The following are provisions in the bill followed by my comments to the Senate in BOLD:

The legislation creates a one-year program that allows the Secretary of Transportation to authorize the issuance of an electronic voucher to offset the purchase price or lease price for a new fuel efficient automobile when the consumer surrenders their current gas guzzler.

Wow! This bill sounds too good to be true, it will help stimulate our dragging automotive industry by giving consumers an incentive to purchase a new fuel efficient cars all while being environmentally friendly.  Your constituents will love you for this! Senators, please continue reading past the first provision of the bill, the devil is in the details…

Participating car dealers cannot resell the trade-in vehicle and must also surrender the title to the U.S. Government and transfer the car to an entity for disposal/shredding.

Really? Participating dealers have to sign over the vehicle to the U.S. Government who then in turn will crush the car into tiny pieces?  I realize a lot of these cars being traded in are probably not worth a lot, but tell that to the person who waits for the bus everyday because he/she lost their job and couldn’t afford their car payments anymore.  Why don’t you just crush these perfectly good vehicles in front of the hard working, now jobless, automotive workers in Detroit who made them?

Supply and demand is a concept that lets the market put a price on things based off the amount of consumers shopping and the quantity of products available.  It’s just a guess, but when you completely eliminate an affordable class of used cars, the supply is down.  Combine the now shrinking supply of affordable used cars with an economy set to recover in the coming years and you will likely have successfully raised the price of what used to be reasonable priced vehicles.

In order for a consumer to actually receive the credit, he/she has to purchase a NEW vehicle or lease one.

The bill is called a consumer assistance bill—what part of consumer assistance is encouraging people to take on debt all for a coupon off the purchase price of a vehicle?  The last thing many households need right now is another note to pay off.  The additional costs in buying a vehicle nearly equal the lousy credit.  For example, taxes, fees, title, plates, and higher insurance are all expenses a new vehicle owner is strapped with.  And I won’t even start on the economic downsides of leasing a vehicle.  What was the main lesson learned from the mortgage crisis?  Just because you can get the loan, doesn’t mean you can afford it.  Just because the Government gives incentives to buy something doesn’t make it the “right time to buy.”  Senators, you can’t fix the economy by encouraging people to take on debt, that’s what caused the problem.

A Consumer can get a $3,500 voucher for a new vehicle if the combined highway/city fuel economy of the new vehicle is at least 4 miles per gallon higher than the trade-in vehicle.
Wow, we are going to save the earth 4 miles per gallon at a time.

What are you thinking?  4 miles per gallon is nothing and is likely accomplished by simply not turning on your air conditioner while you drive.  Why don’t you just write up a bill that gives consumers a $3,500 tax credit to make sure their tires all have the correct air pressure?

A Consumer can get a $4,500 voucher for a new vehicle if the combined highway/city fuel economy of the new vehicle is at least 10 miles per gallon higher than the trade-in vehicle.

Senators, let me remind you that the car dealerships have to crush the trade-in vehicle, meaning the consumer does not actually receive any money from the dealer for their vehicle like they traditionally would.  Instead they are limited only to the amount this bill would give them.  The last time I checked, a vehicle that gets about 10 miles per gallon better than their trade-in is expensive—that’s why nobody is buying the new cars and that’s why the auto industry is hurting.

In order to receive the credit towards a new car, the consumer would have to purchase a “passenger automobile,” which is defined as a vehicle with a combined fuel economy value of at least 22 miles per gallon.

OK, the environmentally friendly part of this bill is getting a bit humorous.  Not only do consumers only have to improve their vehicle’s miles per gallon by about 4 to receive a significant credit, but they only have to purchase a new vehicle that gets 22 miles per gallon.  22 miles per gallon is horrible!  Who lobbied for this provision?  Let me guess, the auto industry?

There is authorized to be appropriated to the Secretary of Transportation $4,000,000,000 to carry out this Act.

Senators, you cannot fool the voters, this is clearly a $4 billion bailout package for the auto industry, which is basically now owned by the voters and ultimately will be returned to the industry, who will profit.

H.R. 2751, the “Consumer Assistance to Recycle and Save Act” should ultimately be renamed to something that more accurately defines its contents, like the “Consumer Disservice to Waste and Overspend Act.”

Step 1 – Purchase Refrigerant and Gauge. The main reason people are scared to charge the car’s a/c is because it’s known that you need to be licensed to handle Freon.  This is true, however, 1995 and newer passenger cars and trucks take a kind of Freon called R134A, which does NOT require a license to use.  Almost every auto store will carry R134A Freon and just last weekend I saw it pretty cheap at Wal-Mart ($10-15).  Typically, one can is enough to completely charge your system unless it is empty, which might take two.  When purchasing the Freon, make sure you buy a can that comes with a gauge.  This gauge will measure the pressure in your a/c system and makes refilling the refrigerant to the correct pressure a breeze.  This gauge is reusable and will only require you to purchase cans for future fillings.  The following pictures are all different products that will work.

Step 2 – Locate the Low Side Fitting Under the Hood. Don’t let this kind of language discourage you, the low side fittings is easy to locate and the picture provided should help.  Air conditioners have two sides on them a low side and a high side.  The Freon has to be filled through the low side fitting.  Usually, your vehicle will have an “L” label on the low side cap and an “H” on the high side cap.  The nozzle that will attached to the low port does not physically fit on the high side port, so don’t get too worried about doing this wrong.  You will have to unscrew the dust cap  in order to put on the gauge.

Picture of Low Side Fitting Port – Usually Blue and labeled “L”

Step 3 – Attach Gauge and Refrigerant to Low Side Port. Once you have located the proper port, it’s time to connect the can of Freon and gauge.  While the car is off, pull up on the gauge nozzle and press it down gently onto the port, you will know it is on correctly when you wiggle the gauge and it stays on securely.  Next, attached the can of Freon to your gauge, depending on the type of can and gauge you have, you usually turn the can into the threads until it is tight—this will puncture the can.  Once this is connected, do not pull the trigger on the gauge, because this will release the refrigerant.

Your Gauge Should Look Like This When Hooked Up

Step 4 – Start Car and Read the Current Refrigerant Level. Now that everything is attached, go ahead and start your car and turn you’re a/c on full blast (all the way to cold and fans on hi).  While your compressor is running, you will see the gauge move.  You want your pressure to be right in the middle of the blue gauge setting (settings may vary by gauge, but they are all pretty obvious as to where the correct pressure should be).  One tip to reading the gauge is that if you’re a/c is completely out of refrigerant, your compressor will cycle on and off so the it does not burn out.  Because of this, you will only be able to get a correct reading while the compressor is on, you will know the compressor turns on when you hear your fans start spinning towards the front of your car behind the radiator.  You should also physically hear the compressor turning off and on.

Any Reading in the Green Means You need to Add Refrigerant.

Step 5 – Recharge Refrigerant to Proper Pressure. Locate the trigger or dispenser on your gauge and hold it in, but only when the compressor turns on.  Remember, you will likely know by the fans cycling on and off.  After holding it in for a few seconds and allowing some refrigerant to enter the vehicle, the compressor will likely stay on because it now has a slight charge.  After holding the trigger for a few seconds, stop and take a reading.  Keep doing this until the gauge is right in the middle of the proper pressure point. It can take 5-10 minutes to completely drain a can of refrigerant.  Be careful not to overcharge your a/c system because this cause damage or failure to your compressor.

Step 6 – Remove Gauge and Put Dust Cap Back On. You are essentially done at this point, all you have to do is release the gauge from the low side port, by reversing the process by which you installed it.  Once the gauge is removed, put the dust cap back on.  That’s it, you just saved yourself at least a 100  bucks!!  If you have any questions, feel free to post them and we will try to help you out.  The video below should also help make the process clearer.

Video Showing How to Charge Your Car’s a/c (the gauge is slightly different than what I explained in the post)

My wife and I have been in the market for another vehicle for some time now and after browsing the internet for close to 6 months, we finally found a car that is reliable, affordable, and attractive enough to please my wife.  The winner was a 2003 Dodge Neon SE with 54,000 miles for $3,500.00 (pictured above and below). I think this is a car that will last us for many years to come and most importantly, requires only one payment.  There are even better deals out there to be had and now may be the time to search one out for yourself.

Places to Find Bargain Vehicles.
I primarily searched three sources to find our vehicle: 1) www.craigslist.org; 2) www.ebaymotors.com; and 3)Washington Post’s Classifieds.  Because I have learned over the past couple of years how to do most vehicle repairs, I have a slightly higher comfort zone when it comes to owning a used car.  However, what is there to be nervous about really?  With the proper preliminary steps, purchasing a used car from a private-party is safe, affordable, and satisfying.  I’m always shocked by the number of people who absolutely refuse to buy a car unless it’s from a dealer.  The reality is, in most situations, is that a dealer is going to overcharge you for you’re a new or used vehicle, and undercut you on a trade in.  I don’t even enjoy walking into dealerships.  You are immediately met by a salesperson who is likely looking out for themselves rather than the customer.  If you decide not to purchase a car then you usually recieve future periodic phone calls of extreme cant miss deals.  Generally, I think if a product has to be sold and rammed down your throat, it’s probably not a good product–good prodcuts sell themselves.

Use the Economy to Your Automotive Advantage.
A reality of our current economic situation is that used cars have seen a decline in price.  If you think about it, it makes a lot of sense.  Even those people who can probably afford to spend money like they did 2-3 years ago are saving, mostly because they are nervous about job losses and investment losses.  Just like selling a house right now can be difficult because buyers are sparse, trying to get rid of a used car to somebody of whom will take only cash can prove just as complicated.  Those fortunate with cash are hesitant to unload on a used car and those that need a car, but don’t have the cash, are finding a loan hard to come by. What all of this really means is there is a saturated market of used cards, both on the lot and in the papers.  For us, this meant the perfect time to buy.

Steps to Take to Avoid Buying a Lemon. Test driving the vehicle is a must; even those that lack the confidence to even open the hood can detect major problems just by the feel and drivability of the vehicle.  Finding out the cars history is also another great way to avoid buying a lemon.  For a few dollars you can get a snapshot of the vehicles life using www.carfax.com.  It’s usually a good idea to avoid buying vehicles that have obtained major front end damage and flood damage.  It’s also important to check with your local DMV to understand all of the steps you need to take, including all the proper forms both the buyer and the seller need to sign, in order to properly register the vehicle.  Making sure the proper forms are filed can help prevent purchasing a vehicle that doesn’t have a clear title or that has been stolen.

Still not convinced a used car is the way to go?

My Top Ten Reasons to Buy a Used Vehicle.
1)    A new car will instantly be worth less than the amount you owe the second you drive off the lot.
2)    A new car will come with higher taxes and fees.
3)    A new car will come with higher monthly insurance payments.
4)    Properly maintained cars can easily last 15 years.
5)    New cars can breakdown too.
6)    It’s much cheaper to put money into a savings account and save for emergency maintenance costs than making a monthly car payment for years on a new vehicle.
7)    Used cars that are paid in full have the option of only carrying liability insurance.
8)    By avoiding buying a new car every 5 or so years, you can expedite your retirement by an estimated 5 years or more.
9)    Services like AAA can take the fear out of driving an older vehicle and will still be cheaper than a new one. However, over a lifetime, paying for a few towings will be cheaper than a constant monthly fee.
10)   Oddly, the longer you keep amd use a vehicle, the more you become attached to it and understand its limits.

In a selfish way, I think there is a glimmer of good that has come from our automotive industries economic problems.  With the Governments involvement, there is at least pressure on the industry to change its ways and produce vehicles that get decent gas mileage, and by decent, I expect higher miles per gallon (mpg) than a Toyota Prius.  There is no reason that in 2009 we are paying top dollar for vehicles called hybrids that only compete in mpg with my 1995 Dodge Neon.  We have made advances in so many different fields, but have lost years of productivity in the automotive world.  Check out the following automotive experiment from Tata Motors in Indiana, which could change the way American car companies do business–hopefully.

The car is called Nano produced from a Company called Tata; it’s a four door/four passenger vehicle that is supposed to go on sale in India sometime this summer.  Amazingly, the car will sell for about 100,000 rupees, which translates to about $2,000 U.S. dollars.  Can you believe that?  $2,000 for a brand new car, granted, it’s not going to have all the bells and whistles of what we have become accustomed to, but if you’re like me, you don’t care about these accessories.  It’s been said many times, but a car is to get you from point A to point B, it’s not an object that proves you make more money than your neighbor.  No matter how fast it is, it won’t change the speed limit and not matter how fancy it is, you still store it in the same place as you do your garbage—the garage.

The general concept behind the Nano is that you only get the barebones necessary to get you around.  The Nano has the ability to be less polluting than scooters and should be capable of getting 50 miles per gallon with a two-cylinder 33 horsepower diesel engine.  The vehicle is offered so cheap, in part, because its missing main features that we are more than used to like power steering and a trunk that actually opens (the Nano’s trunk is assessable by folding down the seats).  Interestingly, the Nano will have the engine in the rear, which helps provide more interior room in an already tiny vehicle.  Also, the vehicle will be a rear wheel drive, which means if you live in a snowy area, you’ll likely have major problems.  Of course, a manual transmission would be standard, which already disqualifies 90% of the U.S. from owning one.  The acceleration isn’t all that bad either; it should go from 0-43 MPH in 14 seconds (ok, that is pretty bad).

Who knows how long it will take to get an affordable car like the Nano into the United States.  I realize to get this vehicle up to the U.S. safety standards etc., it will likely cost more than the version going on sale this summer in India, but if one goes on sale soon here, the manufactures probably couldn’t keep up with the demand.  This could ultimately produce an unintended side effect however, if vehicles do come on the market this cheaply, traffic could end up being a bigger problem than it already is.  Whatever happens, I hope the U.S. starts using its brainpower and produces vehicles that in reality, we should already be driving.

I love our Shirley, the woman that lives inside our GPS, even though she has an attitude when I miss turns, often is completely wrong, and struggles to get a signal at start up.  I do get annoyed at our GPS, but when it comes down to it, I don’t know what I would do without one.  The days of unfolding giant maps to navigate is over, which I’m thankful for because I’ve never met one that I could actually fold back up.  I remember I was amazed when I found out there wasn’t a monthly fee to use a GPS, what a bargain I thought, just couple hundred initial bucks and I’m set forever—nope.

The area behind our condo is about five years old with all new roads and houses. I would never know this if I only listened to Shirley, my GPS girlfriend to get around.  The GPS doesn’t even recognize the roads exist, when I’m driving over there it appears as if I’m on a deserted island.  Considering the housing boom and easy credit, there are many nearly new and now mostly empty neighborhoods our GPS could never navigate us to. This can be really annoying when trying to drive to a new buddy’s house or a new restaurant that just opened.  The solution is simple, but absurd, purchase new maps.

Updating your maps isn’t a minor or acceptable fee in my opinion, to update our Garmin 350, it cost about $100.  Shopping around on the internet, I can now find our actual GPS unit for about $100.  This is equivalent to Sony charging you $100/year to allow you to watch new channels on a newly purchased TV.  Why can I easily get updated maps using Google Maps for free, but have to shell out more money than Ben’s willing to pay for cable TV or internet for an entire year just to find the new Taco Bell?  If I was to purchase the new maps ever year, it would about $8/month, which I would have never agreed to going into the purchase of the GPS.  This is about like having satellite radio, which by the way, updates for free.

Don’t get me wrong, I love the idea of a GPS, but if makers like Garmin don’t provide their updates at a more affordable rate, consumers are going to find a better way to get around.

In my opinion, the 20-30% discount is very tempting, but still doesn’t sway me to purhcase a new automobile. As we have said before, right when you drive a new car off the lot, it loses value, which puts your note on your car worth more than the car itself.  Pherhaps, if you are lucky enough to find a 20-30% discount, this will counteract the drive off loss.

Keep in mind, if you find a dealership offering a 0% financing, they will many times consider this the discount and the car itself will still be priced high.  Of course, this is all assuming your credit is good enough for such offers.  If you are lucky enough to come into a deal with cash, you should see the sticker price fall.

In general, you will probably see a new car’s price drop around $3-4k with these advertised discounts and you will have a very hard time finding a new car under $10k.  Considering all the variables, I still believe the value is in used cars.  Yes, new cars have reduced a little in price, but they should, they are incredibly overvalued.  Used cars will too likely see reductions in price if new cars continue to drop. I would much rather purchase a used car with approximately 70k miles for, depending on the car, $3k-7k.  This type of car will give you a mode of transportation (remember, this is really all cars are) for around 10 years or more.  This same type of car brand new will likely cost you $10-14k in addition to interest payments on a loan. $

• Make sure your tires are all inflated to all different PSI’s.

• Accelerate and break with intensity, careful and slow driving only consumes little amounts of fuel.

• As the temperate drops, be sure to idle your car for at least 15 minutes before driving.  There is nothing worse than a cold car and a full tank of gas.

• If possible, avoid driving 55 MPH or slower.  Anything under 55 MPH will only allow you to get less credit card rewards at fill up.

• Open all of your windows and be sure the air conditioner is always on.  If your car isn’t working hard then your not even trying.

• Increase your speed when approaching hills to ensure forceful breaking.

• Rather than turning your car off at long red lights, put your car into neutral and rev the engine like your going to race the person besides you.

• Be sure to take the longest route possible everywhere you go, after all, why pay thousands of dollars for a car you are only trying to get out of?

• The more weight in your car the better, so eat up.

• Only put the highest-grade fuel in your vehicle, and be sure to laugh at those around you being cheap.

• Program your GPS to avoid highways and interstates and to only use busy one lane roads.

• Race your friends and family members at top speed with reckless abandon through parking lots and alley ways.

• NEVER mix old gas, with new.  Run your tank dry while at the pump so that old and new fuel doesn’t touch.

• If you can, put it in 4-wheel drive.  Always.  Get a bumper sticker that says I Traction.

• Leave it running while shopping.  That way its ready to go when you need to get out of the mall because your credit card has melted from over use.

• Everyone knows the best radio is when you are in rush hour.  Listen to news and find out where the best gridlocks are and jam!

• Oil changes?  Come on, its just oil, what could be the harm in leaving it alone?

• Carpooling is for sissies.  Race your coworkers to work, but sit in the parking lot and laugh when they all get out.

• Drive down your driveway to your mailbox to get your mail.  Keep a log of how fast you can do this.

Manuals and for dummies books are great resources for do it yourselfers, but many times, I find the words just aren’t enough.  I need to see somebody in action performing the same tasks I need to in order to make sense of a particular job.  For this, I often use http://www.expertvillage.com/ Expert Village is a site full of “experts” explaining in short video clips how to perform a wide variety of not commonly known tasks from proper ways to exercise to how to apply eyeliner.  Best of all, its free!

Because I leave the eyeliner wearing to Ben, I get the most use of Expert Village’s automotive section.  A couple months ago, I watched a how to video on draining and replenishing your car’s coolant.  What turned out to be a pretty simple procedure, ended up saving me around $50.  My next project is going to be replacing the break pads on our car.  Again, until yesterday I had no idea how to do this, but research in my car’s mechanic manual and some help with Expert Village and most importantly some patience, I should be able to figure it out (I’ll let you know how it goes).

Be your own expert, save some money, and impress yourself by not being intimated by projects, rather look forward to them. $

But how do you go about learning the ins and outs of your car?  I would recommend everyone buy a service manual (different from your manual that comes with your car).  I use a manual from Haynes Repair Manuals, which cost about $20.  This comprehensive guide ranges from doing the very basic fixes to more advanced procedures that are specific to your vehicle.  Just today, I cracked open my manual to learn how to drain the transmission fluid and replace the filter.  The cost to me was $30 in materials, compared to the $100 + it would have cost else ware.

The advantage of doing a little auto maintenance yourself goes beyond saving a few dollars.  It helps build knowledge of how your vehicle operates, which has multiple upsides, like standing your ground with an unscrupulous mechanic.  Also, putting a little sweat into your vehicle only makes you appreciate it more.  For me, this means driving it more conservatively and making sure I do the schedule maintenance. Give it a shot, regardless of you current car knowledge, I know you can do it – I’m proof! $

Depreciation
Just like many homes have temporarily depreciated in our current market, vehicles will lose value with time. For the most part, cars depreciate the most, the moment they are driven off the lot. Once a car goes from new to used, it drops in value so much so, that at times the car is not worth what your loan is asking for. Because of this, trading in a relatively new car for a hybrid in order to save on gas is a mistake. Why? Well, because when you trade in your vehicle, you will swallow the deprecation that naturally comes with a car that is 2-3 years old. In many instances, this deprecation figure can be around $2,000-$8000 or more – roughly 2,000 gallons of gas.

Interest
Of course, with every car loan comes interest. Let’s say that you trade in your current car, which you have owned for about three years, for a new hybrid. You most likely are starting to see the end of your car payments, assuming it’s around a 5-year loan. By borrowing for a new car, you are essentially extending the life of your loan for an additional 5 years. As each month passes, you are paying more and more to the bank, all to save on gas. If you currently own your car and enjoy no payments, borrowing for a new one to save on gas is hardly logically, mostly because the interest on a new loan will cancel out any gas savings.

Taxes and Title Fees
For me, not buying a new car means not having to visit the DMV for new tags/plates etc., this alone might prevent me from buying a new car, anyone who has waited in line for hours knows what I mean. The costs associated with these fees can be spendy. Let’s say you are charged a tax totaling 5 percent of your new car’s value, for example if your car is worth $20,000, taxes could cost you about $1,200. Also, your state my charge for a new plates or tags.

Before you decide to purchase a new hybrid, make sure you do the math and include all the costs that come with new vehicles. I didn’t mention upkeep, but hybrids – especially with their batteries – may cost more to maintain. $

Many vehicle owners think they are ahead of the game when they trade in their car after 3-5 years of ownership. By doing so, the owner thinks they can avoid the high cost maintenance that comes with older cars. This thought process makes sense for a second, but that’s about it. Generally, there is only one winner in car trade-ins, and that is the car dealership. Because of the growing life expectancy of cars, dealerships can resell your car at a significant profit, based on the amount they gave you in trade-in plus the profit they are making on your purchase of a newer car. Also, people rarely trade-in their vehicle, rather, they trade-up – creating an endless cycle of car debt.

Most vehicles manufactured during the last 20 years, with proper maintenance, can realistically last over 200,000 miles. Consider keeping your car’s maintenance history with ausedcar.com, at no cost, this easy to use site allows you to enter in your cars maintenance record so you can remember what maintenance is do and when.

Remember, vehicles are one of the only guaranteed depreciating “investments” people will make, and borrow money to do so. So let’s stop paying car dealerships and banks – ride your car until it dies, literally.

Here are some things to consider when purchasing a car, preferably a used one!

1) Pick a vehicle you are truly happy driving. For the most part, people get new cars not because they need to, but because they want to. Try to pick a car you will be comfortable and confident driving for years to come.

2) Avoid buying trendy vehicles. Just like tattoos, what was once sweet may now be embarrassing. Bright colors, strange designs, or little passenger room may all be things that originally attracted you to a vehicle, but are the same reasons you get rid of them only a few years later.

3) Read the reviews. I’m a big fan of howstuffworks.com Auto Consumer Guide. Nearly all cars are listed with the pros and cons easily laid out, average gas mileage, expected maintenance and much more.

4) Check and compare the blue book value. Obviously, it’s impossible to know an exact amount a car is worth, but based of the cars mileage and features, the Kelly Blue Book value will help you realize bargains from rip-offs.

5) Look online. Often times people rely on car dealerships within their area or see commercials for what look like amazing must do offers. However, the true value may be sitting in a nearby used lot or a neighbor’s garage. Cars.com is a great tool for searching cars in your area. Break your searches down to only cars within your price range and with fewer than X amount of miles.

6) Research the cars history. This is actually simple to do and many used car dealerships will pay for the search for you. CARFAX is a great deal breaker when researching used cars. For a few dollars, you can find out if a car has been in multiple accidents, flooded or even vandalized. $

As many of you may remember from an early posts, my wife and I commute into work together. We do this not only because of the substantial cost savings of only operating one vehicle, but we do this because we only have one vehicle. Our little car has been through a lot, to say the least, but it keeps on trucking. Currently our 1995 Dodge Neon has approximately 166,000 miles on it and our goal is to get at least 200,000 miles on it. In order for this to happen, we need to put money into it, even when it’s not broke. Proper vehicle maintenance is neglected by nearly all car owners, but is essential to milk the most from them. Because the majority of us think proper maintenance is just regular oil changes, I have put below a basic schedule of proper maintenance (other than the normal oil changes) we should already be doing. Try to get your car up to speed this weekend, you won’t regret it.

15,000 Miles
Adjust drive belt tension.

22,500 Miles
Inspect the front brake pads and rear brake linings.

30,000 Miles
Lubricate the front suspension ball joints
Adjust drive belt tension.
Replace the air cleaner filter.
Replace the spark plugs.

45,000 Miles
Inspect the front brake pads and rear brake linings.
Adjust drive belt tension.
Flush and replace the engine coolant at 36 months, regardless of mileage.

52,500 Miles
Flush and replace the engine coolant if not done at 36 months.

60,000 Miles
Check and replace, if necessary, the PCV valve.
Lubricate the front suspension ball joints.
Replace the drive belts.
Replace the air cleaner filter.
Replace ignition cables.
Replace spark plugs.

67,500 Miles
Inspect the front break pads and rear brake linings.

75,000 Miles
Adjust drive belt tension.
Flush and replace the engine coolant if it has been 30,000 miles or 24 months since last change.

90,000 Miles
Check and replace, if necessary, the PCV valve.
Lubricate the front suspension ball joints.
Inspect the front break pads and rear brake linings.
Adjust drive belt tension.
Replace the air cleaner air filter.
Replace the spark plugs.

105,000 Miles
Replace the engine timing belt. $

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In our daily quest to limit the amount that we pay for different things, auto insurance comes up quite a bit. Most of us are able to abide by the driving standards set forth by our local governments and feel that the high prices of many car insurance companies are on the verge of gouging. There are alternatives to these but its difficult to be exactly sure as to what car insurance provider has an office in your area. There are online services for car insurance but they give off the air that there might be a human element. Not all, mind you, but some. When the time comes for actually engaging your insurance company, you are going to want someone you can trust and many of us feel that by getting what we think is a fair rate is one of the best trust building ways to get started.

So how do you find your list of local car insurance providers? Through a search for cheap auto insurance you can simply enter your zip code and all the local companies to your area are displayed with the logo, for recognizability, a few key factors that might set it apart, and a button to get to the page for getting a quote. From there, you enter in your information and see how you did. By doing this for a few places you can do some comparison shopping and see what might be the best route for you.

This site also provides a Resources page that has the following; BBB – Auto Theft vs Facts, National Academy of Social Insurance (NASI), Insurance Institute for Highway Safety (IIHS), Weiss Ratings and several other helpful tools that due diligence should lead you to. There is a general/national list as well as one broken down by state.

We are curious to hear your stories about car insurance both good and bad…leave a comment and don’t forget to subscribe! $

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In our quest for consumption, we can readily come up with a healthy list of things, given the cash flow, we could run out and buy right now. Let’s imagine for a moment that’s possible. What would you buy? If you’re like us, that list spills over into electronics, home theater and sporting goods. When going through the process of shopping, some will simply see things they want and make impulsive purchases. I had this happen to me not even a week ago with a lob wedge that I had an eye on. I can barely call myself a hack so purchasing a $50 golf club was already a little out there. On top of that, it was on sale for $30! I had to go through the agony of making some perfect text book practice swings in the store, imagine it in my bag, visualize myself making a few beautiful pitches on to the imaginary greens, then put the club back on the shelf and walk away. Let me tell you, it’s a man’s equivalent to giving birth. Maybe not, but still pretty difficult.Impulsive purchases are probably single handily the cause of Americas credit card debt problems.Remember the two-week rule we mentioned in an earlier post? For those items that you know you will enjoy and get your money’s worth, perhaps your decision of purchasing will ease if you find the product used and cheaper. We have recommended five items that you may be better off buying used and five where buying used is not worth it. Now, let’s take a look at what is best used and new.

USED

1. Golf clubs. You saw that coming didn’t you? There are people out there that have their entire business built around reselling used golf clubs. A woman I work with was somewhat apprehensive about buying a used club, but ended up going to a manufactures’ outlet site and got one that was “like new” and it was in pristine condition. This is an example of investigative research to save some pretty big bucks. Clubs are a lot like cars in that if you wait for the latest club to come out, the one before it get substantially reduced in price. Ebay is not a bad way to go about this. Just buy steel irons and be sure the drivers and woods show a picture.

2. Computer Monitors. I have a sick obsessive fascination with having as much desktop real estate as possible. If I could justify the cost, I would use two 30″ monitors at every machine I have. Obviously, that’s an obscene amount of monitor, but still, it doesn’t hurt to look! (Looking is free.) To have reasonable success with buying larger monitors, I go to the Dell Outlet page to find good deals on monitors of a larger persuasion. Don’t be afraid of buying a monitor that has been refurbished! These monitors undergo an extensive quality check before they go out and the risk of getting a bad monitor is extremely low. The worst you can expect might be a bit of slight marring on the bezel, or frame. To me that’s fine, if I can save $150-200 dollars. The technology these days for LCD is so run of the mill that consistency is near 100%. This outlet list changes often so check back regularly.

3. Books & DVDs. To be completely honest, a large part of my entertainment budge t goes towards books. A few DVDs here and there, but not many due to Redbox and Blockbuster Online. However, for my book indulgence, I do a sneaky thing. I go to the big fun bookstores (Barnes and Noble, Books-a-Million, Borders, etc) and I buy absolutely nothing. Again, like the golf clubs in the sporting goods store (see above), this is extremely difficult to not give in to the instantaneous feeling of satisfaction. What I do is write down the ISBN number and go look on Amazon for it. I do this for two reasons: 1) I will get the same book, in nearly the same condition, which will be close to 50% off what it was in the store; and 2) It allows me to have a buffer of time to be sure that the book I am seeking is something I truly want/need. Waiting to purchase lends time to take in to account reader reviews and it’s amazing these brick and mortars are staying in business.

4. Vehicles. This is somewhat a no-brainer for anyone with a sliver of frugality within them. It’s a widely known fact that a brand new car depreciates at least 3-5% as soon as you drive it off the lot. Then it loses 15-20% of its value every year after that. It’s not uncommon for people now to owe more on their car than it’s worth, don’t be one these. While some say that a car is an asset, it is also a depreciating asset. In fact, it is the only “asset” people willingly borrow money, at interest, while knowing it will depreciate. Get a vehicle that’s 2-3 years old and let someone else take that hit, just make sure that the car was well cared for. That new car scent can be bought easily. Taking care of your car will save you tons over the long run either way. Buying new does absolutely nothing but throw good money out the window at about $12 a day, in addition to gas, maintenance, etc, etc.

5. Wall Art. Hopefully you don’t think we are suggesting that you are like the Amish, so by all means decorate! There is quite a bit of decent paintings, photographs that you can find out there at decent prices. I feel good about buying these used as there is only so much you can really purchase before your walls are full and your need goes down. Kept within your budget and at the right places, this can even be a rewarding hobby. Check The Wall Art Store or All Posters.NEW

1. HD TV’s. This is an interesting category as it could be easily argued either way. Some will say that it’s just like computer monitors and the technology is so stable these days that you can’t go wrong. I disagree somewhat in that TV’s have a great deal more going on under the plastic skin. You wouldn’t think of it, but they actually have some pretty advanced chips in them that lend themselves to widening the spectrum of quality across the field. A higher quality, name brand, HD TV is going to look noticeably better than a lower end one. Without getting into a long post about the pros and cons of certain sets, there is still the argument that TV’s are getting cheaper almost by the day. Find a TV you like at Best Buy, note the model number and then go home and look online for it. These prices will have dropped significantly online, then in one-month see if they have come down again at Best Buy. Again, Amazon has nice selection as does Costco. (Let us know if you find that 60″ Vizio for less than $2k!)

2. Computers. I am a bit of a stickler for computers but I also do quite a bit of tweaking and know my way around pretty well. Having said that, there are two avenues to explore: DIY – Go to Pricewatch.com and get your parts. They do a really good job of giving you the power to select the parts you want in the price range that works best for you. You can also see price trends for more expensive items and see where the gouging drops off. NewEgg.com also has some pretty good deals for more everyday items. Buy Whole – Of all the computer manufacturers out there, it is not easy to simply recommend one and have that answer all the needs of the average consumer. If you need just an eMachine, go to WalMart and be astounded by the savings. For an overall positive experience and a decent warranty, buy a Dell. You can snag some great deals from their Outlet Store, but new machines are a good buy as well.

3. Clothes & shoes. Just spend wisely here. Not many would buy used clothes and shoes given the choice. You don’t have to buy everything from the most expensive trendiest store, outlet department stores should be ok no matter your dress code. I have to wear a shirt and tie to work everyday (excluding casual Fridays) and I rarely pay more than $10/shirt and $10/tie. I’m serious, I’m not wearing the worst of the worst either. Occasionally, check out the back of stores where the clearance sections are, you will be surprised. If you feel differently about this, please leave a comment and let us know.

4. Cell phones. Used cell phones are sold for three reasons: they don’t work, they are awful quality, or they are stolen. Do the research to see what you like best and stick with it. Get a modest plan, and take advantage of a renewal deal. Verizon has a Two Year Renew plan and it’s pretty nice (however, for the consumers sake we would like to see these contracts be reduced to at least 1 year). I usually make a point of not looking at other phones for the 1st year, and then as the second year starts up, I begin looking around for what is nice. Just don’t go over the top with features and be wary of rebates!!

5. Furniture. Much like clothes, you can’t really feel good about buying a couch that someone has obviously made a large part of their life on (including their children). It’s too difficult to bring it back to “like new” and the fabric will eventually go back to its engrained smell. Not to mention lots of furniture made these days is not of solid wood, but of particleboard, that doesn’t have the lifespan of wood. Spend the time to do research and know your budget limits. Set aside a certain amount of money to work with and stick to it. Don’t feel like you need to furnish your entire house at once and PLEASE don’t get suckered into a store credit card. Unless you can pay it off and keep it off, it will hit your credit report to continually opening new lines of credit. Buy a decent bed first and go slowly from there. The furniture will have more meaning to you and will last longer because of it. The only used furniture I could feel good about recommending would be hard wood antiques. Even then, I would need to do a great deal of research to justify it. Exception to all of this is college, beer taste just as good on a used couch.Have other suggestions about what is best bought Used or New? Drop us a line or leave a comment! $

While the discussion of what car to actually purchase will be discussed in a later post, I would like to point out a few things to keep in mind with the car you already have. I recently had the lovely opportunity to have my car run into an issue where the transmission was stuck in four wheel drive. Naturally my girlfriend was driving and I was no where nearby. So after having her turn the car off and back on, the issue seemed to have been resolved, I came to a bit of a cross road. I knew that there was a problem but it seemed to have been “healed” all by itself. Should I let it go and see if it happened again or have it immediately taken to the dealership to have it at least looked at.

As much of a pain as it was, I elected for the latter. I ended up having the sensor replaced, as well as an over haul of the entire four wheel drive system (Consider getting a second opinion on your vehicle when it has problems, until you are comfortable and trust a mechanic you may end up spending more than necessary). It might seem as though that was slightly fool hardy but I look at my car as an investment. Not an investment where it will gain equity, but as an investment to stave off another vehicle purchase. The absolute best way to save money in the long run is to not have a car payment. Some might argue that “Well, I am always going to have a car payment so I might as well get the nicest car I can.” This is simply not true! This happens because some are not in tune with getting regular preventative maintenance. Ever hear the phrase “An ounce of prevention is worth a pound of cure”? It’s definitely true. Cars should last at least 10 years in our opinion here at Milk Your Money and by keeping your car going for at least double the amount of time on your loan, you can justify that your payment is being cut in half in the long run.

My vehicle purchase was out of necessity and my selection process was somewhat biased as I had just moved and gotten a new job and the payment was/is manageable. Don’t get me wrong, I love my car, but if I knew then, what I know now, I would have chosen differently. Again, that type of discussion is for another post.

I want to make the point that my thought process was geared towards not having a massive payment later down the road. (Any puns found in the previous sentence were completely intentional.)SmartMoney has an excellent article that talks about the 10 best ways to keep your car out of the shop. These are really simple ways to make sure you get the absolute most out of your car. Some are well known while others are not. Here is a quick summary:

1. Start it up properly: “Make sure that any extra accessories, such as headlights or climate control, aren’t on when you turn on the ignition.”
    

2. Come to a complete stop: “By shifting into drive while the car is still in reverse, you’re asking the transmission to do the work of the brakes — and that will wear down your gears [...]“

3. Don’t Run the needle down to empty: “You can stir up sediment by driving with less than a quarter of a tank of gas. Prolonged abuse could wreck your fuel injector, which costs about $80 to $100.”

4. Turn gently: “By turning the wheel to the point where it can move no further, you’re putting 50 times more wear and tear on your steering pump than normal [...]“

5. Check your tires: “If you drive with too little air, your tires will get quite hot; excessive heat will wear out the tread much faster than normal driving. If you drive with too much air, less rubber will hit the road than necessary. Next thing you know, the outside portion of your tire will be doing all the work and wearing out faster than the inside.”

6. Don’t ride the clutch: “Pop the car into neutral and take your foot off the clutch while sitting in traffic.”

7. Listen to your car: “The most common sound people ignore is squeaky brakes. As soon as you hear the sound, you probably need new brake pads [...]“

8. Heed those warning lights: “By waiting even a few days, you can turn a simple problem into a disaster [...]“

9. Drive more: “Many people don’t realize it, but not driving your car can be as damaging as driving it too hard.”

10. Neglect will cost you: “The single most important thing you can do for your car is take it in for regular maintenance.”