Keeping a new car for less than two years

[Anonymous]

Maybe this belongs in the car forum but it's more of a finance question. We have three kids under four and need a new car. Obvious answer is a minivan but we're worried we'll hate it. I've always driven cars for 8-10 years so I want to be really sure before we buy it, but there's no way to know. If we buy one and end up hating it and wanting to switch, how terrible is it financially to trade it in in two years? We will be paying cash for it. Thanks.

[Anonymous]

Anonymous wrote:Maybe this belongs in the car forum but it's more of a finance question. We have three kids under four and need a new car. Obvious answer is a minivan but we're worried we'll hate it. I've always driven cars for 8-10 years so I want to be really sure before we buy it, but there's no way to know. If we buy one and end up hating it and wanting to switch, how terrible is it financially to trade it in in two years? We will be paying cash for it. Thanks.

Based on what? Are you not planning to test drive?

[Anonymous]

Anonymous wrote:Obvious answer is a minivan but we're worried we'll hate it. I've always driven cars for 8-10 years so I want to be really sure before we buy it, but there's no way to know.

I'm looking for a new car (considering minivans for the first time) and I'm getting a lot of "omg I wish I had done this sooner - our minivan is the best thing ever" feedback. And a few people who bought smaller 3-row SUVs (Highlander, Pilot) and say they regret not just getting the minivan.

So yeah, nobody gets a minivan because they're cool but there's a reason so many of them are out there.

As for your question about trading out of a car in two years, hard to say. The used market is crazy right now but if you pay $10k over MSRP and then we go into a recession you'll lose quite a bit. That said, buying your next car will be cheaper than it is today so maybe that's not a big deal. Some cars depreciate faster than others too - just look at used car prices for the model you're considering to get an idea. In normal times I'd say just buy a used minivan that's already taken the biggest part of the depreciation hit but again, used cars are nuts right now.

[Anonymous]

How bad can it be? If you hate it in 2 years but it's a bad financial decision to get rid of it at that point then suck it up and drive it for a few more years. We have a car we didn't love, but we've kept it for 10 years now. It's just become the less driven car.

If you really think you are only going to need a minivan for 2 years then lease it instead.

[Anonymous]

If you can overcome minivan fear, I promise you there is nothing better.

[Anonymous]

I'm sure I'll get slammed for this, but I love driving. I love listening to music while driving. It is a huge stress relief for me. I don't have to feel guilty when I am not actively doing something at work or at home when driving. (Granted, if I have to get on busy highway, that's different. But so much of my driving is running errands, kids to places, to work, etc.) Anyway, at one point I bought a sensible SUV that made sense. But I hated it. We quickly traded it in for a smaller, but more of a better driving experience, SUV. We took a hit, yes, but we all loved that car and we had it for over 10 years when it simply had to be replaced. To me it was short term hit for long term enjoyment.

That said, used car prices are going down. But surely new prices will follow at some point. Depends on the popularity of the car. While a lot of supply chain is significantly better, but some cars and car parts are lagging.

[Anonymous]

And I wouldn't recommend leasing. You use your current car as a trade in (which you own) and then have payments on that amount. At the end of the lease term you have nothing, but have to get a new car.

Since you already own, I would put that toward a new car. And if you can get away with one car for now (assuming you have 2) go to Carmax and trade it in, then wait for prices on new to come down. Risky, I know. But it's a possibility.

[Anonymous]

If you can afford an extra 1-2 years of payment, you should look into a one or two year leases for the type of vehicle you want. Then for the cost of monthly payments, you get to test drive the vehicle in question for the period of lease. If you get a lease to own plan, then you can convert to owning it. Just make sure that you look into the opt-out options and conditions and what commitment you are making should you opt not to continue to ownership.

This might give you the flexibility you want.

Contrary to all of that "once you get a minivan, you'll love it" anecdotes, I was the opposite. When I had a smaller SUV, I rented minivans for a number of occasions when I needed to haul not only my immediate family (four), but additional family or friends. I agree that the minivan was convenient, but I hated the way it drove (like driving a beached whale). Since we normally only need two rows and only occasionally need the third row, I much prefer the real storage/carrying capacity of the SUV trunk vs the tall and shallow trunk space of the minivan. So, for us, a third-row mid-size SUV where the back row folds down flat to make a real trunk was a much better option for us. So, I can understand your reticence about not being sure you want a minivan. And while many do "love the minivan" there are also many who "hate the minivan" when they try driving them. I'd hate to be saddled with one for 10+ years (the length of time I usually own a vehicle).

[Anonymous]

Take the whole family and test drive Honda Pilot or Acura MDX.
Buy it and leave with it for 10 years.

[Anonymous]

Anonymous wrote:Maybe this belongs in the car forum but it's more of a finance question. We have three kids under four and need a new car. Obvious answer is a minivan but we're worried we'll hate it. I've always driven cars for 8-10 years so I want to be really sure before we buy it, but there's no way to know. If we buy one and end up hating it and wanting to switch, how terrible is it financially to trade it in in two years? We will be paying cash for it. Thanks.

Go rent one for a long weekend and see if you like it

[Anonymous]

Anonymous wrote:

Anonymous wrote:Maybe this belongs in the car forum but it's more of a finance question. We have three kids under four and need a new car. Obvious answer is a minivan but we're worried we'll hate it. I've always driven cars for 8-10 years so I want to be really sure before we buy it, but there's no way to know. If we buy one and end up hating it and wanting to switch, how terrible is it financially to trade it in in two years? We will be paying cash for it. Thanks.

Go rent one for a long weekend and see if you like it

This is a good idea. We like our minivan. They have a lot of family friendly features. But a rental is way cheaper than the bath you’ll take trading in a two year old car.

[Anonymous]

Not quite the same but I bought a minivan back in 2011 and didn’t get the DVD Screen. Really regretted it. 3 years later traded it in for a new one with the TV. The check we wrote was less than $9k.

[Anonymous]

2010 mini van with no screens still going strong g here and I love it. We can fit the family and all their stuff for a 3 week vacation (inclouding bikes), no problem. Kids were 5 and 8 when we purchased it and had started carpooling to kids activities. Now, we are loading it up to take our kids to college. Hoping it gets the youngest through college graduation, but not expecting that.

My next car, even with no kids at home, will be a small minivan

[Anonymous]

I second the suggestion of renting one. You'll either love it or hate it. Might as well spend a couple hundred to find out before you spend thousands on a car you might hate.

[Anonymous]

Anonymous wrote:Maybe this belongs in the car forum but it's more of a finance question. We have three kids under four and need a new car. Obvious answer is a minivan but we're worried we'll hate it. I've always driven cars for 8-10 years so I want to be really sure before we buy it, but there's no way to know. If we buy one and end up hating it and wanting to switch, how terrible is it financially to trade it in in two years? We will be paying cash for it. Thanks.

It will be bad. Don't buy it. Lease it.