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Smart Shopper Percentage of monthly income spent on a car?
390 messages, Last post on Mar 21, 2009 at 5:50 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: joesmith2 (Mar 06, 2008 7:00 am) I never have any claims, so it's free money for them. In that case, one wonders why you bother to have insurance. Oh, that's right, it's compulsory. Just be aware that one day when you do file a claim it will likely be denied when the insurance company discoveres your true mileage.  tidester, host SUVs and Smart Shopper
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Replying to: tidester (Mar 06, 2008 11:01 am) |
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Replying to: joesmith2 (Mar 06, 2008 7:00 am) 4) Tell your insurance company your car is for "Farm Use". I used to work for GMAC Insurance, and rates are lowest for "Farm Use" vehicles. Just because you don't live on a farm doesn't mean you can't say Farm Use. I know farmers who live in apartments, they store their equipment on a farm somewhere and hire themselves and their equipment out. << Reminds me of a young lady that I used to work with a decade ago. She lived in the city but registered her vehicle at her parents' house in the healthy suburbs which saved her about 50% in insurance costs. Well, she parked her car in the wrong area and the car was flooded out one rainy night. Total loss - $12k. She would have gotten away with it if she would have kept her mouth shut. However, she told everybody at work about the situation and how "pulled one over on the insurance company." Somehow, the insurance company found out, assigned surveillance, and eventually declined the claim. |
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Replying to: jlawrence01 (Mar 06, 2008 2:05 pm) 
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Sorry I just can't agree with the never finance a car. It depends on your financial situation and what interest rates are doing right now. Our brand is running 3.9 APR on certain CPO vehicles right now up to the 2004 MY. That is an insane rate on a four year old car so you get the bonus of buying a car that has already depreciated by half or more then half, it is under warranty for two or three years and the interest rate is well below what you can earn in a decent money market account or CD.
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| ...if all you want is an underinsured beater subcompact. I can picture our frugal pal looking a lot like the guy in the "Free Credit Report" TV commercial driving the beat-up blue Geo Metro that stalls at the stoplight as two girls in a convertible laugh at him. The only difference is he'd have a stellar credit rating. | |
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Replying to: joesmith2 (Mar 06, 2008 2:51 pm) Wow! Fraud x2. A federal offense, too! Nice work!
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Replying to: qbrozen (Mar 07, 2008 8:17 am) |
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Replying to: british_rover (Mar 06, 2008 3:36 pm) You must have missed the recent plunge in interest rates, you are pretty unlikely to earn 3.9% in those safe investments right now. My MM is down to about 3.6%. Then you would have to pay tax on whatever you do earn, so even though you could earn fairly close to 3.9%, the after-tax yield would be well below the 3.9%, that you would be paying (with after-tax dollars) on the loan. That said, if somone does not have the cash, that rate would be a good deal...assuming you are not charging an inflated price for the car, to offset the discounted interest rate..
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Replying to: jeffyscott (Mar 07, 2008 12:44 pm) I also doubt rates will stay this low for long. You are better off to lock in the low interest rate for 3, 4 or 5 years then hang onto your cash to put into better investments later then tying up thousands of dollars in a depreciating asset. The 3.9% comes from the manufacturer as part of the CPO program so it is independent of the price of the vehicle as long as it meets the CPO guidelines.
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