Hi all. I had great results in my last question thread, so I'm back!
I'm just about 22, and I'm currently driving a 2011 GTI; I made the stupid mistake of asking for it at age 19, and my dad made the stupid (and generous) mistake of accepting. I really love the car, but it hasn't been the best use of our money. The lease is up at the end of May. The original plan was to purchase it at that point, he continues paying until I'm working and stable, and then I take it over. His financial situation took a turn for the worse, so we're considering having me be the sole purchaser and pay for it myself which will be a bit painful until I start fully working in January (graduating in December). There's the option of doing joint again, I don't know whether there would be a benefit there, maybe reduced financing rates?
Instead of writing too much, here's what I think are my current options:
1. Purchase the car after lease, financing it. This will be a little painful this year since I'm not going to be making high income, but doable. I'd keep my awesome car that would provide me with shallow fulfillment :P
2. Same as #1, except sell it private party and use that money to pay off loan. I spoke to an old friend today, and he's a potential buyer; I can likely get a buyer for this car in any case, especially since it's in great condition; certainly over the residual contract amount, so I stand to make some money.
3. Return the lease and eat fees.
Part 2, replacement car:
1. Buy used from same dealer as lease. I don't know if they will make any kind of deal since I'm giving them more business; maybe/maybe not waive lease return fees?
2. Buy used from any dealer.
3. Buy private party.
For the replacement car, I don't have enough cash right now to outright buy a car, so I'd need to get some sort of financing. I don't know whether people take out loans on their own, or rely on dealer provided loans, or what.
Some extra details:
- I've barely driven this year, so I'm probably ending the lease at 30k miles or so.
- The residual on the contract is ~$14,300 I believe.
- I poked around a bit, and right now I could probably get $17-17.5k for it private if I'm lucky. I believe a new model is coming out at the end of May, so prices may drop.
- Gas is probably $90/mo, insurance $170/mo.
Phew, that was a lot. If you made it this far, you're awesome :) I appreciate any input on this matter. Other options I may have missed, etc.
Thanks in advance!
EDIT: More in the second reply.