[BobM]

When you are paying $50k+ year for an education do you really want your daughter to have to deal with the statistically increased probability that the 10 year old used car will break and she will need to have to deal with the repair to save a few bucks and it's a day before a final and 2 degrees outside at midnight?

I'd lease a car model that has a nearby reputable dealer and a warranty. Then there should be no hassles for her in the unlikely event that any problems arise.

I'm definitely leaning to your way of thinking. Used cars can/may be a hassle - luck of the draw - and she is too far away for me to assist. We are paying for college. And she needs to learn the lesson of HER making the regular car payments And I want her focusing on school, not how she is going to be able to make $300 this month for the payment. She has a job at school that pays her about $150-200/month, so that's the upper limit. She can learn the lesson of buying  and holding long term at some later point when she can afford it.

But ... that being said. All these options will be put down on paper for her, with the numbers right there. We will all walk through them together and discuss the +/- of each one. It is usually easier and more specific than hypothesizing within our own head. (yes, I'm a finance guy too)

Rochester has plenty of car dealers, of all types, close by, so that's not an issue.

[coke]

Sell her your car.  You could give her a good deal and there'd be no guessing about the history of the vehicle.   

[LadyDog]

Not sure I know the answer, but isn't sales tax a regardless?  Whether it is something bought, or already built into the lease. 

Why does taking out a loan automatically mean overspending.  Isn't that somewhat up to the responsibility level of the individual.

Again I am not suggesting anybody is wrong here.  Nor certainly taking offense.  I own my car.  Personally not had a car payment in probably 15 years, so I certainly understand/buy-into your logic/training.

On the opposite token though, one could agrue that having you daughter take out a $4,000 or $5,000 loan, thus keeping her savings account in check, and making small monthly payment throughout college, is a great way for her to build some credit for when she graduates.

[ctviggen]

I'd stay away from VW due to repair cost and reliability. 

How important is snow driving? At RIT, I'd think about a Subaru.

Interesting, I have a VW Jetta wagon and my wife has a Subaru Outback.  Both seem to be similar in repair cost and reliability.  In fact, to me, the VW seems (much) better built and better designed. 

I do have to use snow tires for the Jetta, though.  For the Subaru, we use Nokian all seasons, but these have the snow flake symbol on them. 

[ctviggen]

Americans waste more money on cars than just about anything. My Dad had a motto about cars, make due with what you can pay cash for. The amount of interest, finance charges, and depreciation people spend on changing out cars more often than necessary over a lifetime is a huge amount of money. Not to mention the temptation to buy more than is necessary just to keep up with the neighbors.

Personally, I've bought my last three cars new and ran each of them into the ground.  I couldn't pay cash for them, though, and bought each of them with a loan.  The loan on my current interest rate is only 3% or so.  I don't see that's much of a detriment.  And, I get 5+ years of no payment whatsoever. 

[ctviggen]

Plus, the reality of life is that you have to develop credit.  You don't develop credit by paying for things in cash.  I have outstanding credit, and that allowed me to buy my current home at 3% interest.  But I started my credit by putting6,000 down on a Jeep Comanche that cost $11,087.  Paying off that loan got me the credit I needed for other things. 

[Russtafarian]

I'm facing a similar situation with my 18 year old son.  When he starts school in the fall, I'll "sell" him my 4 year old Mazda 6 for what remains on the 5 year 0% interest loan I got from the dealer.  I haven't decided what I'll get to replace it, but near wholesale pricing (I work for AAA) and low to no interest financing will be part of the deal.

Russ

[BobM]

Good point about building credit. Something every kid will need eventually. Financing rates seem to be about 1%, so no big deal.

I can't sell her my Infinity G35X - too much car for her, not enough room, to expensive to drive, and I still like it.

[Gzerro]

I'm definitely leaning to your way of thinking. Used cars can/may be a hassle - luck of the draw - and she is too far away for me to assist. We are paying for college. And she needs to learn the lesson of HER making the regular car payments And I want her focusing on school, not how she is going to be able to make $300 this month for the payment. She has a job at school that pays her about $150-200/month, so that's the upper limit. She can learn the lesson of buying  and holding long term at some later point when she can afford it.

But ... that being said. All these options will be put down on paper for her, with the numbers right there. We will all walk through them together and discuss the +/- of each one. It is usually easier and more specific than hypothesizing within our own head. (yes, I'm a finance guy too)

Rochester has plenty of car dealers, of all types, close by, so that's not an issue.

Fair enough. The value of the increased reliability is up to you to place a value on.

It sounds like you have a very lucky daughter!

Best of luck with the new vehicle, whatever you decide.

[DaveC113]

I'm definitely leaning to your way of thinking. Used cars can/may be a hassle - luck of the draw - and she is too far away for me to assist. We are paying for college. And she needs to learn the lesson of HER making the regular car payments And I want her focusing on school, not how she is going to be able to make $300 this month for the payment. She has a job at school that pays her about $150-200/month, so that's the upper limit. She can learn the lesson of buying  and holding long term at some later point when she can afford it.

But ... that being said. All these options will be put down on paper for her, with the numbers right there. We will all walk through them together and discuss the +/- of each one. It is usually easier and more specific than hypothesizing within our own head. (yes, I'm a finance guy too)

Rochester has plenty of car dealers, of all types, close by, so that's not an issue.

I agree, and safety is another issue, new cars are generally safer than older cars, though it depends on how old of course...

Any car is going to cost money, I like newer cars because of safety and the fact I don't have to worry about unexpected repair bills, and the driving experience in a new car is also better.

I even used to own a welding and auto shop and was a certified ASE mechanic... imo it's a crapshoot, but my cost of ownership on the last 3 Subarus I bought brand new have been EXTREMELY low...  the last one was a '10 WRX. I bought it for $24.5k and got $21.5k for it after 4 years and 68k miles. Part of that was an insurance settlement for hail damage though.

I got a new '14 WRX and it has appreciated since I took it off the lot 



 

[BobM]

No doubt I could get something decent (like a 2005/6 Subaru) for about $6k if buying directly from the seller. That is not off the table at all. I need to present these options to my daughter (and wife) and have some reasonable discussions about buy vs lease vs debt vs use of savings vs maintenance vs etc.

It will be my daughters car and her responsibility, so mostly her decision with our input. She's got some good guy friends at school to help her out in a bind, if that happens.

[macrojack]

I bought my 2004 Toyota Matrix RS in June of 2009 for $8500. At the time it had 54,000 miles on the odometer. I sold it in June of 2012 for $8000 after running the odometer up to 94,000. Most of the miles were driven by my teenage son while he drove to high school and college. We had body work performed twice for slight parking lot mishaps and I suppose I spent about $500 on the periodic service at the dealer. The biggest was for a transmission flush at 60,000 miles. There were never any incidents involving vehicle failure.
I agree that Subaru is intriguing and I have been very tempted to purchase one on several occasions. I've always heard that parts are expensive and I do not like the local Sube dealer. Otherwise I might join in recommending their cars. All in all, I am utterly convinced that a well cared for, low mileage Toyota represents the pinnacle of low risk, low cost previously owned personal transportation. And the Matrix is cute --- my son's girlfriend said it looks like a computer mouse.

[Bob in St. Louis]

But ... that being said. All these options will be put down on paper for her, with the numbers right there. We will all walk through them together and discuss the +/- of each one. It is usually easier and more specific than hypothesizing within our own head. (yes, I'm a finance guy too)

Rochester has plenty of car dealers, of all types, close by, so that's not an issue.

That being said, let her choose xxxx cars that she wants, and you weed out the bad ones  (based on your definition of bad).
While she's picking, you pick xxxx cars you want her to have and she weeds out the "bad" ones (based on her definition of bad).
At the end of it, you should have a short list of cars that are acceptable by both to you.

On the test drive of the cars you're potentially purchasing, I would have a pre-arranged check over done at the dealer who services those kind of cars. I've seen too many "just bought" cars in my shop that were "just checked out by my mechanic", only to find a couple grand worth of stuff that "your mechanic" didn't know to look for. Any dork with an ASE patch on his shirtsleeve can tell you about your tires and brakes and bla bla bla....but only a guy that only works on specific models of cars knows to looks for those hidden Achilles heels that plague all car manufacturers.

But don't listen to me.... 

[tull skull]

Listen to gzerro and read that Dave Ramsey article 3 or 4 times. I like the suggestion of selling her your car. Make sure to keep back at least $1000 for repairs so she wont be knocked for a loop. So make her budget 6 to 7K. Toyota Matrix is a good suggestion. Very versatile and reliable. (my son has one)

[BobM]

Thanks for everyone's suggestions.

I've contacted some dealers via Edmunds, Subaru, Honda, Toyota and Ford dealerships in my area, for purchase/finance and lease rates on some select SUV's/crossovers. Some are sending generic e-mails but others have actually given me some basic info. I've also got a reputable used car dealer in my area that has a large inventory, from a neighbor who went to school with him, so I am hoping for some discounts there. I will also check out the local Craigslist and Memorial day newspaper ad's.

Sunday will be the day to sit down with my wife and daughter to review options, costs, etc. then go out and look at some cars. We will likely have to make a somewhat quick decision depending on the start date for her internship, likely June 1.

fun, fun, fun!

[coke]

autotrader is a good resource for used cars

[nickd]

I'm in the No payments camp if possible. Pay cash if you can and have her save for a newer / better car over the next couple of years. Life has enough challenges for a teen without being a slave to the bank.

I know payments are now the "American way of life", but it if she never starts down "finance everything" road, she will understand and enjoy what liberty really means.

[Emil]

BobM
Purchase whatever gives you peace of mind. That's priceless.

Lets all keep in mind this vehicle is for his daughter who is at college 6 hours away.

I'd be stressed out just worrying about her driving alone all that way. Dont need the added worry
of car trouble.

Boys are different

[ErikMi]

I think the low cost lease is the way to go.. put down as little as possible to get the payments were you want them. If she's happy with the car you can buy it out at lease end. I'd go Subaru, outstanding crash safety, low maintenance and reliable, all wheel drive, roomy for hauling crap to school.

My son is in school he has a 2002 Camry, it's needed stuff to keep it running, battery went, tires, starter, various bulbs.. He a junior and if I can squeeze another year out of it I'll be happy...Also he's been able to fix some of the little stuff himself, but it's stressful getting the call from 500 miles away that the car needs something.. Since this is her first year away at school believe me there's enough stuff for a freshman (and a Dad) to stress over, her car shouldn't be one of them.

[jarcher]

Don't know if I'm adding a lot more here, but my 2 cents…..

Reliability with used is a crap shoot - even with japanese cars.  Had one friend with a not so old used Honda Civic, supposedly the paramount of reliability, that ended up needing a new transmission a few years after he got it (with normal use)!  On the other hand my 10 year old BMW hasn't really "needed" anything, but there were a few things I had to take care of when I bought it because I failed to get a pre-purchase inspection.  So that's really the most important : the $100 or less you spend on a PPI is well worth it, assuming you have a decent mechanic.  Some as said before may just glance over a car or just hook up the computer without a careful inspection.

Beyond the above, get what she really likes and would likely want to keep for at least 4 years.  The biggest killer to me unless you buy a lemon is depreciation.  If you're flipping a car after only a year or two because you don't like it, you take a bigger hit on depreciation than repairs etc.  I bought & sold a few cars between '05 and '10 trying to find the BMW I liked best and lost a lot on depreciation. Much more so than any repairs or maintenance. Even the current one which I bought for $11K three years ago is probably only worth $6K now.  At your budget depreciation is less of an issue, but it's still important.  And anyway, getting something she really likes will also make her more happy.

If she isn't really a "car gal" and doesn't care so much about cars, get whatever is cheapest and in best condition and save the rest of the money for operating expenses and other stuff that's more important to her.  There are lots of domestic cars in excellent condition for really cheap that can be had for less than a premium for the Japanese cars that folks assume are going to be more reliable.  Even "luxury" foreign cars that people are afraid of, such as Saabs and Jaguars, can be had for very cheap with low miles and in good condition.  And if she likes cars at all, a Saab or Jag will make her happier than a Toyota Corolla, trust me.

As other have mentioned - the purchase price is just the beginning.  Make sure she can pay tax / titles / registration / insurance and operating expenses as well.  So don't blow the whole budget on the purchase price.  Which is another thing that sometimes makes older better because at least the purchase and property taxes and insurance are a lot less.  And gas at almost $4 a gallon is not an insignificant expense for a college student assuming she's going to put a lot of miles.  Another thing not in favor of a new lease as these are based on mileage and usage. And with a lease presumably you'd have to at least co-sign, and maybe you don't want to be on the hook for that.

So buy a 10-12 year old Jaguar XJ8 or S Type -  - bet no one else here is going to recommend that!