Car for My College Kid < $6K

[hammer]

How old are your current cars? Are any of them old enough to be passed down?

By the time that our 18YO got around to having a license we had a 10YO car with over 190K on the odometer...it's now his to use and the DW has a new vehicle.

A new lease will run more in insurance and taxes, and no matter how responsible a kid is IMO they (and their friends) will be harder on a vehicle than you would be.

FWIW we include our son on our insurance policy and the total difference was less than $1000/year. His rates actually get applied to one of the newer cars.

 

[Puck it]

FWIW we include our son on our insurance policy and the total difference was less than $1000/year. His rates actually get applied to one of the newer cars.

You are NH. Much cheaper for insurance. A friend's was around $800 for the year in Salem and my son was $2800 in MA for similar truck.

 

[riverc0il]

The kids are kids issue seems kid dependent. When I got my first car at 21 (okay, two years older than the kid in question here), I treated it like gold. Used car, graduation gift for college (50/50 split me/parents), cost $5k.

I think if you instill ownership, it'll work. Get the kid's name on the lease, make them pay for some, and agree up front (put it in writing) that the kid pays for damages or lease penalties at the end of the lease. If she screws it up, it is her lesson to learn the hard way and probably a lesson needed learning. No screw up, all is well.

The only bad thing I can think of here is that you are forcing a buy or release situation on the kid instead of owning a used car outright and being able to drive it into the ground. If she graduates college and can't find a job (pretty typical right now) she could loose her wheels and have no way to pay for another ride. That would be my biggest concern with leasing for a 19/yo... that despite having ownership and needing work to either buy the car or reup a new lease, the job market might not cooperate despite best intentions. Not having wheels, not having money, and not having a job is a tough combo and makes looking for a job really hard.

 

[campgottagopee]

What about things done to the car that are not normal wear and tear? Kids other then yours may not treat the car properly. My son has cloth seats in his truck and they are trashed. You will also have to carry full insurance on the lease. In MA, that is about $2k for a young driver and 3 years and no marks on license.

It just all depends on the kid, and a lease isn't for everyone.....I gave a suggestion because right now the used market is totally wacked!!!! Totally!!!

 

[campgottagopee]

The kids are kids issue seems kid dependent. When I got my first car at 21 (okay, two years older than the kid in question here), I treated it like gold. Used car, graduation gift for college (50/50 split me/parents), cost $5k.

I think if you instill ownership, it'll work. Get the kid's name on the lease, make them pay for some, and agree up front (put it in writing) that the kid pays for damages or lease penalties at the end of the lease. If she screws it up, it is her lesson to learn the hard way and probably a lesson needed learning. No screw up, all is well.

The only bad thing I can think of here is that you are forcing a buy or release situation on the kid instead of owning a used car outright and being able to drive it into the ground. If she graduates college and can't find a job (pretty typical right now) she could loose her wheels and have no way to pay for another ride. That would be my biggest concern with leasing for a 19/yo... that despite having ownership and needing work to either buy the car or reup a new lease, the job market might not cooperate despite best intentions. Not having wheels, not having money, and not having a job is a tough combo and makes looking for a job really hard.

You bring up good points.

What about this...you mention not having enough $$$ to buy/lease at the end of a lease, could happen. How is that any different than "owning" a car w/ 120,000 miles on it and not having the money to fix the headgasket, brakes, battery, starter, muffler, tranny...etc, etc.

Leasing is a mindset, if I had to "buy" a car I would lease it...it wuld work for me. Cars are a depreciating asset, period....no way around it. Why pay for all the depreciation??? Even the person who pays cash for their car can break down ownership into a monthly cost of ownership. $$$ "invested", plus $$$$ maintaining car for "x" amount of years divided by the number of months = total monthly cost of ownership. If someone were to sit down and do the math between leasing and buying, I think one would be shocked at how good leasing is. Constantly under factory warranty, in theory one shouldn't have to do brakes, muffler, tires, battery, etc.....obviously depends on miles driven/year. That's the biggie, milage...IMO, (unless for a biz) I wouldn't lease unless I knew I'd be under 15k/year, anything more than that I'd purchase and drive the bastard into the ground!!!

 

[darent]

It just all depends on the kid, and a lease isn't for everyone.....I gave a suggestion because right now the used market is totally wacked!!!! Totally!!!

were any of the program outbacks, 4 cly-mt with heated seats. in the 2008-2009 range

 

[riverc0il]

What about this...you mention not having enough $$$ to buy/lease at the end of a lease, could happen. How is that any different than "owning" a car w/ 120,000 miles on it and not having the money to fix the headgasket, brakes, battery, starter, muffler, tranny...etc, etc.

Here is the difference: If you have no job at the end of the lease, you are not of luck 100% guaranteed. If you have no job and you own it, you have a pretty good chance that the car will be driveable even if in need of minor repairs that could be delayed. Chances are pretty low that at any given time, a must fix repair will happen. Is there a chance? Yes. But it is not 100% which suggests the used car buy is a safer option, at least as far as the odds go. Besides, I bet it is easier to hit dad up for a repair rather than another lease.

 

[Puck it]

You bring up good points.

What about this...you mention not having enough $$$ to buy/lease at the end of a lease, could happen. How is that any different than "owning" a car w/ 120,000 miles on it and not having the money to fix the headgasket, brakes, battery, starter, muffler, tranny...etc, etc.

Leasing is a mindset, if I had to "buy" a car I would lease it...it wuld work for me. Cars are a depreciating asset, period....no way around it. Why pay for all the depreciation??? Even the person who pays cash for their car can break down ownership into a monthly cost of ownership. $$$ "invested", plus $$$$ maintaining car for "x" amount of years divided by the number of months = total monthly cost of ownership. If someone were to sit down and do the math between leasing and buying, I think one would be shocked at how good leasing is. Constantly under factory warranty, in theory one shouldn't have to do brakes, muffler, tires, battery, etc.....obviously depends on miles driven/year. That's the biggie, milage...IMO, (unless for a biz) I wouldn't lease unless I knew I'd be under 15k/year, anything more than that I'd purchase and drive the bastard into the ground!!!

And I do for me at least. Work is 70 miles round trip per day. And add skiing. 94k in a
Iittle over 3 years. Wife just leased though with 15k per year. Cheaper then buying and she only works 5 minutes from house.

 

[campgottagopee]

were any of the program outbacks, 4 cly-mt with heated seats. in the 2008-2009 range

No, when I say "program" they're previous rentals, all 10's, auto, w/ the heated seats...no sticks for "program cars".

The car you're describing would be taken in on trade, and wouldn't be that much cheaper (right now) than a new one. That's why I mentioned that the used car market has been turned upside down, In fact, the NADA books (the god of all used car values) sent out an email basically stating to throw them out...they don't even know what's going on.

I sit online at these auctions and just shake my head.....it's going to be an interesting year.

 

[campgottagopee]

Here is the difference: If you have no job at the end of the lease, you are not of luck 100% guaranteed. If you have no job and you own it, you have a pretty good chance that the car will be driveable even if in need of minor repairs that could be delayed. Chances are pretty low that at any given time, a must fix repair will happen. Is there a chance? Yes. But it is not 100% which suggests the used car buy is a safer option, at least as far as the odds go. Besides, I bet it is easier to hit dad up for a repair rather than another lease.

Why's that??? Dad, I need 800 bucks to get into a new lease....Dad I need 800 bucks for a wheel bearing and brakes, plus there still could be a payment even on a 7k car. Then what.

Again, it's a mindset...just like paying your electric bill.

 

[campgottagopee]

And I do for me at least. Work is 70 miles round trip per day. And add skiing. 94k in a
Iittle over 3 years. Wife just leased though with 15k per year. Cheaper then buying and she only works 5 minutes from house.

There ya go, that works....94k in 3 yrs, not so much.

 

[hammer]

You are NH. Much cheaper for insurance. A friend's was around $800 for the year in Salem and my son was $2800 in MA for similar truck.

Actually, I'm not...but I live in a smaller town in MA. My son also got driver's ed and student discounts which I'm sure helped some. I'm not complaining...

 

[Cannonball]

Holy crap! I don't have kids so I didn't realize times had changed so much. When I was 16+ you had to get a job, save, buy the car, pay for insurance, pay for gas, pay for (or perform) all maintenance, etc. $6K cars and leasing options sure as hell weren't an option.

Good for you all for being so generous to your kids.

 

[Puck it]

Actually, I'm not...but I live in a smaller town in MA. My son also got driver's ed and student discounts which I'm sure helped some. I'm not complaining...

Do you have full collision and comp for insurance? Could be the difference. My kids took driver's Ed. too and good students. We do have 93 going through town for 4 exits. Our insurance went up yearsago moving from Winchester to Wilmington.

 

[Puck it]

Holy crap! I don't have kids so I didn't realize times had changed so much. When I was 16+ you had to get a job, save, buy the car, pay for insurance, pay for gas, pay for (or perform) all maintenance, etc. $6K cars and leasing options sure as hell weren't an option.

Good for you all for being so generous to your kids.

They are expensive and the tax break do not cover them. Cars are a necessity for ours since we are not near their friends and work too.

 

[hammer]

Do you have full collision and comp for insurance? Could be the difference. My kids took driver's Ed. too and good students. We do have 93 going through town for 4 exits. Our insurance went up years ago moving from Winchester to Wilmington.

Yes but I carry high ($1000) deductibles. Combine it with a collision waiver so we only pay the deductible if it's our fault. Only comprehensive claims have been for glass which I have covered in full.

I'm in Tyngsboro which has Rt. 3 running though it and is right near a mall, but it's somewhat smaller than Wilmington.

I was pleasantly surprised when I was told the rates. The other shocker is that the premium on the brand new vehicle is less than the 10YO one.

Now if I could just get the kiddo to go out and get a job so he can pay the $15/week I'm asking him for the insurance...

Holy crap! I don't have kids so I didn't realize times had changed so much. When I was 16+ you had to get a job, save, buy the car, pay for insurance, pay for gas, pay for (or perform) all maintenance, etc. $6K cars and leasing options sure as hell weren't an option.

Good for you all for being so generous to your kids.

I keep reminding my son that I had to buy a car when I was his age...saved up and paid $2300 (which was a decent amount in 1980) for my first car. Hard to not make it sound like the "had to walk to school in the snow 5 miles uphill both ways" talk.

 

[deadheadskier]

You bring up good points.

What about this...you mention not having enough $$$ to buy/lease at the end of a lease, could happen. How is that any different than "owning" a car w/ 120,000 miles on it and not having the money to fix the headgasket,

well.....if they don't buy a Subaru with even 90K miles, they won't have to worry about that one. :lol:

 

[deadheadskier]

Do you have full collision and comp for insurance? Could be the difference. My kids took driver's Ed. too and good students. We do have 93 going through town for 4 exits. Our insurance went up yearsago moving from Winchester to Wilmington.

that's odd to me. the towns are 8 miles apart on 93. Wilmington is far more rural. You would think Winchester would be more pricey.

Curious, why did you move? I much prefer Winchester. Nice little downtown. I ate at a seafood restaurant there once called Catch. Some of the better seafood I've had outside of Boston.

 

[Puck it]

Yes but I carry high ($1000) deductibles. Combine it with a collision waiver so we only pay the deductible if it's our fault. Only comprehensive claims have been for glass which I have covered in full.

What is collision waiver? I have $1k deductible too. Why so low?

 

[Puck it]

that's odd to me. the towns are 8 miles apart on 93. Wilmington is far more rural. You would think Winchester would be more pricey.

Curious, why did you move? I much prefer Winchester. Nice little downtown. I ate at a seafood restaurant there once called Catch. Some of the better seafood I've had outside of Boston.

The higher rate is due to the length of 93 that runs through Wilmington and the number of accidents. Winchester only has 93 at the Highlands and for a short distance. I thought the same thing when we moved but had it explained to me. Very nice downtown but more house and land in Wilmington for your $. We moved in '93 and not left will not until retirement. Also a lot lower taxes since kids went private school.