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Test Drive and Credit Pull

Dustink
Valued Contributor

Re: Test Drive and Credit Pull


@boomhower wrote:

Make sure you check insurance rates before you get to deep.  A 19 year old and a Mustang is an expensive combo, even a V6.  My coworkers kids are starting to hit driving age and their insurance is doubling and tripling just by adding the kids.  Hate to see you get the car and the insurance makes it hard to make the payments.


+1

Good point.

 

If you have a clean driving record. Getting decent insurance without your parents, will run up over $300 per month. If your parents can just add you and the car to their insurance, it will be more affordable (assuming they have a clean record). 

 

Your total vehicle expense should not exceed 20% of your income. This includes payment, insurance, gas, ect. So, for this vehicle. You should be making up over $5,000 per month.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 11 of 27
hardworkpaysoff
Established Member

Re: Test Drive and Credit Pull

Already have an insurance quote, $130 a month.

 

I understand the 20% of your income thing, but iI genuinly feel it doesn't apply in my case. I don't have living expenses (rent), about 95% of my income is disposable. I've decided to wait until I have about a 40% down payment. That will make my monthly payment lower than I originally wanted, and make the banks happy. Additionally it will give my credit some time to further improve.

Latest FICO Score(s): EQ 726 (Lender, 6/13), EX 672 (Dealer, v3 Auto, 5/13), TU 702 (Dealer, Auto 04, 5/13)

U.S. Bank Cash Rewards ($1000), Capital One Visa Platinum ($750), Discover it for Students ($650), American Express Green (NPSL), DCU Visa Platinum ($3000).
Message 12 of 27
Dustink
Valued Contributor

Re: Test Drive and Credit Pull


@hardworkpaysoff wrote:

Already have an insurance quote, $130 a month.

 

I understand the 20% of your income thing, but iI genuinly feel it doesn't apply in my case. I don't have living expenses (rent), about 95% of my income is disposable. I've decided to wait until I have about a 40% down payment. That will make my monthly payment lower than I originally wanted, and make the banks happy. Additionally it will give my credit some time to further improve.


Are you quoting proper coverage's? Comp & collision with deductibles you can always afford? Is that through your parents or by yourself? If it is by yourself, are you quoting sufficient liability coverage's. State minimums are not adequate. Medical payments, uninsured motorist covered ect?

 

On my plan independent of my parents. It would be $110 per month to insure that car through USAA. With $0 comp, $500 collision, 300/500/100 liability with matching uninsured coverage's, 100k medical payments, and rental car coverage's ect.

 

$130 seems like poor coverage for an independent 19 year old. It seems proper for somebody on their parents insurance.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 13 of 27
hardworkpaysoff
Established Member

Re: Test Drive and Credit Pull

I matched the same things my parents currently carry on their cars (I am currently on their plan).

 

This is a quote by Geico, by myself, no other lines of insurance on the plan:

 

Bodily Injury: $100K/$300K

Property Damage: $50K

Medical Payments: $5K

Uninsured/Underinsured: $100K/$300K

Comprehensive: 1K deductible

Collision: 1K deductible

 

$143.64 per month, so just a tad bit over the $130 I said earlier (didn't have access to my email where the quote is.)

Latest FICO Score(s): EQ 726 (Lender, 6/13), EX 672 (Dealer, v3 Auto, 5/13), TU 702 (Dealer, Auto 04, 5/13)

U.S. Bank Cash Rewards ($1000), Capital One Visa Platinum ($750), Discover it for Students ($650), American Express Green (NPSL), DCU Visa Platinum ($3000).
Message 14 of 27
Dustink
Valued Contributor

Re: Test Drive and Credit Pull


@hardworkpaysoff wrote:

I matched the same things my parents currently carry on their cars (I am currently on their plan).

 

This is a quote by Geico, by myself, no other lines of insurance on the plan:

 

Bodily Injury: $100K/$300K

Property Damage: $50K

Medical Payments: $5K

Uninsured/Underinsured: $100K/$300K

Comprehensive: 1K deductible

Collision: 1K deductible

 

$143.64 per month, so just a tad bit over the $130 I said earlier (didn't have access to my email where the quote is.)


 

Your medical payments are very low. Even with medical insurance a deductible could be higher. What if you cause an accident with one of your friends in the car and they don't have insurance. That limit ($5,000) will be depleted very quickly, it wouldn't cover a minor fracture let alone something more. I have a $100,000 medical payments limit which would cover a severe fracture or something along those lines, but would not cover a major injury. Medical payments also pay out no matter who is at fault. So, you get hit by somebody else. They are at fault and you are injured, your medical payments will cover the injuries right away regardless of the case status. You do not need to wait years for a settlement, you are financially whole right away.

 

Your liability limits are sufficient if discoverable assets to the financially responsible party remain low. Just keep in mind future assets which can be tapped from a judgment. 100/300/50 will cover your average city speed accident, but may be exhausted from a highway speed accident or collision with an exotic vehicle. I have my limits higher because I wouldn't want a judgment looming over me if I caused a major accident. I also would want the medical bills covered if for example I hit a child who ran out in front of my car.

 

Your deductibles are very high. A $1,000 comp deductible is generally not a good idea. The cost for a lower deductible is small. For example, you hit a raccoon and it smashes the lower valance on your bumper. It will cost you $1,000 to have the insurance do anything. Or a rock tanks your headlight, unless you have separate glass coverage. You either pay out of pocket or fork over a $1,000 deductible.

 

Collision on the other hand is different. It cost a lot to lower the deductible. Your lender may require a $500 deductible. Otherwise it is up to you to run the numbers whether it is worth lowering or not. You back into a pole and are out a grand...bummer

 

I have mine set at $0 comp because it is cheap coverage and I would not want to pay anything for glass damage. $500 collision because I would only make claims for large incidences that would warrant the high deductible.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 15 of 27
hardworkpaysoff
Established Member

Re: Test Drive and Credit Pull

I appreciate your advice, it is really eye opening. I'll keep it into account. I must mention I live and drive in rural colorado, probably why the insurance is so reasonable.

Latest FICO Score(s): EQ 726 (Lender, 6/13), EX 672 (Dealer, v3 Auto, 5/13), TU 702 (Dealer, Auto 04, 5/13)

U.S. Bank Cash Rewards ($1000), Capital One Visa Platinum ($750), Discover it for Students ($650), American Express Green (NPSL), DCU Visa Platinum ($3000).
Message 16 of 27
Dustink
Valued Contributor

Re: Test Drive and Credit Pull


@hardworkpaysoff wrote:

I appreciate your advice, it is really eye opening. I'll keep it into account. I must mention I live and drive in rural colorado, probably why the insurance is so reasonable.


I lived in a rural area of Washington state and the rates were very high. I now live in San Francisco and my rates are way lower...haha odd

 

But yes, living were you do probably helps.

 

The two things I would highly recommend you change, would be the medical payments and the comp deductible. Those are both very affordable changes. For me, the difference between $250 for comp and $1000 for comp is $3 per month. The difference between $5,000 and $100,000 medical payments is $2 per month. So, in the case of my 2013 Legacy it would be $5 per month to make a pretty large difference in coverage. Collision on the other hand for me is about $9 per month to go from $1,000 to $500. So, just run the number and see what makes the most sense. 

 

If you get lots of snow, is a mustang the right car for you????

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 17 of 27
hardworkpaysoff
Established Member

Re: Test Drive and Credit Pull

I don't get too much snow where I am at, but my Hyundai has fared two winters without any difficulty without special snow tires. I'm taking into account that the mustang is RWD, so with a pair of snow tires it should serve me well. I try to be a very conservative driver. In either case, if it is really bad snow (we've had two very mild winters thus far), my mother doesn't work and I can drive one of the 4WD vehicles in the house.

Latest FICO Score(s): EQ 726 (Lender, 6/13), EX 672 (Dealer, v3 Auto, 5/13), TU 702 (Dealer, Auto 04, 5/13)

U.S. Bank Cash Rewards ($1000), Capital One Visa Platinum ($750), Discover it for Students ($650), American Express Green (NPSL), DCU Visa Platinum ($3000).
Message 18 of 27
Dustink
Valued Contributor

Re: Test Drive and Credit Pull


@hardworkpaysoff wrote:

I don't get too much snow where I am at, but my Hyundai has fared two winters without any difficulty without special snow tires. I'm taking into account that the mustang is RWD, so with a pair of snow tires it should serve me well. I try to be a very conservative driver. In either case, if it is really bad snow (we've had two very mild winters thus far), my mother doesn't work and I can drive one of the 4WD vehicles in the house.


Yes, with snow tires on it will do okay. Just be sure to put new snow tires on all four corners. Blizzaks seem to do pretty well, but check out reviews around the web and find what will work for you. If you rarely get snow, find a performance winter tire but still not an all season.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 19 of 27
hardworkpaysoff
Established Member

Re: Test Drive and Credit Pull

Okay sounds good. I'll investigate changing my #s on the insurance. If its not too much of a rate hike I'll do it for sure.

 

I'm still up in the air on financing. I need solid numbers that nobody (even lenders) can seem to provide me. Oh well, just a waiting game I guess.

 

Latest FICO Score(s): EQ 726 (Lender, 6/13), EX 672 (Dealer, v3 Auto, 5/13), TU 702 (Dealer, Auto 04, 5/13)

U.S. Bank Cash Rewards ($1000), Capital One Visa Platinum ($750), Discover it for Students ($650), American Express Green (NPSL), DCU Visa Platinum ($3000).
Message 20 of 27
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