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Fiero collector car insurance? Help Please by Christine
Started on: 11-05-2016 03:36 AM
Replies: 50 (757 views)
Last post by: Christine on 11-27-2016 12:21 AM
Christine
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Report this Post11-23-2016 02:14 AM Click Here to See the Profile for ChristineClick Here to Email ChristineSend a Private Message to ChristineEdit/Delete MessageReply w/QuoteDirect Link to This Post
I was thinking about my Fiero and other vehicles I have spent what I thought was big money but after reviewing my spending I came up with this.

My used vehicle ownership cost evaluation or justification.

I have spent a lot of money on my custom and modified vehicles over the years so I thought I would break it down and see if I was spending more or less compared to buying new cars every 5 years or so, below are my findings.

Even if you do not know what your used vehicle will cost to buy or what it will cost you per year to own you can do the math and get an approximate cost of ownership.

First let’s look at what the new car will cost per month and year before the warranty expires.
For example: Said new car payment is $300 per month, the insurance is $100 per month.
That is $400 per month so over the first year it will cost you $4,800 during the years you have the warranty in place. If you own the vehicle for 5 years that is $24,000 if you can even buy a new car for that much, but this is just an example so you will need to do the math on the new car you are thinking about getting.

So let’s see how this example breaks down, if the new car costs you $24,000 for 5 years, then what does a used one cost? Well that is unknown but you can see if the used car is worth it by seeing what you would need to spend to make it more expensive than the new car.

I will use a VehiCROSS as an example. Let’s say you buy a VX with 80K on it and pay $6,000 for it and your insurance is the same as a new car $100 per month and you break that down to the same 5 year time of ownership you will spend $6,000 in insurance for 5 years, so the total cost of purchase and insurance is $12,000 for 5 years, so in that 5 years of ownership you will need to spend another $12,000 in repairs and maintenance for the new car to be a better deal. http://www.wildtoys.com/vehicross/hype.asp

This is just an example and you will need to do the math based on the new car you are thinking about buying and the used car you are thinking about buying, the insurance cost and gas mileage if you drive long distances. If you do drive long distances the millage and warranty come into play you will have to include that in your evaluation of the cost effectiveness of the new to used comparison.

Another factor is down time for repairs, this is something that should be considered when deciding to go with new or used. The convenience of a new car at least until the warranty expires might be worth it to you or if you buy new every time the warranty expires a new car might be the way to go if you are ok with the extra cost for convenience.

I found that I can own 2 older cars or trucks for the same price or less of one new car or truck and if one breaks down or gets crashed I have another one and do not need rental car insurance or need to get rides or rent a car at all.

As many of you know, I have a super modified 87 Fiero GT and have spent about 60K in mods on it and thought it was a huge number but after doing the math I found that over the time I have owned it the cost was not that bad. I bought it for $2,800 in 1999, stripped it down and did a resto-mod in 2003, then over the years I spent about $60k and made it my dream car. The break down is, from 1999 to 2016 I spent about $60k, so that is 17 years of ownership divided by $60K works out to $3,530 per year not including insurance which is about $50 per month for full coverage. So the total cost of ownership for the GT with 17 years of insurance at $10,200 plus the $60,000 is $70,200. This is for 17 years and breaks down to $4,130 per year and $344 per month. Not as bad as I thought when you look at it this way.
http://s920.photobucket.com...0Build?sort=3&page=1

If you buy old cars or trucks and fix them up spending lots of cash and then sell them right after doing so you will not come out ahead, but if you keep them and enjoy them for many years you could spend less overall and have the custom or modified vehicle you love and enjoy while spending less than buying new cars every time they get old and less convenient.

I did not factor in the resale value of the vehicles in this analogy because that varies so much I just used a ballpark ownership cost as the basis of this analogy.

Feel free to add your opinions and findings regarding this analogy, or corrections in my math, I am curious as to what you all find when you do the math on your vehicles.
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Raydar
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Report this Post11-23-2016 10:02 AM Click Here to See the Profile for RaydarClick Here to Email RaydarSend a Private Message to RaydarEdit/Delete MessageReply w/QuoteDirect Link to This Post
I currently have "agreed value" coverage on my Fiero, through State Farm. It's insured as an "antique/classic".
It took a bunch of emailing back and forth, and a bunch of pictures, etc. There is a mileage restriction, but my agent acted like it was negotiable. Otherwise, about the only agreement is that I don't use it as a "driver", and I keep it in a locked garage.
The main thing is to find an agent that is willing to work with you. They can do it. Whether they will or not is up for grabs.
Also, state laws may vary, regarding which carriers can do it.
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2.5
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Report this Post11-23-2016 02:51 PM Click Here to See the Profile for 2.5Send a Private Message to 2.5Edit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by Christine:

I found that I can own 2 older cars or trucks for the same price or less of one new car or truck and if one breaks down or gets crashed I have another one and do not need rental car insurance or need to get rides or rent a car at all.

.


Oh for sure. A variation if his is how I afford life. Our daily driver is a 2000 Saturn SL that gets 38 mpg on my work commute, its been paid off since the day we bought it with $2000 cash. The car itself is not covered at all by insurance we did liability and injury, etc. Our other "daily" that is mostly used as a back up (especially in winter when the Fieros are parked indoors) is a 99 S10 ZR2. (We own a house so need a truck, or a trailer and trailers just take up space and require a hitch, their own registration etc).. the S10 is another cash bought vehicle insured the same way as the Saturn. They are old enough (simple enough) I can do most work on them, and all maintinance. This relieves the budget a lot.
When people see our shiny Fieros and my oldie, a 72 Skylark, they probably think we are loaded. But they likely spend more on their 2017 Suburban and Cable TV.
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Fiero Vice
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Report this Post11-24-2016 05:01 PM Click Here to See the Profile for Fiero ViceSend a Private Message to Fiero ViceEdit/Delete MessageReply w/QuoteDirect Link to This Post
Christine,
Nice car you got there!

Your analogy makes sense. The longer you own your classic car, you're actually saving money in the long run compared to those boring new cars that have no soul.

What matters is what you think, not what others think. What others think is their business, not yours! So, follow your passion & enjoy it! I'm doing the same after being out of Fiero game for 20 plus years. Now, I'm back in it again & livin' my dream. :-)

I'd be curious to know what value you'd get after getting an appraisal. Keep fightin' until you get the figure you like. Enjoy!
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Christine
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Report this Post11-25-2016 12:21 AM Click Here to See the Profile for ChristineClick Here to Email ChristineSend a Private Message to ChristineEdit/Delete MessageReply w/QuoteDirect Link to This Post
Thanks for the positive reply, I was feeling bad about the large sum until i did the math more for my own well being and so I could justify it in my own mind and I was more pleased with the numbers than I expected. I am glad you too are living the dream, I will post when I get an appraisal, I think it will help me and the Fiero community to see what value an appraiser gives.

 
quote
Originally posted by Fiero Vice:

Christine,
Nice car you got there!

Your analogy makes sense. The longer you own your classic car, you're actually saving money in the long run compared to those boring new cars that have no soul.

What matters is what you think, not what others think. What others think is their business, not yours! So, follow your passion & enjoy it! I'm doing the same after being out of Fiero game for 20 plus years. Now, I'm back in it again & livin' my dream. :-)

I'd be curious to know what value you'd get after getting an appraisal. Keep fightin' until you get the figure you like. Enjoy!


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rogergarrison
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Report this Post11-25-2016 08:13 AM Click Here to See the Profile for rogergarrisonClick Here to Email rogergarrisonSend a Private Message to rogergarrisonEdit/Delete MessageReply w/QuoteDirect Link to This Post
"I found that I can own 2 older cars or trucks for the same price or less of one new car or truck and if one breaks down or gets crashed I have another one and do not need rental car insurance or need to get rides or rent a car at all."

Ive always had at least 2 vehicles myself. Car rental on my insurance ls about $10 per year. Its still nice to have. What good does another car at home do you if you have a wreck on vacation 1500 miles from home. 2 plane tickets home will cost what 20 years of rental insurance costs.
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tebailey
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Report this Post11-25-2016 10:10 PM Click Here to See the Profile for tebaileyClick Here to Email tebaileySend a Private Message to tebaileyEdit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by Raydar:

I currently have "agreed value" coverage on my Fiero, through State Farm. It's insured as an "antique/classic".
It took a bunch of emailing back and forth, and a bunch of pictures, etc. There is a mileage restriction, but my agent acted like it was negotiable. Otherwise, about the only agreement is that I don't use it as a "driver", and I keep it in a locked garage.
The main thing is to find an agent that is willing to work with you. They can do it. Whether they will or not is up for grabs.
Also, state laws may vary, regarding which carriers can do it.


I went with State Farm too. It was actually cheaper than any of the specialty insurers and the agent is local.
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Christine
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Report this Post11-25-2016 10:45 PM Click Here to See the Profile for ChristineClick Here to Email ChristineSend a Private Message to ChristineEdit/Delete MessageReply w/QuoteDirect Link to This Post
I currently have a policy with American Family that is the same as I could get with State Farm, I did check with them but the policy was the same as I have and the premium was not less so I am sticking with AmFam for now.
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Report this Post11-26-2016 12:02 AM Click Here to See the Profile for jscott1Send a Private Message to jscott1Edit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by tebailey:


I went with State Farm too. It was actually cheaper than any of the specialty insurers and the agent is local.


Every time I call State Farm for an agreed value policy they either laugh or have no clue what I'm talking about. Results obviously vary by location.
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Raydar
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Report this Post11-26-2016 12:55 PM Click Here to See the Profile for RaydarClick Here to Email RaydarSend a Private Message to RaydarEdit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by jscott1:

Every time I call State Farm for an agreed value policy they either laugh or have no clue what I'm talking about. Results obviously vary by location.


Location (or state law) may have a lot to do with it, but it likely also has to do with the agent you are dealing with.
They may say that they don't do it, but it's not something that most people ask for. They may not know what they can do.
If you're a good customer (we have a house and six cars insured with State Farm - they get LOTS of our money) they may decide to do a little research on your behalf, in order to retain your business.

[This message has been edited by Raydar (edited 11-26-2016).]

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Christine
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Report this Post11-27-2016 12:21 AM Click Here to See the Profile for ChristineClick Here to Email ChristineSend a Private Message to ChristineEdit/Delete MessageReply w/QuoteDirect Link to This Post
I think you are correct, I have been a AmFam customer for 20 years and my agent was a car guy and worked to find the policies for us. I now have a new agent after my original agent retired and the rates have gone up and service is not what is was with my old agent.


 
quote
Originally posted by Raydar:


Location (or state law) may have a lot to do with it, but it likely also has to do with the agent you are dealing with.
They may say that they don't do it, but it's not something that most people ask for. They may not know what they can do.
If you're a good customer (we have a house and six cars insured with State Farm - they get LOTS of our money) they may decide to do a little research on your behalf, in order to retain your business.



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