A car... insurance, etc!

[pmiron84]

Hey guys!

 

I thought i could possibly get insight from other med students... Who have gone through my way already... I'm entering 1st year in the fall 2007. Or whoever else has done some research on the subject.

 

So, I'll be relying mostly on finances from LOC and OSAP for the next 4 years. Here's the deal... I want to get a car, because i pretty much NEED a car.

 

Now, i Hear that osap cuts you back a lot for a car... I've never had OSAP before, so I have no clue! But ya, I hear it cuts you back A LOT if you have a car, any insights?

 

But that raises many questions... If i put the car in my parent's name... I fall under their insurance policy... if such, the car is in their name, would i qualify for a Grad discount (on a brand new car), if the car goes under my dad's name?

 

If I decide to do this on my own, and buy the car in my name... Are there good insurance companies who recognize i'm a med student and get perks? Cause I still fall under the "risky" category... of being under 25, and a guy! hehe

 

Any insight? I'm sort of thinking the car should be in my dad's name, to get cheaper insurance, and not mess up my OSAP situation... does anyone agree with this??

 

Thanks!

 

Paul

[Darla]

I worked for OSAP through my undergrad and saw many cars make folks' OSAP go *poof* and disappear. Putting it in your father's name will fix this if you have been out of high school for at least 4 years. You're mentioning a grad discount. Those are usually on new cars. Are you sure that you need a new car? I'm in a similar situation so I'm looking for a $1-$2G used car. New cars are expensive to begin with and to keep the warranty require specific care (read not cheap )

 

My 2 cents.

[lucy98]

Have you ever heard of Leasebusters.com? I just got a new car about 6 months ago. I visited a couple of dealerships, all of whom advertised a lease of $200/month for the basic model of the car I was looking at (no CD, no A/C, no power locks/windows, etc.). But when it actually came down to it, it was more like $300+ once you factored in taxes, fees, etc, and then a large downpayment on top of that. I checked out leasebusters.com and found the same car plus all the upgrades for $200/month and that's it! No taxes, no downpayments or any other fees. People on this website are basically looking to get out of their leases for one reason or another (the guy I got my car from was leaving the country). My car was used, but barely. It was a little less than a year old and had only 11,000km. Practically new. Some people even offer pretty sweet cash incentives for you to take over their lease - depends how desperate they are. The great thing is, you get to take advantage of the fact that they have already paid the downpayment, taxes, etc. and you just get to take over the monthly payments. Plus, because you've leased it, most problems are covered under warranty. You could still get the car in your father's name, but the deal you could potentially get would definitely beat any grad discount you may be eligible for. Anyway, that's another option for you or anyone else who's looking for a new car.

 

Lucy

[exvv]

I worked for OSAP through my undergrad and saw many cars make folks' OSAP go *poof* and disappear. Putting it in your father's name will fix this if you have been out of high school for at least 4 years. You're mentioning a grad discount. Those are usually on new cars. Are you sure that you need a new car? I'm in a similar situation so I'm looking for a $1-$2G used car. New cars are expensive to begin with and to keep the warranty require specific care (read not cheap )

 

My 2 cents.

 

Hi Darla,

Since you worked for OSAP, you probably could answer the question I have. If I transfer my car ownership now, will this change be considered in the calculation of my OSAP amount or they look at the status (assets/liabilities) as of earlier date (May 15?, as somebody posted before)?

 

Thank you!

 

exvv

[blinknoodle]

I don't believe you can get a grad discount if you are not buying the car yourself (ie your parents are the owners). It would only work if you were co-owners, but then OSAP would still see that as an asset.

[pmiron84]

On another note!

 

I spoke to my RBC agent today for my LOC and I asked him if having OSAP would interfere with my LOC, just out of curiosity, and he told me no! as long as you have the LOC before the OSAP... he told me over the phoen: "Why would you tell me about OSAP unless I ask??? (with a little hint of laughter) and then... "We're here to help you, so i won't get on your back!"

 

haha I thought it was funny!

[EESH]

Car dealerships will give you the grad discount even if the car is under your parent's name. They don't actually care who's buying the car; as long as you can prove you're a graduate, they'll help you get the discount.

[leviathan]

I have uncles who own car dealerships and they were able to apply my grad discount to a car in my parents name. It's basically a decision up to the individual dealer, so if one won't do it....go to another.

 

Interesting thing though...when I graduated with my second degree, I couldn't use a second grad discount at the same dealer...something to think about for when you graduate from Med.

 

That's crap....the dealers can give you the discount regardless. It's not like they're losing money...they mark up the price and then provide "incentives" for you to come in like grad discounts..but don't make that fool you into thinking they aren't still making money off you, no matter what name they attach to a "discount".

[kaymcee]

...and isn't a grad discount pretty paltry, anyway? Like a $500 credit?

[EESH]

Yeah it's $500 for all the makes that I was looking at (GM and VW basically).

[kaymcee]

To kind of derail the topic, what are you looking at from Volkswagen and GM?

[EESH]

Yeah I don't condone the purchase of asian cars either. I'm a north american/european car fanatic myself.

 

I was looking at the chevy cobalt/pontiac G5 (maybe even the G6, although that's pushing my budget pretty far) or the VW City Golf (it's around 20k fully loaded, not bad IMHO). The VW has a 4 year waranty, which would cover med school and the duration of the lease so I'm not worried about it breaking down. As far as resale value goes, VW is pretty damn good although GM sucks big time.

 

Anyway, everyone is telling me to just buy a used civic, but I refuse! I got my ass into med school; I'm either going all out on a vw or I'm bussing it

[kaymcee]

VW has been hit-or-miss a little bit these days. They are, however, by far, the best cars to drive. Their fuel economy is mediocre, too. If I had a great deal more money than I have, I'd be purchasing a 4-door new GTI.

 

I'm taking everyone's advice and getting a Civic. I'll be driving it from Victoria to Halifax and back to Kingston... so I guess I'll get a feel for the thing.

[Satsuma]

If you are putting the car in your name...something to consider with Honda's is, because they don`t depreciate much, you will continuously be screwed for OSAP. The financial aid counselor I had seen when I started med school joked that no students with Honda's really get any OSAP for this reason.

 

My GM however, continues to depreciate...probably exponentially. And that means I keep getting more OSAP

 

I've had my GM for 5 years now and no problems to speak of. Just had to get some part related to the brakes filed/smoothed out last year cause there was a bit of grinding (I can`t remember what the part is called). But I think it should still last me through the next two years of school and hopefully a bit into residency.

[EESH]

Satsuma, if you don't mind me asking, how badly do they drop your OSAP with a GM when it's new?

[kaymcee]

The financial aid counselor I had seen when I started med school joked that no students with Honda's really get any OSAP for this reason.

This is why I will give the money to my mom, who will purchase and own my vehicle.

[littlebuster]

Something else to keep in mind:

If you can hold off until after you're IN medical school, once you join your province's medical association, a lot of them get you deals on new cars/leases. In MB, for example, you can get a new car for dealer cost + 2-4%. You also get a good deal on leases. If you really haggled you'd probably get the same prices, but it really takes the guesswork out and saves time. As well, your immediate family is able to get the same deal. There's some other perks too, but I can't recall off the top of my head what they are. Businesses love doctors...

[pmiron84]

I hear you can get your own insurance on someone else's car... as in... My mom can buy a car and I can put insurance on it (insurance in my name but car in my mom's)... it's called insuring someone else's property, in which you have insurable interest

 

anyone has insight on this?

 

would this fly with OMA insurance???

[Stevie Boy]

If you want to buy a new car there is no cheaper way to get one than from the states. ~17% less including currency exchange, and the cost of importing is very very low (does not ruin the deal). If any1's interested I'll hunt down the link that gives you all the info.

[NLengr]

If you want to buy a new car there is no cheaper way to get one than from the states. ~17% less including currency exchange, and the cost of importing is very very low (does not ruin the deal). If any1's interested I'll hunt down the link that gives you all the info.

 

I believe it has to be used though. I think there is an agreement in place (auto pact, NAFTA or something) that prevents citizens of either country from buying new cars in the other country. You can however buy used cars. Just be aware that there may be tariffs and whatnot when you come back into the country. Check with Canada Customs.

 

Also, a few US cars do not meet Canadian crash standards (normally it's front impact bumper type issues). For example, the all previous generations of the Mitsubishi Lancer Evolution were not allowed to be imported. Again, Customs should have a list of these cars.

[susan]

Hello all

 

As mentioned before that if the car is under my name the OSAP amount will automatically be reduced. Just wondering how would OSAP find out regarding ownership of the car?

 

Secondly there has been discussion on buying a car under one's parents name.

 

In my case I am in Ontario however my parents are in Alberta. Is there a way around this. I am planning to buy a car but am really confused regarding the deductions in OSAP. Does anyone know what percentage is deducted?

 

Thanks

 

Susan

[Darla]

Hello all

 

As mentioned before that if the car is under my name the OSAP amount will automatically be reduced. Just wondering how would OSAP find out regarding ownership of the car?

OSAP asks for your driver's licence and checks for all cars registered to your name. If, for example, you have a beater that you never bothered to remove from your registration, it may pop up that you own more than one car.

 

Secondly there has been discussion on buying a car under one's parents name.

 

In my case I am in Ontario however my parents are in Alberta. Is there a way around this. I am planning to buy a car but am really confused regarding the deductions in OSAP. Does anyone know what percentage is deducted?

I don't know the percentage deducted (it's a huge logarithm, I only figured it out using the ministry's program), but I have seen large reductions in OSAP from owning a car (more than $1000). Any chance you can take a trip before September to Alberta? Or your parents could come to Ontario?

[susan]

Thanks for the reply

 

Just wanted to know is it not possible for me to buy a car from here on my own but under my parents name.

 

 

Will it be okay to get an insurance under my name eventhough the car is registered under their name.

 

Susan

[Darla]

OSAP just checks what you have registered under your name (plates) so, as far as I know, if someone else owns the car that you insure under your name, it shouldn't affect your application. I remember my boss complaining about how some students' families would take advantage of that (to a much greater amount than you're suggesting ). Your student financial aid officer at school should be able to offer more specific help - I just have specific cases that I've dealt with in the past

[CrestvsColgate]

I PM'd you Darla.