Submitted by octotron3000 t3_10p3dhx in personalfinance
CookieAdventure t1_j6i82os wrote
You’re going to basic, not prison. People use their cars when they are in the service. You will get a chance to go home. Put the loan and your insurance on auto-pay. Your expenses will be low so you should be able to afford it.
Shortlemon4 t1_j6i9b1h wrote
No he’s trying to get that 22% interest rate challenger after basics, he’s needs this car gone! /s
But I mean you never know, you might not need it depending on where you go.
Inle-rah t1_j6iahju wrote
Wow, the interest rates went down at the car dealerships off-base. TIL
abramcpg t1_j6luuha wrote
For you, my friend, 22%. It's half off. I'm losing money here but I can tell you're smart and a good person so I'll make this deal for you
Additional-Local8721 t1_j6iaghk wrote
SCRA takes care of the rate
octotron3000 OP t1_j6iasdz wrote
Lmao your funny. I wouldn't have got this car if I knew I was going into the service.
Shortlemon4 t1_j6ib1d2 wrote
But for real, your best bet might be carmax. They usually offer the most. My friend used to be a car salesperson and she always told everyone to go sell their cars there and then come back to her instead of trading it in right then and there.
And good luck in basics!
looncraz t1_j6il2rt wrote
CarMax is also super fast, you can usually get it done in a couple hours.
flowerbutt00 t1_j6iswxi wrote
Were you drafted?
octotron3000 OP t1_j6itfww wrote
I can't tell if this is serious or sarcasm, but no I volunteered but the reality of it didn't set in until I got my ship date after meps, I just think this car is going to be a waster of time and money once I start my life somewhere else, plus I won't need a car in a submarine.
flowerbutt00 t1_j6itz9r wrote
You didn’t need a new car at your age, period. A great thing about the service is the financial counselling — take advantage of it. Learn from the mistakes of millions of servicemembers who messed up before you.
CookieAdventure t1_j6iuysp wrote
You won’t need a vehicle when you’re on a sub but you won’t be at sea for the entire 2 years. You do get a break. You can store the vehicle. Yes, it was a stupid purchase but, if you can’t afford to sell it now, your option is to store it and pay down the loan. The upside is once you get access to it again, it’ll be really low mileage for its age.
KDBurnerTrey5 t1_j6ixa1q wrote
This is why I’d tend to keep it. Especially if you have someone who you can trust keep it in their garage and get it out and running every now and then the car should be mint, with good value still when you return from basic training.
[deleted] t1_j6j05if wrote
[removed]
octotron3000 OP t1_j6ivtao wrote
Good points, thank you for your feedback, I have a hard time seeing the bright side something, I just didn't want to be tempted to waste my enlistment bonus, it just seems like insurance is always a rip off, I know I need it incase something happens but nothing ever happens.
CookieAdventure t1_j6iwqm2 wrote
I don’t know which deployment port you’ll be in, but all sorts of things can happen while it is in storage, especially if you’re on the gulf or east coast. Your insurance should drop because you won’t be driving it but it still needs to be covered for damage. Ask a mechanic what you have to do to store it properly if you can’t leave it with someone who can drive it occasionally.
octotron3000 OP t1_j6ixqni wrote
The only problem is the gap insurance will not cover another driver.
CookieAdventure t1_j6iy7h4 wrote
Your other driver should own their own vehicle and have their insurance. If they cause damage while driving then their insurance covers the car.
octotron3000 OP t1_j6izedt wrote
Even if it's only their car in their insurance, or do I need to put them on my insurance and they pit my car on theirs???
CookieAdventure t1_j6j069r wrote
Auto insurance covers you as a driver … any car you drive is insured if you cause damage while insured and auto insurance covers damage to your car.
You don’t need to do anything except let your insurance agent know that the vehicle is in storage. If the car is going to be in storage (garaged) in another state, they need to know, too. Vehicle insurance doesn’t usually move states.
octotron3000 OP t1_j6j1zt3 wrote
Does it make a difference if it needs full coverage because its new?
CookieAdventure t1_j6j2q6u wrote
Not really. Your vehicle isn’t “new”.
Your vehicle has comprehensive on it. That part of your insurance policy pays to repair your vehicle if it is damaged. You need that even if it is in storage. If a tornado goes through while you’re deployed, the vehicle is covered (more or less).
Then there is liability coverage. That is the part of the policy that covers you and damage you cause. Talk to your insurance agent for more details.
The gap insurance is an add-on to your policy that helps you to pay off your loan if the vehicle is totaled. Soon you won’t need to keep that.
TheVaneOne t1_j6jfski wrote
Are you with USAA? Most of their customers are service members and they can advise you as to what to do as far as insurance. When we shipped our car, they had us drop the standard insurance and we only payed a fraction. You could do something similar for the months you're not driving it, during basic and when underway.
octotron3000 OP t1_j6jlljp wrote
I'm with geico and I'm still a young male so my insurance is normally expensive.
TheVaneOne t1_j6jmfk4 wrote
I don't know when you can join USAA, but I'd try them. Because they work with service members they can probably get you a better deal, also look at refinancing through them, I think you mentioned a 14% rate? They might be able to beat that, and knowing that you'll have stable income for the next few years makes a difference in rates.
octotron3000 OP t1_j6kkgm9 wrote
So once I refinance with someone else, they take over my loan all together?
TheVaneOne t1_j6ma2gk wrote
Basically, you call up the new place, say hey I've got a shitty loan, can you beat it? They say yes or no. If it's yes, they basically pay off the old loan, and you pay them now, hopefully with a better interest rate. Might cost a fee, but if you can't sell it right now, then this will at least save you money in interest and lower your monthly payment. You could still pay it down enough to sell it, but it's up to you. Doesn't hurt to call.
CapeMOGuy t1_j6m3njp wrote
Assuming US, the draft ended in 1973.
curtludwig t1_j6kerkh wrote
$350/mo insurance.
My mind boggles...
CookieAdventure t1_j6kkdyt wrote
Young, single guy … seemed reasonable
octotron3000 OP t1_j6ktr92 wrote
I shopped between 3 companies and geico claimed this was the best they could do, do I need to be more aggressive on the phone with insurance?
goofy_griddle t1_j6kv0q2 wrote
Honestly if you’re less than 25yo, that number would be reasonable/considered average. Have you been in any accidents ever (while you were driving)? Any speeding tickets? That would drive your rate up as well.
octotron3000 OP t1_j6kw3y9 wrote
I'm 25 in VA, I've had accidents and tickets before but right now I have nothing that shows up on my driving record and I have +5, progressive wanted 550 for the same deal I'm getting with geico.
goofy_griddle t1_j6kwtg0 wrote
So yeah, your insurance rate is reasonable and you likely won’t find anything cheaper in the near future. If you keep a clean driving record for the next year, you can contact your agent again to see if they would reduce the rate then.
octotron3000 OP t1_j6kxilv wrote
Before I got my liscence I was under the impression that a males insurance didn't go down until 21, then when I turned 21 I learned it was 24, when I turned 24 I learned it was 27, will it ever go down for good?
goofy_griddle t1_j6kxwlw wrote
Only if you maintain a clean driving record for good
octotron3000 OP t1_j6kz0vp wrote
Dang it, no more temptations for sidewalk driving or bumper cars?
curtludwig t1_j6kz6bc wrote
The magic number used to be 26. When I turned 26 my insurance dropped like $1000 a year.
Keep your nose clean though, your insurance company cares what you've done longer than the police do.
octotron3000 OP t1_j6l0a4u wrote
Thank you for light at the end of the tunnel, I hate insurance so much, I was always told nobody wins until there is a total loss. Little scared to take that risk...
curtludwig t1_j6n4hth wrote
It depends on your area too but a lot on your age and keeping a clean nose. Don't get tickets, they're easy to avoid.
In my mid '40s, 2 drivers on the plan, 3 cars, something like $1500/yr living out in the country. It definitely gets better.
octotron3000 OP t1_j6nvh6x wrote
That's actually pretty good, yeah I don't have a problem either simply obeying the law, it just seems like it's going to take forever for that to get here.
curtludwig t1_j6o2t4u wrote
Be careful what you wish for. 26 was a hard year for me, I'd already gotten married, passed the drinking age, voting age, gotten my license. Getting cheaper insurance was the last age related milestone I could see...
octotron3000 OP t1_j6o9yv1 wrote
That's OK how much better could I really get, I belive the next milestones would be prostate exam and aarp magazines?
octotron3000 OP t1_j6oa2vj wrote
Life is pretty melancholy regardless the age it's like lettuce it's already pretty bad but gets worse with time.
adamthebeast t1_j6lxnnj wrote
It's definitely just the accidents and tickets. I'm 27, totally clean record, I drive a truck with a value of around 25k my insurance is like $120.
Money-Coach-0167 t1_j6l2yfl wrote
MONTHLY?!
mutierend t1_j6ln77y wrote
That's more than the insurance for a Ferrari I used to own.
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