Appreciate the advice: need 1 car for extra year, currently have 2

Ask the Hackrs
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Greetings,

Summoning the experts here for advice. Will try to keep the story “short”:

Starts July 2019 in GA, needed two cars for 3 years. Before knowing about LH I leased my wife an XC90 inscription T6 AWD ($775 w/ wear and tear, tire protect, $775 drive off). Then I saw the light here and found an XC60 MOM T5 FWD ($405 w wear and tear, tax, $405 drive off).

Now I got offered to stay an extra year (until June 2023) but will be moving to Pittsburgh this June.

Hoping to downsize to one car with a lower payment than the XC90 (hoping to start a family soon, $400’s would be great). The problem is that is around $3k under ($45k Carvana vs $48K payoff). My XC60 is almost breaking even now. Musts to keep the wife happy are: midsize or larger, 360 camera w sensors, no dark interiors. I want AWD (first time around snow).

The options I see most feasible are:
1- Get a 24/12 lease from here to July (May/June in GA, July in PA) but will need to transfer that neg equity to the car. Tested the CX9, she liked the Carbon more than the Grand Touring colors🤷🏾‍♂️. Any other good SUV alternatives this month?

2- Continue paying the XC90 (maybe forgo the extras to get a cheaper monthly) and then try swapa to find something for a year (risky).

Anything else I am missing? Many thanks!

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There are no great alternatives in anything this month, generally speaking.

If you’re trying to save money and do something somewhat financially responsible then dumping negative equity into another deal that will most likely be so-so at best doesn’t make any sense.

Based on what you’re looking for it seems like your current XC90 checks most of the boxes, why not just keep that and sell the XC60?

Then, in 2022, if you just need a car for 1 year I would just buy something lightly used to drive for a year then just sell it in 2023.

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Thanks for the reply. I’m with you, none of the ideas above appeal to me very much, hence the reason for the post.

The plan is to lower the monthly payment so my wife could take a job that allow her more time for mom duties.

We had a less than ideal selling experience out last time around so was hoping to avoid that. But I’ll do it again if I have to.

This is giving me some ideas, so thanks!

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Have you thought about a purchase? You can get a GMC Acadia for about $10k off sticker price.

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You’re already upside down, and any lease transaction will compound that (so you’ll pay rent, and tax on the rent, for any money you roll-in), before you add-in TTL. And you’re trying to get into something at the worst possible time.

Why not unload the XC90, pay-off the negative, and keep the XC60 until you are at least moved?

If you are trying to accomplish this with a lease (threading a needle at best with this timeline), a Volvo lease is one of the worst choices (a TFS lease with Mazda is better, but they are not leasing especially well).

Which is great, but until you do that you have some time. Who knows, you might not get the good news before June 2023?

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I’m sure there are plenty of cars in Pittsburgh that are not AWD. If they plow the roads then it’s not a major concern till you get your next lease IMO.

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Went to see it. In the expensive side for the amenities (42-45k at the dealer I went). CX9 much nicer interiors. But thanks!

I was thinking the other way around as suggested above. With the current vehicle scarcity I might be able to get a little more for it? Today I was quoted 48K on kbb. Getting closer!

It’s a possibility, but let’s hope is not the case!

Pretty sure there are some, and from my research a good set of tires is more important than AWD. It’s more security for the wife, I feel I can manage well on adverse weather (lots of rain where I’m from).

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You are paying $370/mo more for the XC90. That difference pays off the negative in just under 9 months (the total payment savings in 4). You want to drive this recurring financial mistake another 18-ish months — to avoid putting snow tires on the XC60?

Through the magic of a upside-down car market, you are (right now) wayyyyyyyy less upside-down than you should be. I would eject from the XC90 tomorrow if possible.

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I would also unload the XC90 as suggested above, if I were you. Especially if you don’t need a second car like you mentioned. Every month you will keep paying $775 plus insurance. I wouldn’t bet on your car’s value to be higher in the future. Payoff the $3k and move on.

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Oh no; I thought I might be able to get closer to break even by July, when a 24/12 would take me towards June 2023. But I like your logic more, so thanks! Truly appreciate the help.

Will do; I still need two cars until June 18th, but the XC90 will go. Thanks!

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