Author Topic: Car dilemma  (Read 4259 times)

MustardTiger

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Car dilemma
« on: August 05, 2016, 10:03:02 AM »
First off here is our current car situation.

-2013 Hyundai Elantra Paid off.
-2005 Honda S2000 owe 9k on an unsecured loan at 3.2% (have the title)

Ok, I came into a situation last year where I could buy the s2000 for a good price.  It is an amazing sports car and pretty economical as I drive <5k miles a year and it is unlikely to depreciate.  I used the proceeds from selling my old car to pay off the last of the Elantra.

Now 1 month after I purchased the car I found out my wife is pregnant.  My 3 month old daughter would not be able to ride in this car for over 10 years.  So far it hasn't been a huge inconvenience as we just take the Elantra everywhere, but we cannot take our two dogs with us to visit my parents for instance.  We are also starting to talk about having a 2nd kid and MIL that will be moving in with us in 2 years so all of this should be considered.

My original plan was to drive my beloved s2000 for 2-3 more years until I absolutely had to sell it, but a co-worker has basically fallen in love with it and wants to offer me 5k more than I paid for it pending wife approval.  For 5k I think I have to just get rid of it now even though dream car/still owe 9k.

So here is the dilemma.  Assuming he comes through and offers me ~16k.  I mentioned a possible trade for his 2005 Accord that he says is worth 6k.  So I could be getting the Accord +10k which would cover the loan and about 1k in work that the car needs.

My wife wants to get a bigger vehicle such as a CR-V, in order to fit the baby/dogs/MIL more comfortably.  She isn't as comfortable driving 10 yr old cars like I am but I think I could still go 2-5 yr old certified used.

Should I just go with the Accord in this scenario to get rid of auto debt for good?  Consider a used CR-V or something else entirely?  Keep driving my car anyways because it is the most fun car I have ever driven?  I should also note that before I get the big car haters we drive <10k miles a year combined so gas mileage isn't a big of a consideration.

ltt

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Re: Car dilemma
« Reply #1 on: August 05, 2016, 10:27:21 AM »
Six words....forget the Accord, buy a van.  Realistically, there is no getting around this.  The issue here is that you will not be transporting just a baby, but you will be transporting a baby and e.v.e.r.y.t.h.i.n.g else that comes with having a young child.....diapers, formula, multiple outfits, car seat, pack-n-play, bouncy-type seat with mobile thingys floating so child can try and grab, etc., etc., etc.  Add the two dogs and MIL, plus the possibility of having another child, and you can see where this is going to lead.   Just plan to buy a van and keep it for at least a decade. 

RWD

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Re: Car dilemma
« Reply #2 on: August 05, 2016, 10:33:37 AM »
It seems getting rid of the S2000 is a no brainer when you can't drive it much anyway and you're getting a good price for it. You can always buy another fun car in the future when your kids can ride in it.

The Accord is a good car but probably not the best fit for your family. Your Elantra already covers the four-door sedan niche so something different would make sense. I'd recommend a wagon or hatchback (e.g. Toyota Matrix or Honda Fit) but a small CUV could work as well (e.g. CR-V). Something you can get without a loan would be preferable.

MrsDinero

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Re: Car dilemma
« Reply #3 on: August 05, 2016, 11:18:22 AM »
We have a 2013 Honda CRV and are 4 weeks from baby #2!  We recently did a test run with it for baby #2.  The 2 rear facing car seats fit well with my husband and I.  For day-to-day activities, the CRV has more storage space than we need. 

For weekend trips to visit to family (frequent, we pack EVERYTHING, including the exersaucer and high chair, so the back of the CRV is packed to the brim.  The occasional weekend trips that will include a hotel stay we pack a lot less stuff.

There are a couple times a year where my husband, myself, the kids, and the nanny will be in the car.  She fits ok in the back middle seat (she is not a big person).  She is usually only back there for short trips around town.  Longer trips anyone sitting back there would be miserable.

MustardTiger

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Re: Car dilemma
« Reply #4 on: August 05, 2016, 11:26:58 AM »
Skip the accord, get a fuel efficient, reliable larger vehicle.  Even a CRV will seem small in a couple of years.  Seems like you will have 3 adults and 2 kids under one roof.  How often would you want to transport everyone?  A CRV won't hold an adult inbetween 2 carseats in the back, you're looking at a 7-pass SUV or minivan for that.

I always hear not to buy something before it happens.  While we want another kid, it took us 3 years and fertility treatments to conceive, so I don't think it's a great idea to buy a van until it does happen.  The dogs aren't really a deal breaker but last weekend we went to my parents house in the country to swim and I would have loved to take my German Shepherd to swim and run around, but its not like I need to take the dogs often.  I will consider purchasing something larger but wouldn't want to get another loan so if I sold my s2000 for 16k I wouldn't want to spend my more than a few k over that.

MustardTiger

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Re: Car dilemma
« Reply #5 on: August 05, 2016, 11:29:51 AM »
Skip the accord, get a fuel efficient, reliable larger vehicle.  Even a CRV will seem small in a couple of years.  Seems like you will have 3 adults and 2 kids under one roof.  How often would you want to transport everyone?  A CRV won't hold an adult inbetween 2 carseats in the back, you're looking at a 7-pass SUV or minivan for that.

It would seem in the rare instances we would have to pack everyone including dogs, we could just take 2 cars?  Vans are just so expensive and my wife has told me she doesn't feel comfortable buying a 10 yr old car.

2Birds1Stone

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Re: Car dilemma
« Reply #6 on: August 05, 2016, 11:51:31 AM »
Sell the s2000 at a profit.

Reassess when things calm down. Plenty of great sporty cars with a back seat out there =)

Tiger Stache

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Re: Car dilemma
« Reply #7 on: August 05, 2016, 12:08:17 PM »
if you can actually sell the S2000 with a good profit, then do that. Don't worry about buying a giant car. you can fit three carseats across in small vehicles, so two should work great if you buy the right car seats. Seats like that are more expensive, but cheaper than buying a new car. If you want the Accord, then get it. We have three kids, i'm not giving up my Accord until it gives up on me. I have two car seats in the back right now. You don't need two cars that can carry everything, you just need one, and the other can carry selected pieces of EVERYTHING on occasion.

ChairmanKaga

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Re: Car dilemma
« Reply #8 on: August 05, 2016, 12:50:36 PM »
What about a 3rd row crossover like a Pilot or Highlander? One nice thing about the Highlander is that when you need that third row, you can have captain's chairs in the middle so the rear passenger can pass between them, rather than uninstalling a car seat to be able to flip that seat forward.

Jack

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Re: Car dilemma
« Reply #9 on: August 05, 2016, 01:04:33 PM »
Get a Mazda5 "nano-van." It's not as sporty as an S2000, obviously, but it's a heck of a lot closer to it than any other 6+ passenger vehicle short of a Porsche Cayenne.

MustardTiger

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Re: Car dilemma
« Reply #10 on: August 05, 2016, 01:18:10 PM »
What about a 3rd row crossover like a Pilot or Highlander? One nice thing about the Highlander is that when you need that third row, you can have captain's chairs in the middle so the rear passenger can pass between them, rather than uninstalling a car seat to be able to flip that seat forward.

These are expensive.  I was hoping not have any car debt or at least buy something for around 16k max.

MustardTiger

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Re: Car dilemma
« Reply #11 on: August 05, 2016, 02:17:28 PM »
Well I still owe 9k, so the Accord or buying some other ~5k car is the only way I would be instantly free of car loans.

Jack

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Re: Car dilemma
« Reply #12 on: August 05, 2016, 02:24:16 PM »
some other ~5k car

Autotrader has Mazda5s listed for as low as $2995 (and lots of choices in the $4-$5k range).

bobechs

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Re: Car dilemma
« Reply #13 on: August 05, 2016, 02:27:06 PM »
Two Suburbans.

Face it, you now need two Suburbans to meet your family transportation needs.

The Escalade trim & convenience package remains... optional.   For now.

dycker1978

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Re: Car dilemma
« Reply #14 on: August 05, 2016, 03:05:52 PM »
Two Suburbans.

Face it, you now need two Suburbans to meet your family transportation needs.

The Escalade trim & convenience package remains... optional.   For now.

An you best start driving more...  how else are you going to burn all that gas?

I think I would personally trade the s2000 for the Honda and cash.  Pay off the loan.  If it is needed to transport everything that you need to once and a while, just take both cars. 

Choices

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Re: Car dilemma
« Reply #15 on: August 05, 2016, 03:24:27 PM »
An outside the box option: sell the car now since you're getting a great price. You'll walk away with $7k after you pay off the loan. Use this $7k and not a penny more to buy another reliable but not necessarily pretty car that will get you by until you can save more and figure out what you need long-term.

Buying a big expensive car now for a baby and MIL who might or might not come in two years seems like jumping the gun.

dougules

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Re: Car dilemma
« Reply #16 on: August 05, 2016, 03:30:26 PM »
My mom hauled me and my sister around in her Gran Torino (yes, I'm serious) until the next sister was born.  But of course babies coming up now are completely different. 

dougules

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Re: Car dilemma
« Reply #17 on: August 05, 2016, 03:33:30 PM »
delete

mountains_o_mustaches

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Re: Car dilemma
« Reply #18 on: August 05, 2016, 06:23:27 PM »
Skip the accord, get a fuel efficient, reliable larger vehicle.  Even a CRV will seem small in a couple of years.  Seems like you will have 3 adults and 2 kids under one roof.  How often would you want to transport everyone?  A CRV won't hold an adult inbetween 2 carseats in the back, you're looking at a 7-pass SUV or minivan for that.

It would seem in the rare instances we would have to pack everyone including dogs, we could just take 2 cars?  Vans are just so expensive and my wife has told me she doesn't feel comfortable buying a 10 yr old car.

This.  Buy the car for the needs that you'll most often face.  I can't tell you how many people I know buy pick-up trucks, etc. because WHAT IF they at some point in the future need to tote something BIG?  Well, I can tell you what you do - either you rope one of your truck-owning sucker friends into hauling for you or you dish out the $20 to rent a U-Haul or Home Depot truck.  That $20 is way cheaper than the cost difference between a small fuel efficient car and a truck/van.  I'd recommend a small, fuel efficient car with a hatchback, like the Honda Fit.

MustardTiger

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Re: Car dilemma
« Reply #19 on: August 06, 2016, 02:06:48 PM »
Also, any advice on a car that I can get in manual, is reasonably quick/handles well, and can fit a car seat? 

SandyBoxx

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Re: Car dilemma
« Reply #20 on: August 06, 2016, 02:35:29 PM »
Mazda 3 hatchback (or similar) with a roof rack/Thule box.  Fun to drive, fits our family of 4 (two car seats) and two big dogs, and with a roof box we always have enough space.  Bonus is that the car is low enough that I could throw our Phil & Ted's stroller up into the Thule box the couple of times we "needed" to take it somewhere with us.  Ours is a 2006 GT, and has been super reliable.  It has just been this year that we have started to replace a few worn parts.

Jack

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Re: Car dilemma
« Reply #21 on: August 08, 2016, 07:50:47 AM »
Also, any advice on a car that I can get in manual, is reasonably quick/handles well, and can fit a car seat?

Get a Mazda5 "nano-van."

I didn't mention it before, but the Mazda5 was also the only recent mini-van available with a manual transmission.

Tiger Stache

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Re: Car dilemma
« Reply #22 on: August 08, 2016, 07:52:23 AM »
Also, any advice on a car that I can get in manual, is reasonably quick/handles well, and can fit a car seat?

Anything with a back seat can fit the right car seats

MustardTiger

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Re: Car dilemma
« Reply #23 on: August 09, 2016, 09:42:47 AM »
Something I didn't consider.  Say I sell the my car for 16k but I paid 10.8k for it.  I am guessing I would have to declare that on my taxes and would be responsible for 25% of it.  What if a buy a used car from a dealership and they offer me say over what I paid for it for a trade-in  (No idea if this is the case or not).  Would this change my tax liability in any way?

RWD

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Re: Car dilemma
« Reply #24 on: August 09, 2016, 11:25:43 AM »
Something I didn't consider.  Say I sell the my car for 16k but I paid 10.8k for it.  I am guessing I would have to declare that on my taxes and would be responsible for 25% of it.  What if a buy a used car from a dealership and they offer me say over what I paid for it for a trade-in  (No idea if this is the case or not).  Would this change my tax liability in any way?

I just did a quick search and it looks like it would be subject to capital gains taxes. Kind of silly when you can't deduct losses...
https://ttlc.intuit.com/questions/2636454-is-the-sale-of-a-car-considered-taxable-income