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I am also retired and now look at the cost for thecar I drive as nothing more than a monthly business expense,// A fixed income along with a fixed monthly cost works well for us.
I am sorry, your stipulations are rather unrealistic. You will lose money on the front end and on the back end. You will lose all registration and dealer fees. they WILL downprice your trade in badly, as that's their job to do. Your car WILL lose 15% right after you bought it.
You may think otherwise, but you just go ans spend some time with dealerships. Always ask for OTD - out the door price, not sticker price.
Your budget should be more like 10K and, if you want my opinion, is total waste of money, to do what you want. But, that your money and your life and your pleasures. To be honest, for $5k a year, I'd rather buy old nice cars - supercharged Riviera, MArkVIII, and have fun with them. Old Impala. You'll look original (maybe a skosh like drug dealer), have safe and very comfy cars, and fun to drive. Toss it and buy something else next year.
But that's me.
So there’s no vehicles I could drive for 1 year losing less than ~$6k net? Keep in mind being retired I could put less than 6,000 miles per year on the vehicles - they would be in prestige condition...1 owner...with the window sticker lol.
I just looked up the 2019 Toyota Tacoma Pro with 5k miles vs 2018 Tacoma Pro with 10k miles and the price difference is like $2-3k (low 40ks). Brand new they cost about $46k I believe. So that seems like 1-1.5 years of use for roughly $5-6k + any fees. Would it be all that bad? Call it $8500 on an average year. A loss of ~$700 per month to drive a cool new car every year?
BTW - I reselling the vehicles listed on autotrader for a hefty discount compared to dealers.
Last edited by eddiehaskell; 11-12-2019 at 04:35 AM..
Wondering if you ran the numbers on leasing a vehicle for 24 months as others have assumed from your post was your original intention? Two years is not a very long time to drive a cool car!
The other option is to buy a new car outright and then sell it yourself after a period of about 2 years since that might be the best time for the resale value and help with registration fees, etc.
Otherwise, your budget price is probably way too low and you will be disappointed and in the red after your first new exciting ride.
Wondering if you ran the numbers on leasing a vehicle for 24 months as others have assumed from your post was your original intention? Two years is not a very long time to drive a cool car!
The other option is to buy a new car outright and then sell it yourself after a period of about 2 years since that might be the best time for the resale value and help with registration fees, etc.
Otherwise, your budget price is probably way too low and you will be disappointed and in the red after your first new exciting ride.
Perhaps I could run the numbers down to the penny and people would be at least slightly interested in seeing how cheaply it could be done. Of course in order to keep the budget low I’d probably have to stick to cars under $50k that are known to or expected to hold their value.
I'm surprised this hasn't been mentioned yet. There is a PERFECT solution for this. You can get lease transfers. You can find people looking to get out of their leases, and filter for something like 8-14 months remaining on the lease. You step in to the lease payments, often without having to reimburse for the down payment already made. The only risk is that you'll be responsible for the car at turn-in, so you just have to do a good inspection (not a mechanic inspection, just cosmetic stuff that can be seen with the naked eye), and if there are any problems, you can negotiate with the seller either for a lump sum at the time of the swap, or a deposit that will be settled at turn-in.
I recently transferred a lease on a $56k car with 8 months remaining on it, and someone stepped into my $450/mo lease payment. I crushed this lease when I originally negotiated it- nothing down, 36 months, etc, so I didn't lose anything in the transfer and the person taking my lease got a great deal. In 8 months they plan to return it and buy one of the same car (essentially an 8 month test drive). Their only out of pocket will be the lease turn-in fee, the monthly payments, a small transfer fee to the lender, and taxes on the 8 months (which is awesome- beats paying sales tax on the whole car, or on the whole 36 month lease).
My only advice is this- the two main lease transfer sites, swapalease and leasetrader, stink. People post awful deals on those two sites- huge monthly payments and many want you to reimburse their down payments for their terrible deals. The best site is leasehackr (not a typo). That site is devoted to scoring awesome lease deals, and they have a transfer subforum where people offer to transfer out of the leases that they got good deals on.
You'll have to deal with overlap- these transactions are not fast. Each lender is different, but my lexus took 6 weeks to transfer. So you need to think ahead as you get close to the end of the lease.
Note: buying and reselling cars is a terrible idea because you'll take a bath on the sales tax. In my state, sales tax on a $50k car would be about $4k, so on your budget of $5-6k a year, tax and registration consumes most of it. Buying then trading is even worse because even though you save on the sales tax, you'll lose more to the trade in differential.
It is just hard for me to understand your urge to get rid of a car, that you drove basically for recreation, after only one year. (and I am a car nut with a few cars in my collection) If you find an exciting car, it stays exciting for longer than one year. I've had my one hot rod for over 30 years, and when I turn the key it is still fun.
I also agree that the math is not there with your budget. After a swap or two, you would be underwater. You might also consider buying a year old sports model and let someone else take the initial hit.
I also agree that the math is not there with your budget. After a swap or two, you would be underwater. You might also consider buying a year old sports model and let someone else take the initial hit.
Unless he assumes leases, then all his goals are met. A different car every year, under/at budget, but still has access to cars worth $40-$50k.
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