Price to rent neighbors unused car/parking spot

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pizzy
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Re: Price to rent neighbors unused car/parking spot

Post by pizzy »

02nz wrote: Mon Dec 06, 2021 5:59 pm Have you looked into something like Care by Volvo (https://www.volvocars.com/us/care-by-volvo/)? It's an all-included subscription program that starts at $750/mo (for an XC40), including insurance. It's a 24-mo lease but you can cancel without penalty after 5 mos.
It doesn't come with the parking spot.
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02nz
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Re: Price to rent neighbors unused car/parking spot

Post by 02nz »

dodecahedron wrote: Mon Dec 06, 2021 5:25 pm How about a sale-repurchase contract? You and neighbor sign a contract that he sells you the car at current FMV with the stipulation that he will buy it back at a predetermined price six months later? Predetermined price could have provision for discount for excess milage above some pre-agreed limit.

In the intervening six months, you maintain an owner's policy on the vehicle and deal with maintenance as needed to keep it in proper running condition, similar to if you owned the vehicle.

Essentially, this is similar to renting in that the difference between your purchase price and the pre-agreed repurchase price is equivalent to rent.

It avoid the liability issue of what happens if you are involved in an accident with someone else and the other party in the accident decides to sue everyone in sight (i.e., the owner as well as the renter/driver of the vehicle.)
Depending on the jurisdiction, sales tax could be due, twice - and that would be quite pricey.
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8foot7
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Re: Price to rent neighbors unused car/parking spot

Post by 8foot7 »

02nz wrote: Mon Dec 06, 2021 7:03 pm
dodecahedron wrote: Mon Dec 06, 2021 5:25 pm How about a sale-repurchase contract? You and neighbor sign a contract that he sells you the car at current FMV with the stipulation that he will buy it back at a predetermined price six months later? Predetermined price could have provision for discount for excess milage above some pre-agreed limit.

In the intervening six months, you maintain an owner's policy on the vehicle and deal with maintenance as needed to keep it in proper running condition, similar to if you owned the vehicle.

Essentially, this is similar to renting in that the difference between your purchase price and the pre-agreed repurchase price is equivalent to rent.

It avoid the liability issue of what happens if you are involved in an accident with someone else and the other party in the accident decides to sue everyone in sight (i.e., the owner as well as the renter/driver of the vehicle.)
Depending on the jurisdiction, sales tax could be due, twice - and that would be quite pricey.
Not to mention if there is a lien, owner has to pay it off, bostondan has to lay out cash for a car he won’t known for long, and that’s two trips to the DMV. Lot of work for…no real reason that I can tell.
Oldaroo3
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Re: Price to rent neighbors unused car/parking spot

Post by Oldaroo3 »

On the surface, this sounds like a reasonable idea where all parties can benefit. However, IMHO, there are way too many potential pitfalls many of which have been brought up already.
Maybe this has been discussed earlier, but how would you feel if you had an accident? More than just a ding or scratch. Now your neighbor has a car with an accident on its vehicle history potentially lowering the resale value. Maybe the car is never really right again, and the neighbor now has to go out and buy a new vehicle when prices are inflated.
I once sold a car to a neighbor and would never do it again. Won't get into details, but it created a tense situation.

From a boglehead perspective, you need to determine your willingness, need, and ability to take risk. Taking a risk is exactly what you are thinking of doing in this situation. Why put yourself and your neighbor in that situation unnecessarily? Sounds as though you can afford to purchase a vehicle. You want a car, go buy a car. Sell it when you are done with it.
It may work out perfectly fine until it doesn't.

“If you could kick the person in the pants responsible for most of your trouble, you wouldn't sit for a month.” ― Theodore Roosevelt

Best of luck to you no matter what you and your neighbor decide to do.
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bostondan
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Re: Price to rent neighbors unused car/parking spot

Post by bostondan »

Oldaroo3 wrote: Mon Dec 06, 2021 7:53 pm On the surface, this sounds like a reasonable idea where all parties can benefit. However, IMHO, there are way too many potential pitfalls many of which have been brought up already.
Maybe this has been discussed earlier, but how would you feel if you had an accident? More than just a ding or scratch. Now your neighbor has a car with an accident on its vehicle history potentially lowering the resale value. Maybe the car is never really right again, and the neighbor now has to go out and buy a new vehicle when prices are inflated.
I once sold a car to a neighbor and would never do it again. Won't get into details, but it created a tense situation.

From a boglehead perspective, you need to determine your willingness, need, and ability to take risk. Taking a risk is exactly what you are thinking of doing in this situation. Why put yourself and your neighbor in that situation unnecessarily? Sounds as though you can afford to purchase a vehicle. You want a car, go buy a car. Sell it when you are done with it.
It may work out perfectly fine until it doesn't.

“If you could kick the person in the pants responsible for most of your trouble, you wouldn't sit for a month.” ― Theodore Roosevelt

Best of luck to you no matter what you and your neighbor decide to do.
Thanks. Getting a car right now is not a trivial process with the chip shortage and having quick access to one while I wait for the one I am ordering would be convenient. If for some reason I messed up his car then I would buy him a new equivalent BMW.

I am in the process of ordering a Subaru Impreza because I am too cheap and practical for my own good. Maybe one day I'll relax and buy myself a fleet of Teslas for my family, but for now I enjoy the millionaire next door lifestyle.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
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celia
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Re: Price to rent neighbors unused car/parking spot

Post by celia »

I would forget about the car rental and ask a parent who drives to the same school to drive your kids too. In exchange, maybe you can drive their kids to weekend sports activities or such. Surely at least two of your kids are in the same classes/activities as someone else’s kids.
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bostondan
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Re: Price to rent neighbors unused car/parking spot

Post by bostondan »

celia wrote: Mon Dec 06, 2021 8:16 pm I would forget about the car rental and ask a parent who drives to the same school to drive your kids too. In exchange, maybe you can drive their kids to weekend sports activities or such. Surely at least two of your kids are in the same classes/activities as someone else’s kids.
It is a daycare/preschool and I have three children, so that would be a heavy ask unfortunately. Otherwise it would be a good idea.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
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sergeant
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Re: Price to rent neighbors unused car/parking spot

Post by sergeant »

$600 a month, monthly wash, oil change just before you hand him back his keys.
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SR II
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Re: Price to rent neighbors unused car/parking spot

Post by SR II »

I wouldn't rent or borrow a neighbor's car. If anything were to happen to it, at fault or not, it could be a sticky living situation from then on.
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AnnetteLouisan
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Re: Price to rent neighbors unused car/parking spot

Post by AnnetteLouisan »

The problem comes when he asks you a favor down the road and you say no. Good fences make good neighbors, as the saying goes.
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bostondan
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Re: Price to rent neighbors unused car/parking spot

Post by bostondan »

AnnetteLouisan wrote: Mon Dec 06, 2021 9:00 pm The problem comes when he asks you a favor down the road and you say no. Good fences make good neighbors, as the saying goes.
I would probably say yes when he asks for a favor. He also probably won't ask for an unreasonable favor.

I understand the concept of the saying, and know the Robert Frost poem that popularized it, but I am not someone that puts up large fences and it has so far only brought joy to my life. There is much debate about Mending Wall by Robert Frost and whether the point of the poem is that the fence is a good thing or a bad thing. In fact, the purpose of the poem is likely to suggest that either interpretation of community may be correct.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
Cruise
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Re: Price to rent neighbors unused car/parking spot

Post by Cruise »

bostondan wrote: Sun Dec 05, 2021 6:43 pm
mary1492 wrote: Sun Dec 05, 2021 6:15 pmI think most of the folks here are making a bigger deal out of this than it really is. I see it exactly the way you do - it's mutually beneficial. You'll get use of a good car, likely saving some money, and having the parking spot. Obviously your neighbor will get some cash whereas he'd otherwise have the car sitting there idle.

Yes, anything can happen to the car while you're using it - as could with any other car. Regardless of what car you rent/buy, you are going to have insurance coverage - so anything that goes wrong as far as damage/liability will be covered. If you bought or leased a car and a repair was needed, or the oil needed to be changed, etc. you'd take responsibility for it.

Why don't you just drop your neighbor a note and say that you think it would be win-win for the both of you, but he should suggest a price so you don't make an offer that he'd consider inappropriate. If he comes in too high, you can then say that's a little higher than you were thinking, and suggest something closer to what you had in mind - but at least you won't make an offer that he finds insulting.

Give your insurance agent a call, get a ballpark number what it would cost. Also find out the true total cost of the flexcar option and have everything ready so you know what kind of price range you're looking for from your neighbor.
Thanks. I’ll probably do something like this. I’ve already emailed him and he thought it was a good idea. We are going to speak about it. He and I are on very good terms and I expect it will be a good conversation regardless of the outcome.
Don't have anything to add other than I am so appreciative that you have such good relationships with your neighbors. I'd kill to have a better relationship with one of mine. Oh wait, I didn't actually mean it to sound like that! Just kidding! :)
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bostondan
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Re: Price to rent neighbors unused car/parking spot

Post by bostondan »

I just wanted to provide a follow up to let people know what ended up happening. I had a perfectly good conversation with my neighbor, who offered the car for $550/month or the parking spot for $200/month. The $550 was the amount to cover the cost of the car to him per month. The parking would only be available to me for the first half of 2022.

I ended up finding a deal on a Subaru that provided "VIP pricing" if you donate to ASPCA, which gave me a non-negotiable 2% below invoice. Since most dealers are charging at least MSRP in this area, if not higher, that seemed like a good deal. I only found one Subaru dealer willing to honor the price on non-factory orders, but they happened to get the car I wanted the following day and it worked out nicely. I'll have the car mid-January, which is when I need it. The total price to me will be less then $550/month. I found out about the Subaru/ASPCA deal on leasehackr.com and was skeptical, but it worked.

I emailed my neighbors in our entire courtyard area to ask if anybody knew about parking nearby. I got a few helpful responses, and one nice neighbor that I know well told me she would be gone until September 2022 and offered me her spot. I asked how much and she insisted that I use it for free. I insisted on paying her, but she told me to please stop offering to pay. She is a nice older (than me) woman, and you can only argue so much, so I plan to take her up on that offer. I'll simultaneously be looking for a long term spot that doesn't make me dependent on her, but it's nice to have a long window to find the spot.

Overall, seems like it worked out okay. Thanks for all the advice.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
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AnnetteLouisan
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Re: Price to rent neighbors unused car/parking spot

Post by AnnetteLouisan »

Excellent. She benefits too, of course, by her home not looking empty. Perhaps suggest or buy her one of those interior lights that come on in the evenings automatically to make the house look occupied.
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AnnetteLouisan
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Re: Price to rent neighbors unused car/parking spot

Post by AnnetteLouisan »

bostondan wrote: Mon Dec 06, 2021 9:08 pm
AnnetteLouisan wrote: Mon Dec 06, 2021 9:00 pm The problem comes when he asks you a favor down the road and you say no. Good fences make good neighbors, as the saying goes.
I would probably say yes when he asks for a favor. He also probably won't ask for an unreasonable favor.

I understand the concept of the saying, and know the Robert Frost poem that popularized it, but I am not someone that puts up large fences and it has so far only brought joy to my life. There is much debate about Mending Wall by Robert Frost and whether the point of the poem is that the fence is a good thing or a bad thing. In fact, the purpose of the poem is likely to suggest that either interpretation of community may be correct.
Depends on the area I guess and on how likely people are to target and take advantage. I grew up and still live in an extremely unsafe urban environment and all of my family have been crime victims in one way or another. In addition, almost every time I’ve tried to help anyone I’ve been burned by unintended consequences. So I have (figurative) concrete moats up and I only wish they were higher. However, my immediate neighbors are delightful, considerate and charming so we interact nicely. But just in case, there’s concrete. Eventually I would like to live somewhere else.
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