A different car purchasing question

[MICKIMINI]

She should buy out the lease. There is $$$ in that car.

1. IMO if she really wants another new car, ask the dealer what equity they will give her if she buys (easy enough to find out online).

2. Or, she can sell the car herself, pay off the lease and keep the equity towards a new lease or purchase.

Why leave money on the table?

 

[sam_gordon]

She should buy out the lease. There is $$$ in that car.

1. IMO if she really wants another new car, ask the dealer what equity they will give her if she buys (easy enough to find out online).

2. Or, she can sell the car herself, pay off the lease and keep the equity towards a new lease or purchase.

Why leave money on the table?

First, I don't think she would be able to sell the car herself. *I* wouldn't feel safe with her conducting a private sale. Or are you saying pay the $24k to buy her current car, then turn around and sell it and MAYBE make a couple thousand dollars profit?

 

[cabanafrau]

I'm not sure what advice to offer on the car, but you and your sister need to start talking now. I was only 2 1/2 hours from my dad and it was way to far.

Before any decisions are made someone needs to do a check-in on her driving skills.

The advantage to keeping her current vehicle is she is already familiar with it and the various features. New cars all tend to have LOTS of seldom used features that are more of a nuisance compared to something of value that makes driving easier. Many things seem like technology for the sake of technology, like car companies are all in some sort of race with each other to see who can add the most features to their vehicles.

The flurry of features and instrumentation can be challenging for seniors in particular. Mixing instrumentation that isn't intuitive with an elderly driver whose reflexes might be slowing down a tad can be a bad mix.

Another thing to consider is her mobility. You mentioned that she liked sitting high up in her current vehicle. She would be trading that ability to downsize in a Civic -- and it may not be very comfortable for her to get in and out of a sedan.

 

[Living42Day]

If, and only if, the lease agreement ends when your mom passes - I think leasing a different vehicle would be a good idea. If she is thinking the current car is too large, it may be better for her/safer to get a smaller or lower to the ground sedan. My great aunt is about her age and was having a difficult time getting in and out of a Chevy Equinox that we rented, which I didn't consider to be that high up but she did. The warranty would also be helpful, not having to worry about repairs.

 

[barkley]

if she buys-educate her/whomever will take care of her estate on how the laws in her state/the state whomever handles her estate works on motor vehicles. I say this b/c we handled an out of state family member's estate that included a car. straight will (not a trust) and her state required 90 days to pass before car's title could be transferred but it had to be activly insured. no insurance company in her state would insure a deceased person's car. we looked at transporting the car to our state but the law here required new registration in 30 days and we could not insure it absent that. everything would have been much easier if when the car had been originaly purchased our family member had done a transfer on death on the car.

 

[barkley]

She would be trading that ability to downsize in a Civic -- and it may not be very comfortable for her to get in and out of a sedan.

I agree. we just purchased and opted to go for a bronco instead of replacing our escape b/c it's easier to get into and out (arthritis in knees and hips). i'm also finding it's easier to get groceries in and out of a cargo area that does not entail as much bending over and reaching back.

 

[tvguy]

To be honest, I am trying to get my arms around how the buyout on that lease is $24,000. I'm guessing her lease payment is about $279 and assuming she has an Accord. Looking back 3 years......which is when we were looking at Accords and ended up buying a Camry, it was in the midst of the pandemic, before the chip shortage and dealerships was wall to wall cars and that is about what that car should have sold for new. They were dying for customers $279 a month times 36 months, she has paid $10,000 on that car. Her lease buyout should be in the $15-$20,000 range, not 24,000.
First thing I would say is NEVER go to the dealer that she leased the car from. She got ripped off. She can get a new Civic for the buyout on that lease. If that buy out wasn't so out of line, I would say buy the car she has now. She needs to negotiate a fair, and lower price on a new Civic and keep it the rest of her life.

I have never been a fan of leasing. I faced the car buying decision with my mom when she was 80. The 27 year old Pinto she bought new developed an engine problem. It only had 77,000 miles on it, but she got her money's worth. She was actually upset because she figured that would be her last car. I told her I was sorry she outlived her car. It was a chance for her to get that Cadillac she always wanted. But she said "I went to the Ford dealer and bought the least expensive model they sold, that is what I am going to do again. If it lasts 27 years, I will be 107 before I need another car". She lived another 10 years, put 10,000 miles on the new Ford Focus she bought. I sold it (to my future daughter in law) when she passed. No big deal, since I turned 18 I have always been joint owner of my mom's cars.
If you are concerned about getting rid of a leased car if she passes during the lease term, owning it would simplify that situation. Sell it and pay off the loan balance.

I really thing the decision to lease has not been a wise financial decision for your mom.

 

[cabanafrau]

To be honest, I am trying to get my arms around how the buyout on that lease is $24,000. I'm guessing her lease payment is about $279 and assuming she has an Accord. Looking back 3 years......which is when we were looking at Accords and ended up buying a Camry, it was in the midst of the pandemic, before the chip shortage and dealerships was wall to wall cars and that is about what that car should have sold for new. They were dying for customers $279 a month times 36 months, she has paid $10,000 on that car. Her lease buyout should be in the $15-$20,000 range, not 24,000.
First thing I would say is NEVER go to the dealer that she leased the car from. She got ripped off. She can get a new Civic for the buyout on that lease. If that buy out wasn't so out of line, I would say buy the car she has now. She needs to negotiate a fair, and lower price on a new Civic and keep it the rest of her life.

I have never been a fan of leasing. I faced the car buying decision with my mom when she was 80. The 27 year old Pinto she bought new developed an engine problem. It only had 77,000 miles on it, but she got her money's worth. She was actually upset because she figured that would be her last car. I told her I was sorry she outlived her car. It was a chance for her to get that Cadillac she always wanted. But she said "I went to the Ford dealer and bought the least expensive model they sold, that is what I am going to do again. If it lasts 27 years, I will be 107 before I need another car". She lived another 10 years, put 10,000 miles on the new Ford Focus she bought. I sold it (to my future daughter in law) when she passed. No big deal, since I turned 18 I have always been joint owner of my mom's cars.
If you are concerned about getting rid of a leased car if she passes during the lease term, owning it would simplify that situation. Sell it and pay off the loan balance.

I really thing the decision to lease has not been a wise financial decision for your mom.

OP said the vehicle sat higher up than others, so an Accord doesn't seem to fit the bill.

 

[maddiel]

Before any decisions are made someone needs to do a check-in on her driving skills.

The flurry of features and instrumentation can be challenging for seniors in particular. Mixing instrumentation that isn't intuitive with an elderly driver whose reflexes might be slowing down a tad can be a bad mix.

Another thing to consider is her mobility. You mentioned that she liked sitting high up in her current vehicle. She would be trading that ability to downsize in a Civic -- and it may not be very comfortable for her to get in and out of a sedan.

While it is good you are considering what will happen to the car if she dies during the next three years, you also need to think about what happens to it if she becomes unable or uncomfortable continuing to drive during that period. As someone with septuagenarian and octogenarian family members, I've seen their driving competence can change quickly in that age range for a variety of reasons.

 

[sam_gordon]

everything would have been much easier if when the car had been originaly purchased our family member had done a transfer on death on the car.

I'm sorry, I'm not sure I understand this. You're saying it would have been easier if the car was transferred to a family member when the car's owner died?

 

[cabanafrau]

I'm sorry, I'm not sure I understand this. You're saying it would have been easier if the car was transferred to a family member when the car's owner died?

Yes, because it would have been possible to insure it under the relative's name instead of stranding it in no man's land.

 

[sam_gordon]

To be honest, I am trying to get my arms around how the buyout on that lease is $24,000. I'm guessing her lease payment is about $279 and assuming she has an Accord. Looking back 3 years......which is when we were looking at Accords and ended up buying a Camry, it was in the midst of the pandemic, before the chip shortage and dealerships was wall to wall cars and that is about what that car should have sold for new. They were dying for customers $279 a month times 36 months, she has paid $10,000 on that car. Her lease buyout should be in the $15-$20,000 range, not 24,000.
First thing I would say is NEVER go to the dealer that she leased the car from. She got ripped off. She can get a new Civic for the buyout on that lease. If that buy out wasn't so out of line, I would say buy the car she has now. She needs to negotiate a fair, and lower price on a new Civic and keep it the rest of her life.

It's not an Accord. She doesn't want a sedan. And three years ago would have been 2022. While the pandemic was still technically going on, by spring of 2022, most things were normal in our area.

 

[sam_gordon]

Yes, because it would have been possible to insure it under the relative's name instead of stranding it in no man's land.

How does that work? Does the estate transfer it?

 

[sam_gordon]

I really thing the decision to lease has not been a wise financial decision for your mom.

I don't disagree. I personally don't like leases. But her choice. And again, they've (now her) have been leasing cars for a while.

 

[thanxfornoticin]

I'm sorry, I'm not sure I understand this. You're saying it would have been easier if the car was transferred to a family member when the car's owner died?

I don't think this person's comment has anything to do with your questions about lease, only if someone owns or is buying the car. Then you can designate the title to be transferred to an individual specifically upon death. It's moot for a lease situation.

 

[thanxfornoticin]

Sure hope you can meet with your mother and come to the best decision for all of you. Sounds like she is independent and feels ready to drive for another 3 years, and having a good quality car without warranty concerns would be great. Good luck with the situation. I know firsthand, it can be tough to come to the best decision.

 

[MICKIMINI]

First, I don't think she would be able to sell the car herself. *I* wouldn't feel safe with her conducting a private sale. Or are you saying pay the $24k to buy her current car, then turn around and sell it and MAYBE make a couple thousand dollars profit?

Have you looked online to see what the value is specific to her car? She can print out the "offer" and bring it with her. Say, the offer is 4K more than what her buyback is. They might offer to split the equity and credit her 2K towards a new lease or purchase. Win-win for a few minutes effort.

If the dealer says no, she can sell the car online (there are several large companies that do this) and get a check when it is picked up and use to the proceeds to pay off the lease and keep the profit. She can then go to the dealer and either buy or lease another car.

We've done both. Why would you ask for opinions, if saving a few thousand dollars isn't the goal?

 

[cabanafrau]

How does that work? Does the estate transfer it?

If the title is set up as transfer upon death the title should be able to be transferred with the presentation of the accompanying death certificate to the department of motor vehicles. The car would never be part of the estate. It's the same as any other payable or transferable upon death asset.

 

[tvguy]

I don't disagree. I personally don't like leases. But her choice. And again, they've (now her) have been leasing cars for a while.

Well, maybe you and your sister need to step in with some advice, assuming your sister is of the same mindset as you. I was my mom's only child and she rarely did anything regarding her house or car without consulting me. She didn't always take my advice.......she didn't buy the Cadillac like I suggested. But after driving Buicks for 16years, she came to love driving and parking a much smaller car.

 

[bluezy]

Before any decisions are made someone needs to do a check-in on her driving skills.

The flurry of features and instrumentation can be challenging for seniors in particular. Mixing instrumentation that isn't intuitive with an elderly driver whose reflexes might be slowing down a tad can be a bad mix.

Another thing to consider is her mobility. You mentioned that she liked sitting high up in her current vehicle. She would be trading that ability to downsize in a Civic -- and it may not be very comfortable for her to get in and out of a sedan.

I was just going to say this! My MIL passed away a few months ago. She was 83; a widow since 2017; still lived independently in the home she and her husband built 50+ years ago; drove somewhere several times a week (she lived in the middle of nowhere so it was a 5-10 mile drive to get to her doctors, grocery store, etc. so it wasn't like she was just driving a few blocks); and still volunteered at several places. Her death was sudden and unexpected (massive heart attack about an hour after returning home from a social event). At the funeral, we had *several* people mention that her driving the last 6+ months had been bad. Her friends said they had stopped letting her drive them anywhere several months before her death. They said she just wasn't alert enough and would run red lights, pull out in front of people, and often drift across the center line. Now, we have no idea why these friends didn't mention this to any of her kids. She lived in a very small town where everyone knows everyone and they definitely knew how to get in touch with at least 3 of the kids. She had children living 2, 5, and 10 miles away from her, and someone checked in with her by phone/text or in person every day. Yet none of them ever thought about having her drive them anywhere to make sure her driving skills were still at a safe level. We were all really thankful that she didn't cause an accident at any time and that her heart attack happened while she was in her home and not while she was driving.

So, OP, my suggestion is that before your mom leases or purchases a car, either you or your sister should pay her a visit and figure out an inconspicuous way to have her drive you somewhere while you're there. Another thing to consider is if her (hopefully) future move has her moving to another state, she might have to provide medical documentation that she is still capable of driving (it varies by state) before getting her driver's license in that state. Would a doctor support her continuing to drive? I know it's really tough to have this type of a conversation with an aging parent, but it really does need to happen. My siblings and I had to do this with my mom when she was in her early 80's. She didn't want to give up driving. We didn't think she should be driving at all (she had several health issues) but she didn't agree. We compromised (short of taking her keys) and said she could drive to the grocery store and drug store (both just a few blocks away and all on streets that were 35 mph or lower -- most were 25 mph) but one of us would drive her to any doctor appointments as her doctors were all 5-8 miles away and required highway driving. She was fine with that, but after a few months (and 4 months before she passed away) she said she didn't think she should be driving at all and gave her keys to my sister. We're sure *something* happened that made her change her mind. There were no dents or scratches on the car so it was either a near miss or maybe a situation where she couldn't remember where she was going or how to get there. Whatever it was, we're thankful no one else was involved.