New car advice!

abir12 · March 2015

Hi! My husband and I really want to get a new car. He has a Hyundai Veloster and even if we could fit a car seat comfortably in the tiny backseat, it drives horrible in the winter and I can't drive it because it's a manual transmission! we are disagreeing about how to go about getting the new car.
We both fell in love with the Hyundai Santa Fe with stow away 3rd row seats and we can afford to lease it if we trade in his car (valued at 11000 by dealership) and put 5 grand down. Hubby does not like the idea of a lease because of the no equity. And I agree but at the same time we can't afford to buy the car we want. If we lease we get 6000 cash back in hand and since I'm not working right now it sound's great!
He is set on selling his car private party for 15000 and then using all of it on a down payment towards a used santa fe. BUT I have searched hi and low and there are NO used santa fes with the 3rd row seats in our area! Even the dealer said it was a new design and they've only had 1 used traded in in the last 6 months!
Am I being selfish? Or does hubby have a point? Anyone lease and think it's a good idea?

asherk · March 2015

I would lease if it's the more financially stable option. The lease covers all of your maintenece and oil changes and such, which is a nice bonus. Yea, you don't get the equity from it, but from what you've said about your situation it sounds like the best option. My parents decided that they were tired of driving junky used cars and have been leasing much nicer cars than they could afford for about 6 years and they love it. Good luck coming to a decision with your hubby!!

Brummy14 · March 2015

Personally, I think leasing is not a great financial decision, especially if you're able to put a considerable amount down on another vehicle or pay cash outright. I'm of the opinion that paying cash for vehicles is the way to go -- and you might even get me to agree that a new automobile, with a significant amount down + a very low interest rate on the remaining (i.e., less than 1% for no more than a 3 year term) would be the other possibility. But, by far -- cash only for a used car. Best financial choice.

https://www.daveramsey.com/index.cfm?event=askdave/&intContentItemId=10367

https://usnews.rankingsandreviews.com/cars-trucks/Buying_vs_Leasing/

cls2015 · March 2015

I agree with PP that leasing is not a good financial choice. If you buy a new or newer car, you make payments for 5 years and then the car is yours. So, if you keep the car for 8 years, you pay nothing for the last three and you own the car outright. If you lease, you pay each month and when the lease term is up you have nothing to show for it and then you get another leased car and start paying every month again. No financial benefits there.

mvhove · March 2015

I'm with @Brummy14 - Dave Ramsey is a smart man! Personally I'd never lease a vehicle but that is up to you. I know it is important to have a car that fits your needs, but as I've grown up I've realized that having a nice car is really kind of silly. You just need to have something reliable to get you from point A to B. I understand it is not always possible to pay cash for a new car but going into more debt than necessary or leasing a car because that is the only way you can afford it is probably not the best financial decision. Good luck!

oneblessedmess · March 2015

I'm with your hubby on this one. If you can buy in cash or put down a sizeable down payment, do it. I think you just have to bite the bullet and look for a different car. Going for the lease just because you're stuck on a particular car does not seem smart to me. There are many other cars with third row seating that should suit your needs just fine.

abir12 · March 2015

I appreciate your guys' responses! I, too, think buying is better than leasing in most cases. But with me losing my job unexpectedly and not being able to find abother has us in a tough position. We barely had a positive cash flow when I was working... Now all of our cushion is gone and I'm freaking out! I love the idea of being able to have my husband's car's equity in our hands. Money is stressing me out! I can't get that out of my mind!

gatormom73 · March 2015

I have a 2012 hyundai sonata absolutely love! Backseat is also spacious

oneblessedmess · March 2015

I bought my used, 'scuse me, pre-owned

SUV in September for about $11,000. It's a 2010 Nissan Rogue which is a bit older than I was looking for but it only had 65k miles on it. My husband got a 2012 Kia Optima at the same time for just a little more than my car cost, with similar mileage on it. Maybe you can find something you like in that price range? That would still give you about $3-4k extra in cash. Is the third row seating a necessity?

SofiaIsabel · April 2015

so i read this post to my husband because he is a mechanic and a car enthusiast. he has worked at a Toyota dealership for 9 years and at a Hyundai dealership for the last 2 years. this is his suggestion.. first he agrees with your husband. if you can't afford the car you want new then buying used is a better option then leasing. then he suggested taking a look at a (used) Toyota Highlander. it's the most comparable SUV to the Santa Fe in size and room. plus they all come with 3rd row seating no matter what year you get. but what my husband really wants me to point out is that with the Highlander your getting an all around well built SUV. as a Hyundai mechanic he says he can tell you the Hyundai motors and transmissions are garbage, they don't last long. the newer the Hyundai the worse the engine/transmission is. On the other hand, he says if you're set on the Santa Fe then leasing it would be the best option because when it starts to have problems it'll be covered by the dealership.

i'm sorry if this sounds discouraging. i thought this would help since my husband knows first hand about Hyundais. of course at the end of day it's your decision, good luck with the car search! we're in the midst of a car search as well!

mrspark812 · April 2015

My family NEVER EVER buy cars new. A new car depreciates in value so quickly it is totally not worth it. We just got a 2011 Ford Expedition with only 10k miles on it. Had we bought it new we would have easily paid 10k more than we did. And I am OBSESSED with it! Best purchase we ever made! It has a 3rd row even though we have yet to use it, rear back up camera, and air conditioned seats (a total bonus but they are amazing in the Sacramento summer heat lol) I only wish it was 4-wheel-drive but oh well whatever. Oh and for a big SUV it gets pretty good gas milage. Plus we love that Fords are American made cars.

New car advice!

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