Job offer on Maui (leases, transfer, buying)

[davephan]

Originally Posted by Weaubleau

Wow, only $40K, in MAUI??? I would say no. Suggestions above of eating only one meal per day should be telling. I would think for a single person $60k would’ve be the bare minimum for a lower middle class lifestyle on Maui.

Most people can’t or are unwilling to eat one meal a day. I do it for improved health reasons. I agree with you that $40K would be way too low income on Maui, unless you live with a roommate or two, save nothing for the future, live hand to mouth, and be broke all the time, on the edge of homelessness.

It depends on what kind of standard of living you want in life. It would take at least $100K a year for the standard of living I’m used to living (which isn’t that high) in Maui.

Most people don’t think about the future. The vast majority of Americans saved little to nothing for retirement. There’s a lot of debate how much you need to save for retirement. Many people think that the number is about $1M per person for a comfortable retirement. That’s going to be impossible for most people that live in Hawaii during their working years, since the pay is so low for most jobs, and the cost of living is so high. Most people can’t save that much on the mainland.

Of course, you could live very inexpensively in Hawaii if you’re willing to be homeless, eat out of garbage cans, and collect soda cans on the ground and from garbage cans for spare pocket change. I saw people like that in Hawaii wandering around in a daze.

[whtviper1]

At the end of the day, at least 1/3 of Maui residents make $40K or less - so, it obviously can be done.

[hotzcatz]

That $1M also assumes no other income than interest off the $1M?

The trouble with blanket assumptions like that is that most everyone has a different situation and will have different requirements. Some folks need more than other folks to be 'comfortable', for one point. Some folks have a pension, some folks have their healthcare paid for, some folks have their houses paid for, etc., etc.

[Molokai100]

Originally Posted by davephan

It depends on what kind of standard of living you want in life. It would take at least $100K a year for the standard of living I’m used to living (which isn’t that high)

Of course, you could live very inexpensively in Hawaii if you’re willing to be homeless, eat out of garbage cans, and collect soda cans on the ground and from garbage cans for spare pocket change. I saw people like that in Hawaii wandering around in a daze.

This is an example of extreme hyperbole. I see this on CD regularly almost universally by people who dont live here. This notion that Hawaii is so expensive that unless you are wealthy, life here is a financial death spiral.
Funny how i can save over 15% for retirement, have my house nearly paid off and even dabble in the stock market on a yearly income in the $80K range. I live inexpensively and i am not homeless, nor do i eat out of garbage bins. I'll admit to walking around in a daze once in awhile and recycling my cans.

$40K is on the edge though (for Maui especially) because rent is astronomically high there. What i have found on the outer islands (all of them) is a poor used car market. That mythical Japanese sedan with low miles in great mechanical shape for under $3000 will be snapped up so quick you'd have to be super lucky to get one. More than likey it will be sold to a friend or family member so you wont even know its for sale. There are quite a few POS's for sale though in the lower $$ range. People trying to get rid of problems.
If your current vehicle is a solid mechanical specimen...ship it. Another option is searching for a used vehicle on Oahu which has a much better used car inventory.

[teeej]

If your current vehicle is a solid mechanical specimen...ship it. Another option is searching for a used vehicle on Oahu which has a much better used car inventory.

Honestly, I decided it's best to just lease a cheap new car like a Honda Civic, Hyundai Elantra, Kia Forte, etc. Selling my car before I move will more than pay for the first year of a lease, and I can just turn the car in after the lease is done. The insurance is going to be more expensive on a newer car, but no big deal.

I would never bother leasing anywhere else, but the manufacturers set the lease prices nationally, while with a purchase, there's obviously much less competition and I probably wouldn't find as good of a deal on purchase vs. say Phoenix, AZ where there is like 10 Honda dealers in the metro.

[Molokai100]

Thats certainly one way to do it It does seem you would be selling your car to effectively rent a car for a year. When the dust clears your driveway will be empty.
The lease must be $300 plus per month so thats $3600 per year
Shipping will be $1200 or so and thats a one time cost. It would also be pretty easy to sell here if was in sound condition. Good luck either way!

[teeej]

Originally Posted by Molokai100

Thats certainly one way to do it It does seem you would be selling your car to effectively rent a car for a year. When the dust clears your driveway will be empty.
The lease must be $300 plus per month so thats $3600 per year
Shipping will be $1200 or so and thats a one time cost. It would also be pretty easy to sell here if was in sound condition. Good luck either way!

2018 civics are currently leasing for $189/mo. Kia has 2 year leases which might be better.

My car is 8 years old so I would probably be due to buy a new car in a few years anyway if I wasn't moving.

[2sleepy]

Go for it, it will be an adventure. My husband did the same thing many years ago, he lived and worked on Maui for two years and only left when he said that he got cabin fever, or I guess you might call it island fever.

[davephan]

Originally Posted by teeej

2018 civics are currently leasing for $189/mo. Kia has 2 year leases which might be better.

My car is 8 years old so I would probably be due to buy a new car in a few years anyway if I wasn't moving.

I've always stayed away from car leases because usually car leases are pretty toxic, like time shares.

Before you sign the lease, you should check to see if it is allowed to ship the car to or from Hawaii, depending on where you lease the car. I have heard before that shipping leased cars from the mainland to Hawaii is not allowed. I do not know for certain if that is true.

For example, if you lease the car on the mainland, is it allowed to ship the car to Hawaii? Or, if you lease the car in Hawaii, are you allowed to ship the car to the mainland? What happens if you are like many who move to Hawaii and have to move back to the mainland after 1 year? If the car can't be shipped back to the mainland, do you have to buy out the rest of the lease? Or, do you have to pay to have the car shipped to where ever you leased the car, at the end of the lease?

[whtviper1]

Originally Posted by davephan

I've always stayed away from car leases because usually car leases are pretty toxic, like time shares.

Before you sign the lease, you should check to see if it is allowed to ship the car to or from Hawaii, depending on where you lease the car. I have heard before that shipping leased cars from the mainland to Hawaii is not allowed. I do not know for certain if that is true.

For example, if you lease the car on the mainland, is it allowed to ship the car to Hawaii? Or, if you lease the car in Hawaii, are you allowed to ship the car to the mainland? What happens if you are like many who move to Hawaii and have to move back to the mainland after 1 year? If the car can't be shipped back to the mainland, do you have to buy out the rest of the lease? Or, do you have to pay to have the car shipped to where ever you leased the car, at the end of the lease?

So - not all leases are toxic, you can get easily calculate the lease factor, similar to APR, which they need to provide to you. You also want a car that has a high residual value - since the lease essentially pays the purchase price down to the residual value when you sell the car.

With that said - I assume the op would just lease the car in Hawaii - so not sure what this shipping thing is all about.

However, from an informational point - you can essentially ship any leased vehicle to Hawaii from the Mainland. Matson doesn't care - if it is registered in your name, they'll ship it. The problem is, at least in the past, since I ran into with Lexus, is getting license plates is an issue when due, they wont give the required release you need as the lien holder to give you notarized permission to get the plates. Specifically, Lexus on the mainland is Lexus of North America - Lexus in Hawaii is Lexus of Japan. You also have the hassle of transferring warranties. All the above is exempted if military.