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My boyfriend and I are planning to move out together to Los Angeles at the end of the summer/early fall. We've been together for over 6 years so it's serious. We are best friends and do have plans to get married, but we don't see the rush in it.
We are planning on taking one car between the two of us out there, and I have the best vehicle of the two of ours. Mine is a 2003 Mini Cooper in great shape. His is a large van made in the 1970's - it's cool but not practical! I think the Mini would be a good vehicle out there because the gas mileage is good, it's small and therefore easier to park, and it's professional yet fun.
Since we're going to be sharing it, who pays? The big thing that worries me is the car is almost 10 years old and has over 80,000 miles on it. If it breaks down or needs repairs, who should pay for it? Do we split costs down the middle? Is it a better idea to trade my car in and buy a new car between the two of us, sharing all costs associated with the new car? Or is this too big of a mess and my boyfriend should just get himself a new car and we'll take two out there with us?
Location: ๏̯͡๏﴿ Gwinnett-That's a Civil Matter-County
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Well if you agree to share it, then it's only fair that you split all the expenses. ALL of them.
80k is a lot of miles for what is essentially a BMW. I don't know from Minis but if they're anywhere near as expensive to repair as BMW are, then I'd be sure to budget extra for repairs. I don't see how buying a new car will make it any easier to share expenses unless the car you got is costing a fortune in maintenance, gas and insurance which doesn't sound like it's the case. I'd keep the one you got until it starts becoming unreliable.
Well if you agree to share it, then it's only fair that you split all the expenses. ALL of them.
80k is a lot of miles for what is essentially a BMW. I don't know from Minis but if they're anywhere near as expensive to repair as BMW are, then I'd be sure to budget extra for repairs. I don't see how buying a new car will make it any easier to share expenses unless the car you got is costing a fortune in maintenance, gas and insurance which doesn't sound like it's the case. I'd keep the one you got until it starts becoming unreliable.
Thanks for the advice. No, haven't had to do any major repairs. *knock on wood* But if we do, is it right to ask my boyfriend for 1/2 of the repair bills when it's my car, not his, and when I do eventually sell it someday, he won't be getting any money from that? Are 1/2 of all repair/maintenance costs basically just "rent" for him to be using my car?
Good luck on your move! we did it from MI-CA a couple years ago. We had to do the same thing, I sold my car and we took his. We took turns putting gas in it and we alternate who makes the repairs/does maintenance too....usually it's me since I have more cash flow...but if we did sell it we would split the money, so I'm not sure if that helps (or more likely, use it to buy a new car and just share it). So we did alternate, but he says at this point he considers it as much my car as his since we have both sunk quite a bit of cash into it.
Location: ๏̯͡๏﴿ Gwinnett-That's a Civil Matter-County
2,118 posts, read 6,379,057 times
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Quote:
Originally Posted by TheKiwi
is it right to ask my boyfriend for 1/2 of the repair bills when it's my car, not his, and when I do eventually sell it someday, he won't be getting any money from that?
Absolutely. You bought it without his help. It's your asset to sell.
Repairs are definitely part of the expenses you should split.
Quote:
Originally Posted by TheKiwi
Are 1/2 of all repair/maintenance costs basically just "rent" for him to be using my car?
A better way to look at it is driving the car leads to wear & tear. The IRS actually has a cost per mile rate based on the cost of owning a vehicle that businesses can deduct as an expense. If you're both using the car fairly equally then both of you are contributing to wear and tear and the costs of owning the vehicle are therefor by and large equal.
I would highly suggest that you write up an agreement that says that you will be sharing all expenses. To be paid monthly by a certain date. You can make an exception for unreasonable wear and tear such as if one of you goes to the market with the car and gets in a wreck, the person who wrecked the car pays for all of the insurance deductible or all of the repairs. You wouldn't share that.
You can also allow either party to terminate the agreement with a reasonable amount of notice, say 30 days. Otherwise it will automatically renew every month.
Edit: In addition, if you want, you can state that by entering the agreement, your bf retains no interest or ownership of the vehicle. (assuming it's your mini and not his van) OR, if you'd prefer to work it out differently, you can do that. But whatever you do, put it in writing. Personally, I think since the person that owns the car is doing the other person a favor and assuming a great deal of risk, that they should sweeten the deal. Perhaps have your BF take the car in for a car wash every other week at his expense.
My boyfriend and I are planning to move out together to Los Angeles at the end of the summer/early fall. We've been together for over 6 years so it's serious. We are best friends and do have plans to get married, but we don't see the rush in it.
We are planning on taking one car between the two of us out there, and I have the best vehicle of the two of ours. Mine is a 2003 Mini Cooper in great shape. His is a large van made in the 1970's - it's cool but not practical! I think the Mini would be a good vehicle out there because the gas mileage is good, it's small and therefore easier to park, and it's professional yet fun.
Since we're going to be sharing it, who pays? The big thing that worries me is the car is almost 10 years old and has over 80,000 miles on it. If it breaks down or needs repairs, who should pay for it? Do we split costs down the middle? Is it a better idea to trade my car in and buy a new car between the two of us, sharing all costs associated with the new car? Or is this too big of a mess and my boyfriend should just get himself a new car and we'll take two out there with us?
Probably best to take one, split all the expenses, then buy another car out there.
Either that or just keep the Mini, and split the car expenses getting out there, and all the expenses when there, if you don't need two.
Sometimes splitting everything 50/50 is advantageous to the person who has more income. In a relationship a person's ability to do more should be considered.
If we split all expense 50/50, it wouldn't really be fair at all. My income is about 2.5x hers. So I would consider income in the mix.
Here's what happens at our place: she moved into a house I had already bought. I pay the mortgage. She pays the household utilities (water, sewer, electric, gas, etc) which probably add up to around 1/3 as much as the mortgage. We did each have cars for a while, but we decided we so rarely need two cars that we could get by with one. The one we kept is mine (I've had it since new, we both like it, it's old but worth more to me because I know all its maintenance vs selling it with high miles). I happen to pay the car maintenance (there is no car payment). We used to alternate gas, but I'm the one with the rewards credit card so we just make it up elsewhere. Other stuff is just switched off here and there (food), or we each buy our own (clothes, etc.), and we have surprisingly few concerns along those lines. Dunno, works for us, maybe not for everyone.
If you need two cars, get another car when out there, but do you really need two cars? If not, it's a big waste! Sounds like you were ready to try with just one. No need to switch from that plan just to make the accounting come out easier.
I think if things are pretty even, and you are getting equal benefit from the single car, then if a large car expense comes up you might consider splitting the expense. Similarly, if you decide to replace the car with another one, even though it's "your" car, you would be sharing that cost too. There is no payment on this car is there? If so, no reason that shouldn't also be shared at this point, I would think. But there are certainly some variables in there if incomes are wildly different, I would say.
OP we're actually fine with just one car. I don't know where in LA you'll end up but we are in the burbs and still fine with one car. I know people who live in LA with no car and they manage (I don't recommend this though). From someone who's been there...food for thought for you. You will save a lot if you can manage with only one car.
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Other stuff is just switched off here and there (food), or we each buy our own (clothes, etc.), and we have surprisingly few concerns along those lines. Dunno, works for us, maybe not for everyone.
