Car Totalled

[Sales71]

Kia a very cheap in fixing than Benz or BMW that's why used German cars a cheap because cost of care is very high. My next car is a Kia.

 

[NCAgent]

I see this as a common misconception just because people don't think of financing a car in the way that the dealership and leinholder do.

Imagine that you borrow a friend's lawnmower and someone vandalized and destroyed it. Your friend is going to get the money back and he can buy a new lawnmower, or at least a replacement one. However, you are stuck now because your friend got the money but now you have no item to mow the lawn and you are back to square one.

Financing a car is the same way; you are basically "borrowing it" while you are paying it off, which is why you have a leinholder on it. When the car gets destroyed, the owner (the leinholder) gets their money because it was their car. However, you are back at square one. And it sucks because now you are in a difficult position despite the fact that someone else screwed up and you weren't at fault. This is also how a lot of people feel when they get ACV for a car and can no longer find a maintained, working car in decent condition for the cash value they got.

Yeah it sucks, but the car wasn't yours so the rightful owner got paid. I use these terms loosely but I hope you understand where it is coming from. Gap coverage is nice but replacement coverage on the car (where they find you a new car, some companies offer it) would be a better bet for the future if you insist on buying newer cars like that.

Of course, I just like to buy my car cash or only finance 25-40% of it at the most. YMMV.

 

[Tiger8]

The lesson to learn is QUIT buying new cars. Quit getting loans for more than your payoff. Quit needing GAP insurance which is SUCKERS insurance.

I fully disagree. Before my current car I had two used cars, I ended up paying $6K in repairs and what not, used cars have a history, and the car fax, mileage, maintenance records are just part of it. There is no way in hell for you to know if the previous owner(s) were rough drivers, left it standing in the sun, etc...

On the other hand, I don't think buying a new car is wise either as it looses more value than you think (unless you are a small business owner and can deduct depreciation, espcially nowadays with bonus depreciation!).

Best solution? LEASE A CAR. The car will depreciate but it will be someone else's problem. I discovered that my used Ford Focus ended up costing me a net of $6K over 2.5 year, I could have leased a newer better car for $200 a month and it would have cost me the same, woudl have driven a better car for same money, with a lot more peace of mind knowing that the car is covered under full warranty (Never lease a car for a term beyond its 3 years / 36K bumper to bumper warranty)

I lost faith in all material assets. If at all possible, always make sure it is someone else's problem. Rent, lease, and keep your money in the bank.

 

[Newby]

I fully disagree. Before my current car I had two used cars, I ended up paying $6K in repairs and what not, used cars have a history, and the car fax, mileage, maintenance records are just part of it. There is no way in hell for you to know if the previous owner(s) were rough drivers, left it standing in the sun, etc...
Best solution? LEASE A CAR. The car will depreciate but it will be someone else's problem. I discovered that my used Ford Focus ended up costing me a net of $6K over 2.5 year, I could have leased a newer better car for $200 a month and it money, with a lot more peace of mind knowing that the car is covered under full warranty (Never lease a car for a term beyond its 3 years / 36K bumper to bumper warranty)sure it is someone else's problem. Rent, lease, and keep your money in the bank.

Goes against all logic but you have the right to do anything you want.

I would suggest that if you don't know how to check out a car that you pay a good mechanic to do it. Buy a GOOD used car.

 

[Tiger8]

Goes against all logic but you have the right to do anything you want.

I would suggest that if you don't know how to check out a car that you pay a good mechanic to do it. Buy a GOOD used car.

I know it goes against any conventional logic, but unfortunately it is the truth. Only in America! I bought not one, but TWO used cars, they came with clean carfax, inspected by a mechanic and all systems go. Both cars, particularly the second one (Ford Focus, Consumer Reports recommended!) spent more time at the mechanic than in my possession.

Once the car was sold and I crunched the numbers, I realized that used cars might cost less upfront, but you will be paying that amount in mechanic visits. There is a reason why a car depreciates as soon as its driven off the lot, it's because it is now USED.

Lease my friend, at $200 - $300 a month you can get a nice car, enjoy it while new and fully covered under warranty, and then give it back and walk away. Heck, you don't even need to maintain it beyond changing oil and filters.

Leasing also has a huge often overlooked advantage: TAXES! You save on taxes. When you buy a $20K car, you pay your state sales tax (NJ: 7% : $1400). When you lease that same car, and say its residual value is $11K in three years, you pay taxes on only $9K, immediately saving $770, just like that.

 

[VolAgent]

I know it goes against any conventional logic, but unfortunately it is the truth. Only in America! I bought not one, but TWO used cars, they came with clean carfax, inspected by a mechanic and all systems go. Both cars, particularly the second one (Ford Focus, Consumer Reports recommended!) spent more time at the mechanic than in my possession.

Once the car was sold and I crunched the numbers, I realized that used cars might cost less upfront, but you will be paying that amount in mechanic visits. There is a reason why a car depreciates as soon as its driven off the lot, it's because it is now USED.

Lease my friend, at $200 - $300 a month you can get a nice car, enjoy it while new and fully covered under warranty, and then give it back and walk away. Heck, you don't even need to maintain it beyond changing oil and filters.

Leasing also has a huge often overlooked advantage: TAXES! You save on taxes. When you buy a $20K car, you pay your state sales tax (NJ: 7% : $1400). When you lease that same car, and say its residual value is $11K in three years, you pay taxes on only $9K, immediately saving $770, just like that.

You have a point that is worth further examining. A car is a depreciating asset, at least a daily driver. As it will be worth less in the future than it is now, no reason to pay any more for it than you have to. If you are going to be in a new car every 3 to 5 years, its worth crunching the numbers to see if ownership or lease is better. Particularly if you are going to finance.

 

[moneymaker1]

The moment before the car was wrecked, you had a $12,000 car. The purpose of insurance is to indemnify those who have suffered a loss. (To make whole again...it's like hitting the re-set button...puts things back the way they were before the incident occured.)

So by following the definition of "indemnity", the insurance company is only going to give you what you had at the moment of loss, not what you initially started out with.

I hope that helps and don't worry - it wasn't a stupid question. You didn't understand and that's why you asked...no worries.

Good luck.

 

[senior-advisor-indiana]

The moment before the car was wrecked, you had a $12,000 car. The purpose of insurance is to indemnify those who have suffered a loss. (To make whole again...it's like hitting the re-set button...puts things back the way they were before the incident occured.)

So by following the definition of "indemnity", the insurance company is only going to give you what you had at the moment of loss, not what you initially started out with.

I hope that helps and don't worry - it wasn't a stupid question. You didn't understand and that's why you asked...no worries.

Good luck.

Actualy the moment before he wrecked, he had a $7,500 car with a $12,000 loan.

 

[Guest]

Actualy the moment before he wrecked, he had a $7,500 car with a $12,000 loan.

 

[jkapoor3]

yeah definitely your insurance company will help you.... that is why they are..... google it for more information, you will definitely get some help online......