Marioshi

Well I appreciate you giving me credit for something, I don't get a lot of respect around here, mostly because I drive a Corvette I think.

I also bought my corvette for reasons of practicality, have you seen that trunk???

Mr.E.G.

Why would I buy gap insurance if I'm not financing the car? I appreciate your input, I really do, but I'm not sure I agree with you.


I would love an IS-F. I don't much care for Lexus interior (comparatively speaking, obviously they're a step up from my Civic), but the rest of that car appeals to me so much that I could live with the interior. However, they are still far more than I want to spend. My goal is to pay in the upper 20s.

Ultimately, this car could blow up in my driveway while uninsured, and it still wouldn't create any financial hardship that would alter the course of my life.

Mr.E.G.

I have a lot of respect for you.

There certainly is a fair amount of Corvette hatred on this site (and in the world at large), but people who spend more money for slower cars have to do something with their time when their Nazi sled is in for repairs.

I kid, I kid.

But, yes, #dattrunk.

Mr.E.G.

It's been brought to my attention that I'm being kind of a dick in this thread. I'm sorry, fellas. I didn't realize I was getting my jimmies rustled so badly. I really do appreciate the suggestions. I just like to argue and over-scrutinize everything. Apologies all around.

Bullwings

Partial down payment, partial finance. Money is cheap (right now). I'm pre-approved for an auto loan through my federal credit union at 1.49% for up to $50k.

Buying a $30k car? Put $10k on a credit card (or whatever dealer maximum is), get the points - pay off immediately (obviously). Finance $20k. Invest $15k in something super conservative (that is likely able to return 3-4%), save $5k for rainy day/repair fund? I'm sure you can get better returns than 1.49% on that $20k.

Financing is not a tool to buy more than you can afford, but one for getting the most bang for your buck. I'm sure these are all things you're aware of, but those are my reasons for financing even if I can buy outright - doesn't make sense (to me), especially not when interest rates are below 2%. You also get to keep your money some what liquid should you require it up front, rather than try to move a non-liquid asset (like your car). I'm sure you have other "liquidish" assets available, but this only adds to it.

Also, check your insurance policy, you might already have gap insurance as standard coverage (mine does).

Cheers!

That is how it works in Canada. I have only been in USA for 2 years. How does it work in the USA?

JonBoy

In Canada, insurance pays you for retail value, not wholesale.

I've never had any insurer try and pay wholesale. It doesn't make sense. They are supposed to "make you whole" and that means providing you the replacement value of the vehicle based on the market in which you live and to which you have access. That generally means what you'd pay a car lot/dealership, not a private seller.

The wholesale value is not part of the market typically available to a car owner.

s.hasan546

This. The point of insurance is so if your car is totaled, you should get a check for what it would cost to buy the same exact car with almost the same amount of miles and condition.

Rules are different by state, but for the most part they have to go by retail price in your area (this is the part that is different by state). Certain states have a radius; etc.

Mr.E.G.

Yeah, our law firm doesn't ever help people with property damage claims, because the insurance carrier will always (because they literally have to) offer fair replacement or repair value. There are some firms that take fees on that, but they're literally helping themselves to their client's money, which is not cool. When it comes to injury claims, all bets are off, there is no law that says they have to pay you anything, and it's 100% negotiable. Naturally, that's what people need a lawyer for (if their injury is significant; if you have a minor injury, just take the nuisance value and don't waste everyone's time). I love nothing more than talking to prospective clients who are looking for a second opinion and telling them how they can make their current firm reimburse them for the fees taken on the property damage claim. In Texas, an attorney can't charge fees unless he can justify it, and you can't justify taking fees on something that the insurance carrier literally has to pay for. Now, if someone gets an unfair denial and they lawyer up, that's different, of course.

Mr.E.G.

Well, I have to say that there is a huge difference between Cadillac dealers and Acura dealers. The Acura dealerships in my area are all very straightforward. When I bought my wife's RDX, we did everything over the phone, and there were no surprises. I walked in, wrote a check, and left. My whole ethos about car buying is that I don't get sucked into the dick measuring vortex. I contact several dealerships who all have cars I'm interested in and I tell them that I'll buy from the first one to send me an itemized sales invoice with a price I like. Some dealers tell me they won't play and others will try to outbid one another. I've done this before for myself and numerous friends and family members. The time spent in the dealership is less than an hour.

I have failed at this twice, now. Last Saturday I went in just to test drive a car, and the next thing I know I'm arguing with the guy over the price. Today, I called a dealer in town and arranged for the salesman to drive the car to my office for a test drive. Everything went fine and we reached a deal. I showed up, check in hand, and they announced that they were adding over $1,000 worth of processing fees, doc fees, window tint warranty, etc. that they just forgot to tell me about. Normally, I would just walk as soon as this happens. But for some inexplicable reason I decided to sit down with a liar and explain to him that I think he's a liar. This took an hour and a half of time I didn't have to spare.

In any event, Cadillac dealers, thus far, are all willing to be stereotypical scumbag salesmen. Just really tacky crap. I blame myself for indulging them even for a second. I know better than that. I was just so pissed that I drove through traffic to sign paperwork, only to find that they wanted to change the deal, that I was too fired up to not give him a piece of my mind.