Need Advice / Lease?

[TAG UR IT]

Originally Posted by Georgianne

Tag and gtahvit- you guys are way so conservative.

Originally Posted by gtahvit

lol Maybe we've learned for our earlier mistakes.

I'm not speaking for Tag, but that is exactly why I gave the advice I gave...

Now if I had missed out on something earlier in my life and lived to regret it I might give different advice. I don't have anything against your recommendation. You can defend your's and I can defend mine. Now he's heard both sides and can make an educated decision.

...and every part of it too.

We're in a pretty good situation right now. We completely live off my income. We have a house, two kiddos, two cars, and some pretty nice stuff. To top it off, we aren't scrounging the house for pennies. Sure, we have some CC debt. But, it's not like it's going to do us in. Now, add some school loans to that, a second CC, and a second car note and I'll tell ya right now, we won't be in the same comfortable situation.

I had fun back then. I bought nice things when I could. I LEARNED the value of a dollar. I just want to offer up some sound advice so someone doesn't get in over their heads before even starting out. I'm totally for having fun and living life to it's fullest. But, when it comes to the high priced stuff, you have to know when to hold'em...know when to fold'em...know when to walk away...and know when to run!

LOL...not conservative...just practical.

[jochexum]

gosadjflsadkfjsad

[Supermans]

Originally Posted by jochexum

Not good. But for a beater, pos that I'll be using to deliver pizza, insurance would only be $700 every 6 months (minimum coverage).

Never ever get minimum insurance coverage...You hit a Lexus and do even minor damage and it will cost you a fortune. If someone is injured in the other vehicle, another small fortune.. And if you are injured, well you know the story. My advice is to make sure you are covered real good incase you do get into an accident and judging by your age, it is more likely you will within the next 10 years.

1.Bodily injury liability provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you.

In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets.

Bodily injury liability covers injury to people, not your vehicle. Therefore it’s a good idea to have the same level of coverage for all of your cars.

2.Medical payments, no-fault or personal injury protection coverage usually pays for the medical expenses of the injured driver and passengers in your car. There may also be coverage if you are injured by a vehicle as a pedestrian.

3.Uninsured motorists coverage pays for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver, in a crash that is not your fault. In some states there is also uninsured motorist coverage for damage to your vehicle.

Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance.

4.Comprehensive physical damage coverage pays for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire or animals. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket.


5.Collision coverage pays for damage to your car when your car hits, or is hit by, another vehicle or other object.

To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car.


6.Property damage liability protects you if your car damages someone else’s property. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.


7.Rental reimbursement coverage pays for a rental vehicle (usually up to $25 a day) when the insured's vehicle is out of commission as a result of a loss covered under comprehensive or collision coverages.

Read these above and make sure you understand what you would be missing with minimum coverage....

[jochexum]

Originally Posted by Supermans

Never ever get minimum insurance coverage...You hit a Lexus and do even minor damage and it will cost you a fortune. If someone is injured in the other vehicle, another small fortune.. And if you are injured, well you know the story. My advice is to make sure you are covered real good incase you do get into an accident and judging by your age, it is more likely you will within the next 10 years.



Read these above and make sure you understand what you would be missing with minimum coverage....

I misspoke - when I said minimum coverage I meant no collision or comprehensive. Basically where I'm still protected, just if anything happens to my car it gets trashed

[TAG UR IT]

^Baton Rouge, eh? GEAUX TIGERS!

[stovt001]

Originally Posted by jochexum

I misspoke - when I said minimum coverage I meant no collision or comprehensive. Basically where I'm still protected, just if anything happens to my car it gets trashed

That's what I assumed you meant, because that's what I mean when I say minimum too. My fiancee has a '92 Taurus, so we have the minimum coverage for damage to the car itself (it was free anyway) but we took at least the usual recommended coverage for personal injury, damage to others, etc.

[garfin]

I'm a firm believer in maximizing one's enjoyment of having a great car by driving it! I have a sneaking suspicion that this car will be a great car that will be a ton of fun to drive and enjoy on a daily basis ... I'd want to drive mine as much as I had the opportunity to do so.

Definitely don't lose sight that 2 cars are way-y-y more expensive to maintain and operate!!

I'm sure you'll make the right decision that works best for you!

Best regardSS,

Elie

[theholycow]

Well, since the thread has already been bumped...

It almost certainly does NOT make financial sense to get two new cars and have one as a DD. In fact, it rarely makes financial sense to have a DD and a weekend car even if one or both are used.

There are some situations where it does make financial sense, and you can figure it out by using a spreadsheet with such variables as differences in fuel costs, quoted insurance costs (guesswork is totally worthless here), scheduled maintenance, modifications, loan payments, and replacement cost. For you, buying a beater DD probably won't be much better than keeping your dad's Lesabre.

As for me, my '02 GMC Sierra has 170,000 miles on it and I now commute 38 miles each way, so an inexpensive new lease makes financial sense. After figuring for all predictable expenses as described above, my '08 VW Rabbit costs me something like $180/month, which is less than I'd spend on unscheduled repairs to the truck (as well as one very expensive repair it would definitely need if I kept driving it to work) and WAY less than the cost of replacing the truck in a couple years. When the VW's lease is up, the base Camaro will be my next DD.

I also looked at the Jeep Patriot for a DD. It's cheaper to buy/lease, cheaper to insure, more practical, and more fuel efficient, but it was less comfortable, less well equipped, and slower. With that lifetime powertrain warranty, it makes a GREAT candidate for a basic transportation DD purchase.

My biggest financial mistake ever was not buying a house when the market was down. I could have bought a house for $160,000 that was sold again for almost twice as much a mere two years later. Instead, I waited three years and bought a $300,000 house. For less money, I could have had a house years sooner AND turned a profit.

I'd say buy the v6 Camaro as an only-car. Drive the Camaro and enjoy it, and don't waste money having two cars. Buy a house while the market is all messed up, and if you still want to live with your parents, rent the house out so it will mostly pay for itself while you build equity.