New advice on buying a new car

[Murlo26]

Originally Posted by turbotalon1g

I don't see why one would really need it, unless your car is something that depreciates a stupid amount daily.

I think its typically for people that end up taking out big loans for a new car, like 20k+ and spread it out over a very long time. Like a 72 month loan or something crazy so the payments are low enough.

I agree for most it won't make sense, but for the above case it might. I'd say just save up a bit to put a downpayment down so you don't end up ever needing said insurance.

[niterydr]

Originally Posted by Murlo26

I think its typically for people that end up taking out big loans for a new car, like 20k+ and spread it out over a very long time. Like a 72 month loan or something crazy so the payments are low enough.

I agree for most it won't make sense, but for the above case it might. I'd say just save up a bit to put a downpayment down so you don't end up ever needing said insurance.

My recomendation was based on that coupled with the fact that the used vehicle (remarketing) arena will not remain hot forever. Some experts predict a sharp decline around 2013-2014 on vehicle resale values.

So for those that have cars that haven't "bottomed out" resale could be killer. Also remember, insurance companies pay out on NADA/KBB/Black book value, unless you can prove it is worth more, so when the esimated sale price drops, the more "bag" you are left holding if the car is damaged/totaled.