Bigger car now or later?

[Dreamer_D]

We are a one-car family and we are expecting our second child this summer. We also have out of town guests on a regular basis, and take trips semi-regularly that require a fully loaded vehicle, including our small dog. A mini-van that can seat six people would make life a lot easier during these times (~2x per month), though it is not a total necessity. So we are trying to decide whether to sell our car now and buy a mini-van, or wait another 12 months and buy the mini-van when our lease expires.

Option 1: Buy now. Presently, we have a car that has one year left on its lease. We could sell it privately (though a PITA) and break even on what is owed. Pros: Good financing options presently available for buying the new vehicle (no lease this time, 0% financing to buy); convenience of a larger car. Cons: PITA of selling the car privately; higher monthly payments and gas costs during my maternity leave (9 months, 5% reduction in my monthly pay; extra costs about $300 per month).

Option 2: Buy later. We can wait 12 months and buy a mini-van when our lease expires. Pros: Lower monthly costs during maternity leave; no need to sell privately. Cons: Less convenient when family visits (need to rent cars, will need to take two vehicles everywhere); will there be good financing rates available in 12 months? (probably).

What is your vote?

 

[MichelleCarmen]

If it will cost you $300 more per month to buy a van, then unless you'd be spending more on a rental car for visitors, it may be better to keep your car for one more year. Simply easier, IMO, and also, I do not see why you should be a taxi service for visitors if it's going to eat into your monthly budget. Family/friends should understand.

 

[Italiahaircolor]

Buy it later.

If you can get buy on the car you have now, do that.

 

[kenny]

I'd better hush up.

 

[PinkTower]

I would wait, if the current vehicle is a lease. We rent cars very often. Often it makes more sense. My husband bought his car new in 1988, and as they say, it's paid for. So, it just comes out cheaper to rent a car when he needs to drive a long distance.

 

[Dreamer_D]

I'd better hush up.

If there was a way to make it work with one car we would for sure! We do our best having only one car, though, but I don't think long term we can manage with a smaller vehicle.

 

[Dreamer_D]

If it will cost you $300 more per month to buy a van, then unless you'd be spending more on a rental car for visitors, it may be better to keep your car for one more year. Simply easier, IMO, and also, I do not see why you should be a taxi service for visitors if it's going to eat into your monthly budget. Family/friends should understand.

haha... not taxi service, but we go out together as a group and I prefer one car to two for lots of reasons. But the broader point is true. They do of course understand and would rent or bring their own car over on the ferry if need be.

 

[megumic]

I'd be concerned about the extra expense personally, but we are very financially conservative. I don't think the benefits of buying the bigger car now are worth the $300 loss per month. If the car you have now works fine and can be functional for the period of time you'll be managing two car seats, I'd just wait it out -- there is a light at the end of the small-car-tunnel. We too are a one-car family and it can be difficult, but I also appreciate the fact that we spend more time together because of it, spend less on gas and only have to pay insurance for one car!

 

[zoebartlett]

I'd wait as well. If you needed another car as soon as possible, that might be a different story, but it doesn't sound like that's the case. Less hassle and you get to save money by waiting -- win win!

 

[Dreamer_D]

I agree with the concensus.

We have since done more research and found an option that would work well for us and only cost us about $50 more per month ($15 extra in monthly payments and perhaps $20 - $30 more in gas) and for other reasons is very appealing as well (better fuel economy than a mini-van, not a mini-van but option to seat 7 if need arises, smaller footprint than a mini-van etc). I am not yet sure if we will make the switch, but when we do it is likely the direction we will go! There is the PITA factor of selling our car privately, but it should not be too hard if we opt to do so.

Thanks for all your input! It was helpful!

Megumic Spending more time together, what a sweet way to think of it! For us it is economical mostly, another car payment and gas would run us $450 or more, and that just seems crazy. DH works at home, I work 1 km from home, and the most driving we do at the moment is our kid to daycare, so we are lucky that one car is feasable.