2007 Honda Odyssey - a steal or no deal?

[babytuckoo]

Hi. Any thoughts on this purchase?

Minivan: 2007 Honda Odyssey with 140K miles. My brother-in-law (non-mustachian) is looking to trade in this vehicle for a new SUV. He doesn’t want to sell it privately (I know this could be a whole new thread topic) and is willing to sell it to me for the price the dealer would give him (about $3400). On craigslist similar vehicles are going for about $7-8000.

Background: My wife and I plan to FIRE in 4-5 years in our mid 40’s. No children. Both of our current cars are fully paid- a 2005 Toyota Corolla (85k miles) and a 2010 Hyundai Accent (32k miles).  With some recent downsizing (moving to lower COL area and renting an apartment) we have bumped our savings rate to about 70%.

Our FIRE stache will include money to buy a modest house with cash as we will move back to the front range area of Colorado in about 3-4 years.  The van would be a great utility vehicle when we move back but probably wouldn’t get much use until then (hauling materials and appliances as we plan to renovate a small house, hauling firewood for a wood burning stove and bikes and camping equipment for road trips with friends). The minivan space sounds luxurious.

The issue: this is a great price for a van that has a single owner we know and no major issues. Basically, its a “known commodity” in a used car if there ever was one. I am planning on getting a vehicle like this, but about 3-4 years in the future. My wife and I have cars that we are happy with (and probably could not get much for if sold).  However, we have an opportunity to buy this minivan, though probably would not get much use out of it for a while. We would drive it back to where we live and just minimally insure it. Given our cars, our insurance is pretty low.  We have enough cash to just pay for it and it wouldn’t change our FIRE date/goals.  Do I take the deal or should I pass it up and then try to find a similar vehicle in the future?  I’m leaning towards buying it. Any thoughts?  Thanks!

[KarefulKactus15]

Buy it then sell it on craigslist.  Pocket the difference then use that money later to buy a utility vehicle on craigslist when the time comes?

[Frankies Girl]

As good of a deal as it might be, you have no use for it for several years so all you're doing is locking up money into a vehicle that will need money in maintaining and insuring it and you'll have to store it someplace (likely paying for it too) until future need, and all the while it is slowly deteriorating. Cars are not so rare that this makes good sense. And in any case I'd bet that in another 4-5 years, your BIL will be looking to trade in his next vehicle and you can snap that one up under the same circumstances but actually use it by then. ;)

So no, I wouldn't buy it to keep for 4-5 years.

What I might consider is buying it to flip. Why not buy it from BIL, do some minimal clean up on it, and then sell it yourself on Craigslist? Quick $3K for a week's time? If I was comfortable selling things on Craigslist or private seller, I'd probably do that anyway even if I wasn't thinking about buying a larger vehicle eventually.

[RobFIRE]

I agree that even if it's $3k or $4k cheaper than market price, I would not buy it just to keep it for four years unused/barely used. A good portion of the up front saving will be paid back in insurance and maintenance over the next 3 or 4 years.

I would either:
* buy it to replace one of your cars, if you can reasonably use the minivan in the interim as the second car (from the cars' mileages it doesn't look like you do lots of commuting but this may not be an option for you for other reasons)
* buy and flip it, offering the family member a share of your profit (surely he can't complain if he gets the trade in price plus another $500 or $1000 from the flip sale with no effort on his part)

If neither of above possible, I'd politely decline the offer

[socalteacher]

Buy it, sell it at a price that moves it fast and give some of the profit to your family member so that he doesn't take it personal even if he says he wouldn't.

[clarkfan1979]

Buy it for $3400. Use it for 2 years for your renovation plans. Then in 2 years sell it for $5,000. Sounds like a deal to me.

[babytuckoo]

Thanks for everyone's input, its good to get some other views.

Insurance and maintenance are some costs to consider, I'll look into some quotes for minimal insurance so I can see what the true costs will be. Periodic oil changes at the mileage I would use it are minimal.  Also, I have on street parking in a quiet neighborhood, so no cost and no need to move it for street sweeping.

The idea of selling it myself on Craigslist is intriguing as I don't think it needs any work other than vacuuming and maybe a wash/detail.  It may be easy money for me and the brother-in-law with minimal work. Who knows, it may spark mustachianism in him as well as I would give him a cut.

If I do sell it privately, any tips/advice on selling vehicles on Craigslist? Logistics stuff- If a potential buyer wants to take it to a mechanic, do I go with them?  Does one just hold on to a license for a test drive?  Do I go with the test drive?  Goofy questions, but is it like going to a dealer where they tag along?

Thanks

[fishnfool]

I'd buy it and drive it till it dies!

[TomTX]

Thanks for everyone's input, its good to get some other views.

Insurance and maintenance are some costs to consider, I'll look into some quotes for minimal insurance so I can see what the true costs will be. Periodic oil changes at the mileage I would use it are minimal.  Also, I have on street parking in a quiet neighborhood, so no cost and no need to move it for street sweeping.

The idea of selling it myself on Craigslist is intriguing as I don't think it needs any work other than vacuuming and maybe a wash/detail.  It may be easy money for me and the brother-in-law with minimal work. Who knows, it may spark mustachianism in him as well as I would give him a cut.

If I do sell it privately, any tips/advice on selling vehicles on Craigslist? Logistics stuff- If a potential buyer wants to take it to a mechanic, do I go with them?  Does one just hold on to a license for a test drive?  Do I go with the test drive?  Goofy questions, but is it like going to a dealer where they tag along?

Thanks

When I sold the Saturn, I just took a photo of their driver's license before letting them go for a test drive on their own.

I would not be willing to do any delivery/meeting/mechanic ridealongs.

....but that was a $550 car.

[AdrianC]

Nice vehicle. We have one with 130K miles. There are rumors of transmission weakness, but I think that mainly affects earlier models. I'm not worried about it.

I don't see any reason to buy a vehicle 3-4 years before you need it. Selling it on CL for $3K more might upset your BiL. I bought a car from and uncle once, did a whole lot of repairs on it, then sold it for a decent profit. Uncle was pretty upset. In this case you could tell BiL you'll buy it, sell it and share the profit. Everyone wins.

[BoonDogle]

I'd buy it and drive it till it dies!

Unfortunately, I owned a 2007 Honda Odyssey and it died with 127K miles on it.  After spending $1500 to the problem fixed, the dealer told me it would likely need a new engine :(

All that said, I think they are pretty good vehicles.  I think I just got the lemon.