Author Topic: Should I buy the car I am leasing? What would you do?  (Read 945 times)

lilybluerose

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Should I buy the car I am leasing? What would you do?
« on: July 18, 2018, 03:19:43 PM »
Hi everyone! I am so happy to have found this forum. I REALLY wish I would have learned about finances and such when I was younger! I am going to try to  keep this short and sweet.

I am currently leasing a 2015 Honda Civic. The lease is up in March. I was very ill when I leased this vehicle, and had absolutely no knowledge of savings, finances, retirement etc! I am going to have to make a choice. I will need to buy a vehicle in March. I was wondering if it would be best to buy this car, or try to find something else. I really would love a larger car, but know its probably  not going to be easy for me. I am not good with cars, and dont really have anyone who can come help me look at them to determine if it will be a good buy. I actually was at the dealership looking at brand new CRV's before I was welcomed to this whole new world of MMM lol!!! UGH!

2015 Honda Civic Sedan 21,000 miles.
Lease is up in March
Gross Income- 100,000-115,000 ( commission, it varies)
Buy out on  lease will be $12,800 not sure if I can get this any lower or not.
Household is Myself (31), My husband(37) and a 4 year old.

Our biggest want in life right now is to save 20% for a new home. We live in an older ranch home and paid 148,000 on a 30 year mortgage. The ones we are looking at are around $230,000-$250,000 We won't consider this until we have at least $60-75k to put down and can do a 15 yr mortgage.

Checking=5,000
Savings= around $28,000
Retirement combined= around $21,000 ( Just started a year and a half ago. Thankful to have learned about this stuff now!)
Emergency fund$17,350
 ( learned MMM doesnt support this, but I am very new to this, finding out a lot of what is best)

We have no other debt besides our mortgage. We are pretty frugal. We don't go out to eat, don't go on vacations, no useless or random spending. The most we spend on is food, which is around $650-750 a month

We work from home so do not need the car for work travel. We do however use it to see my family who lives 30-40 minutes away at least once a week, and to grocery shop ( too far to bike or walk, we live out in a more country area) and to go various places. I have a lot of anxiety, so will not feel safe/confident with us and our kid in a much older car with a ton of miles.

What do you guys think? Buy the CRV or shop around for something else? I really would love a car with more room, or even a smaller SUV, but it just may not be in the budget. I know nothing about cars, so this is pretty foreign for me, and I even feel silly asking this here.

Thanks for reading, I appreciate it !
« Last Edit: July 18, 2018, 03:21:40 PM by lilybluerose »

CNM

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Re: Should I buy the car I am leasing? What would you do?
« Reply #1 on: July 18, 2018, 03:26:46 PM »
Why do you want a larger car?  It seems like you don't drive that much: 21K miles in 3 years is lower than average.  Does your husband have a car, or do you share this one?

lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #2 on: July 18, 2018, 03:31:58 PM »
My husband and I share this car. I really don't think I need a larger car now. It would be "nice" just for the fact that it is just very cramped for my husband who is a big guy. I also have anxiety that says larger car= safer. We are both more than okay with not having a larger car though. Can definitely put aside the wants for the greater good!

405programmer

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Re: Should I buy the car I am leasing? What would you do?
« Reply #3 on: July 18, 2018, 04:12:35 PM »
I think that's a pretty good deal for a 2015 Civic. Usually the most financially optimal car decision is to buy an older much cheaper economic car and drive it into the ground. Financially optimal may not be personally optimal though so YMMV. Since your car is relatively low mileage and I assume you like driving it, I would suggest buying it out at the end of your lease! I had a civic sedan a while back and I loved that car. Never had a single problem in ~100k miles but it was stolen in 2015. I wanted to challenge myself and buy a car under $3K and so far that has gone well! I probably wouldn't do that if I drove a kid around though. Current car doesn't have ABS...

I would also like to caution you about new CRVs. Seems like there might be a problem with the latest round of CRV engines. I'm linking to 2 forums that discuss this in further depth as I'm not an expert on Hondas nor do I own one currently.

https://www.bogleheads.org/forum/viewtopic.php?t=244271
https://www.crvownersclub.com/forums/14-problems-issues/168018-2017-lx-1-5l-internal-engine-problem.html


lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #4 on: July 18, 2018, 04:29:20 PM »
Thanks so much! I may end up doing just that as I like knowing the history of this car and have had plenty of time to be comfy with it!

Oh ty for the info! As much as I was drooling over the crv I'd never be able to afford one! So happy now to fully know and understand that

sokoloff

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Re: Should I buy the car I am leasing? What would you do?
« Reply #5 on: July 18, 2018, 06:21:23 PM »
I too think you should buy the Civic.

In your situation, buying a new car is batshit insane for this audience. If you want a CR-V (which is pretty much just a Civic with different clothes on), buy a used one. Buy at the very newest a lease return, but we just turned over 200K on our 2005 that we bought 7 years ago with 165K on the clock. The CR-V sits up higher and has pretty good utility, but itís still a car crossover (which is good and bad).

MMM is not anti emergency fund, just anti one thatís excessively large. Yours seems to be fine, maybe slightly larger than needed, but not insanely so.

lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #6 on: July 18, 2018, 06:26:02 PM »
Oh good to know, thanks!! I appreciate the input!

MayDay

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Re: Should I buy the car I am leasing? What would you do?
« Reply #7 on: July 18, 2018, 06:32:05 PM »
I also would buy the Civic.

I have a 2003 Civic that has been great, and still going strong. My mom has a ~2006 CRV. It sits higher up but is nearly the same size. You really do not get extra space with a CRV.

Paul der Krake

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Re: Should I buy the car I am leasing? What would you do?
« Reply #8 on: July 18, 2018, 06:34:59 PM »
It's a good price and a good car, I would do it too.

lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #9 on: July 18, 2018, 07:06:31 PM »
One thing that I just thought of also is that it is not AWD. I worry about having to drive my kid to school the next couple of years. We live on a big hill that doesn't get salted very early. Is this something I shouldn't even care much about and just not drive when roads are too bad?

sokoloff

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Re: Should I buy the car I am leasing? What would you do?
« Reply #10 on: July 18, 2018, 07:10:05 PM »
I daily drove a RWD Alfa Romeo through 3 Boston winters. There were a few dicey days, mostly from low ground clearance.

I now daily a FWD Nissan LEAF and it goes anywhere I need to go on any day when school isnít cancelled. DWís CR-V is better for sure, but schools are cancelled long before a FWD car with all season tires is unsuitable, IMO. AWD is nicer for getting in/out of parking snow banks, but hardly a deal-breaker.

Paul der Krake

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Re: Should I buy the car I am leasing? What would you do?
« Reply #11 on: July 18, 2018, 07:49:21 PM »
If it ever is an issue, you get winter tires. AWD is for the birds.

lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #12 on: July 18, 2018, 07:50:58 PM »
Thanks so much! I am so clueless with cars! This info helped alot

lk4296

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Re: Should I buy the car I am leasing? What would you do?
« Reply #13 on: July 18, 2018, 08:42:42 PM »
If it ever is an issue, you get winter tires. AWD is for the birds.
Depends where you live.  Definitely an advantage where it snows. 


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Paul der Krake

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Re: Should I buy the car I am leasing? What would you do?
« Reply #14 on: July 18, 2018, 08:55:30 PM »
If it ever is an issue, you get winter tires. AWD is for the birds.
Depends where you live.  Definitely an advantage where it snows. 


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Fine, unless you're one of the 0.1% of Americans who live deep in the North Cascades or similar location, AWD is for the birds.


lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #15 on: July 19, 2018, 08:34:58 AM »
Ty for all of the input!

CalBal

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Re: Should I buy the car I am leasing? What would you do?
« Reply #16 on: July 19, 2018, 11:14:28 AM »
Agree with all the recommendations here. Unless your husband is *truly* uncomfortable, buy out the Civic, it is a great car and will last a long time. And although there are always variables you can't control, you chances of being in a serious injury wreck are extraordinarily small. You can further increase that by brush up on your defensive driving skills, always try to leave early so you aren't rushed, and never do any of the things that cause most accidents (distracted driving with cell phone, driving under the influence of drugs or medication, driving tired, speeding, etc etc). You can do a lot to help protect yourself.

Re: snow in winter, get good quality snow tires/winter tires (not the studded ones, just regular snow/winter tires). I drive a 2008 Yaris hatchback, it is technically classified as a subcompact. Interior is surprisingly roomy unless you are over 6', wheel base is very short (can turn on a dime), but not surprisingly it weighs nothing so you would think it would be terrible in the snow. I bought high quality winter tires for it (I live in the intermountain west, with some hills but not in steep mountainous terrain). It drives just fine in the snow. 

lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #17 on: July 19, 2018, 11:37:06 AM »
Great idea ty so much! We are gonna buy it and get some winter tires then!

CoffeeR

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Re: Should I buy the car I am leasing? What would you do?
« Reply #18 on: July 19, 2018, 03:46:29 PM »
Great idea ty so much! We are gonna buy it and get some winter tires then!
In general, for snow & ice, if you have the choice between AWD all-season tires and two wheel drive with winter tires you are better off with two wheel drive and winter tires. Even with AWD, you want winter tires. Go to youtube and do a search on "winter tires awd" for lots more info.

lilybluerose

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Re: Should I buy the car I am leasing? What would you do?
« Reply #19 on: July 19, 2018, 06:15:01 PM »
Thank you so much everyone! Great helpful info