Relocating Across Country - Vehicle Situation

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Broadway2018
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Relocating Across Country - Vehicle Situation

Post by Broadway2018 » Sun Apr 28, 2019 8:06 am

I am moving to Seattle from the Baltimore area. My partner and I each have a car and my new employer will pay to relocate them if we want.

I am moving in June and my partner is moving in March 2020. I would not need a car initially so wasn’t going to bring the Subaru. When she comes we would go down to 1 car.

The thought is we would potentially get rid of both cars and get a cpo Volvo XC60 awd for about $25k and pay cash next year. If we go to one car the Mazda 3 is not practical as it is too small. My lease is not a good deal when I look at the market, we would be overpaying for the car is we bought it out.

Current Situation
Car 1: Subaru Outback leased at $361 a month, 14 months remaining, to sell to dealer is $23,500 and I would owe chase $26,000
Car 2: Mazda 3 financed, owe $2200, kbb $8-9k

Options
1) Sell Subaru now and take $2500 loss. But then don’t have a payment or insurance.
2) Keep Subaru in MD and not drive it. Just continue to pay lease and insurance
3) Trade in now for $23,500, get Volvo to get tax credit, and sell Mazda. Side note: in MD you pay full taxes of lease so when I trade I get the tax benefit.

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RickBoglehead
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Re: Relocating Across Country - Vehicle Situation

Post by RickBoglehead » Sun Apr 28, 2019 8:18 am

I'm confused. Outback is leased, you have 14 months left. You leased it from Chase?

What's it KBB / Edmunds private sale value? Buy for $26,000, sell privately? Dealer's never give good prices.

Definitely don't want to pay insurance on car that is not driven for 10 months.

Will employer shift car transportation funds to other uses? I got a "pot" of money on my last relo to apply as I saw fit on valid expenses.
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Sandtrap
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Re: Relocating Across Country - Vehicle Situation

Post by Sandtrap » Sun Apr 28, 2019 8:30 am

Sell Subaru (or both)
Purchase a Toyota or Honda. :D :D :D
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Topic Author
Broadway2018
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Re: Relocating Across Country - Vehicle Situation

Post by Broadway2018 » Sun Apr 28, 2019 8:31 am

RickBoglehead wrote:
Sun Apr 28, 2019 8:18 am
I'm confused. Outback is leased, you have 14 months left. You leased it from Chase?

What's it KBB / Edmunds private sale value? Buy for $26,000, sell privately? Dealer's never give good prices.

Definitely don't want to pay insurance on car that is not driven for 10 months.

Will employer shift car transportation funds to other uses? I got a "pot" of money on my last relo to apply as I saw fit on valid expenses.
Yes leased from chase. I checked carava and kbb instant offer, both are around $23,500. Also if I can get that as a trade in I get the tax benefits to further close the gap. My buyout through chase is $26k through end of May

No employer won’t let me shift money in the package.

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Broadway2018
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Re: Relocating Across Country - Vehicle Situation

Post by Broadway2018 » Sun Apr 28, 2019 8:32 am

Sandtrap wrote:
Sun Apr 28, 2019 8:30 am
Sell Subaru (or both)
Purchase a Toyota or Honda. :D :D :D
Toyota and Honda’s with lane departure, blind spot, and leather are more then the Volvo

Olemiss540
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Re: Relocating Across Country - Vehicle Situation

Post by Olemiss540 » Sun Apr 28, 2019 8:39 am

I dont understand why not sell the Mazda and wait another 14 months to sell the Subaru?

Sounds like you really want to buy a new Volvo with all of the "tax credit" talk. Why not just go down to one car right now (and have that car be a Subaru)?
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Broadway2018
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Re: Relocating Across Country - Vehicle Situation

Post by Broadway2018 » Sun Apr 28, 2019 8:43 am

Olemiss540 wrote:
Sun Apr 28, 2019 8:39 am
I dont understand why not sell the Mazda and wait another 14 months to sell the Subaru?

Sounds like you really want to buy a new Volvo with all of the "tax credit" talk. Why not just go down to one car right now (and have that car be a Subaru)?
My partner drive 75 miles a day to work and back. She would go over the mileage so then we would either pay more money or have to buy it outright.

Also we would buy a cpo Volvo for about $25k, definitely don’t want to spend $50k+ on a new one. We also looked at BMW X3, Mercedes glk, but feel the maintenance would kill us long term.
Last edited by Broadway2018 on Sun Apr 28, 2019 8:45 am, edited 1 time in total.

miamivice
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Re: Relocating Across Country - Vehicle Situation

Post by miamivice » Sun Apr 28, 2019 8:45 am

Broadway2018 wrote:
Sun Apr 28, 2019 8:06 am
I am moving to Seattle from the Baltimore area. My partner and I each have a car and my new employer will pay to relocate them if we want.

I am moving in June and my partner is moving in March 2020. I would not need a car initially so wasn’t going to bring the Subaru. When she comes we would go down to 1 car.

The thought is we would potentially get rid of both cars and get a cpo Volvo XC60 awd for about $25k and pay cash next year. If we go to one car the Mazda 3 is not practical as it is too small. My lease is not a good deal when I look at the market, we would be overpaying for the car is we bought it out.

Current Situation
Car 1: Subaru Outback leased at $361 a month, 14 months remaining, to sell to dealer is $23,500 and I would owe chase $26,000
Car 2: Mazda 3 financed, owe $2200, kbb $8-9k

Options
1) Sell Subaru now and take $2500 loss. But then don’t have a payment or insurance.
2) Keep Subaru in MD and not drive it. Just continue to pay lease and insurance
3) Trade in now for $23,500, get Volvo to get tax credit, and sell Mazda. Side note: in MD you pay full taxes of lease so when I trade I get the tax benefit.
I would bring both cars to Baltimore since that won't cost you anything. Once your job is secure and things are good with finance, I would consider downsizing then.

If the employer pulled the rug out, or the job didn't work out, or the fiance didn't work out, you might find yourself wanting a car.

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RickBoglehead
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Re: Relocating Across Country - Vehicle Situation

Post by RickBoglehead » Sun Apr 28, 2019 8:51 am

miamivice wrote:
Sun Apr 28, 2019 8:45 am
Broadway2018 wrote:
Sun Apr 28, 2019 8:06 am
I am moving to Seattle from the Baltimore area. My partner and I each have a car and my new employer will pay to relocate them if we want.

I am moving in June and my partner is moving in March 2020. I would not need a car initially so wasn’t going to bring the Subaru. When she comes we would go down to 1 car.

The thought is we would potentially get rid of both cars and get a cpo Volvo XC60 awd for about $25k and pay cash next year. If we go to one car the Mazda 3 is not practical as it is too small. My lease is not a good deal when I look at the market, we would be overpaying for the car is we bought it out.

Current Situation
Car 1: Subaru Outback leased at $361 a month, 14 months remaining, to sell to dealer is $23,500 and I would owe chase $26,000
Car 2: Mazda 3 financed, owe $2200, kbb $8-9k

Options
1) Sell Subaru now and take $2500 loss. But then don’t have a payment or insurance.
2) Keep Subaru in MD and not drive it. Just continue to pay lease and insurance
3) Trade in now for $23,500, get Volvo to get tax credit, and sell Mazda. Side note: in MD you pay full taxes of lease so when I trade I get the tax benefit.
I would bring both cars to Baltimore since that won't cost you anything. Once your job is secure and things are good with finance, I would consider downsizing then.

If the employer pulled the rug out, or the job didn't work out, or the fiance didn't work out, you might find yourself wanting a car.
Move is FROM Baltimore to Seattle.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

bob60014
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Re: Relocating Across Country - Vehicle Situation

Post by bob60014 » Sun Apr 28, 2019 8:58 am

RickBoglehead wrote:
Sun Apr 28, 2019 8:18 am
I'm confused. Outback is leased, you have 14 months left. You leased it from Chase?
Retail/Loan and lease accounts are owned by Chase for Subaru Financial as well as for Mazda Capital, Jaguar Financial, Maseratti Capital and Land Rover Financial.

miamivice
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Re: Relocating Across Country - Vehicle Situation

Post by miamivice » Sun Apr 28, 2019 9:07 am

RickBoglehead wrote:
Sun Apr 28, 2019 8:51 am
miamivice wrote:
Sun Apr 28, 2019 8:45 am
Broadway2018 wrote:
Sun Apr 28, 2019 8:06 am
I am moving to Seattle from the Baltimore area. My partner and I each have a car and my new employer will pay to relocate them if we want.

I am moving in June and my partner is moving in March 2020. I would not need a car initially so wasn’t going to bring the Subaru. When she comes we would go down to 1 car.

The thought is we would potentially get rid of both cars and get a cpo Volvo XC60 awd for about $25k and pay cash next year. If we go to one car the Mazda 3 is not practical as it is too small. My lease is not a good deal when I look at the market, we would be overpaying for the car is we bought it out.

Current Situation
Car 1: Subaru Outback leased at $361 a month, 14 months remaining, to sell to dealer is $23,500 and I would owe chase $26,000
Car 2: Mazda 3 financed, owe $2200, kbb $8-9k

Options
1) Sell Subaru now and take $2500 loss. But then don’t have a payment or insurance.
2) Keep Subaru in MD and not drive it. Just continue to pay lease and insurance
3) Trade in now for $23,500, get Volvo to get tax credit, and sell Mazda. Side note: in MD you pay full taxes of lease so when I trade I get the tax benefit.
I would bring both cars to Baltimore since that won't cost you anything. Once your job is secure and things are good with finance, I would consider downsizing then.

If the employer pulled the rug out, or the job didn't work out, or the fiance didn't work out, you might find yourself wanting a car.
Move is FROM Baltimore to Seattle.
Whoops. Misread the post. If you are moving to Seattle you definitely need a Subaru. I actually think there is a law on the books that requires all newcomers to buy a Subaru.

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Broadway2018
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Re: Relocating Across Country - Vehicle Situation

Post by Broadway2018 » Sun Apr 28, 2019 9:10 am

Also, I didn’t want to worry about parking in Seattle and moving the car around initially. I heard it’s expensice for parking. I will be in corporate housing for 2 months, then somewhere temporary for 6 months, then will get a place with my partner.

CurlyDave
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Re: Relocating Across Country - Vehicle Situation

Post by CurlyDave » Sun Apr 28, 2019 9:11 am

I think the Subaru is a much better car for Seattle than the Mazda.

If you move out of state and keep the lease will MD refund part of the tax just as if you had sold it?

Olemiss540
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Re: Relocating Across Country - Vehicle Situation

Post by Olemiss540 » Sun Apr 28, 2019 9:13 am

Broadway2018 wrote:
Sun Apr 28, 2019 8:43 am
Olemiss540 wrote:
Sun Apr 28, 2019 8:39 am
I dont understand why not sell the Mazda and wait another 14 months to sell the Subaru?

Sounds like you really want to buy a new Volvo with all of the "tax credit" talk. Why not just go down to one car right now (and have that car be a Subaru)?
My partner drive 75 miles a day to work and back. She would go over the mileage so then we would either pay more money or have to buy it outright.

Also we would buy a cpo Volvo for about $25k, definitely don’t want to spend $50k+ on a new one. We also looked at BMW X3, Mercedes glk, but feel the maintenance would kill us long term.
And why not just drive the Subaru and buy it out at the end of the lease when your mileage is high? You ALREADY overpaid for the Subaru so you might as well get your value out of it IMO. It really seems like you are working hard to justify the new Volvo, so why not come out and say it. If you can afford another new car after you just got one, then buy it.

I hate new cars and the carousel of temptation is one of the main reasons. Sitting in the drivers seat of anything for an extended period of time can reduce its luster for all but the biggest bogleheads. Sorry if I am misreading your justifications, but I have seen it with my family OVER AND OVER searching for any and all justification for getting something they can conveniently drive brand new off of a dealers lot.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Topic Author
Broadway2018
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Re: Relocating Across Country - Vehicle Situation

Post by Broadway2018 » Sun Apr 28, 2019 9:27 am

Olemiss540 wrote:
Sun Apr 28, 2019 9:13 am
Broadway2018 wrote:
Sun Apr 28, 2019 8:43 am
Olemiss540 wrote:
Sun Apr 28, 2019 8:39 am
I dont understand why not sell the Mazda and wait another 14 months to sell the Subaru?

Sounds like you really want to buy a new Volvo with all of the "tax credit" talk. Why not just go down to one car right now (and have that car be a Subaru)?
My partner drive 75 miles a day to work and back. She would go over the mileage so then we would either pay more money or have to buy it outright.

Also we would buy a cpo Volvo for about $25k, definitely don’t want to spend $50k+ on a new one. We also looked at BMW X3, Mercedes glk, but feel the maintenance would kill us long term.
And why not just drive the Subaru and buy it out at the end of the lease when your mileage is high? You ALREADY overpaid for the Subaru so you might as well get your value out of it IMO. It really seems like you are working hard to justify the new Volvo, so why not come out and say it. If you can afford another new car after you just got one, then buy it.

I hate new cars and the carousel of temptation is one of the main reasons. Sitting in the drivers seat of anything for an extended period of time can reduce its luster for all but the biggest bogleheads. Sorry if I am misreading your justifications, but I have seen it with my family OVER AND OVER searching for any and all justification for getting something they can conveniently drive brand new off of a dealers lot.
I guess I was thinking if I had to buy car with cash for $26k+tax I wouldn’t. There are so many other choices. Maybe I am just listing after a new one. But really I’m trying to figure out timing too. I don’t want to pay insurance on a car just sitting in the garage in MD. We could also take the loss of $2500 of the Subaru, drive the Mazda, and buy something when my partner moves to Seattle.

Olemiss540
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Re: Relocating Across Country - Vehicle Situation

Post by Olemiss540 » Sun Apr 28, 2019 10:17 am

Broadway2018 wrote:
Sun Apr 28, 2019 9:27 am
Olemiss540 wrote:
Sun Apr 28, 2019 9:13 am
Broadway2018 wrote:
Sun Apr 28, 2019 8:43 am
Olemiss540 wrote:
Sun Apr 28, 2019 8:39 am
I dont understand why not sell the Mazda and wait another 14 months to sell the Subaru?

Sounds like you really want to buy a new Volvo with all of the "tax credit" talk. Why not just go down to one car right now (and have that car be a Subaru)?
My partner drive 75 miles a day to work and back. She would go over the mileage so then we would either pay more money or have to buy it outright.

Also we would buy a cpo Volvo for about $25k, definitely don’t want to spend $50k+ on a new one. We also looked at BMW X3, Mercedes glk, but feel the maintenance would kill us long term.
And why not just drive the Subaru and buy it out at the end of the lease when your mileage is high? You ALREADY overpaid for the Subaru so you might as well get your value out of it IMO. It really seems like you are working hard to justify the new Volvo, so why not come out and say it. If you can afford another new car after you just got one, then buy it.

I hate new cars and the carousel of temptation is one of the main reasons. Sitting in the drivers seat of anything for an extended period of time can reduce its luster for all but the biggest bogleheads. Sorry if I am misreading your justifications, but I have seen it with my family OVER AND OVER searching for any and all justification for getting something they can conveniently drive brand new off of a dealers lot.
I guess I was thinking if I had to buy car with cash for $26k+tax I wouldn’t. There are so many other choices. Maybe I am just listing after a new one. But really I’m trying to figure out timing too. I don’t want to pay insurance on a car just sitting in the garage in MD. We could also take the loss of $2500 of the Subaru, drive the Mazda, and buy something when my partner moves to Seattle.
Or you could sell the Mazda NOW and drive the Subaru with the intent to purchase it out and or resell it once the lease is over. I dont see how buying out a lease early is ever going to be a winning scenario.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Goal33
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Re: Relocating Across Country - Vehicle Situation

Post by Goal33 » Sun Apr 28, 2019 10:24 am

Didn’t get to read all this but just saying having a Subaru is like a fashion statement up in Seattle.
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02nz
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Re: Relocating Across Country - Vehicle Situation

Post by 02nz » Sun Apr 28, 2019 11:22 am

I would give the reliability data on the XC60 a very hard look. It's been a long time since Volvo built cars with bulletproof reliability.

For a 75 mi/day commute (I'm assuming this is in Seattle not Baltimore), fuel economy is a big consideration. A plug-in hybrid or EV makes a lot of sense, and it looks like there's a sales tax exemption in WA on these vehicles (so you can save about $2000), plus the federal tax credit (up to $7500, lower for some plug-ins). Something like the Kia Niro (plug-in or even the full EV) or Hyundai Kona EV may make a lot of sense.

I see you're looking at luxury brands, but on a long commute it's hard to beat the luxury of EVs' lack of engine noise and vibration, and the savings will add up very quickly if you can charge at home.

quantAndHold
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Re: Relocating Across Country - Vehicle Situation

Post by quantAndHold » Sun Apr 28, 2019 3:44 pm

CurlyDave wrote:
Sun Apr 28, 2019 9:11 am
I think the Subaru is a much better car for Seattle than the Mazda.
I have lived in Seattle, with a Mazda 3. A Mazda 3 is a perfectly capable car for Seattle. A Mazda 3 is also a perfectly capable car for two people. And a big dog.

Either car would be fine in Seattle, and either car would be fine for two people. I would keep the cheaper one, and sell the other one before relocating. You won’t drive it much, and nobody in Seattle knows what anyone else drives, or even if they have a car at all. There’s no reason to have anything expensive depreciating at the curb. Any car you have is going to be covered in parking garage scrapes within the first six months regardless.

Topic Author
Broadway2018
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Re: Relocating Across Country - Vehicle Situation

Post by Broadway2018 » Tue Apr 30, 2019 10:43 am

Thank you, everyone, for the advice! Some of you were right that I just wanted a new vehicle. After thinking about it further, we decided to keep the Outback and sell the Mazda.

stockrex
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Re: Relocating Across Country - Vehicle Situation

Post by stockrex » Tue Apr 30, 2019 11:37 am

Sell the leased Subaru, take a loss
keep the older one for summer/vac driving, if it is not driven everyday, you can work a deal out with your insurance, just tell them, not used for commute to work.

Rationale used is both car sit and not being used, the older one will lose less value.

Please don't buy a Honda,

Jack FFR1846
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Re: Relocating Across Country - Vehicle Situation

Post by Jack FFR1846 » Tue Apr 30, 2019 11:50 am

Sell the Mazda.

Partner puts lots of miles on the leased Subaru. So what? It will cost less than taking a bath on turning the car in early.

I'm very in tune with the Subaru community and one thing I know is that Subarus in the Northwest bring outrageously high prices compared with the rest of the country. As the lease is coming to an end, put it up for sale. I would think you're going to actually make money, even going over miles. Or alternatively....just keep the Subaru for another 3 years after the lease ends.
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TropikThunder
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Re: Relocating Across Country - Vehicle Situation

Post by TropikThunder » Tue Apr 30, 2019 1:51 pm

Jack FFR1846 wrote:
Tue Apr 30, 2019 11:50 am
I'm very in tune with the Subaru community and one thing I know is that Subarus in the Northwest bring outrageously high prices compared with the rest of the country.
Not sure I would call it “outrageously high”. Per KBB, a 2017 Outback 2.5i Limited with 25,000 miles shows trade in value of $24,544 and private party sales price of $28,084 in Everett WA vs $23,260 trade in and $26,352 private party in Towson MD. That’s about a 5-6% premium in the Seattle area.

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