chris walrod

While a bit off topic, insurance companies tend to establish rates dependant upon statistics related to that type of car. Back in the 80's, Toyota 4x4 trucks were hella expensive to insure because, early on, there were A LOT of 4x4 rollovers, hence the early rather high rates.

It doesnt seem fair for insurance companies to stereotype their customers, but they do based upon a few factors, the predominant one being what car you drive.

I once asked my agent why my (then) toyota p/u's policy increased when its value had clearly declined due to age. Their answer, get this..... parts for older cars are more difficult to find should it need bodywork.. LOL! I told her, great, I guess the other 4 billion Toyota pickups out there are in the same boat.. Cant argue with insurance companies, they know best..

ZombiePorsche44

Most lending instituions will only finance "the book" value and if they decide to loan you more than that figure, they will try to get you to buy "GAP" insurance to cover the difference should you total the car because the insurance companies use "the book" too and they will undervalue your totaled 993.

My credit union (North Island) financed mine for 4.9%. I have financed my last eight vehicles with them so they treat me very well, they were willing to finance 100% even if it exceeded "the book" value and not require me to have GAP insurance. I did not take them up on the offer and only financed 70% to keep the payments low.

ZP44

tj90

Does anyone have GAP insurance? The KBB on my 95 in good condtion is only worth 21k! If I total the car I would be out $10k! That would be a hard pill to swallow.

Phil

acutally many many lenders will loan well over book value. My bad credit banks will loan book + 25% + tax, lic
Good credit banks even more to excellent fico scores.

Bogwan

Some of you know it, but for those who don't, I am a dealership finance manager(15 years). There are a multitude of ways to finance just about any vehicle you want to own and make payments on, the age of the vehicle is only one small factor in this business. I'd like to say it's a nich market, but it isn't. I have at least 25 lenders I can get my 95 financed with here in my area. Most of them are credit unions, but there are other sources also.

Credit, loan to value, source of value, mileage, stability, ability, and a slew of other factors will determine who, how much, how long, and other details of the loan. It all starts with the credit, if you got it and want to borrow money in our great country, there is someone that will lend it, especially on our cars.

Some of you might not know this little bit of info. Most large, and a lot of small credit unions are no longer limiting their membership to a select group. For an example, Boeing Employees Credit Union(no affiliation?), in the Seattle area is no longer limiting it's membership to Boeing employees, and has opened it's membership up to any resident in the state of Washington, and I'm sure the other states in which they have assembly plants and a lot of employees. So if you are looking for a good loan, check with a couple of your local credit unions to see what their membership restrictions are, knock on enough doors and you'll find one that will give you what you are looking for.

Good luck.

P.S. - Please make sure you get GAP if you think you may even have a little negative equity, because if you think you have a little, your insurance adjuster will quickly show you it's a lot more. GAP is very inexpensive for what it does, and a lot of insurance agents and companies offer some sort of 'retail replacement cost' coverage.

ZombiePorsche44

tj90,
Don't total your car! because that's exactly what you're looking at if happens. This kind of risk goes with the territory and there's not much we can do about it beyond buying GAP insurance.
ZP44

Porscheologist

I only borrowed a small amount for my car. If I total it tommorow I can still pay off the small loan and have money left over for the next Porsche. I realize this is not always the case and some of you will be in the red if you total your car. So be careful out there. It's true 993s depreciate!! Eventually they will hit bottom and maybe (likely in my opinion) will then begin to appreciate again. Unless/until that happens our cars are like all the rest; worth less than you paid and maybe even less than you owe! But enough doom and gloom. Go out and drive it and enjoy it. That is the reason you bough it right?

grouchy

I think the insurance companies redid rates on vehicles and worked in repair parts cost. So older car with less available parts at higher prices.

I ended up with a signature loan for my 951 due to banks, credit unions etc not wanting to have a car loan for an older vehicle.

I think E-loan and peoplefirst might loan on older cars. Back when I was searching for the right 964 or 993 that topic came up. Think the only difference between those two then was whether or not you could get a draft or check.

tj90

Technically, doesnt it go much deeper than just negative equity? Even as Porscheologist says, if you total out a car thats completely paid off, you are still screwed. Sure you will get a check from insurance, but its not going to be anywhere near what it was worth before the accident....Just cause I have a loan on a car, does not affect the size of the check from the insurance. I think it would be wise for everyone with a 993 to look into GAP. Unless you would not care about getting erplacement cost... In my case I would continue making payments on a car that no longer exists.

This whole time weve been talking about totalling out the car - same thing if the car was stolen, right???

ceboyd

signature loan.. OUCH.. aren't those the highest rates there are?

tj90

Ok - I just talked to State Farm Insurance. They told me that I dont need GAP insurance because they will pay out the replacement value of the car if it is totaled or stolen. They do not go by KBB on older cars - especially sports car - but rather look at Market pricing.
I was happy to hear this - but asked to get this in writing from the claims department. They are supposed to fax this data over. As a general rule SF does not offer GAP insurance cause there is no need....
My agent told me that a guy had a $150k Mercedes for a week when he got into an accident. The agent fought SF corporate and won and got the guy a check for the replacement value of the car - not the KBB. A 150K new Mercedes depreciates $10s of k the moment you drive it off the lot....

mborkow

i don't know much about car insurance, but wouldn't the insurance companies be more worried about paying out medical claims than paying for car repairs? having my appendix removed cost more than just about any N/A 993...

kiwi993

Hey guys,
I insured my 95 993(Oldyeller) through Hagerty's. They specialise in classic and sports cars. Their coverage is replacement of vehicle, no gap insurance required. They will ask you to set a replacement amount and to update it yearly. Very reasonable rates. Hagerty.com
Rod.

kiwi993

The smartest way to borrow money for your P car (if you really have to) is to use a home equity line. Then you can use the interest paid as a tax deduction. Win win.
Rod.

infinii

I need a hi-rez copy of your avatar