Keep 3rd Gen Prius V or Start Fresh (opinions)

Like I said, I always challenge my beliefs with contrary information....and I usually consider a bank loan on a depreciating asset to be negative - especially when I consider the loss of future earnings on that money - but hey.....it could be worse, right?

At least you’re justifying all of this with $20,000 cars instead of higher priced sheet metal.

Good Luck!

 

I've had a lot of advice lately, sadly from a family member who's digging them self ever deeper into a financial hole, about deferring property taxes, buying on time, basically deferring payment due as long as possible, and hang the interest charges. I just smile and nod. Actually, I just nod.

 

OP asked for opinions and got them. Nobody's opinion is wrong. It is only their opinion.

 

My opinion was wrong!
I assumed that since he was looking at the prices of tiny cars, he could live with a tiny car.
That was wrong. He was just torturing himself.
I fell for it completely.

 

Wait till you have the cash saved up. It will cost you less, much less.

True story: do you know what credit car companies call clients who pay their balance in full each month?

Dead beats.

 

I've always just payed cash. That's maybe a big gulp, but think about it: all you're doing, borrowing money to buy a string of cars, is shortening the time to get into that first car. And: you keep yourself on an interest-paying (and all the service charges) treadmill.

 

I'm missing something here.
Yeah....you paid way too much for the v, but I do not see anything that's forcing you to consider other options than paying the car off as early as possible, and then driving it as long as possible after that, particularly since you still have three more years on your CARB warranty.

If the 1979 in your handle is your year of birth, then you're getting to be a little too old for this foolishness, don't you think?

OK...
So.
$250 isn't a very big car payment, and if you're knocking down house payments and have a retirement plan in place and don't have college or weddings to pay for then masel tov!!!
You're living the American dream, and the 250-400 bucks in car payments for the rest of your life isn't going to move the needles on your financial outlook as badly as.....say buying sports cars or a boat.

However (comma!) since you solicited for an opinion that tells me that you're either fishing around for confirmation on a decision that you've already made OR your Spidey senses are telling you that you're about to mess up.

The difference between trade-in and the street price for your car is probably about $2500 in Caly.
Even if you manage to out maneuver people who make their living trading cars you're still going to be walking away from four figures worth of your car's residual value........and for what?
Higher notes?
Higher taxes and fees?
Maybe higher insurance costs?

I didn't believe people like me when I was in my 30's either, so I can relate....but I would have been able to retire at age 56 if I HAD listened....

Good LUCK!

 

I only read what is written, and I didn't even need to take my boots off to do the higher math.

You've been making payments for a year and a half on a car that you say cost you $12,500 plus residuals. We'll leave the street value of the car aside for the moment because I don't need it to make my point.
I'll also presume that you paid no sales taxes, nor were there higher registration or insurance costs....so yes.
It's easy to assume stuff.

So according to the words that you used in your OP.....

....you still owe 12k on the v after buying it a year and a half ago for 15....because of your residual lease payments.
And you are requesting respectful opinions on either keeping the car or getting another lease?

With all due respect...
I think my work here is done.
My hope is that some day, some one person stumbles on this post who is thinking about leasing a car....and that they would take the time to find a few financial advice web sites and ground-truth some of the claims that are made by lease proponents before they put ink to paper.
Perhaps then they will not have to pay $15,000 for a $12,000 car in a few years when they want out of the lease.


Again.....with all due respect, and.....
Good Luck.

 

I’ve never needed a loan to get a car.

Through 2010 I drove a 1982 Diesel suburban with 438,000 miles sometimes for all my travel
it was free to me when I got it as a broke high schooler and 24mpg on $0.99 diesel
Very affordable. $189 a year for insurance in the day. Just had to do oil, filter and an occasional starter rewind.

$500 runs and drives cars are still relatively common, drive, junk repeat.

 

Took a loan on the 1989 Toyota Corolla Alltrac wagon
Paid cash for the 2001 Subaru Forester S
Was planning to pay cash for the 2009 Prius but the had a 0% interest loan, so I paid it off in two years
The 2012 Prius v had a 0.9% loan, I paid off in a year.
i wish the v was my last car, but with good luck and bad living, I could outlast it.

 

Respectful Opinions needed to help me decide on purchase/lease or keep car here.I am confused.

Maybe it should read:

Respectful Affirmations needed that the decision I made is good. I will describe the problem so you know the choices I had and will slowly update accurate details later. No contrary opinions wanted.

So here's my revised affirmation:

Yes sir, keep that Prius v and run it until 2025. Others have logged 400,000 miles and I believe you can easily double your mileage to 150k over the next six years without breaking the bank. Even if some parts fail, the payments will be low and the used part market will just get better over time. It is a nice car and will haul big boxes and garden center bags with ease. I really like the upgraded AC the v has and the pitch and bounce control. While the advanced safety features might be nice on a newer car, those things will make the insurance rates go up and third party repairs less likely.

 

I bought my '14 new with financing thru Toyota with 500.00 down and zero percent financing. Paid it off 2 years ago. I sold my previous car on Craigslist for fair market value. If you have good credit, It does not take thousands down for a new car.