Financial Sense

[LivingAlmostLarge]

Does this make sense?

My DH wants to replace his car with a newer family car. We're looking at a subaru outback new. We both like it and think it'll fit our needs for a long time. This is to replace the 2000 Ford Focus.

However as we're shopping my DH mentions he'd also like to replace my car with a newer used 4 dr sedan for safety reasons. He'd like something with side airbags, ABS, and LATCH. I've got a 99 corolla that has given us zero problems and is fantastic with only 100k miles. But I can definitely see his point.

We were talking and something between $3-4k we'd pay cash for or the tradeable value of our two cars, to replace my car. Does this make sense? This newer used car we were thinking about would last maybe 5 years until we need something like a minivan.

Should we do this? Does it make financial sense? Or keep the corolla? We have to replace the Focus because the cost of the repairs is exorbitant right now.

[MonkeyMama]

Personally, I wouldn't waste the money. I'd keep the Corolla. It's not like you are driving a 1980s era vehicle, or something like that - and Toyota is pretty big on safety features.

That said, if you are going to do it - I think that is a good way to do it. I actually needed a more practical car when I had my first child. I traded down to a a newer car that was less expensive than my convertible. (I paid $800 for it - sold convertible for $3k - they were both over a decade old). We waited a few years until we felt ready for the minivan, which was our goal purchase. There are ways to get more practical/safe cars without spending a fortune, and you seem to have thought that through.

Good luck with whatever you decide!

[zetta]

You'd likely get more money for the Corolla by selling it privately instead of trading it in...

[jIM_Ohio]

Does this make sense?

My DH wants to replace his car with a newer family car. We're looking at a subaru outback new. We both like it and think it'll fit our needs for a long time. This is to replace the 2000 Ford Focus.

However as we're shopping my DH mentions he'd also like to replace my car with a newer used 4 dr sedan for safety reasons. He'd like something with side airbags, ABS, and LATCH. I've got a 99 corolla that has given us zero problems and is fantastic with only 100k miles. But I can definitely see his point.

We were talking and something between $3-4k we'd pay cash for or the tradeable value of our two cars, to replace my car. Does this make sense? This newer used car we were thinking about would last maybe 5 years until we need something like a minivan.

Should we do this? Does it make financial sense? Or keep the corolla? We have to replace the Focus because the cost of the repairs is exorbitant right now.

**edit to add our 1999 Focus is already dead and replaced with hondas, so I agree replacing it**


Help me out...

would the subaru be paid in cash or financed, and for how long?
the second car its clear you'd pay cash for, so if that is wrong, correct that...

How long do you expect current corolla to last?
How long would you expect corolla replacement to last?

Most of my thoughts on cars is based on how long they last- if I think I get 5 years out of current vehicle, or 7 years out of a replacement vehicle, then I view this as paying 3k-4k in this case for 2 years of car usage which I don't have now.

To me for 3-4k I would expect 5-10 more years of usage (probably want 10, expect 5, anything less than 5 is failure and more than 5 is success). My focus is on the delta between the current car (corolla) and its replacement, as you have the next 3-5 years of usage out of the corolla paid for already (I assume current corolla is paid for).

[MonkeyMama]

LAL - I just had to add that our 2001 "bottom of the line" Ford has ABS, LATCH, and all that. If the safety features are that important to you, maybe you can just trade for a slightly newer Corolla. I would presume 2000 or 2001 would have the upgrades.

Agree with private party sale. You could save thousands. I'd at least try. I sold one vehicle on craigslist before - easy peasy - and fetched $2k more than dealership offered - sold it in like a week.

[LivingAlmostLarge]

MM, I wasn't looking at new cars. Something just a little newer like the 2001 civic or accord or camry or something. Just with newer safety features for the baby. Hence the $3-4k on a used car.

Planned on selling the corolla privately but trading in the Focus because I wonder if someone will even pay me for it?

Jim to answer questions.

Subaru would be financed for 3 years. I expect the Corolla to last another 5-10 years honestly. The replacement car would last 5 years, then traded up to a minivan with our second kid possibly pregnant with 3rd kid.

I am not sure how we'd fit 2 car seats in the Corolla because right now it's tight, but it'd be the secondary car so we aren't too worried. Something with LATCH really would be nice, ABS, and side airbags. Not fancy, practical.

What I'm considering is a 2003 Suzuki Aerio for $3k. Slightly larger with better safety features. About the same price as selling my corolla.

[MonkeyMama]

MM, I wasn't looking at new cars. Something just a little newer like the 2001 civic or accord or camry or something. Just with newer safety features for the baby. Hence the $3-4k on a used car.

I am not sure how we'd fit 2 car seats in the Corolla

I understood. I was agreeing with your method. Though not agreeing that it was necessarily worthwhile.

2 carseats fit easy peasy in a Corolla - you don't have to buy the biggest/bulkiest carseats out there, is all.

[LivingAlmostLarge]

My DH can't extend his legs in the driver seat with the seat in the middle. Without side airbags, it was suggested we use the middle seat for the car seat until we have two. But if we have two, I'm not sure how he'd fit into the driver seat. Right now I do all the driving and he sits in the back with the passenger seat up all the way. I find it tight to be honest, we're just leggy people.

Forget fitting in other people. Our old roomie finds it next to impossible to squeeze in anymore with one car seat. So it's not like we're the only people who find it hard to fit in.

I find it okay going solo, but my DH when he drives her is uncomfortable. He does it for short trips, but hence why I do most of the driving now.

FWIW, the 2001 Focus is substantially bigger than my 1999 Corolla. You can tell the difference btw our 2000 Focus and 1999 Corolla. But our Focus has two doors and problems.

[jIM_Ohio]

This is weird- my wife and I had this same conversation in her accord yesterday when I was driving MIL and wife and boys to lunch.

I stand about 6'1" and most of it is in my legs... but it won't matter how far the seat is back in the accord, because the problem in knee room, not leg room (for me). The dash hits my knees regardless of how far back I put the seat.

There is a reason tall people like pickup trucks

The side airbag is a kids safety issue in back seat? hmmmm...
learn something new every day.

financially I cannot see how getting rid of corolla is a good idea, especially if replaced with a car which will not last longer.

My suggestion would be keep the second car for about 1-2 years, and try to pay 1st car off early (3 year financing, suggest this is knocked down to 18-24 months) then replace corolla with similar car which lasts longer (whether it be another corolla or suburu or something else).

Is the current toyota recall affecting this decision?

[disneysteve]

I'll admit I haven't thoroughly read all of the posts thus far but let me make a couple of comments.

The best thing we ever did when our daughter was born was to buy a minivan. I had actually wanted one even before we had her for traveling and trade shows we used to do but it was the baby that got us to make the purchase. Absolutely no regrets and I'd highly recommend it, even with just one child. If you know you want a 2nd and maybe more, why not just buy the minivan now and be done with it? We have a 2000 Toyota Sienna that is still going strong with 126,000 miles. We drive it round trip to Florida every year (1,000 miles each way) as well as all of our every day driving and other travel. It is so convenient to have a vehicle that the 3 of us can fit in comfortably while still having room for 2 or 3 other people. We often go out with my mom and cousin and my car, a Camry, can't comfortably seat 5 and definitely not if one was in a car seat.

As for fitting 2 car seats in a Corolla, I'd question that. DD's car seat only fit properly in the center position of my Camry so it wouldn't have been possible to have 2 car seats back there. Perhaps we could have gotten car seats that would fit back there but it would have been awkward and again, would leave us unable to take anyone else with us.

So my vote is to buy the minivan now.

[LivingAlmostLarge]

Jim, I'm going to chat with my DH. He'd have to take the newer car for the space. I am okay with the corolla but not great.

Steve, my DH is stupidly eco-friendly. He doesn't want to drive a minivan until necessary because it gets worse gas mileage than a station wagon or sedan, which is "all we'll need" for now. Truth in that.

I suggested it, but he shot that idea down until the second child at least and likely we'll be pregnant with a 3rd before we pull the trigger. Of course with 2 in car seats we might have to make the switch, since I want to get pregnant next January again.

But I was thinking this new car we're getting will be the "commuter"/family sedan and then replace my car with the minivan.

Also the minivan is substantially more expensive than the cars we are looking at.

[jIM_Ohio]

Jim, I'm going to chat with my DH. He'd have to take the newer car for the space. I am okay with the corolla but not great.

Steve, my DH is stupidly eco-friendly. He doesn't want to drive a minivan until necessary because it gets worse gas mileage than a station wagon or sedan, which is "all we'll need" for now. Truth in that.

I suggested it, but he shot that idea down until the second child at least and likely we'll be pregnant with a 3rd before we pull the trigger. Of course with 2 in car seats we might have to make the switch, since I want to get pregnant next January again.

But I was thinking this new car we're getting will be the "commuter"/family sedan and then replace my car with the minivan.

Also the minivan is substantially more expensive than the cars we are looking at.

1 year is such a short amount of time... and even 2 years not really that long... if you go with only 1 car now, and then when its paid off upgrade the corolla to what it is you want, the mini van might be falling into your lap at that time anyway.

[LivingAlmostLarge]

Good point. Are you in a minivan Jim? With twins? Any more kids?

[heidrek]

I'm about to have my first child - is it really important to have a car witrh good storage capacity?

[LivingAlmostLarge]

Depends on the car you currently have. I know that in my DH's car with the stroller in the trunk there isn't any more space. Plus the real problem with both our cars is my DH is uncomfortable driving with her car seat in the middle.