Most men and women would love to have a convertible or classic muscle car. Regardless, most of us don’t purchase a “weekend car” for several reasons. Perhaps you don’t have the discretionary cash to make the purchase. Maybe the insurance premiums are stopping you or maybe, you just don’t have additional garage space to park that Ferrari 460. There’s always a reason not to buy a weekend car but you only live once so here’s something to think about.
Financing a weekend car is more affordable with lengthier loans. Consider the fact that you may put 3,000 miles per year on a weekend car. If the vehicle is brand new (ie. 0 miles on it when you purchase it), in 10 years the vehicle will only have 30,000 miles on it. On average, most people will put 30,000 miles on a vehicle in two years. If you take care of the vehicle there is no reason why the vehicle shouldn’t be in tip-top shape in 10 years. Consider a lengthier note for your weekend car to make it a more affordable option. Inquire about a 5 or even 7 year note to lower your monthly payments. Interest rates for the longer terms are usually lower, combine this with the increase in term and your monthly payments are significantly lower. Using an car loan calculator, a $30,000 loan with a 48 month term at 6.94% would cost $717.55 per month. The same loan with a 72 month term at 6.87% would cost $509.60 saving you a little over $200 per month.
Insuring a weekend car can be very affordable and at the same time, lower the insurance rate of your daily driver. A multi-car discount can save you a bundle on your auto insurance. If your purchasing a weekend car be sure to ask for the multi-car discount and more importantly, be sure to tell your agent that this vehicle will only be driven leisurely. There are different calculations for determining premiums of leisure vehicles and daily drivers. You still receive the same coverages but your rate will be significantly less. Consider a higher deductible as well as this too can decrease your premium. Finally, consider canceling your rental car coverage. If you wreck your daily driver, you can use your weekend car until the daily driver is fixed. This limits the need for rental car coverage which can save you even more money on your car insurance.
Obviously buying a weekend car won’t make you money. Hopefully the options above save you money and potentially make the idea of a weekend car a reality!