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Thread: Insurance advice needed.

  1. #1
    Junior Member finnrue's Avatar
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    Location:  Jasper, Georgia

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    Insurance advice needed.

    Alright, I'm about to turn 17, I'm determined to acquire a DeLorean, I've got a full time job, and I make enough for the monthly payments every week. Two problems.

    1: You can't legally take out a loan before you're 18 in the state of Georgia.
    And 2: Insurance companies won't give Collector's Car insurance to anyone under 25.

    I've got someone willing to take out the loan for me, but then it would be in their name, and so it would be on their auto insurance. And since I'd be the primary driver, I'd need to be a registered driver on their auto insurance. I don't know if that's possible, since I can't take out insurance on my own.

    Does anyone have any advice they could give me to help with this situation?

    Thanks in advance.

  2. #2
    DMC Midwest - 815.459.6439 DMCMW Dave's Avatar
    Join Date:  May 2011

    Location:  Crystal Lake IL

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    My VIN:    05429

    Quote Originally Posted by finnrue View Post
    Alright, I'm about to turn 17, I'm determined to acquire a DeLorean, I've got a full time job, and I make enough for the monthly payments every week. Two problems.

    1: You can't legally take out a loan before you're 18 in the state of Georgia.
    And 2: Insurance companies won't give Collector's Car insurance to anyone under 25.

    I've got someone willing to take out the loan for me, but then it would be in their name, and so it would be on their auto insurance. And since I'd be the primary driver, I'd need to be a registered driver on their auto insurance. I don't know if that's possible, since I can't take out insurance on my own.

    Does anyone have any advice they could give me to help with this situation?

    Thanks in advance.
    Have lots of money.

    Anyone under 25 is going to get killed insuring a car like this as an only car. You would be trying to insure a car that you don't own, (not legal either) so the real owner would have to insure it with a primary "youthful" (that's the word they use) driver.

    Best advice (you're going to hate this) is to drive a beater now, save up longer, pay cash as a second car, and by that time you'll probably be old enough to get a better deal on insurance.

    You didn't mention maintenance, if you can "make the payments" but that maxes you out, you'll be disappointed when something breaks and the car has to sit. It's a 35+ year old car, so things will go wrong. That needs to be in the budget.
    Dave S
    DMC Midwest - retired but helping
    dswingle@DeLorean.com

  3. #3
    Junior Member finnrue's Avatar
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    Location:  Jasper, Georgia

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    Quote Originally Posted by DMCMW Dave View Post
    Have lots of money.

    Anyone under 25 is going to get killed insuring a car like this as an only car. You would be trying to insure a car that you don't own, (not legal either) so the real owner would have to insure it with a primary "youthful" (that's the word they use) driver.

    Best advice (you're going to hate this) is to drive a beater now, save up longer, pay cash as a second car, and by that time you'll probably be old enough to get a better deal on insurance.

    You didn't mention maintenance, if you can "make the payments" but that maxes you out, you'll be disappointed when something breaks and the car has to sit. It's a 35+ year old car, so things will go wrong. That needs to be in the budget.
    I was planning on getting a beater. I just make enough money right now, and was hoping there'd be some way to make it work before I've gotta deal with education debt and what not. And I didn't mention it, but I have planned for it; I've put maintenance into account.

    Hopefully there won't be any major price spikes in DeLoreans between now and when I'm able to purchase one. Thanks for the advice.


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  4. #4
    Guy with a DeLorean Mark D's Avatar
    Join Date:  May 2011

    Location:  Stevens Point,WI

    Posts:    1,858

    My VIN:    6125

    Quote Originally Posted by finnrue View Post
    Alright, I'm about to turn 17, I'm determined to acquire a DeLorean, I've got a full time job, and I make enough for the monthly payments every week. Two problems.

    1: You can't legally take out a loan before you're 18 in the state of Georgia.
    And 2: Insurance companies won't give Collector's Car insurance to anyone under 25.

    I've got someone willing to take out the loan for me, but then it would be in their name, and so it would be on their auto insurance. And since I'd be the primary driver, I'd need to be a registered driver on their auto insurance. I don't know if that's possible, since I can't take out insurance on my own.

    Does anyone have any advice they could give me to help with this situation?

    Thanks in advance.
    No need to have special collectors car insurance on a DeLorean. I have standard full coverage from State Farm with the addition of a "Stated Value" clause where we have already agreed upon a predetermined value if the car were ever considered a total loss. That's the easy part of your question...

    From the way you described your situation it doesn't sound like it's one of your parents helping you out with the loan. You would need to get the lender to allow you to cosign the loan and then you would have to get your own insurance for the car. Some banks will not allow non-relatives to cosign, so that would be your first hurdle to get past.

    As long as you have a driver's license and don't already have a record of accidents most insurance companies will carry you. You just won't be able to get the special collectors car insurance you were looking at that requires you to be 25.... As stated above, collectors insurance is not required anyway. Most likely your insurance premiums will be high so factor that into whether or not you can actually afford the car. Talk to your current insurance agent or go online and get an quote and see what your premium would be before you get the loan.

    As long as the person helping you out is trustworthy and you can actually afford the car then you may be able to make this work. Being 17 years old vs. 18 years old really doesn't change your situation much since you most likely won't have the required credit score to get a loan at 18 anyway. You would end up cosigning and be in the same situation as you are now.

    Being able to afford the car doesn't just mean you can make the monthly payments, but also pay insurance, pay for repairs, gas, and general maintenance. There are some online calculators to help you figure out actual cost to own a car. Owning a DeLorean can be a money pit especially if you're buying a car on the low end of the market that needs lots of work. You could end up paying a ton of money for a car you can't drive because you can't afford to keep in running. Search this forum for related threads and figure out if you can actually afford it. Having a job today doesn't necessarily mean you'll have one tomorrow so you will need some buffer in the bank if times get tight. If you've got plans for college or vocational school you may want to put that first and consider waiting until you're actually stable.

    I was also pretty young when I purchased my DeLorean so I understand not wanting to wait. I was 24 and had finished engineering school a year earlier, got a good job, bought a house with a garage and at that point I was established enough with good credit to have no problem getting a loan. I paid it off in just a couple of years and still set aside a little bit of money for the occasional work that it needs.

    I'm sure you'll get lots of other advice.... everyone here has their own story about how they got their car and it colors their opinion on really young (hopeful) DeLorean owners such as yourself. Hopefully you can actually afford the car, and you can "live the dream". If you end up having to wait a little bit that's not the end of the world either.

    EDIT: Looks like while I was typing out my post Dave beat me to the punch. I'd take his advice over most in the DeLorean community since he's pretty much been around and seen it all.
    Last edited by Mark D; 10-13-2016 at 04:06 PM.

  5. #5
    Junior Member finnrue's Avatar
    Join Date:  Aug 2016

    Location:  Jasper, Georgia

    Posts:    8

    My VIN:    Someday!

    Insurance advice needed.

    Quote Originally Posted by Mark D View Post
    No need to have special collectors car insurance on a DeLorean. I have standard full coverage from State Farm with the addition of a "Stated Value" clause where we have already agreed upon a predetermined value if the car were ever considered a total loss. That's the easy part of your question...

    From the way you described your situation it doesn't sound like it's one of your parents helping you out with the loan. You would need to get the lender to allow you to cosign the loan and then you would have to get your own insurance for the car. Some banks will not allow non-relatives to cosign, so that would be your first hurdle to get past.

    As long as you have a driver's license and don't already have a record of accidents most insurance companies will carry you. You just won't be able to get the special collectors car insurance you were looking at that requires you to be 25.... As stated above, collectors insurance is not required anyway. Most likely your insurance premiums will be high so factor that into whether or not you can actually afford the car. Talk to your current insurance agent or go online and get an quote and see what your premium would be before you get the loan.

    As long as the person helping you out is trustworthy and you can actually afford the car then you may be able to make this work. Being 17 years old vs. 18 years old really doesn't change your situation much since you most likely won't have the required credit score to get a loan at 18 anyway. You would end up cosigning and be in the same situation as you are now.

    Being able to afford the car doesn't just mean you can make the monthly payments, but also pay insurance, pay for repairs, gas, and general maintenance. There are some online calculators to help you figure out actual cost to own a car. Owning a DeLorean can be a money pit especially if you're buying a car on the low end of the market that needs lots of work. You could end up paying a ton of money for a car you can't drive because you can't afford to keep in running. Search this forum for related threads and figure out if you can actually afford it. Having a job today doesn't necessarily mean you'll have one tomorrow so you will need some buffer in the bank if times get tight. If you've got plans for college or vocational school you may want to put that first and consider waiting until you're actually stable.

    I was also pretty young when I purchased my DeLorean so I understand not wanting to wait. I was 24 and had finished engineering school a year earlier, got a good job, bought a house with a garage and at that point I was established enough with good credit to have no problem getting a loan. I paid it off in just a couple of years and still set aside a little bit of money for the occasional work that it needs.

    I'm sure you'll get lots of other advice.... everyone here has their own story about how they got their car and it colors their opinion on really young (hopeful) DeLorean owners such as yourself. Hopefully you can actually afford the car, and you can "live the dream". If you end up having to wait a little bit that's not the end of the world either.

    EDIT: Looks like while I was typing out my post Dave beat me to the punch. I'd take his advice over most in the DeLorean community since he's pretty much been around and seen it all.
    Thanks for the info on the insurance. Had no idea State Farm would allow that. I was looking at progressive. And yes, it's not my parents, but it is a relative.

    Thank you both for the advice. I just need to learn to be patient. My dad made a good point, which is that if I go through with my plans, and become a lawyer, I'll probably have enough to afford one in the future. I'm just overly enthusiastic. The DeLorean has always been my dream car, and the thought of owning one is exciting.

    Again, thanks for the advice.


    Sent from my iPhone using Tapatalk

  6. #6
    Senior Member DavidProehl's Avatar
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    Location:  Maple Grove, MN (Minneapolis)

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    Quote Originally Posted by DMCMW Dave View Post
    Best advice (you're going to hate this) is to drive a beater now, save up longer, pay cash as a second car, and by that time you'll probably be old enough to get a better deal on insurance.
    +1

    Quote Originally Posted by finnrue View Post
    I was planning on getting a beater. I just make enough money right now, and was hoping there'd be some way to make it work before I've gotta deal with education debt and what not.
    I can't stress enough how important it is in my mind to pay cash for toys, and a DeLorean is most certainly a toy. You mention education debt, and then also DeLorean debt. What financial situation do you want to be in when you are 22 years old? Do you want to have a DeLorean, school, and be working in order to make payments and have maybe a few hundred dollars left at the end of the month or do you want to save for the DeLorean, go to a cheap state school while also working, graduate with no debt, and be able to save $1,000+ a month?

    I'm not telling you how to live your life, and I certainly support you getting a DMC, I just want to make sure you are thinking about what this means for your personal finances. Debt is not your friend.
    David Proehl

  7. #7
    Senior Member davidc89's Avatar
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    Location:  Minnesota

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    I was in a very similar situation such as yourself. I wanted a DeLorean so bad when I was 17! One had come up for sale, near where I lived, and I just had to have it! The problem I had was that no matter which bank I went to, no one really wanted to take a risk on a 17 year old kid wanting a car that would be difficult to re sell if I defaulted. I ended up waiting until I was done with school, had great credit, and stability in my job before I was able to get one. Is that all I thought about for 10 years? Yes. But waiting also allowed me to be a smart buyer and learn what to look for when buying. I had enough money then but, when it came to start paying back my student loans, I was broke and would have had to sell the car anyways. Just keep that in mind .

    I would recommend getting one while you're still single.... A wife and kids really put a damper on your DeLorean buying decisions .
    Last edited by davidc89; 10-14-2016 at 09:25 AM.
    Everyone is tough through a keyboard

  8. #8
    Stupid Newbie DaraSue's Avatar
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    Finnrue, you say you're working full time now but planning on going to law school. Have you worked full time while also going to school full time before? If not, I don't recommend it, especially not something as rigorous as law school while also juggling the demands of paying for and maintaining a classic car. If you're not going to work as much while in school, do you have enough saved to cope with potentially thousands or more in repairs in the first couple of years? How about if you don't get a job at a top-flight firm right after school because the job market is glutted, and then you've got student debt on top of your car payment? What if you have to move to another city to get a job and can't find an affordable place with a garage?

    How strong is your relationship with the relative who's helping you? Strong enough not to cause a massive family rift if the worst happens and you wreck the car while on their insurance?

    No offense, not trying to crush your dreams, but it's easy for a dream to turn into a nightmare if all the pieces aren't in place to make it happen.

    I just bought my first DeLorean at 40 after wanting one for 30 years and I still went a little nuts about it, but I have a good-paying job that I have to screw up really bad to lose, and substantial savings. Numerically I probably could have done it 10 years ago, but I would have been in a much more precarious position financially back then and the stress it would have added would have greatly lessened my enjoyment of it.

    You're young, and 6,500 DeLoreans aren't going to just disappear overnight. They may cost more in the future, but you'll be making more too, maybe enough to afford one of the new ones they want to make next year. If there's any doubt that you can really make it work, wait, because however sad you'll be about not getting one right now, multiply it by 10 and that's how you're going to feel if you get one and then have to give it up.

  9. #9
    Senior Member mr_maxime's Avatar
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    Stick with going to school and being a lawyer. You should make enough money to offset the potential increase in value. College will drain your finances WAY more than the Delorean will. It's better to keep that money and use it to pay for college. You don't realize how quickly it will drain your money.

  10. #10
    Senior Member RamblinDMC's Avatar
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    You may want to buy and sell a few other classic cars to make a good bit of cash, before buying your DeLorean. Plus, you'll learn a lot about working on old cars too! My first old car was a 1953 Ford Customline I got at 17. Fixed it up, and sold it to pay cash for #2203 at 19. (I'm 21 now.)
    DeLoreans are not easy cars to work on, and if you don't have much experience working with cars, it may be difficult to do repairs yourself. Maybe start out with something like an old Chevy Nova, Ford Falcon, or Dodge Dart. Buy some, sell some, and in no time you'll have enough to pay cash for a DeLorean.


    -Word of advice from another DeLorean "youngster."
    Last edited by RamblinDMC; 10-17-2016 at 10:50 AM.

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