Help With (short term?) Car Purchase

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Dv12
Posts: 1
Joined: Tue Sep 15, 2020 7:54 pm

Help With (short term?) Car Purchase

Post by Dv12 »

Hi all,

I am working remotely full-time until the world returns to normal, and my first order of business was to move out of my expensive big city apartment for a much cheaper one in a fun little town.

Now that I'm out of the city though, it looks like I need a car. Because I'll stay remote and keep the car as long as I can, the time frame is at least 5 or 6 months, but very likely a year. There's a chance I'd keep it beyond that - especially if I don't return to the city - but right now I anticipate selling in a year or so.

I'm obviously trying to keep costs to a minimum, which means I am prioritizing (1) reliability; (2) ability to re-sell with minimal deprecation; and (3) a low cost of purchase.

Because I'll be in the snowy mountains 4 wheel drive is important. As is having an SUV. Outside of that, I think the world is my oyster. I have two potential options in mind and would really like to hear the forum's thoughts on these and any others I should consider as well.

-2014 Lexus 450h. A family friend bought it certified pre-owned and has taken good care of it with regular (and recorded) service. 91k miles. Price likely between 19-20k, though we have not gotten that far yet. My concerns here are that if the hybrid batteries fail, that would be tremendously expensive. I believe the warranty still covers me for another 9k miles, but it's not ideal.

-Certified Pre-Owned Hyundai Tucson. Likely 2016-2018. I like the idea of a warranty and knowing the car is relatively new and reliable, but do not like knowing that I'll probably pay a premium for CPO status only to sell private in a year and take the depreciation hit. Unsure how big this hit actually would be though...

-Hyundai Tucson (or other?) from enterprise or Hertz. Similar to above, but a cheaper price and no warranty. Maybe not a big deal to not have the warranty for such a short term purchase?

Again, I'd love to hear if there are any thoughts on these options, or if there are others I should consider. Thank you all!
000
Posts: 2180
Joined: Thu Jul 23, 2020 12:04 am

Re: Help With (short term?) Car Purchase

Post by 000 »

Do you know how to inspect a car or have a trusted party to do so?

If not, the warranty becomes somewhat more valuable, but perhaps not by much over your short time frame.

Also, do you know about the difference between AWD and 4WD? It may or may not matter to you.
We'll See
Posts: 61
Joined: Tue Jan 07, 2014 5:22 pm

Re: Help With (short term?) Car Purchase

Post by We'll See »

Perhaps a Jeep Wrangler or Toyota Tacoma? They hold their resale value very well.
Trism
Posts: 711
Joined: Mon Jul 18, 2016 6:34 pm

Re: Help With (short term?) Car Purchase

Post by Trism »

Dv12 wrote: Tue Sep 15, 2020 8:11 pmI'll stay remote and keep the car as long as I can, the time frame is at least 5 or 6 months, but very likely a year. There's a chance I'd keep it beyond that - especially if I don't return to the city - but right now I anticipate selling in a year or so.

I'm obviously trying to keep costs to a minimum, which means I am prioritizing (1) reliability; (2) ability to re-sell with minimal deprecation; and (3) a low cost of purchase.

Again, I'd love to hear if there are any thoughts on these options, or if there are others I should consider. Thank you all!
The used car market is extremely hot right now and prices are at historic records, which is probably a temporary condition (https://publish.manheim.com/en/services ... index.html).

While the market normalizes during your ownership window, you will be out not only the up-front costs like sales tax on the full purchase price and normal depreciation --but also the loss of value due to market correction.

Similarly situated I'd shop for a lease transfer (check Swapalease and Lease Trader). You'll be money ahead, you'll have a car with a full warranty, and your costs will be predictable.
Kittens
Posts: 48
Joined: Tue Feb 27, 2018 5:33 pm

Re: Help With (short term?) Car Purchase

Post by Kittens »

not factoring in the high market right now I'd say a Subaru, maybe a Crosstrek?
sjt
Posts: 338
Joined: Fri May 26, 2017 3:03 pm
Location: NC

Re: Help With (short term?) Car Purchase

Post by sjt »

We'll See wrote: Thu Sep 17, 2020 8:01 am Perhaps a Jeep Wrangler or Toyota Tacoma? They hold their resale value very well.
See point #3 - low purchase price -

How about a CRV or Rav4?
"The one who covets is the poorer man, | For he would have that which he never can; | But he who doesn't have and doesn't crave | Is rich, though you may hold him but a knave." - Wife of Bath tale
atikovi
Posts: 811
Joined: Tue Sep 10, 2019 7:20 pm
Location: Suburban Washington DC

Re: Help With (short term?) Car Purchase

Post by atikovi »

Dv12 wrote: Tue Sep 15, 2020 8:11 pm -2014 Lexus 450h. A family friend bought it certified pre-owned and has taken good care of it with regular (and recorded) service. 91k miles. Price likely between 19-20k, though we have not gotten that far yet. My concerns here are that if the hybrid batteries fail, that would be tremendously expensive. I believe the warranty still covers me for another 9k miles, but it's not ideal.

-Certified Pre-Owned Hyundai Tucson. Likely 2016-2018. I like the idea of a warranty and knowing the car is relatively new and reliable, but do not like knowing that I'll probably pay a premium for CPO status only to sell private in a year and take the depreciation hit. Unsure how big this hit actually would be though...

-Hyundai Tucson (or other?) from enterprise or Hertz. Similar to above, but a cheaper price and no warranty. Maybe not a big deal to not have the warranty for such a short term purchase?
For 6 months to a year? You're buying something new enough that is still depreciating significantly and at retail for the last two and will sell private party. Easily lose $5,000 when selling. Better to buy a $3-$5K ten to fifteen year old Explorer, Grand Cherokee, Durango, etc.
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