Buyout was $30,940. Tax, title, license included was about $32,500-$33,500. I was outside of my manufacture warranty though, and an extended warranty would have added another $3.5-$5k into that. Monthly payment was set to be $675-$750 with GAP and no warranty. So with warranty would have been easily over $800 a month. Probably closer to $850
Leasing doesnāt work for my lifestyle at all. Iām a Union carpenter that drives 96 miles a day. I will be guaranteed to go over my miles on any lease I attempt to get into.
During any large financial decision your best weapon is knowledge. Knowing your career path and propensity for mileage basic research would say buy over lease or at minimum get a cheap Honda or Toyota car fill the backseat and trunk with tools.
You got an example of where leasing is better than purchasing for 75k miles over 3 years? Or are you just waving your hands around saying generalities.
Wasnāt talking about the use case for his job, was talking about leasing in general after he said āhe would never lease againā as that statement may speak to cars beyond his current job and situation.
Up your dosage tiger.
This is a disaster all around but you live and learn.
Certainly not a good situation, but I donāt know if Iād call it a ādisasterā if OP can afford the payments.
To OP, it looks like youāre trying to make the best of a bad situation. At least youāre (edit) not making the same mistakes again. Keep an eye on interest rates and consider re-financing, if/when it makes sense to do so.
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To add to this. If you have the ability, try to put a little more towards the principal each month. Even a small amount each month will add up and cut down the term. Given your mileage, I donāt see you having this Kia for 72 months so you want to really try to get this paid off in as close to 60 months as possible (approx. 150K miles).
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Any of you CPAās out thereā¦ isnāt there some lovely area of the tax code that wouldāve help him should he buy a heavy vehicle since heās a carpenter/business owner?
Accelerated depreciation doesnāt really help much, if thatās what youāre referring to.
Wrong. Weāve seen so much worse, and most hopeful of all, OP is smart and self-aware enough to realize itās not an ideal sitch and is here to talk about it.
In my book, that deserves praise and not derision. Everyone screws up, far fewer attempt to stop screwing up.
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As a union member, your allowed to borrow money from your annuity and return it back with no interest
Diesel van will come handy, for work and side jobs
Man you drive a lot, what are the miles going to look like on this KIA after 3 years when you still owe another 3 years of payments? If youāre looking at 100k miles in 3 years and youāre still going to owe 70 percent of your loan, I would highly recommend doubling up on payments. In the future try to not take out long term auto loans. Pay cash if you can. I know itās easier said than done but you can save a lot of money and not be in these situations.
72 months is 6 years, so it should be 50% left
So you are paying about $56K for a vehicle that cost what, $30K? You are locked into this vehicle for the next 6 years or you will be in the same upside down situation. It sounds like you did not really have much choice with the lease coming to an end. You had to get out of the lease or pay $10K and have nothing. You may have been able to lease a Jeep Grand Cherokee 4xe for the same cost. Where are you going to carry all your carpenter tools?
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Iām planning to get my wife and Iās credit scores above 800 by paying down our debts, then refinancing it into a 4 or 5 year loan with my carpenterās credit union. I may have been able to get into another lease, but that would just be pushing my problem down the road another 3 years and Iād find myself over on my mileage again. I plan to drive this car into the ground. At the rate I drive I can get 8-10 years out of it if I keep up on the oil changes and maintenance. Nice thing is the 20yr/200k powertrain warranty and 10yr/100k warranty on everything else on the vehicle. So engine and transmission I should be able to drive it 8 years guaranteed. with electronics and everything, I should be able to get 4 years until Iāll be paying for any repairs out of my pocket. Wife and I plan to pay off all of our debts outside of mortgage and vehicle loans so that we can make bigger payments on our vehicles.
Thatās assuming Kia agrees that whatever happened is covered under the warranty. Make sure to do all the recommended service on time and keep the service documents.
Is Kia known for not honoring repairs that should be covered under warranty?