Cheap Monthly Car Insurance

Questions and Answers

Your Questions About Cheap Monthly Car Insurance Payments

March 28, 2013

Betty asks…

Is it possible to get a decent car for under $2,000? Any ideas of where to look besides craigslist?

I really need a car because I live in area with limited public transportation and I started a new job so I have to wait 3 months for financing on a used car? Any ideas?

Administrator answers:

You really don’t get very much for less than $2000 anymore. Cash for clunkers dried up the beater car market.

Try the classified section of your local newspaper. Some local newspapers will publish their classified section on their website. Some areas have local auto shopper magazines with vehicles for sale in their area. You usually find these auto shopper magazines at filling stations and convenience stores.

For $2000 this car will be a beater. Drive it very easily. Baby it. Hopefully you can get it to last a few months without needing to spend too much money on repairs.

Try not spending too much money fixing up this car. However don’t neglect it either. If it needs an oil change, do an oil change. Keep up with safety items. If it needs tires, get some cheap tires. If it needs windshield wipers, get some windshield wipers. If it needs brakes, get brakes. Etc. Just don’t go crazy trying to restore this old car. You could easily drop a lot of money into fixing up a beater that you won’t be driving all that long anyway.

Also, in the mean time do this. Figure out what your loan payments will be on your next car. Figure on the high side for your interest rate because I bet that you more than likely do not have much of a credit rating established yet. There are several auto loan calculators that can help you with this. I add a link to get you started. Take this money and put it in the bank as a car fund. When you get a loan for a car the lender will always require you carry full coverage insurance. Make a few calls to some local insurance agents. List some cars that would be within your budget and get some insurance estimates. Take the monthly insurance premium amount and put this in your car fund. Start making these payments to yourself starting today. Don’t cheat. If you can not afford to do this you can not afford to buy another car. This will help ou with your down payment.

If you are lucky your beater will last you long enough until you are established at your job to secure an auto loan. You can sell this beater. If you are lucky you may not even lose all that much money. You can use that money to put towards your next car.

David asks…

How much should i spend on a car if i make 35k a year?

I make $35,000 a year and I am looking at a car i configured to be $39,355 or $482/month. Would this be practical for me to afford?
the 482 is what it said on Ford’s website after i configured it. Its a Ford Edge Limited with DVD players
i also have an 06 charger trade-in with 135k miles.

Administrator answers:

Wrong thinking. You are immediately saying you have dirt in the bank because you start with the monthly number. Cars depreciate fast, insurance is high, and price of gasoline now will eat at your wallet. $35,000 a year is not a lot of money, and you should be saving to buy a car for cash instead of owing more on it when its time to sell it. The primary use is transportation. Highways in the US are limited to about 70 mph, and traffic in cities and traffic lights has most driving at low speed. If you start with a cheaper car and start banking the difference, the next car you buy for cash.
Don’t know the size and type of car you are looking for.
A Hyundai Sonata 2.0T LTD is $30,000 plus tax unnegotiated Not sure where you are getting your $484 from. Buying a 39, 355 car in 48 payments at 1.9% APR is $866 a month unless talking a lease with no residual value and who knows what else in payments having nothing after 4 years. A $30,000 car you buy on payments on a special loan is $650 a month and you can keep it after the 4 years or use the value towards the next car. $538 a month for 60 months or $468 on 72 months.
I show the Sonata as an example, as the LTD version has enough features, gets 22/34 mpg as city and highway, has 274 horsepower and under 6 secs 0-60mph
Personally, I skip the financing, save the money for a cash purchase and find the best used car I could for $10,000 while saving for the next car.

Linda asks…

What is the est way to buy a motorcycle?

I am 16, about to be 17. I have to drive about 30 minutes to work as well as share a car with my cousin, so i figured that it would be in my best interest to buy a motorcycle. I was thinking about getting a Ninja since I have heard they are great beginner bikes. I have not yet gotten my bike license, but I plan to do so soon. If anyone could give me any advice as to the best way to go about purchasing a motorcycle I would appreciate it. Should I buy a new one from the dealer? Should I get one off ebay or something? About how much would monthly payments and insurance be? Etc…Thanks!
Not to be rude, but i didnt ask if i should buy a bike or not, I said I am going to and wanted to know the best way to go about doing so. I’m not going to not get one just because i have a chance of getting hurt, I dont plan on living my life in the fear of what could happen.

Administrator answers:

Buy used and cheap so that when you crash it you have not wasted all of you cash

Lisa asks…

Should I get a new car or keep my older car?

I have a 1993 Toyota Camry with 200,000 miles. The only problems so far is the rear mount which cause my care to vibrate really bad, need oil pan gasket, valve covers, and rings replaced. The problem is I not sure how much longer it will last.. I have an option of purchasing a 2005 Pontiac Grand Am with 33,000 miles. I really don’t want a car payment but I am trying to rebuild my credit after BK. I have 4 children and I want to make sure that I have a dependable car.

Administrator answers:

Any car can break down. I think the time to get a new car is when it is not safe to drive the old one thats the first thing. Next when you find that you are repeatedly paying more into repairs then the amount you would spend on a monthly payment of a new car.
I would also suggest you check out the cost of full insurance on the next car before you buy. I have been in taxi cars with over 500,000 km on them . So long as it meets the above requirement then keep the old thing going dont count routine matainence in the monthly cost ie oil change lube so on
if you keep the old one going and have many new parts on it you should either remove as many of the old parts as you can before sending it to the wreckers or keep it around and take parts off as needed . See the next car you get may as well be of the same kind since you have many new parts . Parts are not cheap and you can save lots doing this.

Robert asks…

Am I doing the right thing with my husbands bad debt?

My husband has $20,000 in debt in occurred before we got together.12,000 of it is past due things he has stopped paying on, the other $8,000 is his car. I want to sale the car and get a junker for $1,000 or so. Then get a personal loan under my name because I have good credit and pay off the $12,000. We will take the money we would normally use on his car insurance (a junker will be a lot cheaper) and car payment towards the new loan. Is this the best way to go about it? Any advise?

Administrator answers:

I do not think so .. Let him keep his car and as long as he makes enough money on a monthly basis to maintance it I would let that be. I suggest putting him on a budget or insisting he gets a second job till the bad debt is paid in full..

Good luck!

Carol asks…

How much money should I make to own my own 3 bedroom house in Massachusetts?

I am single and looking to buy a 3 to 4 bedroom house or multi-family in the suburbs of Boston. I am looking to buy cheap and have about 15K available for a down payment. I would rent out the excess bedrooms.

How much should my salary be? How would I calculate the total annual costs of running the house(insurance, repairs, taxes etc.)? Would it be a better idea to have a 3-4 bedroom or a duplex?

Administrator answers:

Check out www.hud.gov and www.fha.gov These website have tons of helpful information.

If you feel you’re ready to buy a home, you need to consider if you can afford to buy one. You don’t want to overextend yourself to the point that you can’t keep up with your mortgage payments and risk losing your home.

Evaluating your current expenses
Most first time home buyers find that after the monthly mortgage payment, moving costs, immediate repairs, property tax, and insurance, they find that the amount is higher than their previous rent.

If you have money left over at the end of each month after paying your bills, you’re probably able to buy a house. If not, budgeting your money could allow you to cover the cost of homeownership.

Most expenses are fixed such as car payments, taxes, insurance. Others are flexible, meaning you decide how much money will be spent on them, such as entertainment and clothes.

Determining how essential it is to own a home is very important. Would you be willing to postpone some purchases, and spend less in other areas?

A good measuring stick to see if your ready to buy a home is to put aside the amount of money you would be willing to pay a month over the cost of your current housing cost. If you can do this, you’re probably ready to buy a home.

Just remember that if you can’t cover the mortgage and other housing cost each month, you could lose your home.

Go to this link from the HUD website (US Department of Housing and Urban Development)

http://www.hud.gov/buying/index.cfm

The basis is if you feel you are ready after reading the above and figuring out the worksheet that is on the website, than speak to a broker. One that does FHA – where the rates are still very good, and FHA will go up to 97 percent of the loan amount, and there is the MyCommunity100 program (yes, it is still offered) and Freddie Mac has a 100 program also.

Collections and judgements have to be paid in full, if you have any one your credit. Get a helpful loan officer, manager to help you figure things out. And good luck to you.

Ken asks…

How much money should you make a month to buy a decent sport bike?

I am 18 and never bought a bike and i want one. I want to get either a used cbr600 or gsxr600 from 04′-07′. But how much should your monthly income be to buy such a bike?

Administrator answers:

Motorcycles are a lot cheaper to keep and maintain than vehicles. Here in the state of Florida you do not need to carry insurance to drive them. The tags and registration are cheaper to register than vehicles. And motorcycles are usually way better on gas than most all vehicles on the road today. Although used motorcycles are sometimes harder to finance than used motorcycles. But if you can find a 600cc bike for $5K-$6K then your monthly payments would be around $80-$90 per month. A good rule of thumb to find a ballpark for your monthly payments is $16 per thousand dollar borrowed. A $6,000 loan would run you about $96 per month.

Keep in mind it is a LOT harder to use a motorcycle as your sole transportation because you run into a lot of different challenges. Groceries are hard to carry home on a motorcycle. It is hard to go out to social events that require you to dress up on a motorcycle. And it also becomes challenging to ride in inclimate weather ie. Rain, cold, snow, ice, etc…

However the rewards can be worth it. Parking is a LOT easier with a motorcycle and a lot of times makes traffic a lot easier as well. You save a lot of money on gas. And you also have some fun out of otherwise boring commutes. I have a motorcycle and a car and I did an experiment for 2 weeks where I parked my car and only used my motorcycle for my transportation needs. It is a lot harder than it sounds.

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