OT: Buy out the lease, lease again, buy CPO?

[Nooch]

All things being equal, I've been kicking around the idea of buying out the lease on our odyssey. The new ones, while great, lack some of the creature comforts we have in our current one until you get to the upper echelon. I'd imagine leasing a new one is going to be a bit more expensive than our current payment.

Buying ours out, 72 months at 3.69% gives us a payment that's dollars off from our current payment, but we'll actually own it. I have no qualms paying for the car that long, as I'd be doing the same leasing the next (and the next after that), the honda will run forever so long as we keep taking care of it.

Buying a CPO'd, I'd have to figure the only benefit to that is the extended warranty, but most of them are coming in more expensive than what I'd be looking at to buy mine with the same features, and I'd not know the history of it.

So all things being equal, and understanding I'm *never* buying the car outright with cash -- how would you proceed?

[djg21]

Originally Posted by Nooch

All things being equal, I've been kicking around the idea of buying out the lease on our odyssey. The new ones, while great, lack some of the creature comforts we have in our current one until you get to the upper echelon. I'd imagine leasing a new one is going to be a bit more expensive than our current payment.

Buying ours out, 72 months at 3.69% gives us a payment that's dollars off from our current payment, but we'll actually own it. I have no qualms paying for the car that long, as I'd be doing the same leasing the next (and the next after that), the honda will run forever so long as we keep taking care of it.

Buying a CPO'd, I'd have to figure the only benefit to that is the extended warranty, but most of them are coming in more expensive than what I'd be looking at to buy mine with the same features, and I'd not know the history of it.

So all things being equal, and understanding I'm *never* buying the car outright with cash -- how would you proceed?

Talk to your dealer. I bought an Audi we had leased at the end of the lease, and was able to buy CPO coverage for just under $1,000. I bought the CPO because my original new car warranty would be expiring shortly, I knew the car would need wheel bearings at some point soon, and those would be covered under the warranty if I went CPO and the original warranty was expired. I financed a good chunk of the car’s cost, and the monthly payments were less than the monthly lease payments.

[Nooch]

Originally Posted by djg21

Talk to your dealer. I bought an Audi we had leased at the end of the lease, and was able to buy CPO coverage for just under $1,000. I bought the CPO because my original new car warranty would be expiring shortly, I knew the car would need wheel bearings at some point soon, and those would be covered under the warranty if I went CPO and the original warranty was expired. I financed a good chunk of the car’s cost, and the monthly payments were less than the monthly lease payments.

Did you finance thru audi or a third party?

[MattTuck]

3.69% feels high to me. But I haven't looked at used car rates recently. If the rate is that high, I'd try to finance for a shorter term -- just to save money on interest.

[djg21]

Originally Posted by Nooch

Did you finance thru audi or a third party?

Audi Financial Services. It was a pretty straightforward and smooth transaction. CPO is essentially insurance you purchase from the manufacturer/finance company. It is worth it for an Audi because repairs can be expensive, I’ve never driven a Honda, so you know better that me.

[ltwtsculler91]

Get one of these, and just stick the girls in your spiffy new roof basket



But in the big picture CPO is nice (depending on brand and what the offer) because it guarantees you'll get the car with good tires/brakes etc and be covered in case of any big repairs for the duration of the warranty which is hopefully most of the loan..

[fa63]

Originally Posted by MattTuck

3.69% feels high to me. But I haven't looked at used car rates recently. If the rate is that high, I'd try to finance for a shorter term -- just to save money on interest.

That does seem a bit high; we are paying just over 2% on my wife's car loan (though it is only a 36-month loan).

[Hank Scorpio]

3.69 is high. I just bought a crv for the wife this past weekend at 2.9. Are you a USAA member? Try them or penfed.

[Nooch]

Originally Posted by Hank Scorpio

3.69 is high. I just bought a crv for the wife this past weekend at 2.9. Are you a USAA member? Try them or penfed.

I should mention, that's just a quick quote I got from Chase when looking at auto loans. The 72 months is a little higher, but the 60 month puts the payment somewhere out of my comfort zone.

[Mikej]

Originally Posted by Nooch

I should mention, that's just a quick quote I got from Chase when looking at auto loans. The 72 months is a little higher, but the 60 month puts the payment somewhere out of my comfort zone.

Try your luck at new, you may get a much better, like .9% and a really good deal that will outlast your current vehicle.

[Nooch]

Originally Posted by Mikej

Try your luck at new, you may get a much better, like .9% and a really good deal that will outlast your current vehicle.

Unfortunately I can't even consider a new finance. We wouldn't have the down payment to get the payment into an appropriate level, which is why we've leased the last two vans. To get into a comparably equipped new odyssey, we're looking at $39460 base.

Unless of course they offer the SE trim down the line that includes the media package at a cheaper price. But until the kids are able to do 24 hour road trips to disney without a dvd player, we're kind of stuck keeping that feature.

[FlashUNC]

If you're coming up on the end of a three year lease term, taking a 72 month note is madness. Taking 9 years to pay for the car is ridiculous.

[ltwtsculler91]

Originally Posted by Nooch

Unfortunately I can't even consider a new finance. We wouldn't have the down payment to get the payment into an appropriate level, which is why we've leased the last two vans. To get into a comparably equipped new odyssey, we're looking at $39460 base.

Unless of course they offer the SE trim down the line that includes the media package at a cheaper price. But until the kids are able to do 24 hour road trips to disney without a dvd player, we're kind of stuck keeping that feature.

Or grab a new one sans DVD player built in and just get them the little kids Kindle or a portable DVD player each. That would run you ~$300 rather than a ton on the car

[Nooch]

Originally Posted by FlashUNC

If you're coming up on the end of a three year lease term, taking a 72 month note is madness. Taking 9 years to pay for the car is ridiculous.

we're about 19 months into a 36 month term. But I've just been thinking/considering what the options are.

[zap]

Originally Posted by Nooch

So all things being equal, and understanding I'm *never* buying the car outright with cash -- how would you proceed?

I would make do with a lower cost new(er) vehicle financed conservatively for 4 years max and hold for 6+ more years after last payment.