New Car Purchasing Dilema/options

[wedge421]

Long story short my wife needs a new vehicle. We are looking at 1-2 year old Crossover SUV's the issue is that she needs AWD so even at the low end we are looking at 25k+. Her current vehicle is paid off and trade in is worth about 6-7k. My current vehicle, which I purchased before finding this site I might add, is more then I need. I currently owe around 9K and its trade in value is around 16k. We also have around 3 months funded in an emergency fund, $10k in an interest bearing checking account and around $160k or so in a mutual fund from an inheratance. My questions is this. What should I do haha? Do we trade in both of our cars and put a few thousand down on a new vehicle for her to get a low car payment and then I purchase a cheap new vehicle? Or do we trade hers in and put more money down to get her car and then trade my car in to get something smaller for me? My currernt car payment is $350 but I pay $400 on it. Im just trying to figure out what the best option is here. Cars are such crap investments but because of our jobs in the healthcare field we need reliable transportation. I would also prefer to have as small a car payment as possible to double up on payments. Any help would be much appreciated! Cheers!!

I should also add that our combined monthly income is around $6000 and our monthly costs/bills around around 4500 including savings.

[Like2Plan]

I'm surprised all the 4WD vehicles are running in the 25K range-- even say a Subaru or a Toyota RAV 4?

[snafu]

A car is so expensive it pays to take time to think through what you 'need' in a vehicle and what would be 'nice to have.' Don't 'fall in love' with a car until you get it home. You are unhappy with your current ride and more clarification would be helpful.

I don't wish to sound flippant, does your wife 'want' or 'need' an AWD, station wagon [crossover is a marketing term]. Does her work require off road capability and hauling people and/or equipment? AWD downside is expensive purchase price, fuel inefficiency, false sense of security which results in tires wearing out.

You might find it helpful to check out Edmunds 'Lemon Aid' or Consumers and your insurer to point out possible problems or weaknesses You don't want to choose a car that takes more than 3 years to pay-off. Subaru Forrester has after care headaches in some regions.

[Like2Plan]

Subaru Forrester has after care headaches in some regions.

Snafu--just curious about the after care headaches --could you elaborate?

[wedge421]

A car is so expensive it pays to take time to think through what you 'need' in a vehicle and what would be 'nice to have.' Don't 'fall in love' with a car until you get it home. You are unhappy with your current ride and more clarification would be helpful.

I don't wish to sound flippant, does your wife 'want' or 'need' an AWD, station wagon [crossover is a marketing term]. Does her work require off road capability and hauling people and/or equipment? AWD downside is expensive purchase price, fuel inefficiency, false sense of security which results in tires wearing out.

You might find it helpful to check out Edmunds 'Lemon Aid' or Consumers and your insurer to point out possible problems or weaknesses You don't want to choose a car that takes more than 3 years to pay-off. Subaru Forrester has after care headaches in some regions.

We work at a hospital and are considered essential employees which means no matter how crappy the weather is we need to get to work. So being in PA during the winter months its important that we be able to get through snow. Which is why we want the AWD option. Does AWD not actually help in this case?

[snafu]

LiketoPlan: Have friends who own Subarus and their constant whine is dealership woes. The dealership is in an inconvenient location, you must make an appointment well in advance of service, they demand the vehicle early in the AM. ok but then they don't get it in the service bay and need to keep it overnight, yadda yadda, parts are not interchangeable or readily available. They broke the arm holding the sunvisor...Some shops [rural vacation] won't service a Forrester.

Wedge: we live in Canada's Rocky Mountains, typically more blizzards & snow than anyone ever wants to see. Our AWD/4WD jockeys slam around driving faster than conditions permit and often have those one vehicle crashes that are so puzzling and pointless. Front wheel drive, defensive driving [course] and winter tires gets DH through a 90 minute commute to our area's famous winter Resort. [DH's all time fav vehicle Honda's CRV holds the road [winter tires], hauls an unbelievable amount of cargo and offers a comfortable, well supported ride].

[BuckyBadger]

I'm going to disagree with most of what snafu just said...

Your car only drives as well as you drive it. Sure, there are idiots in SUVs, but there are also idiots in rear wheel drive sports cars trying to drive around in the winter. My husband and I made a choice a few years ago that we would ONLY own all wheel drive cars. We live in the snowy north and it makes us more comfortable knowing that we have AWD under our seats. Because we are reasonable and responsible drivers, it suits us well. We do NOT go off roading. however, it comes in pretty darn handy during normal life. Getting up and down snowy driveways and breaking through the mountains that the snow plows leave in front of side streets and driveways... Getting through the wet slush that gathers in intersections and on highway on and off ramps. AWD will ABSOLUTELY help you get to the hospital in bad weather. I also work in a hospital and need to go in when the patients are being treated. Often it's only those of us with AWD cars that even make it in on those days.

I would also recommend a Subaru to anyone. My family drove Outback wagons for YEARS and we had a Subaru sedan for quite a few years. They are wonderful vehicles. I don't know about snafu's Subaru service center, but that has nothing to do with being a Subaru -- it just sounds like a bad service center. Could be for any brand of car.

And I'm also a fan of crossovers/small SUVs/station wagons. They're a great size -- a little more than a sedan but not too much. Same reason I love hatchbacks. We've had them all. We had a AWD Volvo station wagon that we LOVED. We currently have a Honda Element and a Toyota Venza, which is a station-wagonny crossover. Like I said, I grew up on Outbacks.

You know what I've been coveting that you might like? One of the new Subary Imprezas. They have a hatchback. This is the first model year, but they are very reasonably priced and it's getting harder to find gently used cars that are a better deal than new cars for Subarus, Hondas, Toyotas, and other brands that hold their value well. (Just checked, 2012 base models are in the high teens, with nice options in the low 20s, and tricked out you're still only hitting $25k. For a brand new Subaru.)

[wedge421]

So does anyone have input as far as how we should go about the financing? Trade in both cars? Put more money down? That was my actual question not what car to get.

[bjl584]

So does anyone have input as far as how we should go about the financing? Trade in both cars? Put more money down? That was my actual question not what car to get.

Rule of thumb is to not finance. Pay cash. But, if that is unrealistic, then you should finance for no more than 36 months if possible with the payment representing no more than 10% of your monthly take home pay.

Do you have money to put down? What price range of car are you looking at? What kind of money are you looking at if you trade two cars in?

[BuckyBadger]

So does anyone have input as far as how we should go about the financing? Trade in both cars? Put more money down? That was my actual question not what car to get.

Well, it all depends on what you want/need, and that's a decision only you can make. If you want the smallest payment possible, sell both cars, cash in some of the mutual fund, and buy two of the cheapest cars you think you can live with. Voila! No payment at all.

Or trade in hers, keep yours, and pay on her new car.

Or anything in between those two things.

The mutual fund isn't tax advantaged, right? It's just a taxable account? You have $160k to play with here.

[Hector]

I find it hard to believe that cheapest reliable car to drive in snow cost 25k!

[LivingAlmostLarge]

New $18k AWD car probably. Suzuki and maybe a subie impreza. AWD is very sweet deal. Very handy for places where they don't plow much.

In canada, according to family and friends (my DH grew up way, way up north) they plow more, salt roads better, and in general spend more on road maintenance than they do in many places in the US. Big difference. My in-laws have been horrified by the snow where we live and supposedly they do a good job plowing. Honestly? They never plow our street because it's a dead end. Only AWD get up. Prior to our AWD subaru we used to park in a lot nearby and walk home. Now? It rolls up no problem.

And snow tires might have worked, but couple of neighbors who do have them on their FWD don't make it up all the time either. Our deadend is steep on a hill, very strange location. Something we never considered when we bought. My DH is now sold on our AWD especially with kids (and so are my in-laws).

[Like2Plan]

...We are looking at 1-2 year old Crossover SUV's the issue is that she needs AWD so even at the low end we are looking at 25k+. ... Im just trying to figure out what the best option is here. Cars are such crap investments but because of our jobs in the healthcare field we need reliable transportation. I would also prefer to have as small a car payment as possible to double up on payments. Any help would be much appreciated! Cheers!!

So does anyone have input as far as how we should go about the financing? Trade in both cars? Put more money down? That was my actual question not what car to get.

I think the actual car you get is related to your question. I totally understand that you need to have reliable all weather (4WD) car since you are required to come to work even when the weather is worse than terrible. But, I am questioning the premise that this can only be accomplished by spending 25K. You may not have to finance at all if you pick an AWD vehicle that has a lower upfront cost--if you combine the trade in value (of your wife's current vehicle-trade in is worth about 6-7k) and available cash (your $10k in an interest bearing checking account). Does your wife's car need to be replaced immediately or could it wait for a few more months? Another option would be to save up the $1500 per month from your income that isn't currently allocated towards savings or expenses and use it towards the purchase.