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Clicky Poll: WWYD (car related....LONG)
I'm going to attempt to make this as not-long as possible. Please bear with me.
The last couple years have been beyond tough on DH & I financially. Things are finally starting to look up and we're slowly getting back on our feet. First item on the agenda? Getting a (much needed) second car after being a single-car-family for the last year.
Since our credit is still below average, we have decided to lease a vehicle instead so that we can minimize our up front expenses instead of needing a huge down payment (that we don't have) to get smaller monthly payments with an outright purchase. We have already met with the finance people and been approved for a lease with terms that we are happy with.
My parents have recently come to us with an offer to help us out. They are willing to "loan" us their 2nd car (they are retired and could easily survive with one vehicle) provided we pay the monthly expenses for the extended warranty + their insurance premium -- so about half of what it would cost us to lease.
On paper, it seems to be a no brainer to take my parents' car but I'm still hesitant to take their offer. My parents have been beyond generous in helping us out financially over the last couple years and a big part of me feels like it is time for DH & I to stand on our own. The car would remain in my parents' name so it does make me nervous in the event something should happen. Most importantly my parents' 2nd car is a tiny one (a Mini Cooper). I hate the idea that they would be stuck with a little car and wouldn't be able to take DD anywhere unless we also switched cars.
Ugh. This makes my brain hurt.
This discussion has been closed.
Re: Clicky Poll: WWYD (car related....LONG)
I voted Special Snowflake. I would wait and save the amount you'd be paying to lease a car each month to put toward a down payment on a car in a few months. I'd probably buy something that was a little less nice (and then make DH drive it
) until much later in the future when you could afford to buy a nice car. I wouldn't feel comfortable taking a car from your parents, but I also wouldn't want to "throw away" money each month on an item you don't own/doesn't help your credit.
We're a one car family too and it SUCKS, but I'd gladly wait a 3-4 more months if it meant we could own our own car vs. leasing one.
Taking your parents offer would allow you to either save some money or pay off something else, right? I'd take that.
Any time my parents have done something like this for us, I try to remind myself that if I can do the same for my kids someday, I will know I've been successful in life. Since it sounds like your folks do this stuff with no strings or guilt attached, I'd go for it. If it's more trouble in the long run, you can always lease somnething 3 or 6 months from now, KWIM?
<a href="http://www.thenest.com/?utm_source=ticker&utm_medium=HTML&utm_campaign=tickers" title="Home D
Unfortunately, waiting isn't an option. DH just got a new job that is going to require a more-than-normal amount of driving and our current "we'll rent a car when we need a second one" plan just isn't cost efficient anymore.
We've leased before and the installment credit (lease) does go on your credit report and can help boost your score if you pay on time each month. Plus we would always have the option of rolling the lease into a purchase if we wanted to buy the car outright.
Audrey won't fit in the back of the mini.
Gotcha. I'd probably go with the lease, though I'd be hesitant to do it. I wouldn't feel right taking a car from my parents, even if it was a no strings attached arrangement. That's just me and the way my personality works, though!
Could your DH drive the mini while you take y'all's other car, thus leaving your parents with their bigger car?
He could...but most of DH's travel is going to take him to Odessa (holla, Feisty) and a) he would feel like a wuss driving a Mini and b) he really needs his truck to access the fields, etc.
Audrey (or carseat) literally won't fit in the back of the Mini? Or it's just a PITA?
If she literally won't fit, then a car that you can't put your daughter in isn't much a car. In that case, I'd go ahead and take the lease.
Also, you mentioned paying their insurance premium. I would check and make sure you're covered if y'all had an accident in the Mini. Many insurance companies will only cover their customers, so if you were driving their car, you wouldn't be covered. Or if they did cover you, they would subsequently cancel your parents for letting someone else drive it. Options may be to add your names to their insurance or get your own insurance on it. But I wouldn't count on someone else's insurance.
However, I'm still for borrowing a car from your parents. If you could put Audrey in it (at least in an emergency) and you would be covered under insurance, then I'd go with their car. From what I've read, you have a good relationship with your parents so this could be something worked out comfortably. If you're gonna drive someone else's car (lease vs parents) I'd go with your parents to save money.
Oh man, that is a longass drive! But congrats to him on the new job!
We've borrowed vehicles from DH's parents on a short-term basis (like 7-10 days, max). I don't think I'd mind borrowing their car for a longer period. They are very generous and know that we'd care for it like our own, or better. If your parents have to take Audrey for a few days, it's now like they wouldn't see you to swap cars, anyways. You wouldn't even have to transfer the car seat.
Plus, like pp said- if it doesn't work out, you can just get your own.
I would be inclined to borrow their car just so you can pay off more and be a bit more comfortable financially before taking on a car payment- lease or buy. It would be unfortunate to have super-tight finances when you could take a little more time getting there comfortably.
I would get my own, either buy or lease.
We borrowed my grandmother's old buick for a few months while trying to sort out getting a second car. It was a little tricky with the insurance. I called my company (nationwide) and asked if we could put the car on our policy, even if the title was under another's name. No go. Which means the car is covered under their insurance and you, as the driver, (should be) covered by your insurance. But I'm sure there are many more what if's on that situation and if you really think it would save you money then do some research with the individual companies (yours and your parents') into what would happen if you got into an accident in their car.
Are you still paying on your current car? Have you thought about refinancing and then getting a second car with the difference? This is what we did. Long story short I bought my car before we were married, I was paying ~400/month for my accord. DH was using my old camry and he didn't keep up the matinence, it died. Borrowed grandma's car for a few months. Refinanced my Honda for 200/month and used the difference ~200 to buy a used (2009) toyota corolla for DH (he doesn't have the best credit so we couldn't do a joint thing). Randoloh Brooks has amazing interest rates. We refinanced through them and got a 3.4% interest rate and then purchased the second car through them as well. Let me know if you want to know more, you can email me at spanishbeauty08@gmail.com
This. Leasing a car is a bad idea. Yes, you can eventually buy the car later when the lease is over, but over the long run, you will pay more money than you would have if you'd bought that car from the start. If you don't buy the car at the end of the lease, you've spent a lot of money each month, and you don't own anything. Whereas if you buy a car, you will own it outright after the loan is paid off, and you can still drive it for years.
I'd take your parents' car, and I'd put away as much as possible on a downpayment for a new to you car. In other words, plan on spending as little as possible for a decent used vehicle. DH is still driving a 2002 Honda Civic he bought right before we first met, and it has years of life left in it. Yeah, it's a small car, but he could easily get both kids' carseats in the back if he had to. He has a carseat for Meredith in there, and he drops her off at preschool most days.
Meredith, 6-1-06 and Alex, 11-5-09
Ditto this. We're in a crap economy. I think it's smarter to swallow your pride about getting the car yourself and get the financials of having a second car as in order as possible over time. Your parents are making the offer out of love. I think it's great to be able to lean on family when times are tough. You would do the same for your kids one day, as PP said.