Newbie here...what makes most financial sense in my situation? Lease end/buying
We have a 2012 Hyandai Sonata we've been leasing for 3 years. Lease ends in 2 weeks and residual value is 13200 to buy. We also own a 2008 Acura MDX with 65K miles on it which will be payed off 07/2016.
Within the next year, we will be purchasing a minivan but trying to determine the best time to do it. Can anyone weigh in on pros/cons of these options?
1. Buy Sonata, avoid 400$ disposition fee. Trade it in next year when purchasing Minivan
2. Buy Minivan, turn in Sonata now. No trade ins.
3. Buy Sonata, trade in MDX and buy Minivan.
My husband does not want to go with option 3 since it's almost paid off with low mileage and we will have it for many years.
Anything I am missing here...car buying is definitely not my strong suit, so any and all opinions welcome.
Within the next year, we will be purchasing a minivan but trying to determine the best time to do it. Can anyone weigh in on pros/cons of these options?
1. Buy Sonata, avoid 400$ disposition fee. Trade it in next year when purchasing Minivan
2. Buy Minivan, turn in Sonata now. No trade ins.
3. Buy Sonata, trade in MDX and buy Minivan.
My husband does not want to go with option 3 since it's almost paid off with low mileage and we will have it for many years.
Anything I am missing here...car buying is definitely not my strong suit, so any and all opinions welcome.
0
Answers
Is it your intention to keep the MDX for a long time after it's paid off?
I'll round up some other long time members to weigh in with their opinions...
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'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
keep in mind that if you buy out the Sonata, you might save the dispo fee, but you will be hit with all the costs of buying it. Doc fee, DMV fees, and (a biggie depending on where you live), sales tax. It really would be like buying any car at the dealer, only intending to keep it for a year.
you may save the turn-in fee if you buy from them. Not sure if Kia is close enough for them, but the Sedona is a nice van!
The only way I would buy out the Sonata is if you really liked it, want to keep it a long time, and the residual price was less than what comparable units were selling for in the market.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
It's the GLS model, black, with approx 30K miles on it.
When I try to find market value, some sites are under the 13200 I would buy it for, some over.
Right now, as long as it has no accident history or current damage/needs, you'd be looking at $11,500-$12k trade-in value. So, really, $13,200 is a good buyout price IF you planned on keeping the car. To look at it as something you want to buy and trade shortly after, you are basically taking a $1500 hit right off the bat.
In a year? Well, who knows? If history is an indication and I look at 2011 models with 40k on them, I can see those might fetch around $10k trade. So you could theoretically pay down $2800 on the car in the next year and come out exactly where you are now if you just turned in the lease and paid $400.
BY THE WAY ... if you would like to get into a Hyundai minivan, I am certain they will make that disposition fee go away on your Sonata.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Now I'm starting to second guess keeping the Sonata and trading in the MDX option. We'd get more for that, plus it's going to need new brakes soon anyway. Any thoughts on what trade in value would be there? It's got a few knicks and dings, nothing too major. 2 year old tires. 65K miles, 2008. When I checked it looks like 17-18K?
We're pretty dead set on the Honda Odyssey.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
@qbrozen - it's the Sport model
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Either way - need to start shopping for an Odyssey. We want to buy used, thinking 2012 EX-L model will be our best bet. Hoping to keep miles under 60K.
Any tips for this. Here's one that looks decent - not sure where or how to negotiate price?
http://www.rohrman.com/certified/Honda/2012-Honda-Odyssey-7bc8264b0a0a00e01c48fcb1243ab4d8.htm
ohhh... ouch... I just looked at the carfax on that. It has had the engine replaced just a couple thousand miles ago. Not a good sign. It is CPO, so I guess at least its covered.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.