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Dillbag posted:They paid for the $12k in repairs but like I said, I suspect they would have written it off at a diminished value if it wasn't covered to replace with a new model at $25k ish. Can you explain this? I'm always confused when people talk about having their car totaled and buying it back from the insurance company, so this is obvs way beyond me. Wouldn't "replace with new model" mean that they...replace it...?
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Mar 21, 2015 21:19
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The dude had a policy that said if the insurance company deemed the car totaled, they would have to buy him a new one. So, instead of declaring it totaled they made major repairs to it because that was cheaper.BEHOLD: MY CAPE posted:Lol isn't what people in the market are willing to pay for a damaged car the definition of "market value" Come on, you know he meant "market value for a car that hasn't been in a major accident".
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Mar 21, 2015 22:02
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NancyPants posted:Can you explain this? I'm always confused when people talk about having their car totaled and buying it back from the insurance company, so this is obvs way beyond me. Wouldn't "replace with new model" mean that they...replace it...? Only if it costs too much to fix. Normally, when you get in an accident and have insurance to cover it, the insurance will pay to fix your car. Just to make up your numbers, say that you have a car worth $10,000, a $500 deductible, and you get in a fender bender that costs $2,000 to fix. Your insurance pays out $1,500, you pay your $500 deductible, the car is fixed, and everything's cool. Now, if you get in a really bad accident that would cost $12,000 to fix, the insurance company will declare the car a "total loss" - it costs more to fix than it's worth. Instead of fixing your car, they'll just cut you a check for $9,500 (the value of your car, minus your deductible). Normally, they keep the remains of your car, and try to sell it to a junkyard for salvage value of any remaining good parts, plus the scrap steel in the frame. Say that the market value of what's left of your car is $1,000. If you want, you can buy the wrecked car yourself for the same $1,000 that a junkyard would pay - instead of $9,500, you have $8,500 and what used to be your car. What Dillbag is saying is that because of the "new model replacement" policy, the insurance company was treating the value of the old, wrecked car as artificially inflated. So, to go back to our original example with the same made up numbers, let's say that the old car was still worth $10,000, a new replacement would be $20,000, and it was in a bad accident that caused $12,000 worth of damage. Normal insurance math would say that the thing was a total loss; it would cost more to fix than it would to just cut a check for the value of the car minus the deductible, so the cheapest way to make the problem go away is to cut that check. But, because the insurance company is on the hook for $19,500 instead of $9,500 in a total loss, they're going to spend up to $19,499 in repair money on a $10,000 car. Until they hit that $19,500 magic number, they're not going to replace the car, because it's still cheaper for them to fix it and call the problem solved.
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Mar 21, 2015 22:20
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"Space Gopher" posted:That makes perfect sense, thank you for explaining that to me.
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Mar 21, 2015 23:05
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Come to think of it, the only other car my husband has wrecked was his mom's Miata back in 2001 or so. He was hit by a drunk driver and knocked in to a ravine. He wasn't hurt but the car was done for. The insurance tried to lowball his parents, but it was their fun car and they're lawyers so they waited it out. It took like six weeks for them to get a fair claim. I've been super impressed with progressive. The car was wrecked Wednesday, declared totaled on Friday morning, and we bought a new car Friday night. Good service.
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Mar 21, 2015 23:44
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The problem with Miatas is that the book value is notoriously and often significantly below actual market value, especially for one in great condition. A couple years ago I sold my 95 for 35-40% over book value within a day, and while it was in good condition it wasn't in OCD showroom condition.
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Mar 22, 2015 00:57
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I always thought that "new model replacement" option was weird. It set up perverse incentives all around. I mean, why would you even want to reward someone for destroying their car?
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Mar 22, 2015 03:53
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Space Gopher posted:Insurance words Back in 2010, my mom bought a 2004 Subaru Outback from a friend for $6000. Four years later, she got a newer Subaru, so she gave it with me. Exactly a month after I did all the paperwork and transferred the title into my name, someone ran into it in the middle of the night while it was parked in front of my house and totaled it*. The insurance company gave me $8000. Unfortunately, I was unable to find a used Subaru to buy with my insurance money, so I had to get a Suzuki, which was probably bad with money long term because they don't sell cars in America anymore. *And exactly a month after my car got totaled, my husband's car got totaled when he rear-ended an SUV. It was a bad month, but that's why you have an emergency fund.
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Mar 22, 2015 04:47
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Guinness posted:The problem with Miatas is that the book value is notoriously and often significantly below actual market value, especially for one in great condition. A couple years ago I sold my 95 for 35-40% over book value within a day, and while it was in good condition it wasn't in OCD showroom condition.
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Mar 22, 2015 04:47
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Space Gopher posted:Only if it costs too much to fix. I thought that state law creates a threshold to which insurance companies are beholden. In SC, where I live, it's 75% of the value of the vehicle. If the repair estimate exceeds that, the company is legally bound to total it out and actuate whatever method of payout they use.
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Mar 22, 2015 05:26
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Blackjack2000 posted:I always thought that "new model replacement" option was weird. It set up perverse incentives all around. I mean, why would you even want to reward someone for destroying their car?
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Mar 22, 2015 13:13
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A little over two years ago my 1997 Subaru Outback that I had bought from a family member and driven for about five years hit the traditional Subaru milestone of the head gaskets self destructing. As this meant a repair cost of $2,500 or so, I decided it would be wiser to go with a new car. I decided this would be best done with a series of beginner mistakes. I sold the Subaru to the repair place for like $800, likely way below market as I had no idea what my options were. In researching a new car I fortunately had a friend in a similar situation who recommended a Honda Fit, so I began going to dealerships. So far no ridiculous mistakes... (This was before I knew about the BFC forum) Extended warranty for $2,000? Well of course. Low jack? For sure! It's a new car. Some weird auto glass tracing? Heh I'd be crazy not to!  Arghhh I have theft insurance anyway, why did I buy all that. On the plus side it is a fantastic car. If I could do it again, I would forget all the extra crap and use the Costco auto program.
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Mar 22, 2015 14:52
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I don't think extended warranties or service plans are necessarily bad with money. A little over 5 years ago my then-girlfriend-now-wife and I bought a lightly-used Ford Escape. We had two options for financing through Ford. The first option was the typical case - borrow $14k at Y%. The second option was buying an extended service plan that covered just about everything besides regular service (oil changes, tire rotation, etc) for another 5 years or 60,000 miles for something like $2k and a big reduction in interest rate. Given the interest savings alone, it was almost 1:1 - we did the math - but it ended up saving us hundreds in repairs that were needed! I probably wouldn't buy a Ford again, but I don't regret that decision. 
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Mar 22, 2015 18:50
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A Facebook friend/extended family person just posted a gofundme saying he wants to take his girlfriend to Europe because she's never been out of America and he told her to pick a place and he'd take her. The only problem is they're broke college students, so please gift them thousands of dollars for this trip, every penny helps thanks!!!!
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Mar 22, 2015 19:52
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drat Bananas posted:A Facebook friend/extended family person just posted a gofundme saying he wants to take his girlfriend to Europe because she's never been out of America and he told her to pick a place and he'd take her. The only problem is they're broke college students, so please gift them thousands of dollars for this trip, every penny helps thanks!!!! That's actually pretty good with money.
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Mar 22, 2015 20:04
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Good with your own money I guess, not so much others'. But the mindset of "I want a thing. I deserve the thing! I'LL GET THE THING!" could lead to him being posted about more in this thread in the future.
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Mar 22, 2015 20:21
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As long as it's more funded items that's still pretty good with money. CEO in the making! 
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Mar 22, 2015 21:39
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Being a child who is given things by adults is good with money
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Mar 22, 2015 21:39
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I've seen some pretty frivolous gofundmes on Facebook from people that I KNOW have money, they're just spending it on other frivolous poo poo.
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Mar 22, 2015 21:45
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I guess some people just have no pride. I could probably make up some sob story and get my relatives to pay for my CFA exam, but seriously, no.
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Mar 22, 2015 23:00
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Being a groomsman sucks with money. I think this weekend cost me about $1500 just to share the moment. My whole wedding only cost 3k.
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Mar 22, 2015 23:09
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Krispy Kareem posted:Being a groomsman sucks with money. I think this weekend cost me about $1500 just to share the moment. My whole wedding only cost 3k. I have a couple female friends who have had years like "6 weddings, bridesmaid in 3, maid of honor in 1" and I can't imagine what a financial burden that is.
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Mar 22, 2015 23:12
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Why is someone who's not getting married (or parents of the people getting married) expected to dole out hundreds of dollars for someone else's party? That just seems really stupid. If you want to have a cool wedding, you should be the one paying for it, not the people you invite.
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Mar 22, 2015 23:35
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Or you can say no to being in the wedding party. Do you really expect them to pay for airfare and hotel(I assume thats what the 1500 is mostly since a tux rental definitely doesn't cost anywhere near that)
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Mar 23, 2015 00:11
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I am paying for my groomsmen's rentals and for hotel rooms for friends flying in for the wedding. Seems like not doing so is total douchebaggery.
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Mar 23, 2015 01:06
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I dunno if there's a good with money thread, but I know SloMo will like this post. I wanted to make the back porch more like a wine bar my wife and I have visited(Thirteen celsius, for the H-town goons). We didn't like how the clientele and staff judged us for not looking 'inside the loop' (a Houston thing) enough, but like the ambiance enough that we went to At Home (garden ridge) and got some nice outdoor lights for  Our house is now literally a hipster wine bar. They had firefly lights too, and we almost bought them  I miss you slomo  E: Lookit that, bonus catte and rack of gainz to the right.
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Mar 23, 2015 02:14
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I can finally contribute to wedding chat because my gf's sister is having her wedding in loving Bali next year lol. As if the 10k ring wasn't enough.
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Mar 23, 2015 02:28
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Pig Slut Lisa I know you read this thread so please save your friend http://forums.somethingawful.com/showthread.php?threadid=3708014&pagenumber=2&perpage=40#post443086683 Also everyone else laugh at PSL's friends.
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Mar 23, 2015 03:23
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Veskit posted:Pig Slut Lisa I know you read this thread so please save your friend Goddammit I had been making such good progress with this guy in IRC last fall
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Mar 23, 2015 03:31
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Veskit posted:Pig Slut Lisa I know you read this thread so please save your friend
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Mar 23, 2015 04:55
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Veskit posted:Pig Slut Lisa I know you read this thread so please save your friend Feeling like helping g0lbez, well shoot why don't you mosey on over to this thread for a spell: http://forums.somethingawful.com/showthread.php?threadid=3708082
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Mar 23, 2015 04:57
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Veskit posted:Pig Slut Lisa I know you read this thread so please save your friend So your saying I should short Nintendo?
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Mar 23, 2015 05:07
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Veskit posted:Pig Slut Lisa I know you read this thread so please save your friend This is my single favorite earnest posting on these entire forums.
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Mar 23, 2015 05:18
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I know there was a link earlier in this thread about someone who wanted to do something similar with Blizzard stock on the heels of a D3 or WoW expansion. What ended up happening there?
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Mar 23, 2015 05:29
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People like that are degenerate gamblers. They look at some stock popping off at 15-30% as money they just lost.
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Mar 23, 2015 05:36
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SpelledBackwards posted:I know there was a link earlier in this thread about someone who wanted to do something similar with Blizzard stock on the heels of a D3 or WoW expansion. What ended up happening there? I remember this. The stock ended up going down a bit so they lost a chunk of the money they invested. Nobody seems to see that one coming, except for everyone else.
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Mar 23, 2015 05:58
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Mojo Threepwood posted:who recommended a Honda Fit, so I began going to dealerships. So far no ridiculous mistakes... (This was before I knew about the BFC forum) The only thing I've found annoying is the oil filter isn't in the best spot in the fit. I had to buy K&N oil filters and use a wrench because it was hard as poo poo to turn it. The most crap I've had to deal with the dealer is they kept pushing for 0% interest loans over and over again, when I clearly said I wanted to pay in cash.
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Mar 23, 2015 06:57
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A Bag of Milk posted:I remember this. The stock ended up going down a bit so they lost a chunk of the money they invested. Nobody seems to see that one coming, except for everyone else. Assuming it was D3, I literally couldn't find a standard index fund that did worse than Blizzard/Activision.
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Mar 23, 2015 07:00
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My dad was telling me a story yesterday about how he was at an auto dealership in the late 90s and he wanted to buy a car but the salesman, every time my dad asked for a sticker price, would go off to his manager and come back with increasingly lower lease payment options. He ended up causing a scene and leaving. It was basically a guaranteed sale and the salesman hosed it up completely because he couldn't comprehend someone caring about the total cost of a car over the monthly payment.
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Mar 23, 2015 12:03
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100 HOGS AGREE posted:My dad was telling me a story yesterday about how he was at an auto dealership in the late 90s and he wanted to buy a car but the salesman, every time my dad asked for a sticker price, would go off to his manager and come back with increasingly lower lease payment options. He ended up causing a scene and leaving. That salesman 100% understood why someone would care about the total price rather than the payment. That's why he wouldn't cough up the total price.
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