Cheap Monthly Car Insurance

Questions and Answers

Your Questions About Cheap Monthly Car Insurance Payments

May 12, 2012

Carol asks…

im 16, minimum wage job..can i afford a car and/or insurance?

i really want a car..
used is obviously a lot cheaper.
i have a job that pays 7.15 an hour
what kind of car would i be able to
afford thats inexpensive with insurance..
(monthly payments)

and what insurance would be cheapest (rates)
if my parents ended up paying for it and i just
had to pay the car payments

Administrator answers:

Well I have to be honest with you. I Have been in the car business for over 25 years and you have one big problem. It is not your income but your age. You can not enter into a contract at the age of 16. So first you must have your parents buy the car for you and then make the payments to mom and dad. But if your parents finance the car for you and you make the payments, then this situation is called a straw purchase and I not legal. Even if you make your payments on time, if the bank finds out that it is a straw purchase they can and will reposes the car at any time. At your age just have your parents find a good economical car for a couple of grand that they can afford to pay cash for. Then if your parents are responsible, which I am sure they are, make a written agreement with them and pay them monthly. Even though your parents are financing the vehicle, it still feels great when you pay it off. Getting a first car is allot of fun, I still remember mine and I did just that. It was my grandfathers 1978 Chevy Nova and I paid my dad 100.00 a month for 8 months. I loved that car and still wish that I had it today. You will make memories in your first car no matter what it is. And no matter what it looks like, down the road from now when you are older, I promise you will look back at that car and love it. Take care.

Mark asks…

what do i need to fill out when i take over the monthly payments of my friends car that’s still in his name?

he owe’s a small credit union $7K for this car, i’m just going to take over the payments on the car, but it will still be in his name till i finish paying for it. Then he gives me the title and we transfer it to my name. The reason i can’t get the loan transfered into my name is cause i owe that bank money already from an old checking account. what do we get notarized? and how do we handle the full coverage insurance issue? does he keep it in his name and i pay him? cause for him it’s more expensive, but for me it’s cheaper, but he can’t take the insurance off cause the insurance company will alert the loan bank. does he just add me as a driver? but then how much do i pay him monthly for the insurance? someone help!
and i have already checked 27 other loan companies and nobody will loan me money, even the online ones. yes, he does have the rights, but i have the car, and that’s why we are notorizing documents to prevent any possible manipulating by either party. i’ve known him for 25 years and he’s not going anywhere, neither am i, so help with the documents if you can.

Administrator answers:

This plan is shaky for a number of reasons. But if you do proceed with it, then be sure that the whole agreement is detailed in writing, with both of your signatures notarized.

As to insurance, about the only option would be for him to add you as a driver. If you’ve got full possession of the car, then it would seem reasonable for you to pay the whole cost of the insurance.

Again, this plan isn’t a good one – leaves you both wide open to problems over it.

Robert asks…

What’s the cheapest way to buy a car?

I am going to college soon and busing will take way too much time out of my day. I would be working parttime and hopefully have some money to pay for insurance, gas and maybe even monthly payments… Whats the cheapest car out there? The best way to finance a car? I dont really want to lease one because I’d like to keep it for myself when its paid off. Are there cars out there under 12 grand new? Is that possible to get a car that cheap? Hmm… Any suggestions and stories help!

Administrator answers:

Nissan Versa

Daniel asks…

If I take out a loan to pay off a loan for a car do I still need to have to have full coverage insurance?

I recently took out a loan for a car, I want to take out another loan from another financial institution to pay off the loan for the car because my monthly payment will be cheaper. If I do this do I still have to have full coverage insurance on my vehicle? I dont know that it matters but I live in the state of Nebraska.

Administrator answers:

The only reason you would need to keep full coverage on your car is if you use if for collateral on your new loan. If your not, you don’t need full coverage.

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