Money-Saving Driving Tips for Labor Day Weekend

If a road trip is on your map for the Labor Day Weekend, consider these frugal, fuel-efficient driving tips from the Drive Smarter Challenge video contest:

"Decrease your speed. Gas mileage usually decreases rapidly above 60 mph. Each five miles per hour over 60 mph is like paying an additional 20 cents or more per gallon for gas.


Drive sensibly. Speeding, rapid acceleration (jackrabbit starts), and rapid braking can lower gas mileage by 33% at highway speeds.


Use cruise control and overdrive gear. Cruise control cuts fuel consumption by maintaining a steady speed during highway driving. Overdrive gear, when appropriate, reduces engine speed, saves gas, and reduces engine wear.


It’s a “drag.” Avoid carrying items on your vehicle’s roof. A loaded roof rack or carrier increases weight and aerodynamic drag, which can cut mileage by 5%. Place items inside the trunk when possible to improve fuel economy.


Turn down the AC. Operating the air conditioner on "max" can reduce mpg by 5-25% compared to not using it.


Avoid idling, which gets 0 mpg. Cars with larger engines typically waste even more gas while idling than cars with smaller engines.


Fill up before returning rental. Rental car companies charge higher gas prices if you don't fill up the tank before returning the vehicle."

Related Post:
Win $5,000 With Frugal Road Tips: A Video Contest

6 Tips to Detour Around Car Loan Problems

This item from Citibank offered good tips about reducing car loan headaches.

"After mortgages, auto financing is the most expensive loan most Americans carry. And in this uncertain economy, more consumers are finding they are unable to repay their auto loans due to unforeseen financial circumstances. In fact, auto repossession is at a 10 year high, according to economists. Furthermore, due to the housing crisis, auto loan lenders are tightening consumer credit standards.

Personal finance expert and director of Citi’s Office of Financial Education, DARA DUGUAY, offers the following advice to help consumers understand the commitment they are making when financing a car and to minimize any unexpected issues that may arise:

1. Calculate the Total Cost of Car Ownership. Make sure the loan you obtain is well within your means to pay. This means figuring out the cost of auto ownership – which is more than just the price of the car. Be sure to budget for related costs such as insurance, gas, registration fees and maintenance.

2. A Car Loan is a Contract. The inability to make timely payments can damage your credit rating or trigger even more dire consequences, such as repossession.

3. Downsize, Not Supersize. Though that SUV may have caught your eye, additional costs for gasoline, insurance, parking, even car washes incurred for a larger vehicle may steer you toward a more fuel-efficient car.

4. Keep In Touch. As soon as you face any financial difficulties, let your creditor know, so that you can explain your situation and work out a repayment schedule.

5. Repossession Does Not Relieve You Of Your Obligation to Pay for the Car.
A creditor or assignee may take the vehicle in full satisfaction of the credit agreement or may sell the vehicle and apply the proceeds from the sale to the outstanding balance on the credit agreement. If the vehicle is sold for less than what is owed, you may be responsible for the difference.

6. Getting through the bump in the road. If necessary, seek the services of a non-profit credit counseling agency that may be able to mediate between you and your lender.
For more tips on smart car shopping and auto financing, visit Avoiding Car Repossession, the latest video in the Wallet Wisdom video series by Citi’s Office of Financial Education at http://www.citigroup.com/citi/financialeducation/videos.htm"

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Here's how to buy my new book:

@ Amazon.com
@ Barnes & Noble
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Car Bargains in Soft Economy: Advice from Kiplinger's

"As good as the deals are on new cars, they’re even sweeter for used ones, as used-car dealers cut prices to compete." That's the word from the May issue of Kiplinger’s Personal Finance, which provides these bargain-hunting tips:

· Getting a Deal. Check dealer inventory and preview private listings on Web sites such as http://www.autotrader.com/ and http://www.cars.com/. If you’re willing to search the entire U.S., you may pay thousands of dollars less Late model luxury cars, for example, are often cheaper in the Southwest than on either coast.

· Recipe for Success. Once you decide on a make and model, see what others are paying for it by visiting Kelly Blue Book and NADA Guide sites. Get details on at least five cars before heading to the dealer so you have more bargaining clout.

· Certified Pre-Owned. Choose from the crème de la crème of previously owned vehicles through a certified pre-owned program. Warranties and perks on these models can be generous—and, under a certified program, you may qualify for low-rate financing from the manufacturer. "

The article is available at:

http://www.kiplinger.com/magazine/archives/2008/05/shopping-for-great-used-cars.html
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What Gas Leak? Mom's Nose vs Car Dealer & $49 Service Bill

This is a story about cars, gender and age. My mom is angry about the gas leak in her Buick LeSabre car. She smelled gas. The local dealer tested the car, charged $49 and denied that the car was leaking fuel. Several miles and many fumes later, the problem -- a major leak -- was discovered by a second service station. My mother is angry.

The scenario: My father is the main driver, but for as long as I can remember, my dad has had no sense of smell. (It's a family trait that I also share somewhat. For example, if a pot is burning on the stove, my dad and I don't always smell it. Thank goodness for smoke detectors.) My mother, however, detected an odor of leaking fuel in the car. My sister -- visiting from out-of-town -- confirmed the scent and my father took the car in for repairs.

The Dealer Experience: My father drove the car -- a 2001 model -- to their local Pontiac/Buick GM Dealer in Central Florida. The mechanic -- who was very courteous -- repaired something else. ("Totally unrelated," my mom said.) He examined the car; drove it but reported that there was no fuel leak. He gave my dad a $49 bill with an implied message: "Your 70-something wife is wrong about the gas leak and the smell. Maybe it's all in her head." Of course, the dealership did not say that, but listening to my mom tell the story, that's the message I heard.

The Persistent Fumes: Meanwhile, the fumes in the car continued to bother my mom, who began to develop a cough when she was in the car and the scent troubled her. "I could still smell gas," she told me. Finally, the odor was so overpowering that she insisted that my father take the car in for a second opinion. With the windows rolled down, they immediately pulled into a nearby service station.

The Second Opinion: The car had major issues, namely a leak in the gas line. "Gas was accumulating in the car," my mom said. The problem was so severe that the repair shop would not let my parents even drive the car home. That was yesterday. Parts have to be ordered and the car will be ready in the next day or so.

My Angry Mom: She feels as if the dealership dismissed her concerns too easily. Gender bias? Age bias? She's also concerned that they test drove the vehicle, inspected the fuel lines and told my dad that the tank was dry. The dealership did not detect the odor that was painfully obvious to my mom. "And they charged us $49," she said. "I'm going to send them a letter. If we had been hit by someone...." Thank goodness for second opinions.

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Previous Posts

Big Party; Small Budget: A Frugal Event Planning Guide: Pt. 1

Full-Time Teacher, Weekend Cook: Part-Time Jobs To Pay Bills

How to Get More Value From Your Home

Four Millionaire Moms Tell Their Secrets

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Sharon Harvey Rosenberg is the author of The Frugal Duchess of South Beach: How to Live Well and Save Money... Anywhere!, which will be published in the Spring of 2008 by DPL Press.

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Guest Post: Don't Waste Money on Insurance for Rental Cars

Paying for additional rental car insurance coverage can be a waste of money, according to this guest post from the National Association of Insurance Commissioners (NAIC). Here is the piece, which includes great tips.

"A large percentage of U.S. consumers are confused about whether to buy insurance when renting a car, according to new research by the National Association of Insurance Commissioners (NAIC). In fact, many people purchase insurance at the rental counter without knowing whether their existing auto policies or credit card benefits already cover their needs.

“When renting a car, many consumers purchase unnecessary insurance and end up wasting money. Meanwhile, other drivers inadvertently underinsure their rental car, placing themselves at risk,” said NAIC President and Alabama Insurance Commissioner Walter Bell. “As travel increases around the holiday season, the NAIC encourages consumers to investigate whether their existing auto insurance provides sufficient protection for car rental.”

The NAIC’s national survey of 632 consumers, conducted from Sept. 19-30, 2007, revealed these findings:

* Approximately 42 percent of respondents said they were either thoroughly confused or had only a rough idea about insurance coverage when renting a car.

*34 percent of respondents said they purchased the rental company’s insurance just to make sure they were covered.

*24 percent of consumers were not sure whether their credit card provided insurance coverage when renting a car.

“Drivers should educate themselves before they reach the auto rental counter,” said NAIC Executive Vice President and CEO Catherine J. Weatherford. “Carefully review your auto insurance policy and check with your credit card issuer about auto insurance benefits. Protect yourself and save money by taking a few precautions and asking the right questions.”

Prior to renting a car, the NAIC recommends that renters ask the following questions:
Ask your insurance agent: Are there any situations in which my existing auto policy would not cover a rental car?
Ask your credit card company: What are the limitations on rental car coverage?

Car Rental Insurance Tips from the NAIC’s Insure U Web Site

• Review your auto insurance policy or call your insurance agent before you reach the rental car counter.


• If your current policy doesn’t offer coverage for a rental car, see if an insurance rider can be added for a small fee.


• Many credit cards include some level of collision and theft protection. In most cases, these benefits are secondary to your personal auto insurance or the car rental company’s insurance, meaning the credit card company will only pay claims after other insurance coverage has been exhausted. The NAIC recommends you call your credit card company and ask about benefits.


• If you lack personal auto insurance and your credit card does not provide benefits, it might be wise to purchase the liability insurance and collision damage waiver at the car rental counter.


• Keep in mind that if it is a longer-term rental (e.g., a week, a month or more), there might be limitations on the coverage your existing auto insurance policy provides. Check with your insurance company or agent for details.


• If you don’t own a car, you might want to consider purchasing a non-owner auto insurance policy, because it provides benefits in addition to coverage for a rental car.


• When traveling on business, a personal auto policy will generally not apply, so check with your employer for guidance.


• Know that you are not alone if you find car rental insurance confusing. If you are unclear about the car rental insurance options, or are concerned that a rental company is misrepresenting information, check with your state insurance department.
  
• Get more information about the types of insurance products car rental companies tend to provide, as well as additional auto insurance information by visiting the NAIC’s consumer-education Web site, http://www.insureuonline.org/. You can also get extensive information, tips and considerations regarding life, health and home insurance by life stage. The entire site is available in Spanish at www.insureuonline.org/espanol. "

Source: NAIC
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Digg!

The Car Repair Fund & Other $$$ Goals for 2008

With little fanfare and lots of honesty, here are some of my goals for 2008:

1. Income: 225 percent increase

I've started working as a stringer (freelance reporter) for Money magazine and Florida Trend. I will continue to look for additional sources of income.

2. Establish Car Repair Fund: $1,200 yearly or $100 a month

This is a top-priority. The family car was replaced this year, but not before three-rounds of major (big-ticket!!) repairs busted the budget. We have a newer used car, but I'm budgeting for repairs.

3. Florida 529 college plans for my elementary and middle-school children.

4. Vacation Fund: $1,200 yearly or $100 a month

5. Emergency Fund: Increase by 500% percent

Other Goals:

1. Write 500 words of fiction/poetry or creative non-fiction per day

2. Shorten the to-do list; but complete more items on that agenda

3. Arrive on-time for appointments and assignments

4. Spend more time with my children and extended family

5. Increase blog traffic by 300 percent.

6. Write letters to friends & family

7. Relax, meditate & pray more

8. Stay in the moment

9. Be grateful

10. Laugh more

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Previous Posts

Today:

Hearts, Diamonds & Dollars: Tips from Warren Buffett & Cotton Threads
Yesterday:
10 Little Budget Hits from Bankrate.comHow Worrying Costs Me $6,500 a YearAirhead vs Workaholic: What I Learned about Money from Writing

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Permanently Parked: How & When to Ditch the Old Car

Our old car is now scrap metal and spare parts. We parked the mini-van forever after repairs totaled more than a lease for a BMW. Here's a short guide for ditching your car from ShopSmart's December/January 2008 issue.

When to Ditch the Car:

1. Repairs vs market value. Check the market value of your car. When repairs exceed market value, it's time to permanently park the old car.

2. Look for rust spots. If the floor or the frame are really rusty, this damage "can compromise its structural integrity," according to ShopSmart.

3. Unreliability. I have a friend who drove her car on prayers. The vehicle had become so undependable (and potentially dangerous) that the family prayed while driving.

4. Serious damage. After a flood or serious accident, a car may be fundamentally stalled.

source: ShopSmart --a Consumer Reports publication

My extra cash tip: In good faith, we really couldn't sell our car to another family and the trade-in value was a joke. But it's possible to sell an old clunker for spare parts. Some shops will buy old cars for $250 to $300. It isn't much, but instead of paying to get our car towed away (after a fender-bender), we earned a little extra cash and the chop-shop buyer came to pick up our otherwise worthless car.

Recent Posts

Yesterday:

What's More Than a Hummer, Beemer or Mercedes? Why We Ditched Our Old Car
Don't Shake & Eat: A Holiday Health Guide to Save $500 & Up

Financial Points from D-Wade's 31-Pt Eclipse of the Suns

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The Frugal Duchess Booktique
The Frugal Duchess of Beauty Store

Book Shop of Fear
The Poetry & Drama Queen
Frugal Jazz & Blues
Frugal Comic Book Connection
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What's More Than a Hummer, Beemer or Mercedes? Why We Ditched Our Old Car

The Repair-or-Replace Matrix for our old mini-van was off the track! I crunched the numbers: We could have been driving around in a Hummer, Beemer ( see photo) or Mercedes based on our 12-month auto repair bill.

Our so-called frugal repairs on our paid-for car were more than the lease bill for a luxury vehicle. So after a recent fender-bender, we ditched our old car and purchased a replacement: a later model mini-van in excellent condition!

Here are the numbers: In the last 12 months, we've faced a steady money leak, with a total repair bill of $3,500. That figure is very conservative and does not include smaller repairs. After each big-ticket repair, we figured: This is the fix that will keep this car running forever. Ha!

We were delusional. We were penny smart and pound foolish. I visited LeaseTrader.com (just to get prices) and here's what we could have snapped up for $291 a month, which is the conservative cost of our repairs.

2006 Chevrolet Malibu SS : $191 per month
2006 BMW 325i Sedan: $266 per month

2005 Mini Cooper S Styles Convertible: $271 per month

2005 Jeep Grand Cherokee Laredo 4WD: $279 per month

2006 Hummer H3 Sport Series: $282 per month.

2005 Mercedes CLK320 Coupe: $299

And there were other tempting deals. But the bottom line: At a certain point, the repair-reward matrix of old cars no longer makes sense.

For tomorrow, I plan to post a piece based on a Consumer Reports-affiliated report about when to replace and when to repair an old car.

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Recent Posts

Today:

Don't Shake & Eat: A Holiday Health Guide to Save $500 & Up
Financial Points from D-Wade's 31-Pt Eclipse of the Suns

Yesterday:
Steroid Sale Prices: Bogus Sales at Big Name Stores5 Reasons Why I Have a Crush on My Parents' Retirement MagazinesWhat to Do After Losing a Job or Before the Pink Slip ArrivesHoliday Family Activities & More at Carnival of Family Life

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Digg!

The Frugal Duchess Booktique
The Frugal Duchess of Beauty Store

Book Shop of Fear
The Poetry & Drama Queen
Frugal Jazz & Blues
Frugal Comic Book Connection
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Borrowing from the Economides to Fix My Used Car

Due to assorted repairs, our used minivan has recently put a $1,000 dint into our emergency fund. To save money, we'll eventually have to replace our car. But until then, I plan to tap into the car advice provided by The Economides, "America's Cheapest Family."

I read a money-saving column featuring the Economides in Bottom Line/Personal (www.bottomlineSecrets.com. The article featured great tips, but the car advice really hit home.

Here's the Economides Car strategy:

1. I should estimate our yearly car expenses: gas & maintenance.
2. Divide that expense into per-paycheck allotments. (A monthly figure would work best for me).
3. Set aside that fixed amount for car maintenance with each paycheck. (bi-weekly or monthly).
4. If I don't use the car fund during one month or paycheck period, rollover that amount --untouched!!!--until the next month. This accumulation of car maintenance funds will provide a cushion for inevitable repairs.

"This way it's never a financial strain when the car needs needs new brakes --we have the money saved to cover it." --The Economides as quoted in Bottom Line/Personal.

The Economides publish The HomeEconomiser Newsletter (www.homeeconomiser.com) and have recently publish a new book: America's Cheapest Family Gets You Right on the Money. (Random House)

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The Frugal Duchess Booktique
The Frugal Duchess of Beauty Store
Book Shop of Fear
The Poetry & Drama Queen
Frugal Jazz & Blues

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6 Keys to a Car-Free Life & $10K a Year in Savings

Of course, a car-free life is not for everyone. But it's possible to save $5,000 to $10,000 each year by letting go of the car or cutting back to one car in your household.

We have one car in our house. My husband drives it and we save lots of money in a community where many people drive two or three cars per household. But cutting back on auto travel is not for everyone.

Here are Six Keys to living a car-free life according to Chris Balish, author of How To Live Well Without Owning a Car:


1) Can you put the brakes on your ego? Balish makes a valid point: If you don't drive a car, many people think you are a loser. And the car industry has done a lot to make us feel the connection between wheels, financial status and self worth.

And indeed, while I have waited at bus stops, I have received expressions of pity and sympathy. I've learned to bypass the pity factor. I like the freedom to read and write during my commute.

2) Is it possible for you to commute to work without a car? I've used public transportation, cabs and carpools.

3) Is your home in an urban area or a mixed-used development community?

4) Do you have easy access to public transportation?

5) Do you live close to shopping districts, entertainment establishments, banks and other basic life services?

6) How flexible is your schedule?
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The Frugal Duchess Booktique
The Frugal Duchess of Beauty Store
Book Shop of Fear
The Poetry & Drama Queen
Frugal Jazz & Blues

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Tapped the Emergency Fund: Major Car Repair

I think a major car repair qualifies as an appropriate use for an emergency fund. On the eve of a short trip to visit my folks, we took our car in for an oil change and check up at a fairly trustworthy auto repair shop. We left the auto shop with a bill of about $800 for assorted repairs, including a gas leak over the engine. Not good, especially before a modest vacation.

But we didn't have to borrow money from friends, family or a credit card. We tapped into the emergency fund and the repair bill did not feel like such a big burden. We'll work extra hard to replace the depleted funds.

My new goal is continue saving and to replace the auto-repair funds by February 20. Deadlines and concrete goals provide real-time, real-money targets for achievement. Deadlines motivate me. If I work on an extra article or two, over the next 15 to 30 days, I should be able to repair the emergency fund. That's at top priority.



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Frugal Couple Selling Car to Cut Debt

Today I received this note from Sally of Through a Glass Darkly. She's selling her car. Here's her story:

In our march onward out of debt, Dan and I are selling my 2003 Saturn Ion 3. We never drive more than one car at a time now that we live in Midtown Atlanta, so it doesn't make sense to keep both of our cars. My car works and looks great, so I would never consider selling it if we weren't serious about dumping our debt. (I'm so sad, but it is for the best.)

If you know people in the greater Georgia area who might be in the market for a perfectly functioning, attractive used car at a great price, please forward this email or send them to my page about my car. It has all the specs and photos.

Earlier this year, I wrote a piece about ditching the car. Here's the link to that post.

A close friend of mine has survived for years with just one family car in a very busy household. The family has saved a fortune and used the savings to live well in other areas and to increase their net worth.

I don't drive, but I save lots by using public transportation and my feet. (I also carpool and rely on cabs). Those are cheap forms of transportation and I get lots of exercise.



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