I took out a similar loan. There was never any proof of insurance needed. The payments are on auto-pay, so it is transparent. We live in Florida, where title is electronic, so no impact there either. There is no hassle that I can see.
Why did you send them the claim payment... was the check made out to them as the lienholder?
I guess you're right on the insurance. I was just messed up because I recently had a hoop to jump through with my mortgage company because my homeowner's insurance renewed.
Can you put the car payment on a credit card and pay in full at the end of the month?
There's a citi card that gives you 2% cash back.
Sorry I wasn't clear, but that's what I meant......I would say you can make monthly payments with a CC and get the same rebate... but then you have to set it up...
They will not take CC for purchase of a car... I would say you can make monthly payments with a CC and get the same rebate... but then you have to set it up...
I make our health insurance payments monthly... never thought about the car payments... but I am with Cap 1 at 1.5%.... but, it would get me an extra $100 per year back...
I tend to agree with Midpack that paying cash will result in better price. I email dealers with take home price (includes all fees, taxes, plates, inspection sticker) I want to pay telling them I can buy it today right now....
Then I get agreement via email and pay deposit with Credit Card. If I start shopping for car at 9:00 AM normally by 11:00 AM I bought it without going into any dealership.
Next I visit dealership and pick up color of car.
You will get a good price if dealers see that you can 100% buy it and you are ready to do business right now. Though some will shun idea of selling car over email.
How do you determine the price that you are wiling to pay to which you then add taxes, title and registration? and how does it relate to dealer invoice?
I would have the tendency to get the loan, and pay it off early to spread the large amount over a couple of years.
Even with my 0.9% auto loan, I paid it off over ~2.5 years. Why take the large portfolio hit all at once?
A number of years ago (decades) it seemed to be the common thought that paying cash would get you the best deal and a better negotiating stance. From what I have heard recently (no proof) is that car dealers get a little kick back from financing a car. If the financing is 1.9% the dealer gets .3% of that and they make a little more in back end money. So you might even be able to negotiate a better deal by saying you will finance and then pay it off a few months later if you desire.
Something to consider;
Say you total that new car. You will need to TRY and collect from the insurance company if you own that car out-right. (Good luck)
On the other hand, if you have a loan on that car, then the lien is with the bank and the bank is paid by the insurance company, and I don't think a bank is going to have issues with collection on the policy compared to you as an individual owning the car.
I just think the risk to collect on the insurance is going to be more difficult for the cash buyer than it would be for the bank with the lien.
Huh, I never thought of putting loan payments or health insurance premiums on CC to get my 2%.. interesting idea.. I'll have to check that angle out.
Something to consider; Say you total that new car.