Blog

Short blog posts, journal entries, and random thoughts. Topics include a mix of personal and the world at large.

The math is not math-ing

The most dangerous time for a car enthusiast, is when they are about to pay off their car. No more car loan debt means that money is freed up for something else: another car, naturally. The mind wanders at the possibilities. Perhaps it’s time to buy a car with a drivetrain layout you’ve never had before. Or perhaps it’s to re-purchase a car you shouldn’t have ever sold (thank goodness I cannot comfortably afford to buy another Porsche 911 GT3).

If there’s money in the bank account, you have to spend it. Isn’t that the American way? This entire economic house of cards is dependent on people’s continuous, often times reckless, spending.

My 2021 BMW M2 Competition will be paid of in a few months. And boy is the itch to buy another car itching intensely as that date draws nearer. I’m not being irresponsible! It will be the same money that would have gone to the M2 each month! It’s very easy to rationalize to yourself any purchase. The only reason I don’t have a mortgage is because the banks wouldn’t lend me the money.

But, as I like to say since last year: “Not in this economy!” Some people think that because they can afford the monthly car payment, they can afford the car. Don’t be like those people. We have to take in account the total operating cost. That means insurance, gas, and maintenance. And unless you’ve been living under a rock, all three of those things have gone up a lot in recent years thanks to inflation.

Never mind the fact that new cars have gotten rightly expensive. (Average transaction price in America is $47,338 as of this January.) High interest rates also means that monthly payment will be up as well. It’s really not a good time to be buying a second car, taking on tens of thousands of debt for another five years. I am going to keep telling myself that this entire 2024.

There's no fairness here

I am still slightly peeved that my car insurance has gone up 20% in this recent renewal period. This, for a car I only drive for weekend leisure, and have zero accidents and claims on record. Inflation sure is a bitch, isn’t it?

What is keeping me peeved is responsible drivers like me are practically subsidizing those who are not so responsible. It’s not me that insurance is worry about - it’s the other drivers on the road. California insurance minimums are too low to afford anything. Cars are so laden with technology that a simple bumper repair on a 2021 Toyota Corolla is over $10,000 (personal knowledge). Any basic fender-bender caused by me - god forbid - my insurance is out at least five-figures just to fix the other party’s car!

No wonder my premium has increased. And I thought it was suppose to decrease consistently as I get older! Lies!

The worst of the worst driving out in our roads are those uninsured and unlicensed. If one of those drivers were to hit me - I am absolutely on my own. There’s no opposing insurance to get money from. And because those who are uninsured aren’t likely to have any assets, there’s nothing for me to sue after, either. The proverbial rock cannot be made to bleed.

Again: the responsible drivers with proper insurance are paying for the subset of drivers who are not insured, or under-insured. It’s not fair, but that’s life. We got to protect our assets and cover potential risks.

It’s sad to see on the r/insurance subreddit folks complaining after accidents. It would typically involve an offending driver with no insurance, but the victim also doesn’t have collision coverage on their policy! So they had a perfectly working car, then boom, now they don’t. Their own insurance won’t pay to fix the car, and the other driver doesn’t have anything. Bad luck, absolutely. Bad planning? Heck yeah. The victims should have had collision on their policies.

Got to cover any downside risks that you cannot afford!

Ask any car enthusiast again

Another horror story I ran into on the r/cars subreddit is this story of a Subaru dealership messing with a customer’s WRX. Allegedly, a service tech took this guy’s WRX out to learn how to drive a manual transmission. As one would expect, some mechanically destructive stuff ensued. They even washed the WRX, after the customer specifically asked the dealership not to. It’s a complete violation of the trust between customer and business. Next to having your car stolen, this is another worst nightmare as car enthusiast.

This story brings up a good reminder: very few people know how to drive a stick-shift these days, especially the younger generation. Think about the age group of the minimum-wage dealership porters tasked with moving cars. Do you really expect some young thing in his 20s to know how to operate manual transmission? And I don’t even put the blame on him! Stick-shift cars are so relatively rare that the opportunities to learn are difficult to come by.

Owners of a cars with a manual gearbox have a conundrum, then: can you trust a dealership to have someone capable of moving it around properly? We’re not even talking about the actual servicing!

It depends on the brand, too. I have trust in a Porsche dealership, because manual Porsches are high-dollar sports cars. The dealers are used to shuffling around expensive metal. A Honda dealership I would be highly anxious about taking a Civic Type R in for servicing. Not only is it likely the only manual transmission car the service department sees all year, but the rare Type R stands out so specially that some young technician might be enticed to take it out for a joy ride.

Solution? I wouldn’t buy another stick-shift sports car in the future without the capability and space to service it myself. (My current BMW M2 is a dual-clutch automatic.)

Ask any car enthusiast

A very sad thread on the r/cars subreddit today. A guy’s dream car - a 2024 Nissan Skyline GT-R - got stolen right out of his garage while he was away on business. The original poster says the R35-generation GT-R has been a dream of his since high school, and he’s worked his butt off to finally make the purchase. Then boom, gone in a flash like that. As a fellow car enthusiast, I empathize greatly. Having your pride and joy stolen is just about the worst nightmare.

Even if yo get it back, it’ll never be and feel the same.

Some of the responders mocked OP for being overly dramatic. A dream car is still a car - this isn’t like the lost of a family member. Besides, being so new, insurance will surely cover the full replacement cost no issues. It’s a loss, yes, but OP will soon be made whole.

For sure from a monetary standpoint the GT-R owner will be made whole. But from a mental perspective, the entire game has changed. To have something so valuable stolen right off your property is an act of violation that’s difficult to erase. A house has turned to not a home. Even if OP were to buy another GT-R, he would always have PTSD-like second thoughts when parking in that garage. Every strange noise emanating from there will jolt him to stressful alert.

It’s not simply about dollars and cents, my friends. Peace of mind is worth infinite.

Insurance on cars such as the GT-R (and other often-stolen vehicles such as the Dodge Charger/Challenger) must be ruinously expensive. It probably costs a whole car payment’s worth per month to cover the risks. Also: it’s seemingly that easy for thieves to clone an electronic car key and drive your car away? I guess anything electronic - like the push-button ignition start that most new cars are equipped with these days - can be hacked, if the incentives are high enough.

If it’s not save even in your own garage… what else can you do, honestly? Press F to pay respects.

Tire check

I’ve been remiss in regularly checking the tire pressure on the BMW M2. Best practice with any car is to maintain tire pressures as dictated by the sticker on the driver-side door jam. (The M2 calls for 35 psi cold at all four corners. Easy.) Almost imperceptible amounts of air leaks out of the tires over time, so it’s important to refill it periodically. Back in my more diligent days, it was once a month check in the morning, when the tires are stone cold.

With the M2 sitting at nearly 18,000 total miles, it was also time to check the tread depth. The BMW comes from the factory fitted with Michelin Pilot Super Sport (PSS) tires. No complaints about these boots: they grip fantastically, and perform reasonably well in the wet. The PSS has a 300 tread-wear rating, which to me means if a driver drives completely like a grandma, the tire should last 30,000 miles.

No chance of that happening in a rear-wheel-drive sports car with 400 horsepower. From what I can gather in the inter-webs, the rear tires on a M2 Competition (or BMW M3/M4, which has the same exact drivetrain) typically lasts from 12,000 to 15,000 miles. (The front tires obviously last longer because all they do is steer.) So I was surprised to find a decent amount of rear tread remaining on my M2.

It seems I drive the car in a performant manner very seldomly. For shame!

I reckon I will have to replace (at least the rear) tires at the end of this year. This BMW M2 is reaching a point in its young life where it’s starting to cost me some money to maintain. The free service (first three years or 30,000 miles) ended last year. The consumables are consuming to the point of needing replacement. This is the point of ownership when car enthusiasts tend trade it in for another new car. We get to drive something different, and it resets the maintenance clock, too (if you will).

But not in this economy! This BMW M2 is my ride-or-die for the foreseeable future.

Control what you can

My parents recently purchased a brand-new 2024 Toyota RAV-4 (XLE hybrid trim). This is to be their forever car, one to use for the majority of their retirement period. Being a Toyota product, I have no reasons to suspect it won’t (at least) mechanically last for two plus decades. The key is to keep it meticulously serviced, by the book, at the dealership. I suspect a lot of reliability issues people experience with cars is due to not following the correct service schedule. A mere oil change at the local Jiffy Lube every six months isn’t going to cut it.

This is why I am leery about buying the typical used car. You can never be sure if scheduled maintenance is done by the book. It’s likely safe to bet that it hasn’t. Owners aren’t wont to pay for what they think is needless extras, such as brake inspection, or lubing the jams. Soon as that two-year free maintenance plan is over, that Toyota Corolla is back to oil changes on the driveway. The only used car I’ve ever bought was a Porsche 911 GT3, a six-figure specialty sports car that I can count on owners to be meticulous. That car came with a full dealer service history with all the print-outs.

So in support of it lasting more 20 years, my parents’ RAV-4 will be serviced by the book.

That is something we can control. What we cannot control is other drivers on the road. I too have every intention of keeping my own BMW M2 for a very long time. However, all it takes is one errant driver crashing into me to destroy that long-term plan. I can defensively drive as much as possible, but sometimes an accident truly is an accident. Heck, I might do something careless on the road. It only takes one scant moment of inattention.

As with most things in life, the best we can do is take care of what we can control, and don’t stress about what we cannot. That Toyota RAV-4 will last a long time if the car gods deem it to be so fortunate.

Cover your butt

Speaking of high auto insurance costs: part of the reason why it costs so much per month to insure my BMW M2 (aside from the fact it’s a fast BMW) is that I have way higher liability coverage limits than what is mandated by California. This great State of ours calls for only $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for damage to property (15/30/5 in insurance parlance). Those minimums are laughably low when considering the average selling price of new cars in America is about $48,000.

That means if you collide with a brand-new Toyota RAV-4, and you only have the California minimum coverage, high chance you will be personally on the hook for damages over those minimums. A total-loss for the RAV-4 is already above $30,000, so let’s not even add on any potential bodily injury of the opposing driver.

And yet the minimums aren’t any higher, because that means everybody’s base premiums would be higher as well. It seems California is incentivized to keep the minimums low, because more people would be able to afford auto insurance on the low end. (But driving is a privilege, not a right?) No need for low-income folks to carry high liability when there is nothing in their bank accounts for the opposing party to sue for.

Obviously, if you’re at least a medium earner with a some assets in reserves, you’d be risking a lot to not have higher coverage. I personally have 100/300/100 on the M2’s policy. On the other hand, I also carry uninsured/underinsured motorist coverage. Because a driver carrying State minimums can’t possibly cover a total loss of the M2. It’s kind of perverse, actually: if you have assets, you have to pay more to cover yourself and cover for other drivers’ insufficient coverage. Fair, it is not.

But I gladly pay my high insurance premiums. My risk tolerance is super low when it comes to preserving the integrity of my bank accounts. The car can always be replaced with a check from my insurance; never ever dependent on the other party’s insurance to make me whole.