still around in 4 years it will be a good first car for your kid.

Even with more miles, the Toyota is likely to last longer than the VW, and be cheaper to operate.

 

[DOOM1001]

Even with more miles, the Toyota is likely to last longer than the VW, and be cheaper to operate.

You can't always assume the Camry will last longer as I had a 1999 VW Jetta that I put over 300,000 miles on (it took a lot of Disney trips).

 

[Swimalie]

One thing to think about is the gifting part. Right now, per the IRS, you can only receive $13,000 per person, per year without paying taxes on it. So if the aunt is going to gift the money to you all, not to the dealer directly, then she needs to divide up the amount. $12,500 to you, $12,500 to your husband. Any more than that and she'll be paying a large amount in gift tax (don't quote me but I've heard it's 30%). And... anything over $10,000 will be flagged by the bank and the Treasury Dept's money laundering dept will be looking in to the transaction (this is my husband's job)

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

 

[morgan98]

One thing to think about is the gifting part. Right now, per the IRS, you can only receive $13,000 per person, per year without paying taxes on it. So if the aunt is going to gift the money to you all, not to the dealer directly, then she needs to divide up the amount. $12,500 to you, $12,500 to your husband. Any more than that and she'll be paying a large amount in gift tax (don't quote me but I've heard it's 30%). And... anything over $10,000 will be flagged by the bank and the Treasury Dept's money laundering dept will be looking in to the transaction (this is my husband's job)

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

This is not necessarily true. The $13k per person, per year is the amount you can give without it eating into her "lifetime exclusion" that is reported on a gift tax return. You can use any portion of your lifetime exclusion and not pay tax on that amount. The gift tax return keeps a running tally of this amount. The rules get somewhat complicated with this.

It also doesn't matter weather she pays the dealer or the husband/wife. It would still need to be divided up in order to stay under the $13K each.

 

[Pigeon]

I'd get a new Camry or a Honda Accord.

 

[DawnM]

This would be my suggestion as well, although I would look at Toyotas as well.

I would go for any 2 Honda or Toyota smaller cars that get fantastic gas mileage.

Dawn

I would get two Hondas (Civic) and then have a smaller loan for the rest. You might even get a better deal buying two at once, and probably wouldn't need a new car in a long time. Our Civic is 1998 with 120K miles and still running strong.

 

[Swimalie]

This is not necessarily true. The $13k per person, per year is the amount you can give without it eating into her "lifetime exclusion" that is reported on a gift tax return. You can use any portion of your lifetime exclusion and not pay tax on that amount. The gift tax return keeps a running tally of this amount. The rules get somewhat complicated with this.

It also doesn't matter weather she pays the dealer or the husband/wife. It would still need to be divided up in order to stay under the $13K each.

How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, and $13,000 on or after January 1, 2009, the annual exclusion applies to each gift.