Sounds like you typically don't keep cars for 7-10 years if you're about to trade in your 2009 Subaru, especially when there's nothing wrong with it. Paying a few hundred for minor routine maintenance is much cheaper than paying $200 every single month for the next 3 years for a lease, plus depreciation.
Honestly, if you want to just save some money right now (whatever some means.. ) you're better off cutting costs in other areas then. Say, cut cable and only have internet or only go out to eat dinner once a month, instead of once a week. It's very rare that giving away something you own to pay for something you don't own turning out to be a good money move.
You still never said why you need that exact van, by the way. If you want to truly reduce costs with these cars... get out of your remaining loan.
The nada on your van(avg shape trade in) is 14k , That Subaru model is a keeper , nation wide . Easiest thing to do is nothing. Markets world wide are shrinking . After the market correction , put an add on craigs for the van and see what happens . I'm thinking you are somewhat upside down on the van and I would use it as little as possible .
Ohh....so it's an expensive Dodge van. Just sell it for $25k and get something else.Again, let's not get hung up on the Van. The original question was not about selling the van. But for what it's worth, the van is worth more than that. It's the SXT 30 year version
Ohh....so it's an expensive Dodge van. Just sell it for $25k and get something else.
Actual math
Note: throughout I used the KBB dealer trade-in value for a typical car condition extrapolated out 3 years. This is because RedShirt appears to want to keep trading in vehicles. I also assumed that RedShirts numbers from the first post were exactly correct (owe exactly $15,000 on the Caravan at 2.4% interest for example).
Option 1: Do nothing for 3 years
Keep the Caravan, keep the Forester.
* You now have a Caravan worth $11,500 + a Forester worth $6,500. Total value: $18,000
* You paid 36*$400 = $14,400 in interest
* Lets suppose you pay $1000 more in maintenance (RedShirt's numbers from post #50).
* Your Caravan would still have a loan with a $1203 balance.
* Grand total: $18,000 - $14,400 - $1000 - $1203 = $1,397.
Option 2: Trade in the Forester for a 3-year $200 Civic Lease
I assume you take the current KBB Forester value of $12,000 and pay down $12,000 of debt for the Caravan.
* You now have a Caravan worth $11,500.
* You pay $3,049 in remaining loan payments to fully pay off the Caravan.
* You pay 36*$200 = $7,200 on the Civic lease.
* Assume that on a 5000 mile / year vehicle the extra insurance payments for a new car basically are a wash with the small gas savings from going from a Forester to a Civic.
* Grand total: $11,500 - $3,049 - $7,200 = $1,251.
Conclusions:
So, on the surface, you are $146 ahead by doing nothing after 3 years even with the extra maintenance. But, there is a major catch that car dealers try to gloss over for leases. In option 1 you have 3 more Caravan payments and then you own both vehicles free and clear. In option 2, you either need to buy / lease another car or you have to pay $12,000 to buy that Civic. So, in option 1, your monthly payments go away for good for as long as you are happy with your cars. In option 2, you are right back into getting a $12,000 loan or another ~$200/month lease. Meaning if you take option 2 and look out say 5 years, you are now 24*$200 (additional lease payments) - $1211 (final Caravan payments) = $3589 behind because you needed another lease. Sure, lets say you need another $1000 of maintenance, but you still are WAY behind in the 5 year timeframe if you lease now. By leasing now, you are trapped in the continual upgrade cycle unless you can come up with that $12,000 to pay off the Civic.
The concept that buying / leasing a new car now is ever a way to save money needs to die.
No matter how many mental gymnastic tricks you try to fool yourself with, trading in a car with $0/month payments for a $200/month lease does NOT reduce your monthly bills.
Thanks for all the math! A couple of things to clear up:
The Forester is a Forester Limited, which should have a higher KBB value than what was calculated. I'm showing $13,500 for a dealer trade-in for good condition and over 15k private sale.
Civic lease is 35 payments, first payment is 0.
Did you use a Caravan SXT 30-year anniversary edition for the Caravan value? If my Caravan is worth 11,5 after 3 years, I'm going to be quite sad. My Subaru still has over half my purchase price value after 7 years.
Again, let's not get hung up on the Van. The original question was not about selling the van. But for what it's worth, the van is worth more than that. It's the SXT 30 year version
I see tons of those vans for sale near me at dealership pricing of $18-19k with 20-30k mileage on them. That's dealer retail. He would be lucky to get $15k on trade in.
I just used the data from your first post. If you have a fancier Caravan, it will be worth a bit more. But, it would be worth a bit more in both cases, so it makes no real difference to your decision.Did you use a Caravan SXT 30-year anniversary edition for the Caravan value? If my Caravan is worth 11,5 after 3 years, I'm going to be quite sad.
I did read his post and I posted the actual numbers proving your "math" wrong. Yes, $200 is less than $400. But those aren't the only numbers that matter. The real comparison is which is less:Did you not read his post? He is going to use the $15k from the sale of the paid for car to pay off the remaining loan on the Caravan. Then lease a Civic for $200/month. Last I checked $200 < $400.
Look on the bright side, it was "Rated "Very Good" by consumer reports".Did you use a Caravan SXT 30-year anniversary edition for the Caravan value? If my Caravan is worth 11,5 after 3 years, I'm going to be quite sad.