Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!

Newbie here...what makes most financial sense in my situation? Lease end/buying

nellie06nellie06 Member Posts: 11
edited April 2015 in General
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.

Answers

  • MichaellMichaell Moderator Posts: 240,118
    nellie06 said:

    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.

    I think option 2 makes the most sense ... why buy a car off-lease when you only plan to keep it for a year. Save the $400.

    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...

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • kyfdxkyfdx Moderator Posts: 235,199
    I agree... option #2 makes the most sense, given that you want to keep the Acura.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • ab348ab348 Member Posts: 19,029
    I tend to agree. The value of a 2012 Sonata will be a lot less in a year's time than what you would have to pay to buy it out now and that will be reflected on your trade. I would get the van now.

    2017 Cadillac ATS Performance Premium 3.6

  • qbrozenqbrozen Member Posts: 32,891
    well, if you give me all the info on your Sonata, I can give you a better opinion. Maybe its worth more or less than the buyout, which would make your choice much easier.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • stickguystickguy Member Posts: 50,437
    If the relatively near-term plan is to keep the MDX and dump the Sonata, I agree. do it now.

    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.

  • nellie06nellie06 Member Posts: 11
    Thanks qbrozen, what info do you need?

    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.
  • qbrozenqbrozen Member Posts: 32,891
    Alright, so here's the deal:

    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; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • nellie06nellie06 Member Posts: 11
    That's kind of what I'm thinking. Plus the hassle of buying 2 cars in a year just doesn't appeal to me. I'd rather just get it done.

    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.
  • stickguystickguy Member Posts: 50,437
    Fundamental question is, what are your needs? Do you need 2 big family haulers like that? Nor does it make more sense to have a van and a more economical sedan?

    2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.

  • qbrozenqbrozen Member Posts: 32,891
    well, since you didn't tell me, I'll assume its a base model. Miles are low, but with the needs it has, it would be like $14k-$14.5k tops.

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • nellie06nellie06 Member Posts: 11
    @stickguy - yes, I'd prefer not to have 2 gas guzzlers. But the hubby really likes the fact that we're almost paid off on it, and after next year just have maintenance. He wants to keep the Acura for at least 5+ more years.

    @qbrozen - it's the Sport model
  • kyfdxkyfdx Moderator Posts: 235,199
    He wants to keep the MDX and you both want an Odyssey.. Seems like your decisions have been made. I'd stick with them.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • nellie06nellie06 Member Posts: 11
    Thanks - you've all been very helpful in talking this out. We've narrowed it down now to option 2 or 3.

    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
  • qbrozenqbrozen Member Posts: 32,891
    edited April 2015
    Well, price is reasonable enough, but I have to question whether its really worth getting a 3-yr-old van with 42k miles to save $7500 compared to a new one.

    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; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • stickguystickguy Member Posts: 50,437
    If that's what a used one goes for I would buy new and keep it a long time.

    2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.

Sign In or Register to comment.