Saving Up for a GT350

[random155]

$700 banked this month

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[A_Bau3]

Im curious to hear what proper, full insurance coverage will cost you per month. I had to learn the lesson the hard way when I was 22 and bought a relatively cheap, new SUV. I paid $400 a month for full coverage on my own policy.

It was right around $214 as the primary driver under the family plan (State Farm). And just something to keep in mind, having insurance in Wisconsin is much cheaper compared to many states.

 

[MikeMM]

I will share my personal experience with my 350 because maybe something in my rambling will be of value to you lol. I was in a position to put away $1500 a month until May this year when I literally couldn't stand to wait any longer. I ended up with about $15k so I put 10K down on the car, 4K into the registration and sales tax (Vermont has a 6% tax), and the other grand went to ceramic coat and paint correction. I ended up talking the dealer down to 59K for a new 2017, and ended up going through Navy Fed for the remaining 49K. I'm making huge payments to pay off the car sooner, so I'm looking at $950 a month for it. When it came to insurance, I ended up going with a small insurance firm the next state over, and I pay all of $80 a month for full coverage. I'm 24, unmarried and have a relatively clean driving record (my last ticket was in 2012). I get some discounts because I have 2 houses and 2 cars with the company, so I save a lot by bundling. But even that considered, this little firm blew the big guys like Geico, Nationwide, USAA etc. out of the water by +/- 60%.

So the best advice I can give you is the following:

Down payments are extremely helpful, especially if you have bad/questionable credit. This gives you a lot more leverage with the bank because you can demonstrate you can afford the payments, save money, be responsible, etc.

If you're impatient (like me), stretching out the loan term and trying to knock the interest rate down for a lower payment may be effective for getting the monthly cost into your budget range.

Making accelerated/additional payments and/or refinancing on a longer loan term will likely be helpful.

Smaller local or regional insurance firms are going to beat the price of the big guys almost every time.

Bundle policies if you can. And seek out any discount you can possibly think of.

Maintenance and gas on these cars can be a bear. Self done oil changes are still going to run you $100, tires are around $600 a pop, an OEM brake job runs $1200-1500 for pads and rotors, and they guzzle 93 octane like it's going out of style. Be prepared for those expenses, because the last thing you want is to have the car sit in your driveway because you can't afford to drive it.

You live in a "snow zone" like I do, so whatever bank you go through for financing, make sure they understand that fact and are ok with you taking collision and liability off the car (leaving just comprehensive) while it's stored during the snowy months.

It makes nice sounds when you floor it.



Hope this is mildly helpful in some way. Good luck to you!

 

[torque124]

It makes nice sounds when you floor it.

Hehe, I hope you are enjoying it on the track also, in Vermont you don't get to hear it much, do you (not that I am much better in Boston)

 

[MikeMM]

Hehe, I hope you are enjoying it on the track also, in Vermont you don't get to hear it much, do you (not that I am much better in Boston)

I am not tracking it, but the Green Mountain roads are just as much fun to rip on IMO. And with the Borla ATAK I have on it, and the total lack of traffic in Northern VT, I have no issues hearing it... ever.

 

[A_Bau3]

I plan on putting a hefty downpayment of $30k (while still having $5k in savings that will not be touched) down so my monthly payments are just under $500 a month. And I’ve been able to speak with the bank and insurance company about keeping it just under comprehensive coverage during winter months, and they’re okay with that. However I definitely need to look into a better interest rate (5%) if my credit score is above 700.

 

[MikeMM]

I plan on putting a hefty downpayment of $30k (while still having $5k in savings that will not be touched) down so my monthly payments are just under $500 a month. And I’ve been able to speak with the bank and insurance company about keeping it just under comprehensive coverage during winter months, and they’re okay with that. However I definitely need to look into a better interest rate (5%) if my credit score is above 700.

5% honestly isn't terrible. Most banks and CU's start at 2.89% for new and 4.59% for used. I looked all over for a loan when I was getting my financing and that's about what I could find for starting rates. The best way to offset higher interest is accelerated payments. My credit isn't fantastic by any means because I have a high DTI (2 mortgages and an existing car payment didn't help any), so I used my down payment as leverage against the bank for a lower interest rate (8%) and I pay $550 extra a month so my 4 year loan will be paid off in 3 years. I was planning on refinancing it after a year or so but honestly just making accelerated payments is going to save me a lot in interest and then I won't have to pay the bank extra Doc fees and stuff.

The more you shop around with applications, the worse the rates are going to get because if the repeated credit pulls and inquiries. So I would recommend asking some people where they get good rates before you start firing applications at multiple banks.

Just food for thought.

 

[Nomadic]

I wouldn't exactly say moronic. Not all people have the ability to pay for something like this all up front in cash. In order to get the car you want at the time you want it you have to pay more for it, by way of interest. In my situation, I don't want to wait 5 years or longer to save up 60k to buy a gt350 in cash, hence paying a few thousand in interest to get what I want sooner, so i can enjoy it while im young. It really comes down to what are you willing to pay to get what you want when you want it. I definitely wouldn't consider someone moronic if they are willing to pay a bank to lend them money to buy something that they really want but don't have the cash to buy. That goes for any loan, including mortgages. Just my opinion.

^
How to be financially stupid.
And please don't compare a mortgage to a car note. One serves a need and usually a sound investment. The other is the opposite.

 

[NFA Review Channel]

^
How to be financially stupid.
And please don't compare a mortgage to a car note. One serves a need and usually a sound investment. The other is the opposite.

While I own all my vehicles, I still would have no problem financing one more for the stable. You do realize that 90% of the population has a bank note on their cars right? The rest piss it away leasing 7 series BMW's and some are financially fortunate to buy in cash. I'm not here to judge the guy and you shouldn't either. Putting 50% down on a 60K car is commendable. No where did he say he was acting like it was an financial investment. If anything it's a life enjoyment investment, and to some people, cracking a smile every time you walk into your garage and get into your GT350 is worth $500/mo. Don't be so judgmental.

 

[Nomadic]

You do realize that 90% of the population has a bank note on their cars right? The rest piss it away leasing 7 series BMW's .

30% of new cars are leased, which is also another way of financing a car, which would be under that 90%. I'm not sure why you have a designated classification for 7 series BMWs since it falls in the 90% as well.

 

[NFA Review Channel]

30% of new cars are leased, which is also another way of financing a car, which would be under that 90%. I'm not sure why you have a designated classification for 7 series BMWs since it falls in the 90% as well.

It was a joke. I bet your a blast to hang out with...

 

[Nomadic]

You do realize that 90% of the population has a bank note on their cars right? The rest piss it away leasing 7 series BMW's .

30% of new cars are leased, which is also another way of financing a car, which would be under that 90%. I'm not sure why you have a designated classification for 7 series BMWs since it falls in the 90% as well.

It was a joke. I bet your a blast to hang out with...

I would try to be but you obviously have a comedic gift with that incredible joke!

 

[random155]

^
How to be financially stupid.
And please don't compare a mortgage to a car note. One serves a need and usually a sound investment. The other is the opposite.

Not asking for your financial advise Nomadic. Everyone's situation is different, hence different purchasing options. We aren't all perfect financial guru's like yourself. Back on topic... I'm finding some 17's in the area of 48k. So I'm hoping by next year they will be closer to 40k which is ideal purchasing for me. Still get can't get that seller to budge from his original asking price. Sucks.

 

[Nfs1000f]

I'm finding some 17's in the area of 48k. So I'm hoping by next year they will be closer to 40k which is ideal purchasing for me. Still get can't get that seller to budge from his original asking price. Sucks.

I’m going to guess that next year you will not see too many 2017’s in the low $40,000 range. You’re only seeing ‘16’s in that range now because they are not as desirable.

 

[random155]

I’m going to guess that next year you will not see too many 2017’s in the low $40,000 range. You’re only seeing ‘16’s in that range now because they are not as desirable.

Im good with a '16, I can add the coolers on later. I found 2 2017's just a tad over 48k, and the one '16 for 41k. About the lowest I can find.

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