This week I thought I would be joining the ranks of new car owners. I had enough money for a good down payment, the deal was good (0% finance for 60 months), and I was going to be the proud owner of a new Saturn. My aging '93 SL1 has 148,800 miles on it now and it was time for something better.
All I needed to do is check to see how much my insurance would be. The increase would be from $108 to $322 a month, nearly 30% more than the car payment would be. Assuming I own the car for 60 months and insurance rates not going up, I would pay 15% more in insurance than the car was worth. Does the insurance company figure my chance of writing the car off in that time to be 85%?
It looks like I'm not going to have a new car