What considerations should a person make if they're moving to the bay area and are thinking about buying a car

Question

I'm moving to the east bay area and was thinking of buying a car here and then driving it there but I learned that I would still have to pay the difference on the tax. Also the problem of insurance comes up because insurance rates are much higher in california then at home. Any advice on buying a car or buying car insurance in pricey california would be helpful. Thanks!

I'm moving from Michigan

Answer 1

the bay area has awesome public transportation. besides your car payment- there will be taxes/registration fees/ costly insurance and you have to worry about parking (which is never free). my advice would be to get out here and use the public system and then figure if you can afford to own/drive a car. and then if it's worth it.
good luck!

Answer 2

As mentioned by others, some areas are well covered by public transportation. Check it out to see if you really need a car. As you know, the cost of living in the Bay Area is one of the highest in the country. It affects the cost of everything.

In view of the above, cars are not that much more expensive than elsewhere (unlike housing!). Sure, price is a bit higher, sales tax and DMV license fees are higher. But, if you can afford a car else where, you can afford one here too.

On the other hand, auto insurance can be very expensive. It is not so much an issue of California or other State, but more rural area vs urban area. Zip codes in urban areas carry higher insurance rates because there are more accident in heavy traffic in urban areas.

There is one main thing you can do to save on insurance premium. Buy only the insurance you need. This means going for the highest possible deductible on collision insurance. It is typically $1,000. By doing so, you will probably nearly half your collision premium vs standard coverage with a deductible of only $250. Actually, if you buy an old car you may consider foregoing collision insurance entirely and save a bundle. Liability insurance is pretty cheap and is crucial to have.

Definitely shop around for different insurance quotes. The Internet has several auto insurance website. Esurance.com is pretty good.

Answer 3

You haven't told us where you are moving from. One of the reasons California used cars cost more is that they are less likely to have body rust than cars from an area where salt is used on the roads in the winter. I get good rates in California from 21st Century.