Financial Samurai

Slicing Through Money's Mysteries

Tips and Tricks to Getting Auto Insurance Discounts

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Badly Damaged CarAs a recovering car fanatic who has literally bought and sold 8 different cars in the past 10 years I’ve come to appreciate the intricacies of getting a good deal.  One of the most important things people don’t think about when they are about to buy that fancy European automobile is how much car insurance will cost.

On an absolute dollar level, driving a $50,000 car could cost anywhere between $2,000-$3,000 a year, depending on your record.  At 4-6% of the annual cost of your car, car insurance is a big deal!  The irony is, the cheaper the car you buy, generally the higher car insurance is as a percentage of your total cost.

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Let “Freement” Reign! Spending Paralysis, Material Lust And Obsession

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For those of you who don’t know, I’m a recovering car-aholic.  Funny enough, the way I deal with my addiction is to go to the BMW dealer!  I also go to the Audi, Mercedes, Honda, Land Rover and Porsche dealers too, but only the BMW dealer is on my way home and has an easy parking lot to leave Moose unattended.  I wonder if they cut out the free popcorn and diet cokes because of me.   Hmmm.

Over the past 3 years, I must have visited the BMW dealer at least 65 times to the dismay of the sales people.  They must have a code word for my type, “cheap bastard” or “stop wasting my time you poor SOB” maybe, but I don’t care.  Nothing thrills me more than sitting in a brand new, over-priced automobile and inhaling that unbeatable new car smell!  After every experience, I deftly try and avoid the salespeople and pick up a new brochure so I can extend the enjoyment at home.

In fact, as a joke I wrapped up the latest Land Rover LR4 brochure for Christmas and gave it to my wife.  I told her she should expect a nice shiny black on black beast when we get back to San Francisco.  She was kinda amused, not really.

If the salespeople insist on going for a test drive, who am I to argue?  But, I make it a point to only waste the time of the most eager of sales people beavers.  The fun of gunning a $80,000 BMW M3 every other month is such a thrill!  Besides, I hear they get a little commission for every test drive anyway.

NEW OBSESSION

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My SUV Will Beat Up Your Hybrid & Save The World!

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Range Rover Evoque Black

RR Evoque Black Edition ~$68,000

Why is it that some hybrid vehicle drivers eventually start looking down at non hybrid-owning drivers in disdain?  Is the “holier-than-thou” complex too hard to contain during flights of fuel sipping passion?  It’s natural to feel that whatever you purchase is the right purchase.  After all, if I overpaid for a hybrid vehicle (zing!) in hopes of saving the environment when a similar non-hybrid vehicle will do, I’d defend my decision and look down on others as well!  Don’t be mad, let me explain.

THE FINANCIAL SAMURAI VEHICLE

For those of you who have been following this site for a while, you’ll know that I’ve had plenty of cars over the past 10 years, and I now drive a 9 year older beater SUV which is MAYBE worth $6,000.  I love “Moose“, as I affectionately call him, because he adeptly takes us up the snowy mountains during the winter with its 4-wheel-drive capabilities.  Moose can conveniently carry up to  5 people with plenty of storage space, which is especially helpful when our parents visit.  Too bad Moose only gets 15mpg in the City, and 19mpg on the highway.  I can hear the hissing and booing now!

I bought “Moose” for $8,000 three years ago, from a woman who was in a hurry to dump her car before relocating to Amsterdam.  Special brownies anyone?  The hybrid craze at the time was dizzying, where seemingly rational people would spend $25,000 for a Prius vs. $15,000 for a comparable Toyota Corolla.  If people did the calculations, they’d realize the premium price paid for the car is much greater than the gas savings over an average 7 year ownership period.

Consumers weren’t adhering to our “1/10th” rule either, as I knew plenty of sub $100,000/yr income earners spending $25,000 for these hybrids.  I must repeat here again that it is absolutely financial destruction if you are spending more than 1/10th your annual gross income on a car.  Multi-millionaires follow this rule, why shouldn’t the rest of us?  Don’t give into your weak desires!

MOOSE GETS DISRESPECTED, I FIGHT BACK

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Cash For Clunkers = Personal Finance BOMB!

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The latest development in the “Cash For Clunkers” legislation is that it may be extended for one more month until labor day. Under the program, buyers of new cars and trucks can get rebates of $3,500 to $4,500 by trading in older models that are then scrapped. Seriously though, is this multi-billion dollar government works program just money spent to appease the car lobbyists? Or is the goal really to get old cars off the streets and save the environment? The good thing is that these old cars are getting scrapped. Otherwise, if you trade in your gas guzzling SUV for a Honda Civic, you’ve NET ADDED to the world’s pollution because someone is still driving your old car, and the new Civic still emits waste!

This is what I’ve never understood about the “holier than thou” crowd who buys hybrids like the Prius. It’s great that you are driving an environmentally friendly car, but if you start looking down on non hybrid drivers with disdain, that’s hypocritical. Buying a new Toyota Prius simply adds to pollution if you don’t scrap your old car.

The only way you’re going to really make a difference is if you scrap your old car and just take public transportation and ride a bike! Again, I’m absolutely for driving a nice low emissions car, but the fact of the matter is that these cars are expensive. I’m not spending $30,000, and if you look down on someone who can’t afford the $7-10,000 premium for hybrids then shame on you!

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8 Cars in 10 Years: I Have A Problem, But You Won’t!

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New Range RoverIf there’s one infatuation I and many men have, it is the love affair with cars. When I got my first paycheck, I bought myself not only a nice 850GLT Volvo (yes, an old man car for a 22 yr old kid), but also a Honda CBR600 racing bike! I had nowhere to park them in in NYC, so I actually had to park 20 blocks away, and take the subway back to my apartment! I dumped $18,000 in cash for the vehicles, and had to pay an additional $300/month for parking and transportation fees to my vehicles! How ridiculous is that?

Most of us have some materialistic vice we go gaga over. One lady I know has $20,000 worth of purses, and another $10,000 worth of shoes. But if you think about it, her vice isn’t so bad since the average car a guy desires is probably in the $25-45,000 range. Why we throw so much money discipline out the window when we stumble across our vices, I donno. What I will tell you after purchasing and selling 8 different cars (new and old), is that I’ve figured out some fantastic tips to: 1) Getting the best deal, and 2) Satiating ones desires.

GETTING THE BEST DEAL – 5 SIMPLE RULES

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