116 - New car old car

Here's a question for you. You have a brand new car and a 7 year old car. The 7 year old car runs just fine and meets all the needs of a second car for your family. So much so that you just put new tires on it and spent $300 on engine work.

A big storm is coming. You have a one car garage. Which car do you put in the garage?

The answer most people would say is the new car. But the real answer is the old one. Why? Because if the storm destroys the new car the insurance company will fix it.

If the storm destroys the old one the insurance company will do the following. Tell you that the old car is worth 2/3's of it's actual value. Tell you that the tires aren't new any more and prorate their cost and tell you that the cost is already in their estimate. Tell you the engine work is routine maintinance and is not covered. And by the way we're totaling your car so if you want any money at all take our deal or to bad for you.

So put the old car in the garage and save your investment in it.