Age 40+

[Lelandjt]

Originally Posted by mpg9999

So don't like debt either, and right now my mortgage is my only debt. I have a BRZ on order and could pay cash for it, but assuming rates are still low (I can get under 2% right now, but they are expected to rise this year), with the official inflation rate approaching 7% it may make more sense to just finance it.

Another consideration is that if you finance it you have to insure it.

[Pie]

Put enough down and you don't need to worry about gap insurance.

[LanceLane174]

[QUOTE=Lelandjt;3493847]Another consideration is that if you finance it you have to insure it.[/QUOTE

All 50 states require insurance or proof that you can pay up to 150,000 in someone's medical. If any of you have that money sitting around you would be looking at a different car.

[Tcoat]

Originally Posted by Lelandjt

Another consideration is that if you finance it you have to insure it.

There have been at least 10 people on here that over the years reduced their insurance the minute the car was paid off. Any guess what happened to them shortly after?
Whether the car is financed or not it should be fully insured. If you can't afford full insurance you can't afford the car.

[Dadhawk]

Originally Posted by LanceLane174

All 50 states require insurance or proof that you can pay up to 150,000 in someone's medical. If any of you have that money sitting around you would be looking at a different car.

Not necessarily. There are folks just on this forum that could afford a more expensive car but still buy this one (or similar). Not everyone hangs their personal self-worth on the type/price of the car they drive.

That said though, those same people are smart enough not to run without insurance. Why run that financial risk only to save maybe a few hundred dollars a year on insurance?

[ZDan]

Originally Posted by Tcoat

There have been at least 10 people on here that over the years reduced their insurance the minute the car was paid off. Any guess what happened to them shortly after?
Whether the car is financed or not it should be fully insured. If you can't afford full insurance you can't afford the car.

I disagree. The insurance company is betting you won't have an incident. You have some (not total but *some*) control over whether you have an incident. It is a false economy to live your life paying out a lot more than you should for insurance, over the years you will almost certainly come out ahead paying for minimum liability and using the money you save every single month to pay for incidents.

I don't buy track insurance either...

[ZDan]

Originally Posted by LanceLane174

All 50 states require insurance or proof that you can pay up to 150,000 in someone's medical. If any of you have that money sitting around you would be looking at a different car.

States require *liability* insurance to cover other people's loss. Banks require full coverage collision insurance to cover *their* car which you are driving.

FWIW I do have enough money sitting around to get a much more expensive car, but *if* I buy a new car this year it will be a BRZ or GR86...

[Lelandjt]

I've never had anything more than state minimum liability insurance and I've saved countless thousands of dollars. I've never damaged one of my cars. I don't insure any of my other toys either.

[Yoshoobaroo]

Originally Posted by Lelandjt

I've never had anything more than state minimum liability insurance and I've saved countless thousands of dollars. I've never damaged one of my cars. I don't insure any of my other toys either.

That’s gonna suck when a truck loses a tire in front of you or when someone rear ends you at a light without insurance. Both happened to me in the first 10 years of driving. By my math back then I was ahead vs just carrying liability and paying out of pocket for those repairs.

[ZDan]

Originally Posted by Yoshoobaroo

That’s gonna suck when a truck loses a tire in front of you or when someone rear ends you at a light without insurance. Both happened to me in the first 10 years of driving. By my math back then I was ahead vs just carrying liability and paying out of pocket for those repairs.

The odds are you *will* come out ahead carrying minimum liability. Of *course* there is a risk that something will happen and you have to pay out more than you would have "invested" in insurance. But that's vs. the *certainty* of paying out for full coverage every single month to a company that makes billions of $$$ profit because they know the odds.

[CincyJohn]

Originally Posted by Yoshoobaroo

That’s gonna suck when a truck loses a tire in front of you or when someone rear ends you at a light without insurance. Both happened to me in the first 10 years of driving. By my math back then I was ahead vs just carrying liability and paying out of pocket for those repairs.

Look, it's pretty simple math. You should only insure things that you can't easily cover on your own.

[CincyJohn]

Originally Posted by Tcoat

There have been at least 10 people on here that over the years reduced their insurance the minute the car was paid off. Any guess what happened to them shortly after?
Whether the car is financed or not it should be fully insured. If you can't afford full insurance you can't afford the car.

That makes no sense.

Cost of paying for insurance (in the aggregate) = cost of payouts + cost of administration.

Cost of self-insuring = cost of payouts.

Paying for insurance v. self-insuring are both gambles, just with different odds and different payouts.

[McMCOO]

Originally Posted by CincyJohn

Look, it's pretty simple math. You should only insure things that you can't easily cover on your own.

This^^^

A new and shiny car we keep fully insured for a few years with a high deductible because we buy with cash and don't have a lien-holder requiring full insurance. At some point we drop everything but what state law requires.

With a car that holds value or is collectable, the threshold is certainly up for negotiation.

[McMCOO]

It's kinda funny and predictable that a discussion about 40+ people driving sports cars would turn into financial planning.