i have never had full coverage on my cars and i wont its pointless for me , may b not you but i dont care…and i can pay the loan …why the fuck would i take a loan out i cant pay for
How much is the car worth? I know you’re talking a $2500 loan, but what are you actually paying for the car?
I wouldn’t put collision on a $2500 car if I was young and my insurance was really high. When I was young and driving $2500 cars collision was almost an extra grand a year, so it was easy to say “fuck it, if I total it I buy a new car, otherwise I’ll just pay for the repairs myself and still probably be ahead in the long run”. I paid cash, so it wasn’t like I would be stuck paying on something that was wrecked. In your case it sounds like you only need to loan until you sell your current car, so that’s similar. A $5000 car though and then collision starts making sense. If you’re being honest with yourself about paying off the loan in a month or so, I’d just get the personal loan and make sure there is no early payoff penalty.
yea its a 95 teg for 3000$ …and yea if i got a loan i would pay if off as soon as my mx sold, but year theres a 100$ fee for early termination but thats nothing…if i can sell my car fast enough i wont even need to get a loan
you only have 500 bucks cash?
this is a bad idea. you can quote me on this when you’re posting up later about all your problems.
Just don’t crash… What a great idea! I’m going to go cancel my insurance because I’m just going to plan on not crashing!
Although it sounds like it might not be a terrible idea to not have full coverage on your car, your justifications are, um, lacking.
Nobody plans on crashing. Even if you have the worldly driving experience of a 19-20 year old, shit happens… and it always seems to happen when you bet the farm on it not happening.
actually, my leinholder was pretty picky. I just changed my coverage to geico, and chose a 1000 collission deductible. They gave me a call and told me I had to change it ASAP to 500 or less.
Basically they want to reduce their risk of you wrecking the car and not being able to afford to fix it, and defaulting on the loan.
Insurance is pretty cheap, the max insurance over state mininum was the difference of like 30 bucks a month in my case.
@3000 I’d start to debate putting collision on it too. Things to consider:
-
Will you actually get $2500 for your car. Sometimes when people really want to buy a new car they over-estimate what their current ride is really worth to help justify the budget. If there is any chance you’re not going to pay the loan off put the collision on for now and just take it off when the loan is paid in full.
-
How much will collision cost you per year? If it’s $1000, then it’s pretty hard to justify on a $3000 car. You can repair quite a bit for $1000, at least when you’re only repairing it to $3000 car standards (aka, do it yourself, junk yard parts etc). $1000 at a collision shop on the other hand will almost cover getting hit by a shopping cart, so if you plan to have any damage professionally repaired collision is a real good idea.
:cjerk:
I didn’t read all of the other posts, but in case this hasn’t been mentioned:
the 95 teg is #5 on the most stolen cars (http://autos.msn.com/advice/article.aspx?contentid=2891)
Liability won’t cover theft…
That’s ok, he just won’t have it stolen. :cjerk:
You have no idea how interest on a loan work’s, do you?
Do you, because he’s right if he takes a personal loan and pays it off, assuming no early payoff fee.
Example:
I take a loan for $2000 at 10% for 24 months. A simple closed end loan, fixed rate, no insurance or disability etc. Aka… your typical personal loan.
My loan payment would be $92.29.
Total cost of the loan if I only make my $92.29 payments for 24 months: $214.96
If I took the loan today my first payment in Oct would have $75.62 go to principal, and $16.67 go to interest. If I then paid the loan off, I’d have to write a check for $1924.38.
Now some loans will hit you with an early payoff fee because they want you to keep the loan for the term, so they get their interest money.
http://www.bankrate.com/brm/popcalc2.asp
That’s a decent calculator that will allow you to see the amortization table.
theres a good chance you would need a personal loan for this situation. banks dont like to do loans on cars that old, as the condition/value of the car at that age is anybodys guess. if they needed to repo it theyd likely lose their ass on the loan. anything thats much over 5 years old, unless its a higher end car, will be hard to get a car loan on.
youre going to take a beating interest rate wise regardless as compared to the rate youd get on a new/newer car loan.
If you have good credit, you can take out a personal loan. I’ve done it for a race trailer and an airplane, but i recomend insurance.
how important is this car to you? don’t say you are going to be careful. things happen to even the best drivers. sometimes there is mechanical failure that is beyond your control. I have experienced this first hand. If i didn’t have 2 cars at the time i wreaked the audi, i would have been up the creek without a paddle.
no i dont only have 500 to pay a loan off…thats all i have right now …i planned on paying the rest of the loan off once i sold my car,it would have been just because i dont have time to wait to sell my car before the teg im buyin is sold to someone else ,yea my insurance would be like almost a 2000$ increase, and to me its not worth it cause yea like u said im not driving a brand new car anything i could hopefully piece it back from a junkyard or on here if anything ever happend, and yea i kno tegs are on the top ten stolen list, i plan on keeping it in my garage locked in west seneca, not the west side and i have an alarm that would wake the whole street up , …actually i do kno how interest works on loans thats why i called the fuckin bank and asked what the interest would be on a personal loan , and i found out about the 100$ early termination fee ,which is nothing,…and i kno its better off with full coverage but seein as i dont have it now and never have, im not getting it , not on a car this old, if i bought like a new car then i would but im not gonna have full coverage on a car thats almost 12 years old.no one i kno ever has full coverage, when your 18 and dont work full time cause of school thats alot of money , sorry but id rather take the chance and use my money somewhere else…it dont matter anymore im not taking a loan out some guy from the paper wants my car so i dont need to .
If anyone on this board dies of a brain hemorrhage in the next day or so I’m blaming that last post.
It’s called the shift key. You use it when you type the first letter of the first word in a sentence.
sorry i wasnt planning on publishing my response in a book or anything…haha