Car Buying

Consider Fuel Efficiency When Buying a Car

2005-09-09T10:39:00.000-07:00

By Fisher Swanson

When you need to buy your next automobile make sure that fuel economy doesn`t get lost in the shuffle. Buying a compact car with good gas mileage is both friendly to the environment and your pocket book. You will enjoy the savings throughout the life of the vehicle.

There is a lot to consider when buying a car. If you are buying a used car the condition of the clutch, brakes, engine and transmission will play a huge role in how much that car will cost to operate. Even minor problems can result in $300 repairs.

With new cars you need to find the make and model that has a proven track record and fits your needs. Make sure that fuel efficiency plays a role in your decision making. If you emerge from the car buying process with a fuel efficient car you will burn up less cash in your tank and have more money to spend on things that matter.

Take advantage of what is known.

When it comes to vehicle maintenance, the one thing you can easily and accurately predict is how much gas you are going to use. Gas prices may fluctuate but most people can spend a week or two logging their gas consumption and get a good idea of how many gallons they use. If you don`t already, track your gas consumption so you can use this information when purchasing a car.

Make it the #1 priority.

One way to make sure that fuel efficiency is considered is to start by looking at cars that get good gas mileage. Make it the #1 priority and see where that leads you. The problem with today`s car market is car manufacturers know that gas mileage is not a major consideration when purchasing a new vehicle for many U.S. customers.

Crunching the numbers.

When you are evaluating a car`s fuel efficiency, ask yourself how long you think you will be driving the car and determine how much gas will cost.

Let`s say you want to get a used car for $5,000 and hope to drive it for 5 years. Below are some 5 year gas cost estimates based on driving 15,000 miles per year and buying gas for $1.40 per gallon. If gasoline is more expensive than $1.40, the costs will be even higher.

A Sampling of Used Cars:

1994 Ford Explorer SUV (2WD)
5 year gas estimate = $5525

1994 Honda Accord Sedan
5 year gas estimate = $3885

1994 Honda Civic DX Sedan
5 year gas estimate = $2385

A Sampling of New Cars:

2004 Ford Explorer 2WD
5 year gas estimate = $6175

2004 Honda Accord
5 year gas estimate = $3750

2004 Honda Civic Hybrid
5 year gas estimate = $2235

2004 Toyota Prius Hybrid
5 year gas estimate = $1910

This is a small sampling of cars but you get the picture. Unless you really need an SUV or large truck, you can save a lot of money by buying a fuel efficient compact car. You will sacrifice size and sometimes luxury when choosing fuel economy first. Part of this is because bigger cars and trucks are heavier and will naturally get worse gas mileage. But it is also a function of consumers not worrying about gas mileage when they make a decision on purchasing a new or used car.

A great site for comparing cars fuel economy is www.fueleconomy.org. At www.fueleconomy.org you can compare numerous makes and models of both new and used cars and set the default gas costs to reflect the current prices. The numbers above are based on a $1.40 regular gas price which is really hard to find right now. In the case of the 1994 Ford Explorer you likely pay as much in gas over a 5 year span as you payed for the vehicle in the first place.

Put fuel economy first and you will find yourself with more money in your pocket.

Fisher Swanson is a regular contributer to The ThriftyFun.com News. ThriftyFun publishes information about thrifty living. Send an email to thriftyfunnews-on@thriftyfun.com to subscribe to The ThriftyFun.com News.
http://www.thriftyfun.com

WHAT EVERY WOMAN SHOULD KNOW ABOUT BUYING A CAR

2005-08-17T11:36:00.000-07:00

By Trudy Palmer

What if there was a way to buy a car and increase your standard of living at the same time? There is...

My partner and I bought a brand new car because we wanted to increase our monthly income. Huh? That doesn’t make sense! Buy a brand new car to increase your income? Usually buying a brand new car means that your disposal income goes down not up. Hmmm, financial literacy is a dangerous thing.

It all began with a shift in thinking. The key is to understand the difference between assets and liabilities and to have your assets PAY for your liabilities, so you don’t have to.

Have you ever noticed that when you apply for a loan, the bank tells you that your car is an asset? Under the true definition of assets and liabilities, anything that takes money out of your pocket is a liability.

So, not only were our cars liabilities, but they were taking more money out-of-our-pockets every month just to keep them running. Both my partner and I owned older vehicles, which were starting to break down more often.

Then a light bulb went on. What if we could unlock the money we had tied up in our cars and buy a brand new car without lowering our lifestyle but actually increasing it? That’s exactly what we did.

We sold our cars and used the money to buy income-producing assets, which more than covered the payment on our brand new car. It is a sweet little car that comes loaded including leather interior.

Not only is the payment covered, but we also managed to take advantage of the 0% financing for five years deal, so every dollar goes towards paying the car off.

At the end of five years:The car will still be paid off.We will still have the money from the sale of our older cars, which may even have INCREASED in value.We will have an income stream in addition to our existing income.We did not have to lower our standard of living or work harder or longer to come up with the car payment month after month.

What else could you apply this strategy to - anything that you would spend a chunk of money for. So, the next time you’re thinking about buying a car or some other "liability", consider if there might be a better way.

Trudy Palmer has a solid background in financial services and is the author of numerous books and articles. Trudy is also the co-founder of betterways.net which is the only company to carry the extremely popular book called "How to Become Financially Free In One Year Or Less" located at (http://www.betterways.net/rd/ac.html)
admin@betterways.net (mailto:admin@betterways.net)

Steps to Buying a Used Car With Confidence

2005-07-06T09:34:00.000-07:00

By ARA Content

(ARA) - Industry statistics show that almost three times as many people buy used cars as buy new.

To help consumers make informed decisions in the process, the experts at CarMax, America`s leading used car retailer, have put together a basic list of the things to check when buying a used car.

1. Check the vehicle`s safety features.

Consider a vehicle with air bags and anti-lock brakes. Not only will they make a car safer, but insurance companies sometimes give discounts on their rates for cars with these features.

2. Inspect the mileage.

Mileage is a good indicator of the vehicle`s age, and the average consumer will drive from 12,000 miles to 15,000 miles each year. A late model used car may be more cost-effective and come with many features you may not be able to afford in a new car.

3. Check the mechanical condition of the vehicle.

If you don`t feel comfortable doing it yourself, have a mechanic you trust check it for you. Fluids, lights, belts, power steering, the charging system, the air conditioner, the engine cooling system, the brakes and the suspension should all be carefully inspected for any defects and wear. And
don`t forget to test drive the car.

4. Examine the tires.

Uneven tread wear can be a sign that the car may need an alignment, or that it has damage to its suspension. Make sure the spare tire is in working condition with no damage or excessive wear.

5. Watch for frame damage.

Seriously damaged cars may be repaired, re-titled and sold in some cases, masking a vehicle that may not be structurally sound. When looking at a used car, check for:

-- rust around the fenders and bumpers, around lights, under doors and in wheel wells

-- cracks, dents and mismatched body panels

Cars that have been previously damaged may be more likely to have mechanical problems, and do not withstand accidents as well as cars that are structurally sound.

6. Check for cosmetic problems.

Common signs of wear and tear in used cars include cigarette burns, dirty upholstery, smoke stains, and paint scratches and chips.

7. Carefully read and understand the terms of any warranty offered on the car.

Don`t hesitate to ask questions of your salesperson, and be wary of hidden conditions and exclusions that may be in the fine print. A reputable dealer will answer your questions completely and explain the details of the warranty.

8. Check the price.

The actual price of the car is only one of many factors that will determine your total price. Don`t forget to compare financing rates, warranty costs, trade-in values and processing fees. The different features on the vehicle can also make a price difference. For example, a car with an automatic transmission is usually going to be slightly higher in price than the same car with a manual transmission. Research the vehicle you are considering, and find out what comparable prices are for similar vehicles in your area.

9. Look for a reputable dealership.

Ask around, and talk to previous customers of the dealer to find out what their experiences were like. A good dealer is more likely to be fair and up-front in price, value and condition of its vehicles, and won`t pressure you to buy a vehicle you don`t want. Hassles should never be part of buying a used car. Be prepared, and know what you`re looking for.

Courtesy ARA Content, www.ARAcontent.com (http://www.ARAcontent.com); e-mail: info@ARAcontent.com (mailto:info@ARAcontent.com)

EDITOR`S NOTE: CarMax, the Auto Superstore, first opened its doors in 1993 in Richmond, Va. Based on input from thousands of consumers, it was designed to provide a convenient, hassle-free way to buy high quality used cars at low, no-haggle prices. Today, CarMax has locations in more than 20 major cities across the country, with both used-car superstores and new-car franchises throughout the United States. CarMax is also online at carmax.com.

15 Ways to lower your car insurance quote

2005-07-01T09:29:00.000-07:00

By Andrew Bowen

1.Shop around

The difference in price between various companies can be significant. What one company may consider a high risk factor another company may not view as so important. Insurance companies arrive at a price for your car insurance (http://www.acceptdirect.co.uk>car) by adding or discounting money after each answer you give to the questions they ask you. Each company has its own rules as to what they consider should increase or decrease your premium. By shopping around you get a better list of prices to compare.

2.Buy a lower group car

One of the important factors that insurance companies take into account is of course your vehicle. There are thousands of different cars on the road so companies divide them up into groups. Most companies will adopt the ABI (Association of British Insurers) group rating. This splits up vehicles into 20 different groups. Generally speaking the higher the group rating for your vehicle, the higher your premium will be. Some companies may also combine your driving experience with the vehicle group to get a better idea of how high the risk is. This is one of the reasons why young drivers should consider buying a lower group car if they want to lower their insurance cost.

3.Consider Third Party Only cover

A Third Party Only insurance policy is the minimum amount of cover legally required - it is also the cheapest. Generally speaking you should consider opting for this type of policy if your vehicle is of low value. In the unfortunate event of having an accident, any damage to a third party vehicle will be covered but any damage to your vehicle is not. However, if your vehicle is of little value then you may not be too concerned. It may not be worth paying extra for a Fully Comprehensive policy in these circumstances.

4.Maintain a good credit rating

More and more insurance companies are adopting credit scoring techniques as part of the overall calculation of your car insurance premium. By keeping a good credit history you may avoid any additional premium that companies add to your price for having a bad credit score.

5.Buy on the web

Many insurance providers now offer some good discounts for buying the policy over the internet. The theory is that by purchasing your insurance over the web, you are saving the company money by not requiring telesales agent time and incurring free-phone costs. This saving is passed on to you in the form of a discount for buying online. If you have got prices by telephone then check your quote again on their website, you may be surprised at how much cheaper it is.

6.Have a higher voluntary excess

During the quotation process you will be asked how much voluntary excess you want to have. Insurance companies will generally include a compulsory excess amount on the policy but give you the opportunity to increase this if you wish. The more the voluntary excess the lower your premium should be. However, in the event of a claim, you will have to pay a higher amount yourself, up to the total amount of excess on your policy.

7.Reduce your annual mileage

How many miles you do a year is a common question that can affect your car insurance premium. The more miles you do the more your premium is likely to be. Quotation systems and telephone agents will often suggest an amount of miles for you. Try and work out how many miles you will genuinely do. It may be less than the amount suggested. Of course, you should always give an honest answer to this and other questions.

8.Keep a clean driving record

This may be easier said than done. However, by having few or preferably no driving convictions, you can avoid being penalised by increases in your car insurance premium. Getting caught with a speeding fine is often not the only financial penalty you incur. Insurance companies take very seriously all driving convictions and it is usually an important part of their rating process. You can expect an increase in the cost of your insurance if you do get caught with a driving conviction, so it pays to be a safe driver.

9.Keep claim free

This ties in neatly with number 8 above. The biggest factor affecting the cost of your car insurance premium is how many No Claims Bonus Years you have. Full No Claims Bonus is generally considered by most companies to be five years or more, this can give you huge discounts, in some cases up to 75%. By being a safe driver and avoiding potential claims, you can continually benefit by building up your number of claim free years. Every additional No Claims Bonus year you get, the lower your car insurance cost should be. Some companies give you the option of paying a bit more on your premium to protect your No Claims Bonus.

10.Be realistic about the value of your car

Most of us have an inflated view as to what our car is worth. When asked the value of your vehicle during the insurance quotation process, people will often state an amount that is unrealistic and above the real value of the car. People do this as they believe that this is what they will get back from the insurance company in the event of a claim. The reality is that the company will only pay out what the car is worth at the time of the claim and not what you stated for the quote. In fact, by giving a high and unrealistic value, you can increase your car insurance premium as this is often a factor affecting your final price.

11.Remove unnecessary named drivers

Additional drivers on your policy usually mean a higher premium. A lot of people add a number of extra drivers on the policy just in case that person needs to drive the car. However, having all these drivers will push up the cost. By only naming drivers on the policy that will definitely driver the car, you can lower the final cost. If you find that an unnamed driver needs to drive the vehicle then most companies will allow you to temporarily add a new named driver for a small cost.

12.Improve your car security

Theft of and from your vehicle are important considerations when insurance companies calculate your price. Most companies will give you a discount for having better security of your vehicle. An alarm and immobiliser will usually attract a small discount whilst having a tracker device installed may give you a larger reduction. Some companies may insist on having such devices installed on more expensive and desirable cars before they even consider offering you a price.

13.Take an advanced driving test

Although not compulsory, taking an advanced driving test can not only improve your driving skills but also help to lower your car insurance premium. Some companies look favourably on people who have taken the advanced test as it shows commitment to safe driving thus lowering the chance of having a motoring accident.

14.Pay your premium in one go

By paying for your car insurance all in one go, you can avoid paying additional interest charges that would be added on if you opted to pay by instalments. The interest charges can be quite significant, so if your finances allow, you can save a good amount of money by paying for the whole lot up front. In some cases, companies may even give you a small discount for doing this.

15.Get married

Okay so this may seem like a dramatic final way to lower your premium. However, a number of insurance companies offer lower premiums when your named drivers are insured and spouse as opposed to two unmarried drivers. Some companies believe that this shows an element of stability which is a hallmark of safer drivers and give you a discount on this basis.

Copyright © 2004 Accept Direct Limited
http://www.acceptdirect.co.uk

Andrew Bowen is the CEO of Accept Direct Limited. Accept Direct sell UK car insurance through their website http://www.acceptdirect.co.uk

Maximize Your Fuel Efficience

2005-06-22T10:38:00.000-07:00

By Andrea Susan Glass

With the escalating price of gas, buying a fuel-efficient car makes a lot of sense. Approximately 15% of new car buyers reject a model due to poor gas mileage. Nearly 40% of those consumers who eliminate a full-size SUV due to gas mileage ultimately purchase a midsize SUV instead, while nearly 20% purchase another model altogether. (J.D. Power and Associates, Sept. 2004.)

But even if you don`t currently own a fuel-efficient car, there are lots of ways you can improve the fuel efficiency of your present vehicle until you`re ready to purchase one of the best gas mileage cars. Your personal driving habits have a big effect on your fuel use and costs. You can better manage your vehicle operating costs as well as minimize the emissions it produces by driving less and more efficiently. Here are some tips to help.

First, you need to know what kind of mileage you are getting. Calculate this by filling up your tank and recording the odometer reading-or you can reset your trip gauge to zero. Next time you get gas, fill the tank again and divide the miles you traveled between fill ups by the quantity of gas you bought on this fill-up. This is your car`s miles per gallon or mpg. If it`s pretty dismal, here`s how to turn your fuel guzzler into a fuel saver:

Drive slower: The aerodynamic drag on your car increases noticeably the faster you drive. The drag force at 70 mph is about double that at 50 mph, so keeping speed down can increase your mileage considerably. Gas mileage decreases rapidly at speeds over 60 mph. Each 5 mph above 60 mph is like paying an additional $.10/gallon for gas. Observing the speed limit is also safer for everyone.

Maintain a constant speed: Every time you speed up, you use energy, some of which is wasted when you slow the car down again. By maintaining a constant speed, especially driving the posted speed limit, you will improve your fuel efficiency. Just by increasing your highway cruising speed from 62 mph to 74 mph you increase fuel consumption by about 20%! Using cruise control on the highway helps you maintain a constant speed and will usually save gas.

Drive gently: Aggressive driving-speeding, rapid acceleration and hard braking-wastes gas. These bad habits can lower your gas mileage by 33% at highway speeds and 5% in the city. In addition, reasonable driving is safer for you and others, so you may be saving more than gas money. Consider using overdrive gears on the highway, as this decreases engine speed, reducing fuel usage and engine wear.

Avoid Excess Idling: Idling gets 0 miles/gallon and wastes fuel and money, is hard on the engine and adds to toxic emissions. Cars with larger engines typically waste more gas at idle than those with smaller engines. Turn off your engine if you think you will be stopped for more than 30 seconds. However, if you`re driving a fuel-efficient car like a hybrid, your electric motor is on when you idle, so you`re not wasting any gas at all!

Minimize air conditioning: Using your air conditioner in hot weather can increase your fuel consumption by more than 20% in city driving. Whenever possible, close all windows and use the air vents to circulate air instead of air conditioning. You will improve your fuel efficiency in summer by minimizing the use of air conditioning and using your car`s flow-through ventilation, especially on the highway. If you must use the air conditioning, set the controls to a level that lets the system cycle, and turn it off once the interior of car is cooled down enough. Also consider such options a sunroof and tinted glass to keep the car cool.

Keep Your Car in Shape: Maintaining your vehicle in top working condition saves you fuel and money, and reduces long-term maintenance costs while minimizing harmful emissions.

Keep Your Engine Properly Tuned-Getting regular tune-ups when your car is out of tune or has failed an emissions test may improve gas mileage by about 4%. If your car has a faulty oxygen sensor and you have it fixed, gas mileage could improve as much as 40%. Make sure the spark plugs, if you have them, are firing properly, replacing them when necessary. Have the engine timing checked for accuracy.

Check & Replace Air Filters Regularly-Replacing a clogged air filter could improve a car`s gas mileage by as much as 10%. Additionally, it will protect your engine from impurities. Change this more often if you live in a dusty climate, drive on dirt or gravel roads or if you drive off-road for fun. Keep Tires Properly Inflated-Your gas mileage can increase by about 3.3% if you keep tires inflated to their proper pressure. It takes more effort and gas for the engine to propel an underinflated tire than a correctly inflated one-which provide less road-resistance, thereby improving fuel efficiency. Beware over-inflation, though, which can lead to handling problems and uneven tire wear. Check tire pressure on a regular basis, looking for signs of uneven wear or embedded objects that can cause air leaks. In winter, check tire pressure if there is a sharp change in temperature, as cold weather decreases air pressure in the tires.

Use the Recommended Grade of Motor Oil-Fuel efficiency can improve by 1-2% if you use the manufacturer`s recommended grade of motor oil. Also, if you change your own oil, look for motor oil rated as "Energy Conserving" to be sure it contains friction-reducing additives.
Check Which Gas to Use-Choose the correct octane gas for your car by checking your owner`s manual. It`s not necessary to buy the "super" high-octane gas unless your car manufacturer recommends it or your engine knocks without it. While you won`t do harm to the engine, you will be paying more than you need to, since premium (highest octane) gas sells for an average of 17 cents more per gallon than regular gas. Only about 6% of cars sold in the U.S. need premium gas, according to the AAA. Also, avoid topping off your gas tank, since in warmer weather, fuel expansion can cause an overflow and you`ll be wasting precious fuel. You want to be a fuel saver-not a fuel waster!

Planning & Combining Trips: Combining errands to do together and in similar areas saves time and money. Several short trips starting from a cold engine can use twice as much fuel as a longer multi-purpose trip that covers the same distance when the engine is warmed up. With a little advance planning, you can avoid high traffic areas, road construction, retracing your route and ultimately reduce the distance you travel while running errands. You`ll not only save on fuel, but also reduce wear and tear on your car.

Commuting: If you can alternate your work hours to avoid rush hour, you`ll spend less time sitting in traffic and burn up less fuel. For stop and go traffic, drive your best gas mileage car if you own more than one vehicle. Contemplate telecommuting (working from home) when your job permits. If you can, participate in carpools and ride-share programs. You can cut your weekly fuel costs in half and save wear on your car if you take turns sharing driving with others.

Traveling: A roof rack or carrier affords additional cargo space and helps out when you have a smaller car. However, a loaded roof rack decreases fuel efficiency by 5%. Reduce the wind resistance and increase your fuel efficiency by putting objects inside the trunk when possible. Also, remove any unnecessary items, especially heavy ones, as an extra 100 lbs. in the trunk reduces a car`s fuel efficiency by about 1 to 2%.

© 2004 AllAboutHybridCars.com. Any reproduction of this article in any manner is prohibited without the consent of AllAboutHybridCars.com. We give permission to use this article on your website or e-zine if you reproduce it exactly as it appears here including this notice. Visit www.
AllAboutHybridCars.com/eBook.htm to order your FREE report, "7 Critical Facts Everyone should Know Before Buying a Hybrid Car."

Andrea Susan Glass, founder of WritersWay and All About Hybrid Cars, helps clients reach their writing and marketing goals with effective articles, press releases, newsletters, Web site copy, eBooks and books. An award-winning author for "Street Smart Secrets to Auto Care You Can Trust," she has written books, eBooks and articles on subjects ranging from animals and auto repair to singles and spirituality.

Buying A Fuel-Efficient Car

2005-06-07T23:03:00.000-07:00

By Andrea Susan Glass

Whether you buy a new or used vehicle, fuel efficiency--good gas mileage--is high on the list of most buyers` concerns. The difference between choosing a fuel-efficient car or one that guzzles gas, will either save or cost you money over the life of the vehicle, which could be substantial. Fuel efficiency varies widely from one car to the next. Obviously you can check the EPA rating for city/highway MPG on the window sticker, although most of us know the average car never reaches those numbers.

You can also check consumer guides, car magazines and Web sites, Web site forums or ask friends, relatives and co-workers which vehicles they recommend as fuel-efficient cars. Don`t buy more car than you need, as larger vehicles generally have bigger engines that are less fuel-efficient. Find the most fuel-efficient car in the size group you`re interested in, whether a two-seater, compact, mid-sized, SUV or pickup truck. There are several online sites where you can compare fuel consumption ratings of any car.

Your choice of transmission can also affect the fuel efficiency of the vehicle. Generally, a car with manual transmission is a more fuel-efficient car than one with automatic-assuming you shift properly. And a manual with overdrive, tachometer or shift indicator is the biggest fuel saver, saving up to 10% on fuel costs. If you do buy an automatic, which makes more sense for larger cars, the more gears the better.

Under normal driving conditions, smaller engines offer better fuel efficiency and economy than larger ones. All other things being equal, the larger engine and the more cylinders it has, the more fuel it consumes. Additionally, cars with smaller engines usually cost less and gas costs are lower because you don`t need higher octane gas. That doesn`t mean a bigger engine is never a good choice. In some cases, a larger, more powerful engine may provide the greater fuel efficiency. If you use your vehicle for work or often tow heavy loads, a smaller engine could burn more fuel if it has to work too hard and function beyond its most fuel-efficient range.

Depending on the type and size of motor vehicle you purchase, you may have the choice of front-wheel, rear-wheel, four-wheel or all-wheel drive. The majority of passenger cars and minivans have front-wheel drive, a design that supplies better traction and more interior room than rear-wheel drive. Although front-wheel drive was originally adopted to improve fuel economy over rear-wheel drive by reducing the weight and size of cars without giving up driving performance or interior space, there`s really not much difference in fuel efficiency between the two.

And although four-wheel and all-wheel drive provide better traction and braking in certain driving conditions, the weight and friction of the additional drivetrain parts may increase fuel consumption by up to 10% over a two-wheel drive vehicle. Most often in SUVs and pickup trucks, four-wheel drive is enabled at will by the driver when additional traction is necessary. All-wheel drive is an option on some SUVs and a minority of passenger cars. Full-time all-wheel drive, however, makes for the least fuel-efficient car, because all four wheels are always being driven, drawing power from the engine and thus using more gas.

Another way to be a fuel saver, is by limiting the options you select for your car. You may not have realized that many conveniences from power windows, seats and mirrors to air conditioning and seat warmers decrease fuel efficiency and cost you more in fuel consumption. They add either weight, increase aerodynamic drag or pull extra power from the engine or through the alternator. Aluminium wheels are one of the few options that actually reduce weight and thereby increase fuel efficiency.

Obviously, considering other fuel options such as a hybrid electric car, is another choice for a fuel-efficient car.

© 2004 AllAboutHybridCars.com. Any reproduction of this article in any manner is prohibited without the consent of AllAboutHybridCars.com. We give permission to use this article on your website or e-zine if you reproduce it exactly as it appears here including this notice. Visit www.
AllAboutHybridCars.com/eBook.htm to order your FREE report, "7 Critical Facts Everyone should Know Before Buying a Hybrid Car."

Andrea Susan Glass, founder of WritersWay and All About Hybrid Cars, helps clients reach their writing and marketing goals with effective articles, press releases, newsletters, Web site copy, eBooks and books. An award-winning author for "Street Smart Secrets to Auto Care You Can Trust," she has written books, eBooks and articles on subjects ranging from animals and auto repair to singles and spirituality.

Buying a New Sports Car – Twelve Tips To Avoid Financial Sticker Shock

2005-06-06T09:08:00.000-07:00

By Valerie Mills

Nothing (well, almost nothing) can compare to the thrill of driving a road-hugging high performance sports car. Instant steering response. Power at the exact nanosecond you ask for it.

Then, if you have one of the sexier models, you’ll attract attention on the road, filling up, and in the shopping mall parking lot.

Yes, you can pretend you’re driving the Autobahn with the wind blowing your hair. But beware of state troopers just waiting for an “arrest me red” entry on their ticket issuing track record.

Before You Fall In Love . . .

Before you step into that showroom and fall in love, consider the following practicalities:

1) How much do you want to spend? $20,000? $30,000? Or more?

2) What’s the tradeoff between performance (power) and gas mileage? Higher performance usually equals less gas mileage.

Does the vehicle use premium gas? Right now, the difference between premium and regular is 20 cents per gallon. At 20 miles per gallon and 15,000 miles per year, the cost differential is $150.

3) What about reliability? Some upscale models cost considerably more to maintain and have a higher incidence of repair costs. Would you appreciate paying $125 just to diagnose the problem when the check engine light comes on? Or paying $70 for an oil change?

4) In a climate where snow and ice are winter realities, do you want to drive it year round? Or store it over the winter?

A rear wheel drive sports car is impractical for winter driving. A front, all-wheel, or 4-wheel drive sport car can be driven in snow and ice, if you use all-season tires. If the little devil comes with performance tires, you will want to buy all-season tires (and possibly rims) for winter driving.
Add another $1500 to the price of the car for the right tires and rims.

Do Your Homework . . .

5) Once you’ve decided price, performance, gas mileage, reliability, and practicality for all-season driving, get on the Internet. Here you can compare models and pricing and read reviews. Google “buying a new car” or “new car prices” and several sites will pop up.

Another source is Consumer Report (the new car issue) where your criteria will be easy to find. Red dots are good. Black dots are not. Most American car dealers consider this issue of Consumer Report a nightmare because it favors foreign car models, especially Asian cars. However, as explained in the newest version of this report, American car manufacturers are catching up.

6) Find out what you should pay before stepping into a showroom. Dealers will offer below invoice prices even on some sports cars because of rebates, dealer incentives, and dealer returns when they make a sale.

7) Remember the incidentals. Yes, you have to pay to transport the vehicle from the manufacturer. Yes, you have to pay for options. And remember the sales (and sometimes luxury) tax.

The Driving Experience . . .

8) Unless you have driven the exact model and year you want to purchase, step into the showroom and test drive the car. Driving the previous year’s model is unacceptable. If the dealer lures you into his web and asks you to test drive an earlier model, RUN out of the show room. You’re wasting your time.

9) Pick at least 2 different road types for test driving. The winding, hilly road is one road type. Road hugging capabilities are tested here. If the car is standard, smooth-shifting is another test. A car that cuts back after you release the clutch is NOT smooth shifting.

The highway is another road type. Make sure power is sufficient to handle entrance ramps and merging with traffic. If you get an instant response at highway speeds, the car is a possible winner.

Closing the Deal . . .

10) If you like the car, get the dealer’s best quote. Then, find at least one other dealer to give you another quote ON THE SAME CAR. If you don’t like the car in the test drive, you probably won’t like the car – ever. Move on to the next model.

11) When you decide on a car, call your insurance company and find out what the vehicle will cost per year. And don’t choke on your coffee when you hear the amount – you can shop around.

12) Estimate how much the real estate taxes will be on the car, especially if it’s a high-priced model. This could be another financial shocker!

As you can see, sports car buying is a process. Do you need to do all this stuff? Nope, you don’t. But consider the financial sticker shock when you’re paying an extraordinary amount for maintenance, repairs, gas, insurance, and taxes! Just for that Autobahnesque experience!

Valerie Mills, a copywriter/designer specializing in direct mail and web advertising, has written sales letters, web sites, and brochures for the finance, self-help, and technology areas. Refer to web sites http://v.mills.home.att.net and http://teachyourkidsaboutmoney.com

Buying Your Tax Haven Corporation

2005-06-02T22:40:00.000-07:00

By William Cate

Your purpose in buying your tax haven corporation determines your
incorporation and maintenance costs. You can buy a new car, without an
engine. It`ll cost less than a new car that works to your satisfaction.

The most common reason that Americans buy a tax haven corporation
is to impress people. They want to park their new engineless car in their
driveway and have it admired by their friends and business associates at
cocktail parties or business luncheons. At best, their purchase is a
protest against government. Since their tax haven corporation isn`t going
to be used, they should buy the cheapest tax haven corporation.

The financially unsophisticated buy a cheap tax haven incorporation
to save money. They don`t realize how easy it is to lose their offshore
nest egg. In some cases, local attorneys don`t file the incorporation
documents with their Government. Local tax haven banks fail at an alarming
rate. Nominee directors have the power to defraud the unwary. Western
taxing authorities often collect taxes from the unwary tax haven
corporation. The road to tax haven success is dotted with hundreds of
these potholes. The unsophisticated are certain to wreck their car driving
this road.

For over 100 years, financial advisers have helped the
unsophisticated survive on the road to tax haven success. In Europe, these
advisers tend to be from old-money families. In the States, they tend to be
attorneys and accountants. Do you want to drive a tax haven car and don`t
know how to do it? You should hire a tax haven adviser, as your chauffeur.
It`s good insurance. They`ll add $5,000 to $10,000/year to your costs.
However, you`ll avoid the loss of your offshore nest egg from hitting a
pothole.

You can pay over a hundred thousand dollars a year for your tax
haven incorporation. It`s done by the super rich and multi-national
corporations. They get a team of drivers who ensure that they prosper
without having tax problems from their local taxing authority. Their
chauffeur costs are justified because their tax savings more than offset
their costs.

For the past twenty years, I`ve helped Stock Market professionals
create International Business Corporations (IBCs). My design is sound.
We`re taking some of these IBCs public. They aren`t the dream machines of
the super rich. They aren`t the engineless new cars of cheap tax haven
incorporation. They meet a need. If you share that need, they are your best
value. The cost is US$3,500 for the formation of your tax haven
corporation. Thereafter, the annual maintenance fee is US$600/year for a
private IBC. It`s $1,000/year for a publicly trading IBC.

Putting aside ego and ignorance, tax haven corporations aren`t for
everyone. If they are for you, you must decide upon your purpose, before
you shop for the best value. If you need stock trading and currency help, I
offer the best value. If you want to use a tax haven corporation to hold a
global real estate empire, you need help from someone who creates real
estate tax havens. Your purpose will determine your costs. It will
determine the location of your tax haven. It will determine whom you`ll use
as your adviser.

To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/]
Or, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

He has been the Managing Director of Beowulf Investments since 1981 and is the Executive Director of the Global Village Investment Club.