Author Topic: Leasing to get rid of a crappy car  (Read 4619 times)

Connemara

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Leasing to get rid of a crappy car
« on: August 12, 2014, 02:26:56 PM »
I currently drive a 2007 Chevy Cobalt. As you've probably heard the car has been recalled for many issues, most disturbing of which is the ignition shut-off problem that has been in the news. The model I have is very no-frills (manual locks/windows, no side airbags, etc.). That alone doesn't bother me, but the recalls have led me to wonder about its safety.

A local dealership has a lease deal for 2014 Honda Civics: $45 a month for 36 months with a down payment that would be about 80% covered by the trade-in value of the car.

Would it make sense to get rid of a paid-for car with some cosmetic dings and 109K miles for something new? The impact on cash flow would be pretty minimal, but it's an impact nonetheless. I could accommodate it in my monthly budget fairly easily.

One thing that is making me wary is the 9% student loan I am paying off.

4alpacas

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Re: Leasing to get rid of a crappy car
« Reply #1 on: August 12, 2014, 03:07:23 PM »

One thing that is making me wary is the 9% student loan I am paying off.

Don't do it! 

solon

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Re: Leasing to get rid of a crappy car
« Reply #2 on: August 12, 2014, 03:15:43 PM »
Drive that thing until 2030, or 250,000 miles, whichever comes later!

Connemara

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Re: Leasing to get rid of a crappy car
« Reply #3 on: August 12, 2014, 03:25:50 PM »
I currently drive a 2007 Chevy Cobalt. As you've probably heard the car has been recalled for many issues, most disturbing of which is the ignition shut-off problem that has been in the news. The model I have is very no-frills (manual locks/windows, no side airbags, etc.). That alone doesn't bother me, but the recalls have led me to wonder about its safety.

A local dealership has a lease deal for 2014 Honda Civics: $45 a month for 36 months with a down payment that would be about 80% covered by the trade-in value of the car.

Would it make sense to get rid of a paid-for car with some cosmetic dings and 109K miles for something new? The impact on cash flow would be pretty minimal, but it's an impact nonetheless. I could accommodate it in my monthly budget fairly easily.

One thing that is making me wary is the 9% student loan I am paying off.

What is the trade in and private party value for your car?

Trade in is a touch over $3K, private party a bit more obviously. It is in decent shape mechanically though someone recently dented the hood and the bumpers have some nicks.

okashira

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Re: Leasing to get rid of a crappy car
« Reply #4 on: August 12, 2014, 03:28:11 PM »
Would it make sense to get rid of a paid-for car with some cosmetic dings and 109K miles for something new?

no

Connemara

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Re: Leasing to get rid of a crappy car
« Reply #5 on: August 13, 2014, 07:39:33 AM »
Thanks for the facepunches everyone. I'll hang on to the car.

frugaliknowit

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Re: Leasing to get rid of a crappy car
« Reply #6 on: August 13, 2014, 07:44:43 AM »
The lease is basically smoke and mirrors.  They take your trade and your cash and apply it against the lease payments.  Three card monte!

chasesfish

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Re: Leasing to get rid of a crappy car
« Reply #7 on: August 13, 2014, 07:52:56 AM »
No

Timmmy

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Re: Leasing to get rid of a crappy car
« Reply #8 on: August 13, 2014, 08:20:03 AM »
And what will you have at the end of 3 years? No car and no money.  Bad deal.

gimp

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Re: Leasing to get rid of a crappy car
« Reply #9 on: August 13, 2014, 12:13:55 PM »
My car also has an ignition shutoff problem (no recall, but it's well known). Truth is, if it happens at 80mph on a turn, you're pretty much SOL - your power steering goes. Quick reaction time can let you hit the brakes, which don't need power to work, and if you're lucky you'll be ok. Do-or-die muscles help you turn the wheel without power steering.

My ignition died at 80 on a straightaway. Scary, but despite heavy traffic, I made it just fine. Not only that, but with a half-broken barely functioning ignition, I managed to limp the car from Texas (between San Antonio and Houston) to Boston.

So: you have a very low chance of this happening, and if it happens you have a very low chance of it happening in an utterly terrible situation (turn at high speed).

I'd be much more worried about good old collisions than the ignition failing and causing serious issues. And I have real, honest-to-fuck experiences with precisely this issue.

And if you've done all the recall repairs, any other issues with the car are most likely much less severe. Maybe unreliable, but you should cross that bridge when you come to it - not before.

okashira

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Re: Leasing to get rid of a crappy car
« Reply #10 on: August 13, 2014, 12:33:16 PM »
steering should work fine without power. Just shut it off on purpose and practice with it a couple times so you're ready for it. IT will just be harder to turn.
or do the recall. ;-)

guitar_stitch

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Re: Leasing to get rid of a crappy car
« Reply #11 on: August 13, 2014, 02:59:30 PM »
My car also has an ignition shutoff problem (no recall, but it's well known). Truth is, if it happens at 80mph on a turn, you're pretty much SOL - your power steering goes. Quick reaction time can let you hit the brakes, which don't need power to work, and if you're lucky you'll be ok. Do-or-die muscles help you turn the wheel without power steering.

My ignition died at 80 on a straightaway. Scary, but despite heavy traffic, I made it just fine. Not only that, but with a half-broken barely functioning ignition, I managed to limp the car from Texas (between San Antonio and Houston) to Boston.

So: you have a very low chance of this happening, and if it happens you have a very low chance of it happening in an utterly terrible situation (turn at high speed).

I'd be much more worried about good old collisions than the ignition failing and causing serious issues. And I have real, honest-to-fuck experiences with precisely this issue.

And if you've done all the recall repairs, any other issues with the car are most likely much less severe. Maybe unreliable, but you should cross that bridge when you come to it - not before.

1) Stop doing 80.  It wastes fuel.

2) Why the hell are you turning so sharp you'd need power steering at 80 MPH?

3) Grow some muscles.  I had the engine die on my 1984 Dodge D150 (used to pull a trailer for my side hustle) and was able to make 2 90 degree turns and stop the vehicle at 20 MPH with very little actual effort.

Beric01

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Re: Leasing to get rid of a crappy car
« Reply #12 on: August 13, 2014, 03:07:37 PM »
9% student loan?! Time to read MMM's post on your debt being an emergency. You may need to go without a car to pay off that debt. Can you bike/take mass transit for a while? That interest rate is insane.

Thegoblinchief

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Re: Leasing to get rid of a crappy car
« Reply #13 on: August 13, 2014, 03:23:09 PM »
Replace the crappy car with a nice bike and throw at least $2500 at your awful student loan.

gimp

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Re: Leasing to get rid of a crappy car
« Reply #14 on: August 13, 2014, 03:51:59 PM »
1) Stop doing 80.  It wastes fuel.

2) Why the hell are you turning so sharp you'd need power steering at 80 MPH?

3) Grow some muscles.  I had the engine die on my 1984 Dodge D150 (used to pull a trailer for my side hustle) and was able to make 2 90 degree turns and stop the vehicle at 20 MPH with very little actual effort.

1. Fuck off, the speed limit is 80 where the ignition died, and I'd happily drive a hundred if I wouldn't get arrested for it

2. Mountains, full speed, the way they're meant to be driven

3. Okay, have fun... unnecessary dick.

Mod Edit: Unnecessarily rude.  Cut it out.
« Last Edit: August 13, 2014, 05:02:35 PM by arebelspy »

eil

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Re: Leasing to get rid of a crappy car
« Reply #15 on: August 13, 2014, 04:04:48 PM »
My car also has an ignition shutoff problem (no recall, but it's well known). Truth is, if it happens at 80mph on a turn, you're pretty much SOL - your power steering goes. Quick reaction time can let you hit the brakes, which don't need power to work, and if you're lucky you'll be ok. Do-or-die muscles help you turn the wheel without power steering.

At 80mph, power steering is pretty much completely inactive anyway. It only kicks in at lower speeds where much more effort would be required turn the wheels a good distance from center.

I have a Mazda 5 that was recalled due to the power steering going out occasionally at high ambient temps. It happened a couple times to me. Making a 90 degree turn at intersections was difficult, but not much else.

OP: keep that car until it dies and pay off that hair-on-fire loan.