What To Do With My Car While in NYC

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docjok
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What To Do With My Car While in NYC

Post by docjok » Thu Apr 20, 2017 12:21 pm

Hi,

I'll be in NYC for 1 year and will need to get rid of my car temporarily. Problem is I'm still paying on it.

Is there any way I can get so one to take the car and make the payments then get it back after a year?

Thanks

obgraham
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Re: What To Do With My Car While in NYC

Post by obgraham » Thu Apr 20, 2017 12:24 pm

Who's going to make payments on a car they don't own?

And if you still own it but they drive it, what are you going to do when they drive it into a busload of orphans?

bigred77
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Re: What To Do With My Car While in NYC

Post by bigred77 » Thu Apr 20, 2017 12:25 pm

Sell it or loan it to a family member (maybe they can pay you something per month to subsidize your payment)

alfaspider
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Re: What To Do With My Car While in NYC

Post by alfaspider » Thu Apr 20, 2017 12:27 pm

obgraham wrote:Who's going to make payments on a car they don't own?

And if you still own it but they drive it, what are you going to do when they drive it into a busload of orphans?


Sad but true: a busload of orphans would be valued a lot lower for legal settlement purposes than a busload of upper-middle class kids. But I digress...

More information is needed here. Are you sure it's only a year? Are you upside down on the loan or do you have equity in the car? Is it an unusual car that woudl be difficult to replace, or is it a commodity item or a Camry? What part of NYC will you be living in?

psteinx
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Re: What To Do With My Car While in NYC

Post by psteinx » Thu Apr 20, 2017 12:31 pm

Sell it.

The market for cars is actually relatively liquid, assuming the car is in decent shape, and is a late model, conventional vehicle. A 2 year old Honda or 4 year old Ford or whatever - you can sell it yourself private party, or sell it to a dealer.

If you were certain you would need that same car again, ~12 months later, AND you had a good place to store it (spare spot in a parent's garage, say), then maybe you could park it for a while, and downgrade the insurance to the minimum level required by whoever you're financing it with. But that still involves expenses (insurance, probably some taxes, depreciation, and the cost/burden of storage). And how confident are you that 12 months later, your life will be back to where it is now, in need of a vehicle again, and largely the same class of vehicle in the same approximate location?

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Raymond
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Re: What To Do With My Car While in NYC

Post by Raymond » Thu Apr 20, 2017 12:36 pm

Although I am leaning towards "Just sell it", I think we need more information, as alfaspider mentioned.

Before I saw obgraham's "busload of orphans" comment, the first thing I thought of was, "And what if the person you lent it to drives into a bus full of nuns and hemophiliac orphans?" :(

Actually, just sell it :D
"Ritter, Tod und Teufel"

docjok
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Re: What To Do With My Car While in NYC

Post by docjok » Thu Apr 20, 2017 12:40 pm

Right,

I'll def need a car again after the year regardless of whether or not I continue to stay in NYC after the year. It's a nice midsize sedan, I can't imagine requiring something different. I'm not behind on payments or anything. I am almost finished paying on it and would hate to sell it just to buy a new car after all these years and start making payments all over again. Best thing I've been able to come up with so far is to get a family member to take over the payments temporarily, but I doubt I'd find any takers.

Also, most importantly regarding orphans, would I be able to temporarily transfer the name on the title and insurance as well?

So I should just sell it even if it means having to buy a new car shortly after and starting all over again on payments?

psteinx
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Re: What To Do With My Car While in NYC

Post by psteinx » Thu Apr 20, 2017 12:53 pm

If you sell this car now, you are by no means obligated to buy a *new* car when your need for a car resumes.

Let's assume it's a 3 year old American make - perhaps $20K new and you could sell it for perhaps $11K now, with perhaps $2K in remaining loan.

So, sell it for the $11K, pay off the loan, and put the money in the bank or invest it.

In 12, 8, 17, or 33 months, when you need another vehicle, use that money to buy a used vehicle, comparable perhaps in age to the one you sold.

No, it will not be a frictionless scenario. You'll give up something, financially, or in time, or both, to execute the two transactions. i.e. A relatively painless sale is to sell at, say, CarMax, and conversely, a relatively painless buy is to buy again at CarMax, but if you sell now and buy later, CarMax will make a profit, which will come out of your pocket (transaction costs). With a bit more effort, you may reduce these transaction costs, via private party transactions, or just smart, well-researched, but time-consuming interactions with dealers. There may also be some deadweight losses to sales taxes (when you buy another vehicle), and financing costs (if you need to finance again in a year or so).

OK, so there are some costs and hassles involved in that approach. But there are costs and hassles involved in trying to hang onto the car and store it or rent it or whatever (and trying to rent it or have someone else assume payments probably wouldn't fly with your current lender, nor your insurer). If you're rock solid certain that you will want this car back in 12 months and not later, then perhaps storage makes sense. You haven't described the situation in too much detail here. But if you moving from current location to NYC for a planned 12 months, oftentimes life happens, and the place you'll be in 13 months is not what you might expect now. Before you know it, it might be 2020, and you've been paying to rent a storage locker for 3 years, plus paying taxes and insurance, for a car that's aging/depreciating that you wouldn't even really want even if you DID return to your current location...

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Raymond
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Re: What To Do With My Car While in NYC

Post by Raymond » Thu Apr 20, 2017 12:54 pm

docjok wrote:...Best thing I've been able to come up with so far is to get a family member to take over the payments temporarily, but I doubt I'd find any takers.

Also, most importantly regarding orphans, would I be able to temporarily transfer the name on the title and insurance as well?

So I should just sell it even if it means having to buy a new car shortly after and starting all over again on payments?


Yeah, I'm pretty sure you won't find any takers for this screaming deal.

And I think "transferring the name on the title and insurance" is the equivalent of "selling the car."

After reading your first post on Bogleheads, I don't think it's going to be too much of a financial hit to buy a new car after you finish your residency/fellowship, even living in NYC.
"Ritter, Tod und Teufel"

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JDCarpenter
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Re: What To Do With My Car While in NYC

Post by JDCarpenter » Thu Apr 20, 2017 12:55 pm

docjok wrote:Right,

I'll def need a car again after the year ...

So I should just sell it even if it means having to buy a new car shortly after and starting all over again on payments?


Why would you need to buy new? Sell it and buy another one used. If you are a new car person, a certified pre-owned would be just about the same thing (I think?).

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barnaclebob
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Re: What To Do With My Car While in NYC

Post by barnaclebob » Thu Apr 20, 2017 1:07 pm

If you sell it and save the proceeds for your next car then you are theoretically only losing the transaction costs and the bid/ask spread minus any interest you will accrue and fixed expenses like insurance, registration, or taxes.

donall
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Re: What To Do With My Car While in NYC

Post by donall » Thu Apr 20, 2017 1:13 pm

Sell the car. You will save car insurance costs for one year that may offset selling/buying costs. You should have enough money for a nice downpayment in a year for a new car.

Jack FFR1846
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Re: What To Do With My Car While in NYC

Post by Jack FFR1846 » Thu Apr 20, 2017 2:29 pm

Just a little scenario.....

Let's say a friend offers to let you keep your car in his garage while you're in NYC. After that year you come back to get it and find that it's provided a nice home for a family of mice who have built a nice home in the engine compartment be chewing wires and bringing them to knit a nest. Now you need a $2000 wiring harness and $2000 in labor to install it. During installation, they find that the mice made it behind the dash and stripped all the wires out. Another $3000 to replace everything.

Just sayin'

(I keep my cars in my garage and find signs of mice chewing stuff all the time, even with measures in place to repel them or kill them.)

Sell the car.
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bertilak
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Re: What To Do With My Car While in NYC

Post by bertilak » Thu Apr 20, 2017 7:04 pm

docjok wrote:So I should just sell it even if it means having to buy a new car shortly after and starting all over again on payments?

If you have some equity in the car you wouldn't exactly be "starting all over again." When you sell, pay off the existing loan and use the rest (in a year) to make a bigger than usual down payment on a new car. You could also stash away the amount you are no longer putting into car payments and add that to the down payment on the next car. You will end up with a new car and (probably) some combination of lower monthly payments and/or a shorter term loan.
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rgs92
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Re: What To Do With My Car While in NYC

Post by rgs92 » Thu Apr 20, 2017 7:29 pm

I'd be more worried that the car would not get any exercise in all that time. That's the real problem. Get a friend you trust to drive it around at least once a week (twice is better) and offer him something for his trouble.

inbox788
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Re: What To Do With My Car While in NYC

Post by inbox788 » Thu Apr 20, 2017 8:25 pm

Ideally, you'd rent it out to someone who needed it exactly the period you don't. You'd make some money instead of taking a loss. Or you could rent it out for less than market value, which would be a win/win for both of you. Unfortunately, finding someone like that is like finding a needle in a haystack. You might have to pay someone to take care of the car and find a parking space for it.

A startup tried this a while back at airports, but I don't know what ever become of the idea.

https://www.wired.com/2013/02/flightcar/
https://angel.co/flightcar
https://www.forbes.com/sites/hollieslad ... 79c1692814

You might find someone in the peer-to-peer car rental business to take your car on consignment. Of course, you have to consider risks, both with liability insurance, and what condition the car comes back a year later.

https://turo.com/

I've seen some folks here with a small fleet of cars. Maybe you can find someone to make a deal that's mutually beneficial.

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Pajamas
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Re: What To Do With My Car While in NYC

Post by Pajamas » Thu Apr 20, 2017 8:44 pm

psteinx wrote:If you sell this car now, you are by no means obligated to buy a *new* car when your need for a car resumes.

Let's assume it's a 3 year old American make - perhaps $20K new and you could sell it for perhaps $11K now, with perhaps $2K in remaining loan.

So, sell it for the $11K, pay off the loan, and put the money in the bank or invest it.

In 12, 8, 17, or 33 months, when you need another vehicle, use that money to buy a used vehicle, comparable perhaps in age to the one you sold.

No, it will not be a frictionless scenario. You'll give up something, financially, or in time, or both, to execute the two transactions. i.e. A relatively painless sale is to sell at, say, CarMax, and conversely, a relatively painless buy is to buy again at CarMax, but if you sell now and buy later, CarMax will make a profit, which will come out of your pocket (transaction costs). With a bit more effort, you may reduce these transaction costs, via private party transactions, or just smart, well-researched, but time-consuming interactions with dealers. There may also be some deadweight losses to sales taxes (when you buy another vehicle), and financing costs (if you need to finance again in a year or so).

OK, so there are some costs and hassles involved in that approach. But there are costs and hassles involved in trying to hang onto the car and store it or rent it or whatever (and trying to rent it or have someone else assume payments probably wouldn't fly with your current lender, nor your insurer). If you're rock solid certain that you will want this car back in 12 months and not later, then perhaps storage makes sense. You haven't described the situation in too much detail here. But if you moving from current location to NYC for a planned 12 months, oftentimes life happens, and the place you'll be in 13 months is not what you might expect now. Before you know it, it might be 2020, and you've been paying to rent a storage locker for 3 years, plus paying taxes and insurance, for a car that's aging/depreciating that you wouldn't even really want even if you DID return to your current location...


+1 and the money you would save by not having to carry insurance on it probably would cover the frictional costs.

radiowave
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Re: What To Do With My Car While in NYC

Post by radiowave » Thu Apr 20, 2017 10:32 pm

+1 on selling the car. You don't want it if you are living in Manhattan (see prior episodes of Seinfeld on opposite side of the street parking ). Why keep the car payments and insurance if you're not using it.

Bfwolf
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Re: What To Do With My Car While in NYC

Post by Bfwolf » Fri Apr 21, 2017 12:56 am

For one year? I'm not so sure I'm in the sell it camp. That's a big pain selling a car and buying another one. And then you have no idea how the owner of the "new" used car treated it.

I'd be more inclined to find a family member or friend who needs a car and just loan it to them for the year free of charge with the promise that they'll drive it at least occasionally so it doesn't sit there for a year unused.

docjok
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Re: What To Do With My Car While in NYC

Post by docjok » Fri Apr 21, 2017 3:17 am

Teague wrote:
Jack FFR1846 wrote:Just a little scenario.....
...During installation, they find that the mice made it behind the dash and stripped all the wires out. Another $3000 to replace everything...


Low-life crackhead mice selling copper for scrap. All too common.


Yes, I've seen many a rat scurrying through the NYC subways with car parts and I finally understand why, lol.

It seems most on here are saying just sell it. I think if I do that I can at best make back just enough to pay the remaining loan, there will be no money saved. And I've been paying on it for years with a just few more years left so turning up with no car no nothing right as I'm almost done paying really sucks. I absolutely will not be able to afford to hold onto the car while in NYC so storing it is out. Highly doubtful I could get anyone in my family to take on the payments either and even if I did I couldn't trust they'd treat the car well. I'd hate to get it back all dinged up and with a weird smell.... [sigh] I'll do what is necessary which looks like it's gonna be to sell it, but gosh does it suck.

But, if I choose to sell, why not sell now (I have a year before moving to NYC) and do a 1-year lease on a car with a car with lower payments. At this point, I might even pull a small profit in which case I might just buy a clunker to use for my remaining year before moving to NYC. I pay $300/month right now, I could be paying $200/month on a lease. Is this a reasonable consideration or should I just bite the bullet and sell the car later and buy another car when I'm ready for one?

PowDay
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Re: What To Do With My Car While in NYC

Post by PowDay » Fri Apr 21, 2017 6:33 am

Depending on your neighborhood, just street park it. It's much easier in the outer Bourgous, but for only a year its not that big of a deal.

A lot of NYC opinions come from people who have visited times square on vacation a few times, but outside of lower-mid Manhattan street parking cars isn't uncommon at all.

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Cobra Commander
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Re: What To Do With My Car While in NYC

Post by Cobra Commander » Fri Apr 21, 2017 7:04 am

PowDay wrote:Depending on your neighborhood, just street park it. It's much easier in the outer Bourgous, but for only a year its not that big of a deal.

A lot of NYC opinions come from people who have visited times square on vacation a few times, but outside of lower-mid Manhattan street parking cars isn't uncommon at all.


FWIW I lived on the UWS (low 90s) for a while and you have to consider alternate street side parking days. This means that even if you find a spot (which I found very difficult to do) you have to move your car at least once per week amd find another spot. And, as I found out the hard way, parking enforcement is ruthless in NYC. Maybe this is better in the other boroughs outside Manhattan.

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SecretAsianMan
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Re: What To Do With My Car While in NYC

Post by SecretAsianMan » Fri Apr 21, 2017 7:10 am

Teague wrote:
Jack FFR1846 wrote:Just a little scenario.....
...During installation, they find that the mice made it behind the dash and stripped all the wires out. Another $3000 to replace everything...


Low-life crackhead mice selling copper for scrap. All too common.

One of the very few times I've actually lol'd at a bogleheads post. Well done, sir (or madam). Well done.

alfaspider
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Re: What To Do With My Car While in NYC

Post by alfaspider » Fri Apr 21, 2017 7:47 am

Cobra Commander wrote:
PowDay wrote:Depending on your neighborhood, just street park it. It's much easier in the outer Bourgous, but for only a year its not that big of a deal.

A lot of NYC opinions come from people who have visited times square on vacation a few times, but outside of lower-mid Manhattan street parking cars isn't uncommon at all.


FWIW I lived on the UWS (low 90s) for a while and you have to consider alternate street side parking days. This means that even if you find a spot (which I found very difficult to do) you have to move your car at least once per week amd find another spot. And, as I found out the hard way, parking enforcement is ruthless in NYC. Maybe this is better in the other boroughs outside Manhattan.


Yeah, I think alternate side parking rules would be nearly impossible to keep up with. Do you really want to be circling for an hour late some Tuesday night just to move your car? You can pay for a garage, but that will cost more than your payment.

If you want to leave the car with a family member, storage insurance on cars is really cheap (like $10 a month), but it would not allow it to be driven. If you transfer title to them, you have sold it, and they would have to pay tax on the sale.

Probably easiest to sell the car and buy a new one. The depreciation of the car sitting will cost at least what the transaction costs of selling and buying, and then you don't have to worry about storage or the car being damaged while it sits.

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lthenderson
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Re: What To Do With My Car While in NYC

Post by lthenderson » Fri Apr 21, 2017 8:29 am

rgs92 wrote:I'd be more worried that the car would not get any exercise in all that time. That's the real problem. Get a friend you trust to drive it around at least once a week (twice is better) and offer him something for his trouble.


Millions of snowbirds leave their cars sitting for six months at a time with no problem with "exercising." I regularly let me spare car sit for two or three months at a time without ever starting it. If it were my car, I would run a can of fuel treatment into it, put it up on some jack stands to avoid flats potting the tires and disconnect the battery. When getting back in a year, I would just reverse the process.

I don't think I would sell the car just for a year away. I also don't understand why the OP is so insistent on other's making the payments while they are away. I'm assuming while in NYC, the OP will be making enough money to continue making the payments? Like others said, I would lower the insurance on it, continue making payments and let it sit until I got back.

michaeljc70
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Re: What To Do With My Car While in NYC

Post by michaeljc70 » Fri Apr 21, 2017 8:58 am

Sell the car. You are going to have a year of depreciation+insurance+plates+possible storage costs. You also would probably need someone to start it from time to time to avoid problems.

inbox788
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Re: What To Do With My Car While in NYC

Post by inbox788 » Fri Apr 21, 2017 10:34 am

lthenderson wrote:
rgs92 wrote:I'd be more worried that the car would not get any exercise in all that time. That's the real problem. Get a friend you trust to drive it around at least once a week (twice is better) and offer him something for his trouble.


Millions of snowbirds leave their cars sitting for six months at a time with no problem with "exercising." I regularly let me spare car sit for two or three months at a time without ever starting it. If it were my car, I would run a can of fuel treatment into it, put it up on some jack stands to avoid flats potting the tires and disconnect the battery. When getting back in a year, I would just reverse the process.

I don't think I would sell the car just for a year away. I also don't understand why the OP is so insistent on other's making the payments while they are away. I'm assuming while in NYC, the OP will be making enough money to continue making the payments? Like others said, I would lower the insurance on it, continue making payments and let it sit until I got back.


One year is a tough spot for any car ownership or usage. If we were talking about 3 months or even 6 month's it wouldn't be an issue. Just park it or store it somewhere. If it were 2 or 3 years, sell it. Somewhere around 9 months to 18 months is no mans land. The fellow who needs a car for 1 year is undergoing a similarly difficult dearth of choices. Renting is expensive expensive. Buying has many additional costs. If 2 such individuals with exactly the complementary problem could meet up, it could be a big win/win for both. But finding such a match is like dating.

OP, what state is the car registered in?

Looks like there's some legal issue with Turo in NY, but you can see some rentals available in NJ and CT.
https://blog.turo.com/news/new-york-ren ... her-notice

A typical car might depreciate around $2000 in a year. Add about $1000 for parking/storage, and you're talking about a $3000 expense. If someone pays you almost $200/month rent for the car for a year, and you avoid the storage fees, you save the $3000 expense. For some folks, that's a lot of money. And if I needed a decent car for 1 year and I could rent it for $200/month, I'd consider that a great deal. Kind of like those housesitting gigs or summer sublets.

freebeer
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Re: What To Do With My Car While in NYC

Post by freebeer » Fri Apr 21, 2017 10:59 am

psteinx wrote:Sell it.

The market for cars is actually relatively liquid...


+1, and as an aside this is increasingly true of most consumer goods. I've come to consider craigslist my virtual storage unit. If I don't need that Ikea Poang chair right now, I dump it on craigslist... I know I can find its twin if and when I want one again.

WL2034
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Re: What To Do With My Car While in NYC

Post by WL2034 » Fri Apr 21, 2017 11:44 am

As someone who has been in a similar situation after residency and before starting an attending job, just wait until you don't need the car any longer and then sell it. Prioritize minimizing hassle. You will be busy, and this car sounds like a fairly inexpensive car. Take the small gain or small loss and be done with it. When you need a new car, which may be sooner or later than you expect (situations can change), buy a new one. The difference will be a few hundred or thousand dollars. You said your salary within 1-2 years will be $500k - $1M. IMO, going through all these hassles such as asking people to store the car for you, transferring the insurance, etc. on a low value car will not be worth anywhere near the time you will spend working on them and worrying about the situation.

Just sell it and move on to the more important things in your life. The car is a commodity, you will find another that you like even better in a couple years. :sharebeer

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whodidntante
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Re: What To Do With My Car While in NYC

Post by whodidntante » Fri Apr 21, 2017 11:46 am

Sell it.

docjok
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Re: What To Do With My Car While in NYC

Post by docjok » Fri Apr 21, 2017 4:37 pm

This is very helpful.

It seems like there are too many potential pitfalls from what everyone is saying. I love that car like a pet dog, she was my first and I'll never forget her.... But things have changed so it looks like I'll be selling.

KATNYC
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Re: What To Do With My Car While in NYC

Post by KATNYC » Fri Apr 21, 2017 6:39 pm

Why do you need to get rid of the car? We are in NYC and drive 95% of the time. Parking is relatively cheap though in our complex. We don't pay market parking rates.

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ram
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Re: What To Do With My Car While in NYC

Post by ram » Fri Apr 21, 2017 10:50 pm

My daughter will be in Boston for 1 year. I am going to keep "her" car for that year and she will get it back at the end of the year. It is actually my old car and legally still belongs to me. I will drive it periodically and maintain it and park it in the 3rd garage. The big issue is cleaning up the junk in the 3rd garage.
Ram

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