I have a prius 2007 that has 70K miles on it. The car payment is pretty high and tough on my budget. I was getting it serviced today and the dealer said that its a good time to trade in the car and if I lease a car I can get a lower car payment. I know leasing in the long run is more expensive but In another 3 years when lease is up. I should be in a little bit better financial situation. In another 3 years I should have over 100K on the car which the hybrid battery and extended warranty would be up and although i wouldn't have a car payment any mechanical issue on the car would negate that. curious what other people do in this situation
Of course the dealer wants to sell/lease you another car. I've had salespeople approach me while waiting for my car to serviced. At the end of the new lease, you will have no car or you will have to pay more to buy it. As for hybrid battery warranty, check your warranty booklet again. It's 10 years/150K miles in CA and CARB states. You also have a 15 year/150K mile CA emissions warranty. Your info says you're in CA.
Dealers aren't there to help you out, they are there to make a profit. If they say it is a good idea, it is a profitable idea to them. Now is not the best time to sell a Prius, that would have been from right after the earthquake/tsunami to the end of this summer. You've missed the awesome window and are now down to "normal" pricing. If you don't want it, sell it. If you want a prius keep it. Leasing rarely ever benefits anyone. If you can guarantee that you will be much better off financially then perhaps lease. But there are very few guarantees, and holding on to a car makes sense.
your car is going to run forever without any major repairs, keep it and enjoy it, it's the best value you have.
More points: that dealer is likely going to turnaround and sell your Prius for a profit. When does your car loan end? You'd rather go for lower payments for the duration of 3 years lease and have no car at the end of it?
I would use the savings you have aftr 3 more years of owning the 2007 on 2015/2016 car. You're in CA, right? Your battery warranty is 10 years/150,000 miles IIRC. (vs. 8/100 for non CARB states)
Keep it! Drive it until it falls apart. Why on Earth would you want to spend $300 or $400 or $500 per month on a car forever?
I remember 5 years ago when I was waiting in Toyota dealer servicing my 97 Camry, a new car sales came and try to talk me into buying a new one. I said: Your mechanics just told me that my Camry is very good, keep servicing it and don't buy a new one. His manager said: What? Financial wise, I think if you don't drive a lot, selling the Prius (to a private buyer) and buy a budget car might make sense. Just run through the number. If your Prius can sell for $10K+, you might have $4000 cash after clear the loan. That's good enough for a reliable car. Obviously if you drive a lot, then keep the Prius. When money is a concern, don't ever borrow money to buy new cars. There are lots of used cars on market. Buy with cash from private seller. This way, you will not get that initial depreciation hit. I think the best value in cars are somewhere between 4-8 years old popular model of Toyota/Honda, at 50-70% off of MSRP. If you drive a lot, buy low mileage older ones, otherwise, get a high mileage newer model. Just my 2 cents.
Assuming you can squek by while making your current payment I would keep your Prius. In three years you will still own a car, lease and you have nothing...then will be forced to buy or lease another one. Don't listen to someone who just wants to sell/lease you another car!
I agree with all of the above posters and also throw this in the mix - a former coworker informed me once that you can refinance auto loans. I, in my ignorance of that time, didn't know that so hopefully this info helps others. But, as my father pointed out to me, it might not make much sense if your initial loan was organized such that they had you paying most of your interest up front (as opposed to toward your principal). You wouldn't be saving any money. If you're more concerned about your current finances and don't mind paying a little more down the road, you could consider refinancing your current loan in a slightly longer time frame. Like if you have 3 years left on the loan, see if you could work out a 40 month loan. Then your monthly expense would be a bit less. Hope that helps a little! But obviously DON"T just choose the lower monthly payment you're presented with. That'll never work out well for ya.
I would keep your car. And keep counting the months until you are payment free. Than drive it as long as possible for FREE. Good Luck to you.
I would keep the Prius and re-finance the loan. Rates are about as low as they are ever going to be again.
