Need car for approximately 1 year

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Need car for approximately 1 year

Post by sss2009 »

hello,

What would be the best option if you need the car for approximately 1 year (we have one car which I use to go to work, spouse would need the other car to drive kids to school. In our city public transit is out of question, school is 10 miles away and we don't want to change school for a year). School is in a different direction than my work place and the timings are also very different. There is no school bus as it is a charter school. Is long term rental an option or 1 year lease or buy a used car (say from carmax) and sell it back in a year. Any suggestions or opinions?

Thanks

sss2009
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Need car for approximately 1 year

Post by anon_investor »

sss2009 wrote: Sat May 08, 2021 3:38 pm hello,

What would be the best option if you need the car for approximately 1 year (we have one car which I use to go to work, spouse would need the other car to drive kids to school. In our city public transit is out of question, school is 10 miles away and we don't want to change school for a year). School is in a different direction than my work place and the timings are also very different. There is no school bus as it is a charter school. Is long term rental an option or 1 year lease or buy a used car (say from carmax) and sell it back in a year. Any suggestions or opinions?

Thanks

sss2009
What happens after 1 year?
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

What happens after 1 year?

We are planning to move to a different country (Germany).
IowaFarmBoy
Posts: 1240
Joined: Fri Jan 22, 2010 7:19 am

Re: Need car for approximately 1 year

Post by IowaFarmBoy »

I'd think about how good and how much of a car you need. I think leasing for one year would be quite expensive. I'd lean toward buying a cheaper used car that will meet your needs and plan on re-selling it in a year. Sales tax and transaction costs might be rough in this option but it depends on where you live. I would lean toward buying from an individual and re-selling myself to avoid some of the dealer markups. This is more hassle than just being able to return it to a dealer, but it should save some money. It kind of depends what your exit strategy for the car would be- do you need it up to your last day here or could you start trying to sell a few weeks before leaving knowing that it might sell fast and then you would be down a car?
02nz
Posts: 10508
Joined: Wed Feb 21, 2018 2:17 pm

Re: Need car for approximately 1 year

Post by 02nz »

Other than buying and reselling, you might also look into "subscription" plans like SIXT+ or Care by Volvo. Costs around $650/mo and up, but insurance included. Not cheap but a pretty hassle-free option compared to dealing with used cars.
User avatar
leeks
Posts: 1466
Joined: Thu Apr 07, 2011 4:33 pm
Location: virginia

Re: Need car for approximately 1 year

Post by leeks »

Some of the car rental companies will do monthly rentals (different than a car lease). You would have to talk to the ones in your area to see if the price makes sense (it varies a lot).
For example, budget will rent for up to 11 months:
https://www.budget.com/en/products-serv ... car-rental
Last edited by leeks on Sat May 08, 2021 4:03 pm, edited 1 time in total.
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

IowaFarmBoy wrote: Sat May 08, 2021 3:56 pm I'd think about how good and how much of a car you need. I think leasing for one year would be quite expensive. I'd lean toward buying a cheaper used car that will meet your needs and plan on re-selling it in a year. Sales tax and transaction costs might be rough in this option but it depends on where you live. I would lean toward buying from an individual and re-selling myself to avoid some of the dealer markups. This is more hassle than just being able to return it to a dealer, but it should save some money. It kind of depends what your exit strategy for the car would be- do you need it up to your last day here or could you start trying to sell a few weeks before leaving knowing that it might sell fast and then you would be down a car?
I realize the exit strategy is very difficult to plan and coordinate. It's mind boggling to think of all things that would need to be taken care off before an international move. I think as long as we have 2 cars for the school year, its fine, and after that we could do with one car which I don't mind selling at whatever price places like carmax would offer. I realize moving is a big cost itself :(
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

leeks wrote: Sat May 08, 2021 4:01 pm Some of the car rental companies will do monthly rentals (different than a car lease). You would have to talk to the ones in your area to see if the price makes sense (it varies a lot).
For example, budget will rent for up to 11 months:
https://www.budget.com/en/products-serv ... car-rental
I will definitely look up and call rental companies (budget) to see their 11 months rental. If the price is right, it would fit the bill
User avatar
leeks
Posts: 1466
Joined: Thu Apr 07, 2011 4:33 pm
Location: virginia

Re: Need car for approximately 1 year

Post by leeks »

You can also try buying out someone who has a leased vehicle with about a year remaining.

www.leasetrader.com

https://www.swapalease.com/
surfstar
Posts: 2853
Joined: Fri Sep 13, 2013 12:17 pm
Location: Santa Barbara, CA

Re: Need car for approximately 1 year

Post by surfstar »

buy a 2021 Prius Prime
you can sell it for a profit after rebates and tax credits
a Honda Clarity might also work for this strategy, but the Prime has very large Toyota cash/rebate incentives currently.
User avatar
Nate79
Posts: 9372
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: Need car for approximately 1 year

Post by Nate79 »

Buying and selling used cars is very easy these days with Carmax, Carvana, Vroom, etc. That's what I would do.
Bobby206
Posts: 621
Joined: Fri Oct 05, 2018 4:01 pm

Re: Need car for approximately 1 year

Post by Bobby206 »

leeks wrote: Sat May 08, 2021 4:16 pm You can also try buying out someone who has a leased vehicle with about a year remaining.

www.leasetrader.com

https://www.swapalease.com/
Yup. This was my thought. You can often get some great deals by taking over someone's lease.
runner3081
Posts: 5993
Joined: Mon Aug 22, 2016 3:22 pm

Re: Need car for approximately 1 year

Post by runner3081 »

Buy a high-mileage (150+K), Japanese brand car. Drive it and sell if for about what you paid for it, at the end of the year.
User avatar
Watty
Posts: 28859
Joined: Wed Oct 10, 2007 3:55 pm

Re: Need car for approximately 1 year

Post by Watty »

Several posts mentioned buying and selling a car which makes sense but in many states that will not work because they have high taxes and fees when you buy a car.
Californiastate
Posts: 1516
Joined: Thu Feb 04, 2021 10:52 am

Re: Need car for approximately 1 year

Post by Californiastate »

Watty wrote: Sat May 08, 2021 5:01 pm Several posts mentioned buying and selling a car which makes sense but in many states that will not work because they have high taxes and fees when you buy a car.
There is a cost for everything. The OP can decide how cheap he wants to go with a vehicle that will transport his family. Does he have enough time, patience and mechanical ability to find the right BH approved '96 Camry? Any how, I wouldn't want to be in the market for a new or used vehicle right now. You'll be paying the semiconductor premium on both.
Cruise
Posts: 2750
Joined: Mon Nov 21, 2016 6:17 pm

Re: Need car for approximately 1 year

Post by Cruise »

sss2009 wrote: Sat May 08, 2021 4:06 pm
leeks wrote: Sat May 08, 2021 4:01 pm Some of the car rental companies will do monthly rentals (different than a car lease). You would have to talk to the ones in your area to see if the price makes sense (it varies a lot).
For example, budget will rent for up to 11 months:
https://www.budget.com/en/products-serv ... car-rental
I will definitely look up and call rental companies (budget) to see their 11 months rental. If the price is right, it would fit the bill
Beware that credit card CDW insurance has a time limit for a rental, typically around 30 days.
Monsterflockster
Posts: 980
Joined: Wed Nov 20, 2019 11:03 pm

Re: Need car for approximately 1 year

Post by Monsterflockster »

First I would talk to other parents and try to arrange a carpool. Another option is to enroll my child in the neighborhood school (personally not a fan of charter schools). If that doesn’t work I’d look into a one year lease on a Honda Civic (or equivalent). If I’m moving in a year I do t want to worry about buying, then selling a used car.
jeroly
Posts: 141
Joined: Wed Jan 24, 2018 1:07 pm

Re: Need car for approximately 1 year

Post by jeroly »

My GF’s son goes to a charter school about four miles from her home (outside of pandemic times) and the parents from her neighborhood organized a van share - about ten parents chipped in and hired a van to pick up and drive their kids to and from school.

Something like this might be doable where you live, and while not cheap, it might be cheaper and less hassle than paying for and driving a car just for the school commute.
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

Beware that credit card CDW insurance has a time limit for a rental, typically around 30 days.

Thanks for this information...definitely something to watch out for.

Also some suggested car pool or arranging a group transit, etc. That we would have loved even if we were not moving. But there are really no kids in neighborhood or on the way to arrange such a thing.

Thanks for the replies and advice.
NYCguy
Posts: 377
Joined: Sun Nov 13, 2016 11:42 am

Re: Need car for approximately 1 year

Post by NYCguy »

As an alternative to one year car ownership consider a specialized car service for transporting children. Aside from the convenience, the numbers may not be prohibitive as compared to one year car ownership.

I have heard good things about hop skip drive.

https://www.hopskipdrive.com/
If your out-go is greater than your income, your upkeep will be your DOWNFALL.
RichK
Posts: 30
Joined: Tue Jan 28, 2020 2:24 pm

Re: Need car for approximately 1 year

Post by RichK »

There are a couple of online sites that offer the opportunity to pick up a car lease that someone else wants to dump. You might be able to find a car with enough time and remaining miles to satisfy what you are looking for. The actual financial exchange is run through the lender. Of course you have to be sure to understand the full financial impact including any lease-end fees.

You might try LeaseExchange, Carlease, or Leasetrader. I don’t have any personal experience with this process.

I did notice that you can pick up a 2020 Ferrari F8 Tributo for only $4,712 a month. Oh, I just noticed it has 54 months left on the contract, so that might not work for you.
Tingting1013
Posts: 1594
Joined: Mon Aug 24, 2020 5:44 pm

Re: Need car for approximately 1 year

Post by Tingting1013 »

You can drive most electric vehicles free for one year due to the Federal tax credit (assuming you earn enough income to qualify). Look at the Honda Clarity. In CA you can buy one for $20-22k OTD net of tax credit and then sell it a year later for the same price.

The other alternative is to take over someone else’s lease as mentioned earlier.
harrychan
Posts: 2047
Joined: Sun Nov 14, 2010 8:37 pm
Location: Pasadena

Re: Need car for approximately 1 year

Post by harrychan »

You got your answers here already. Best would be to take over a lease that has a year remaining but calculate the # of miles you need. Or get a good used car and sell it towards the end. Lease take over would probably yield least headache but probably cost more and limit on miles. You can sell the lease to Carvana, Carmax, etc if you get a car that has good resale value (Subaru, Lexus).
This is not legal or certified financial advice but you know that already.
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

Thanks to all who replied.

It seems buying a used car would be the best option and sell it at a moderate loss. I will definitely check with long term rentals and also check with CDW insurance (from my insurance company, vs rental insurance; since the cc will not offer for more than a month).

I have never leased a car, so don't fully understand the requirements to return the car. I am wary of getting stuck with a car that has issues (if that is the reason of original lessee wants to get out of the lease term period). Although I also envision that a majority of people who want to end the lease would be for other legitimate reasons (funding or buying a different car etc). But who knows.

s
Tingting1013
Posts: 1594
Joined: Mon Aug 24, 2020 5:44 pm

Re: Need car for approximately 1 year

Post by Tingting1013 »

sss2009 wrote: Sun May 09, 2021 3:27 pm Thanks to all who replied.

It seems buying a used car would be the best option and sell it at a moderate loss. I will definitely check with long term rentals and also check with CDW insurance (from my insurance company, vs rental insurance; since the cc will not offer for more than a month).

I have never leased a car, so don't fully understand the requirements to return the car. I am wary of getting stuck with a car that has issues (if that is the reason of original lessee wants to get out of the lease term period). Although I also envision that a majority of people who want to end the lease would be for other legitimate reasons (funding or buying a different car etc). But who knows.

s
Any mechanical issues with a lease would be covered under warranty
02nz
Posts: 10508
Joined: Wed Feb 21, 2018 2:17 pm

Re: Need car for approximately 1 year

Post by 02nz »

sss2009 wrote: Sat May 08, 2021 4:06 pm
leeks wrote: Sat May 08, 2021 4:01 pm Some of the car rental companies will do monthly rentals (different than a car lease). You would have to talk to the ones in your area to see if the price makes sense (it varies a lot).
For example, budget will rent for up to 11 months:
https://www.budget.com/en/products-serv ... car-rental
I will definitely look up and call rental companies (budget) to see their 11 months rental. If the price is right, it would fit the bill
I wouldn't bother. As you may have heard, car rental rates are sky-high, because during the height of the pandemic the rental companies sold off much of their fleet to survive (cash), and now there's a shortage of rental cars, made worse by the chip shortage (which is affecting the supply of new cars). Outside of the subscription plans I mentioned above, you're highly unlikely to find anything reasonable from the car rental companies right now.
sls239
Posts: 1208
Joined: Thu Oct 23, 2008 4:04 pm

Re: Need car for approximately 1 year

Post by sls239 »

Can the car you have be used to transport the children or does it not have enough passenger space or carseat anchors or something?

Because the easiest solution would be for them to have the car and for you to carpool or make other arrangements to get to work.
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

sls239 wrote: Mon May 10, 2021 2:17 pm Can the car you have be used to transport the children or does it not have enough passenger space or carseat anchors or something?

Because the easiest solution would be for them to have the car and for you to carpool or make other arrangements to get to work.
Unfortunately my work requires me to drive around 3 places, 25 miles in either direction. Or else I would take public transport back to home or bike my way home.

S
User avatar
eye.surgeon
Posts: 1143
Joined: Wed Apr 05, 2017 1:19 pm
Location: California

Re: Need car for approximately 1 year

Post by eye.surgeon »

buy a used car and sell it when you're done. It's not complicated. Yes it will cost you but you've already decided it's worth it.
"I would rather be certain of a good return than hopeful of a great one" | Warren Buffett
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

eye.surgeon wrote: Mon May 10, 2021 2:40 pm buy a used car and sell it when you're done. It's not complicated. Yes it will cost you but you've already decided it's worth it.
Yes, I will do exactly this. Thanks everyone.
profnot
Posts: 89
Joined: Sat May 02, 2015 2:37 am

Re: Need car for approximately 1 year

Post by profnot »

I have a similar situation coming up but my use will only be for 4 months.

I looked at used cars, my finances, and taxes and realized I could buy a used Prius hatchback. When I'm done, I will donate it to the local Food Bank or Habitat for Humanity and get the donation credit on my taxes. Cost and tax savings come very close to matching, making the car cost to me free.
Topic Author
sss2009
Posts: 135
Joined: Fri Dec 25, 2009 12:27 am

Re: Need car for approximately 1 year

Post by sss2009 »

profnot wrote: Sat May 15, 2021 9:47 am I have a similar situation coming up but my use will only be for 4 months.

I looked at used cars, my finances, and taxes and realized I could buy a used Prius hatchback. When I'm done, I will donate it to the local Food Bank or Habitat for Humanity and get the donation credit on my taxes. Cost and tax savings come very close to matching, making the car cost to me free.
How much donation credit can you get. I thought there is a CAP on the amount.
Post Reply