Question about cars/vans, etc...

[Nickarolaberry]

Hi mamas,

Some of you may have read in another thread (We're up the creek...) about our recent financial woes. DH is currently out of work and actively trying to build his own practice; I'm going to be teaching (probably).

Right now, we have a financed 2003 Ford Windstar LX. It's probably worth about what we owe on it ($10K). It has had some minor problems that are expensive to fix, so we haven't (window motors not working) and a couple expensive problems that were taken care of during the warranty period but could feasibly reappear. We currently pay about $265 a month. I can cover that with my salary.

I have 3 children still in carseats so I need a vehicle that can accommodate; plus dh is 6'2" and needs to be able to fit in the front seat without breaking his knees.

Recently, I saw an ad for a lease for a Honda Pilot for $279 a month. Obviously it would be under warranty, whereas my Ford isn't. We can swing the monthly payment from my salary, but a major repair would really put us under.

The gas mileage on the two vehicles is comparable.

I hate leasing, and I hate financing. They are bad financial decisions all around. However our situation is such that we can't afford to sell the van and buy something outright since there are no reserve funds for it and we wouldn't make a profit. I can't buy a beater that would need frequent repairs.

What is the best option for us?

[Eman'smom]

Stay were you are !!!!!

As a funny aside we had a 2003 Windstar Lx that we owe 9,000 on, and I've been drooling over a Pilot

Ok seriously for us in 2 years we will own our van outright, with the lease you will be paying more and if anything goes wrong you will really be stuck, leases are really hard, upkeep so you don't owe money at the end is rough.

Unless you can sell the van and get something cheaper (which I know given our windstar is impossible) just ride it out until things improve.

[Nickarolaberry]

Yeah, you're right.

The Pilot looks cool and all but to tell the truth, with 3 in carseats and occasional carpools, a minivan is easier. And no way, no how can we ever hope to afford an Odyssey (my secret fantasy vehicle...how pathetic is that?!).

We just got some unexpected cash as a gift. Once we pay some immediate bills we might pay forward a bit on the van so we're not so much in the hole on it.

[sweetfeet]

You would be upside down on the windstar loan most likely anyhow. The dealership won't give you exactly what it's worth. So the difference between what they give you and what the car is worth would be rolled over into the next lease or loan. I know you've changed your mind but I wanted to put that out there as well.

[Nickarolaberry]

Originally Posted by sweetfeet

You would be upside down on the windstar loan most likely anyhow. The dealership won't give you exactly what it's worth. So the difference between what they give you and what the car is worth would be rolled over into the next lease or loan. I know you've changed your mind but I wanted to put that out there as well.

Okay. What does this mean? Is that good for me or bad for me? : Sorry, not meaning to be obtuse, just confused.

[1growingsprout]

that would be BAD for you... meaning you owe 10k on the vehicle and its worth approx 10k... meaning the dealer will probably pay around 7-8k for the van... they have fixing costs cleaning costs etc toget it ready to sell again.. plus you can bet they are going to make a profit on the whole deal...

when you said the car was worth 10k does that include the costs of repairs? anygood mechanic will see whats wrong and figure that into what he is willing to pay.

[ItyBty]

Not to mention that on a newer car, your insurance will likely go up a bit too - which could negate the savings on your basic payment.

[eleven]

Leases are baaaaad! You pay a regular car payment for years, then when it's over, what do you have? Nuthin'! What a scam that is!

[Nickarolaberry]

Yah.

We're going to hold on and pray that the Windstar doesn't develop any serious problems.