New car recommendations + to buy or lease?

[firstbaby]

My van which is 9 years old needs a repair that is half the value of the car. Sigh...DH just got a new job last week but was out of work for 6 months, so we are still getting our footing. Here are the choices that come to mind for me, but I'd welcome other options / opinions, etc. Our oldest will be driving in 4 years so we are trying to keep that in mind, but not making it a primary consideration. We are a family of 5 and I'm trying to reconcile want vs need with wanting a vehicle that will fit more than 5 so we can bring kids' friends along occasionally but daily I need it to carry 4 or 5 of us.

1) We can lease a car with nothing down and have it for 3 years. Payments are managable. Don't love the idea of starting over with another car in 3 years - especially with oldest close to driving - but the payments are manageable and would not have to worry about repairs.
2) Buy a car now that is new, but not as big or nice as what we have today (Toyota Sienna). Like a "just get around" car - bare bones
3) Buy something used from a private party - not as inclined to do that because nervous about unseen repairs that need to be made
4) Wait a few months and do nothing today.

4 was my first thought after finding out about the repair. The van still drives but will not pass emissions and it could lose power while driving so while DH is working from home, we would need to consolidate vehicles and only drive the van when necessary. I'm now feeling less inclined to do that because I've had errands to run the last couple of days while DH was out and it was not fun to put that off.

Thoughts? What vehicles would you recommend we consider to hold more than 5 and ideally AWD or 4WD?

[legaleagle]

Curious about why you're not open to buying used from dealer/carmax?

[PZMommy]

I would not drive a car that could possibly lose power while driving. That is a huge safety risk, and not one I'd be willing to take. My van once lost power while driving as I was turning at a major intersection, and I was not able to steer the car. It is nothing short of a miracle that we were not hit and killed!!

I'm not a fan of leasing as if you go over the miles or have any damage to it, you will pay more in the end. Plus you have nothing to show for it after paying for three years. That said many people like to lease cars.

I'd see about buying a previously owned car from a dealership. They are not as expensive as buying new, but they will come with a warranty and have to pass inspection before being sold.

[abh5e8]

What year is the sienna? And how many miles? Toyotas can go forever. Honestly, I'd pay for the repairs. Finance then if you need to. Pay them off as fast as possible, then start saving for a replacement. You can enjoy the space now, when you need it.

[candaceb]

Another option is certified used from a dealer. That is what we did when in a similar situation last year.

[khm]

What year is the sienna? And how many miles? Toyotas can go forever. Honestly, I'd pay for the repairs. Finance then if you need to. Pay them off as fast as possible, then start saving for a replacement. You can enjoy the space now, when you need it.

Yeah I wouldn't completely dismiss the idea of repairing the minivan. A couple grand and you could be set for awhile. Have you tried independent shops?

[AnnieW625]

What is the repair? If it is emissions related I would be nervous about that especially since a 9 yr. old and well maintained car should still be able to pass smog.

Agree with the others that you might want to find an independent shop.

How many miles are on the van? If it is less than 100k then I would definitely look at doing the repair as long as they can guarantee it will pass smog at a later date. If it is 150k+ then I might consider a trade in or buying from Carmax, Hertz, Enterprise, and financing it (less the money you would be putting down for the repair). I would consider a Dodge, Kia, or Chrysler mini van if you don't think you will need the van long term. You could always sell or trade in the van in a few years if you decide that you want a new "nicer" Sienna once you have more income to do so.

[niccig]

We had same thing happen with DH's 11 year old car back in March. We were waiting until I started work in September to get him a new car. We put the money into the repair as once repaired it would be fine for the next couple of years. We will push off the car purchase to make the repair costs worth it, and bonus for DH we should be in better spot in a couple of years that he may get a nicer car out of it - well, at least that's what I said to convince him to do the repair. It turned out to be the right decision as he was laid off in October, and while he did pick up freelance work easily, not having a monthly car payment right now is a nice buffer for us.

[KrisM]

I'd likely do the repair. Call around for a price and maybe another opinion.

I would not drive it either if it might lose power. My alternator went out while I was on the highway and it was the scariest thing losing power and all accessories, etc. Sitting on the side of the highway waiting on a tow was not fun either.

[westwoodmom04]

how many miles will you put on car per year?

[firstbaby]

OP here, thanks for the advice and feedback so far. To answer a couple of questions, it has 125k miles on it. I was told that the catalytic converter in the front and the back is the problem and would cost $2800 to repair. I think the van is probably worth $6k total and we just put $1700 in it in October, so the idea of putting $4500 into a car over the last 2 months is starting to feel a little silly.

The van is a 2006, so milage wise I think a lease would work. DH just started working from home and got a new car that holds the 5 of us right before he was laid off, so we could use his car as our "main" vehicle but I think I would really miss not being able to car pool with extra kids, etc.

Part of my hesitation is that I don't know that I want a mini van for 5+ more years but it works the best for us *right now*. However, since we tend to hold on to our cars for a LONG time the lease is a little enticing bc it bridges the next three years for us. But then to not have anything to show for 3 years of payments...Sigh...

If I had a crystal ball that I could spend the $ on the repair and it would hold us over for a year or two I would do it. But, DH feels like the van is crossing over into money pit and we had been talking about replacing it in April or May.

[AnnieW625]

Are you sure your van is only worth $6k? I would think it has to be worth at least $10k. A few years ago my 2006 Honda Pilot with the same amount of miles on it was worth at least $12k if we sold private party and I would have taken between 10k-12k from a dealer who would have tried to sell it for at least $15k.

You aren't going to be able to sell your car private party of the catalytic converter doesn't work I would think (this could depend on your state's smog rules) so if you really want a newer van I would consider trading in at the dealer and buying used (or certified) from the dealer. You might have been luck price wise using Carmax, Enterprise, or Hertz, but I don't know if Carmax will buy a car that needs a catalytic converter fixed. I would also check the new prices for some vans (maybe not fully loaded) using an auto buying site like Costco as well; Costco lists the invoice price on their website and you don't need to be a member to see it. Costco dealers will sell the car under invoice, and you get that price after you drive the car at the dealer. You can then take that price to other dealers and see if they will beat it.

I wouldn't lease unless you can write off the car as a business expense.

[bigsis]

I'm in the same situation as you, but my van is even older--14 yrs old. My DD will be driving in 4 years too.

However, since we tend to hold on to our cars for a LONG time the lease is a little enticing bc it bridges the next three years for us. But then to not have anything to show for 3 years of payments...Sigh....
This is why I'm so against leasing, it's like renting a car. After you pay thousands of dollars, you have to give the car back and you're lucky if they don't charge for mileage overage, dents, etc.

I'm much more inclined to repair the car. And FWIW, 9 yrs old is not ancient for a Toyota.

[niccig]

You aren't going to be able to sell your car private party of the catalytic converter doesn't work I would think (this could depend on your state's smog rules) so if you really want a newer van I would consider trading in at the dealer and buying used (or certified) from the dealer.

You may not get much for the van if you don't do the repair. We were in same situation. If we didn't do the repair, we wouldn't have gotten much for trade-in/sale. It's a tough call. For us, we were told if we did the repair we would easily get another 1-2 years and that made it worth it as having a payment for 2 years was less than the repair. I suppose it depends on if anything else needs to be done.

Is this repair quote from a dealer? Years ago we were told about expensive repair in our old car, but an independent mechanic did it much cheaper, we then we traded it in to another dealer about 6 months later for much more than would've gotten without the repair and it made the repair cost worth it.