Quote:
Originally Posted by redpoint5
I'm always on the fence about financing cars. If the rates are extremely low, then generally the stock market will outperform the finance charges you're paying.
On the other hand, when you finance a car, the lender requires full coverage insurance, which is much more expensive than liability only.
|
That really depends on the car and the person.
My 2017 Bolt was valued at $24,000 when I purchased it. My insurance for the Bolt is $282 every 6 months. Of that $32 is Comprehensive and $89 is Collision so I would save $242 a year to drop full coverage and go to liability only. It seems quite foolish to me to risk $23,000 to save $242.
Now if I was an 18 year old with a bunch of tickets trying to insure a Corvette - that might add up to some decent savings to drop full coverage.