Author Topic: Dumb Car Situation  (Read 757 times)

turnuck

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Dumb Car Situation
« on: June 28, 2018, 12:36:31 PM »
I am an aspiring (Canadian) mustachian living in Sweden. The amounts here are all in SEK, and they don't matter: trying to convert the numbers to other currencies won't make sense because exchange rates fluctuate, and all markets are local, etc, etc.

I don't think the details of how I ended up deciding this was a good idea are important for this post, but I may care to explain how I rationalised myself into this stupidity if you really care to hear about it.

Here are the numbers: the lease is up in December, and I am so far over the mileage allowance that I will have to pay (at least) 65000kr to give the car back. The buyout price is approximately 165000kr. Comparable cars are currently listed on the used market for 160-185k.

My options are:
  • pay 65k and give the car back, buying a used car to get through the next few years for 30-50k
  • buy the car for 165k and drive it for several more years

The two numbers are likely to change, but not in a way that should change the outcome: the fees are likely to be _higher_, not lower, and the buyout price may be lower. But not by more than 10k or so in either direction.

Before anyone suggests it: I _will not_ consider buying the car out and then turning it around and selling it immediately with the hope of minimising the loss. Dealing with selling a used car privately here is a level of stress and unknowns that will not improve my happiness or stress levels.

I'm currently leaning towards buying the car outright, and planning to keep it for at least the next three years (until our family or living situation changes dramatically), because the two options boil down to: 165k for a nearly new car that meets all of our needs, or ~100k and wind up in an unknown car that I have to figure out how to buy in a market I'm not familiar with, that is older and may have maintenance gremlins.

I don't think there are any relevant points that I've left out here, but please feel free to ask if there is anything that _really_ makes a difference. The car is a Volvo V40, and meets all of our needs pretty well. Please don't assume that leasing in Sweden is like in North America, and there's some American-specific trick that I might be able to apply here, or that there is any level of reasonable customer service that might help me out. :D

Curious to hear your thoughts. Cheers!

terran

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Re: Dumb Car Situation
« Reply #1 on: June 28, 2018, 12:52:51 PM »
So it sounds like you can spend 95-115k and have an older car or 165k and keep you current newer car. I you didn't already "own" this car which car would you buy? How long will you be keeping whatever car you end up with, what will it likely be worth at that point, and what will you do with it?

For example if you have a definite end date (sounds like you might be leaving the country in 3 years?), and since you don't seem interested in selling a car, it might make sense to buy the cheaper car (as long as you think it will make it to the end date) so you have less to lose if you scrap it, give it away, or sell it cheap to avoid hassle.

turnuck

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Re: Dumb Car Situation
« Reply #2 on: June 28, 2018, 01:03:14 PM »
@terran thanks for the reply!

Sorry if I was unclear: I am definitely not leaving Sweden.

Our current plan is to buy a small farm in 3 years or so, at which point we'll want a car that does a little better in the woods than a Volvo V40 hatchback. It looks like it'll probably be worth about 80-100k in three years.

If I were buying a car today, I'd probably get a Nissan Navara (Frontier) or Toyota Hilux, but not necessarily because it would fit my needs _today_ better, just because it would fit my future needs better. A small pickup would be a 10-20 year car. This V40 is a 3+ year car (from now).
« Last Edit: June 28, 2018, 01:04:57 PM by turnuck »