Car totaled. Scrambling to buy a new car. (1 Viewer)

Its not as severe as the title might sound, but driving along the interstate yesterday, front passenger tire comes completely off (all the lugs snapped).  I was experiencing some vibration in the steering wheel and what I can only describe as a beating noise coming from the front end for the past couple of days so it didn't come as a total surprise.  I was luckily in the right lane with no one around me and I was able to glide safely into the shoulder.  Its a really old car that I was looking to replace soon and being 5 hours away from my home, I just had the tow truck driver take it to their lot with the intention of just giving it to them.  In another stroke of luck, my brother was only 30 minutes behind me (family vaca) so he was able to take me home.  So now I am where I haven't been in 14 years which is looking for a new car.  Had a few questions I was hoping you fine folks could answer.

1)  Would this be something I file an insurance claim for?  Its a real POS of a car with 175k miles and now a missing front tire.

2) Does the insurance company or maybe even AAA cover a car rental?   Prices are just ridiculous at the moment

3) Hoping to get into a new used car ASAP.   I don't really need a loan, but it sounds like that gets you the best price and it does save me the hassle of moving money around which will take a few days.    Does going to a dealer with a pre-qualified loan in hand give you the most leverage and if so what's a company for getting a car loan?   If the rate wasn't favorable, I'd just pay it off right away, but like my home loan, I'll gladly just make the payments if its financially advantageous to do so.  

All advice is welcome and thanks in advance.   

It is not always beneficial to take out a loan, it depends on the manufacturer incentives for that month.

Negotiate the price without mentioning financing, and then ask if you can get an additional discount if you do finance.

You should note, when manufacturers offer loan incentives the rate is usually pretty crappy.

1. It was a mechanical problem so it shouldn’t be covered by comprehensive or collision. I’m surprised you even have full coverage on an old car like that. I assume you don’t have an extended warranty.

2. A lot of policies have emergency roadside assistance but I doubt you can get a rental for several days. I suppose it doesn’t hurt to ask.

3. Dealers can make money on financing so sometimes financing through them can help. With the car shortage right now though it can be harder to negotiate if the car you like is in high demand. If you don’t need a loan I wouldn’t worry about that part too much.

Be careful about the towing company. Some of them are shady. They might try to charge you daily storage at ridiculous prices. This could end up being a major headache. Maybe giving/forfeiting the car to them will work but I suggest being proactive in these arrangements.

My insurance pays 45 a day towards rental if car is being repaired through a claim 

belljr said:

My insurance pays 45 a day towards rental if car is being repaired through a claim 

Click to expand...

Recently had both my vehicles damaged while parked in front of my house (1 was totaled and 1 will be repaired.)  My insurance Co. pays up to $50/day  with a $2000 cap, so 40 days.  But if you reserve a car that's less than $50/day you can extend the time.  I just did this for 1 claim.  Waiting until the second car goes into the shop to get the rental for the second claim.

You mean you hit a big pothole in the road right?  Then a block of ice off an ice truck. Right?

Juxtatarot said:

1. It was a mechanical problem so it shouldn’t be covered by comprehensive or collision. I’m surprised you even have full coverage on an old car like that. I assume you don’t have an extended warranty.

2. A lot of policies have emergency roadside assistance but I doubt you can get a rental for several days. I suppose it doesn’t hurt to ask.

3. Dealers can make money on financing so sometimes financing through them can help. With the car shortage right now though it can be harder to negotiate if the car you like is in high demand. If you don’t need a loan I wouldn’t worry about that part too much.

Be careful about the towing company. Some of them are shady. They might try to charge you daily storage at ridiculous prices. This could end up being a major headache. Maybe giving/forfeiting the car to them will work but I suggest being proactive in these arrangements.

Click to expand...

Probably didn't make sense to have full coverage but never considered changing my plan.  Of the $888 cost, only $32 was for the comprehensive.  Not sure if that's a little or a lot.   Seems like most of it is for liability.   Hopefully that works out with the towing company.   I told them I'd mail them my title in a couple of days and that would be the end of it.   I didn't really see too many options.  I was pretty relieved that they were willing to take it off my hands.  I was in a remote area with no desire to try to get it fixed and an alternative mode of transport that I didn't want to force to hang around too long considering they had two young kids in the truck.  All things considered, I thought it worked out well.   

culdeus said:

You mean you hit a big pothole in the road right?  Then a block of ice off an ice truck. Right?

Click to expand...

Yeah changing your story helps your situation a ton

Given used car prices, I would look at new cars as well 

Drunken Cowboy said:

Given used car prices, I would look at new cars as well 

Click to expand...

I just got done shopping for used cars for my son.  Complete sticker shock.  Just buy new.

Yeah, used market is insane right now.

Foosball God said:

Yeah, used market is insane right now.

Click to expand...

Yup.  I think most people are best off buying new (assuming they aren't too picky with colors, options, etc.)

shuke said:

I just got done shopping for used cars for my son.  Complete sticker shock.  Just buy new.

Click to expand...

Foosball God said:

Yeah, used market is insane right now.

Click to expand...

 Just sold my 2006 Toyota 4Runner for $8,000.  It had 180,000 miles on it.

greedygoat said:

 Just sold my 2006 Toyota 4Runner for $8,000.  It had 180,000 miles on it.

Click to expand...

The wife and I looked at CarMax last week. Considering selling my current truck for more than I paid for it 3 years ago. Lol. 
 

We’re looking for something for our daughter. Had grand plans of buying a used honda accord but more than likely we buy a new civic or new lower end accord. 

STEADYMOBBIN 22 said:

We’re looking for something for our daughter. Had grand plans of buying a used honda accord but more than likely we buy a new civic or new lower end accord. 

Click to expand...

I leased my son a 2018 Honda Civic hatchback three years ago and the lease is up at the end of the month.  Residual is 13k but it's worth about 20k. 

He's going to college and doesn't really need a car. That's why I sold my 4Runner, I just bought the Civic and will drive it for a year or two and then give it back to him.

STEADYMOBBIN 22 said:

The wife and I looked at CarMax last week. Considering selling my current truck for more than I paid for it 3 years ago. Lol. 
 

We’re looking for something for our daughter. Had grand plans of buying a used honda accord but more than likely we buy a new civic or new lower end accord. 

Click to expand...

I assume you would then have to replace that car and then you will be paying a lot more than you did 3 yrs ago also.  Unless it's an extra car it makes no sense selling if you then have to replace it......unless you are ok with going way under an equivalent replacement....

Gally said:

I assume you would then have to replace that car and then you will be paying a lot more than you did 3 yrs ago also.  Unless it's an extra car it makes no sense selling if you then have to replace it......unless you are ok with going way under an equivalent replacement....

Click to expand...

Yeah I should have mentioned I dont need it. Its an extra truck thats only used for HD trips and hauling mulch and dirt in the backyard.  

shuke said:

I just got done shopping for used cars for my son.  Complete sticker shock.  Just buy new.

Click to expand...

I wonder if its just certain makes.  Had the hyundai sante fe for 14 years and found a 2018 with the top package and 28k miles for 30k.   That was 45k new.   Seems like reasonable depreciation to me.   Saw a few other sante fe's at similar prices for what they came with.  

NutterButter said:

I wonder if its just certain makes.  Had the hyundai sante fe for 14 years and found a 2018 with the top package and 28k miles for 30k.   That was 45k new.   Seems like reasonable depreciation to me.   Saw a few other sante fe's at similar prices for what they came with.  

Click to expand...

Huh.  I got a Kia Sorento, who's cousins with Hyundai (same size as Sante Fe) for 28k brand new back in November.  2020 model, second-highest trim level.  Santa Fes are running 45k now?  No way.

nirad3 said:

Huh.  I got a Kia Sorento, who's cousins with Hyundai (same size as Sante Fe) for 28k brand new back in November.  2020 model, second-highest trim level.  Santa Fes are running 45k now?  No way.

Click to expand...

They gave me the print out of the window sticker for my year and model.   It says 45k msrp.   It guess they could've doctored it.  I see that the top trim now starts at 42k so maybe its come down some.    

ETA:   Actually nm.   The 45k is the final price which includes 1k for freight and handling.   So more like 44k which includes the 2k for the tech package. 

Buy new, and electric.

File the insurance claim. I got paid out in 2000 on a 14 year old Maxima with 240K miles - around $1500

NutterButter said:

I wonder if its just certain makes.  Had the hyundai sante fe for 14 years and found a 2018 with the top package and 28k miles for 30k.   That was 45k new.   Seems like reasonable depreciation to me.   Saw a few other sante fe's at similar prices for what they came with.  

Click to expand...

30k was nowhere near my budget for a first car for my teenage son.

shuke said:

I just got done shopping for used cars for my son.  Complete sticker shock.  Just buy new.

Click to expand...

Used Hondas like 5yr/60k-80k miles, nothing? Used Truck/SUV market in Florida is pretty crazy right now. I find sedans are easier to locate. 

Volvo-Don't laugh, The S60 does not retain its value very well but they are loaded and safe and very comfortable, very reliable I might add, you can shop these around and usually find one at a good price that is about 3-5 yrs old, 36k-60k+ miles and they really drive like a dream. If you are willing to go 5-7 yrs old, around 100k miles you can get them for well under $10k i find...just trying to help. I got mine on a Mazda lot that came in off lease on a trade in, they hadn't even hosed it off yet when I saw it roll in, knew immediately I wanted it. I bought mine 3yr/35k miles used for about $17,500 if that gives you any kind of barometer and that was like 4 yrs ago, I've put almost 60k miles on it over that time. I could sell it for around $7,500 now so $10k over 4.5 yrs, pretty low monthly bill for a $45k retail car. 

Now if your budget is like $3k-$5k which is about what I would expect for a teenage kid or young adult, yeah it's going to be really difficult to find a used car that you won't be pouring money into. 

Ministry of Pain said:

Used Hondas like 5yr/60k-80k miles, nothing? Used Truck/SUV market in Florida is pretty crazy right now. I find sedans are easier to locate. 

Volvo-Don't laugh, The S60 does not retain its value very well but they are loaded and safe and very comfortable, very reliable I might add, you can shop these around and usually find one at a good price that is about 3-5 yrs old, 36k-60k+ miles and they really drive like a dream. If you are willing to go 5-7 yrs old, around 100k miles you can get them for well under $10k i find...just trying to help. I got mine on a Mazda lot that came in off lease on a trade in, they hadn't even hosed it off yet when I saw it roll in, knew immediately I wanted it. I bought mine 3yr/35k miles used for about $17,500 if that gives you any kind of barometer and that was like 4 yrs ago, I've put almost 60k miles on it over that time. I could sell it for around $7,500 now so $10k over 4.5 yrs, pretty low monthly bill for a $45k retail car. 

Now if your budget is like $3k-$5k which is about what I would expect for a teenage kid or young adult, yeah it's going to be really difficult to find a used car that you won't be pouring money into. 

Click to expand...

When have you looked at used cars last?  My budget was $8-10k.  I drove a lot of complete pieces of #### in this range.  You would not believe what dealers are rolling out on their lots for this price.