To change or not?

[RAubry]

Alright guys here's my small dilema. I've got a nice VW golf 2.5 2012. It's a least and it's coming up to term in a year, (April 2016). Now my options: 1. Buy the car after the lease is up ~12,000$ CAD. (It currently has 52,000km). 2. Give up the car and use the 12,000$ I will have saved up for a down payment on a new car (which also means another 4 years of monthly payments). Now the sane guy in me says "buy the car you idiot", and the stupid guy in me says "you've got a solid job and you can afford a better car". I was thinking maybe a mk7 GTI or a summer car like maybe a BRZ or FRS with a winter beater. But I'd like to hear from the community on a good car 30-38k CAD. New or very slightly used with a warranty still. I'd love audi and bmw's but they are a tad expensive on the insurance so what are your thoughts?

[toplessvw]

Re: To change or not?

I would day do what ever keeps you happy, my practical side says there are way better things to spend your money on like investments, housing, paying off any dept you currently have.

[RAubry]

Re: To change or not?

I agree housing would be smart, but I haven't put down my roots as of yet. I don't know if i'll be staying in Calgary my whole life. I hardly have any debts (none with the bank at least). Investments will come along shortly as well. I already have some money set aside for that. This would be the extra gravy. I guess it's a question of extra gravy or exciting car..

[Danaldson]

Re: To change or not?

personally i would say give the car back and use the money for a down payment on another car. I can't see a 2.5 mk6 being worth too much soon.

[witchcraftz]

Re: To change or not?

From my previous calculations, I found that buying the car at the end of a lease then selling it was usually the better way to go as you usually buy it for less than you can sell it for. You'll have to figure out if your car fits this scenario.

If it does then you have to decide on keeping or reselling and leasing/buying again.

[flipstah]

Re: To change or not?

If you don't want the car, why keep it? Just return the lease and use the $12k onto something else.

Or if you feel confident enough, buy it out and flip it in the used market but you have to know how to do it. I don't because I finance.

Housing is only great if you feel like Calgary is 'home'. I grew up here and see myself staying here for at least 5 years, so I bought here to build a foundation.

$30-38k can buy you a lot of car, especially in the used market but if you have to borrow that much cash, then new is the way to go.

BRZ is slow. My brother has one and I age as I wait for the revs.

[miketweedie]

Re: To change or not?

A basic autotrader search seems to show average asking price of 15K. Depending on how good your luck is, and what the market does between now and then, you could hypothetically sell for a 3k profit. One would wager that you could also use this as negotiating power on a trade-in, should you be so inclined. Personally, I would walk. The value of the golf is only going one direction from here, and the likelihood of being able to make a quick sale is slim.

my 2 cents.

[longsock]

Re: To change or not?

Give it back and put that $ towards either a new or slightly used car. Tons of options for the price range you're willing to pay/finance.

[flipstah]

Re: To change or not?

A basic autotrader search seems to show average asking price of 15K. Depending on how good your luck is, and what the market does between now and then, you could hypothetically sell for a 3k profit. One would wager that you could also use this as negotiating power on a trade-in, should you be so inclined. Personally, I would walk. The value of the golf is only going one direction from here, and the likelihood of being able to make a quick sale is slim.

my 2 cents.

What is said here. It's opportunity cost. You could sell for a profit but it could take longer. If want a quick sale, or okay with breaking even or slight loss, then just give up the lease and spend money elsewhere.

[kujiwara]

Re: To change or not?

Are you attached to the car emotionally? If you're not you should consider Danny's words, if you are then keep driving and modding.

[bobkatkat]

Re: To change or not?

April 2016?? You have a long time to think about it. No sense looking at autotrader today to predict what the retail resale value will in a year. today Shaky economic times now will likely be worse in a year. No indication that Oil will recover in a year (or 10). If the trend remains the same you will have a lot of bargaining power for a new car in a year or even to renegotiate your existing lease. Or sell it and buy a pickup, tools and fix-er-uper foreclosure.

[RAubry]

Re: To change or not?

Yeah I know it's in a while, but I was thinking, planning ahead can't hurt, but you are 100% right in saying we don't know what the economy will be like in the next year or so. I was/am not a very big gambler and the only time's i've gambled i've lost. Haha, guess it's not my thing. But I will probably take your advice and give the car back to volks, and go on the hunt for something else. By then I may have saved up a couple more thousand bucks than the 12k$ I need for the buyout.

I am not emotionally attached to the car per say, but you're first car is always a bit special. I'm sure all of you are still fond of your first cars, no matter what they were.

Thanks for the input!