It’s car show season, the time of year when people pay to see the latest versions of one of the fastest-depreciating items known to man (can you tell I’m not a “car guy?”). A recent article by Yahoo Finance columnist Laura Rowley encouraged readers to save their oohs and ahs for the savings they’ll generate by buying used instead of new. And she offered up a helpful list of resources for finding the best “pre-owned” ride from the comfort of your own home. Among her recommendations: Review the safety reports on a make and model you’re considering through the Insurance Institute for Highway Safety
; find out what a vehicle is worth via the Kelley Blue Book
; shop for cars on AutoTrader.com
; and learn about the history of cars you’re considering with a one-month subscription to CARFAX
.
Matt’s View
In a related item, I just noticed that Merlin Muffler & Brake has re-branded itself Merlin 200,000 Mile Shops
. The company says its strategy is to help people achieve the “full life of their vehicle.” Now there’s an unusual marketing message if I’ve ever seen one, turning on its head decades of auto industry advertising bent on keeping our relationships with our cars short-term. I plan to give their service a try just to support their message.
Spending money on vehicle maintenance is like flossing our teeth. A little bit of unpleasantness on a regular basis can ward off a whole lot of unpleasantness down the road. According to a Bankrate.com article, $1,000 of vehicle maintenance can prevent $8,000 of repairs. The article highlighted the need for regular oil changes, tire rotations (and air pressure checks), and regularly scheduled replacement of timing belts, brake pads, PCV valves, spark plugs, and filters.
Matt’s View
One of the best ways to minimize the cost of maintenance is to choose the right car. I recently heard a BMW owner talk about spending $400 to replace his car’s battery. Ouch! To investigate what a vehicle is likely to cost in maintenance and other expenses, use the True Cost to Own calculator on Edmunds.com
.
Since leaving corporate America two and a half years ago, there’s a lot that I don’t miss: the commute, the meetings. But among the things I do miss is tech support. That’s why an article on MSNBC caught my eye. It pointed to a free online tech support service called Protonic
. After creating a user name and password, and entering a lot of details about your computer, you can submit tech support questions with an answer promised within four days.
Matt’s View
The four-day turnaround is not exactly lightening speed. But hey, it beats bringing out the Geek Squad with their lawyer-like fees and attention-drawing cars that let all your neighbors know how technology-challenged you are.
A hot topic among “consumer behavior” researchers is “shopping momentum.” The idea is that once a shopper makes a purchase they cross an important threshold making it much more likely that they’ll make other purchases on the same trip. While marketers work at spurring faster first purchases, I wonder if the same concept might apply to saving money. Opening a savings account, even with a small initial deposit, may become a motivator for future savings. With income tax rebates on their way, now’s a perfect time to put this theory to the test.
Matt’s View
Many brokerage houses require an initial deposit of several thousand dollars to start an IRA—a savings momentum killer, to be sure. However, Fidelity’s SimpleStart IRA
requires just $200 to get started as long as you commit to saving that much every month. Or, if you have children, test the savings momentum theory by opening a 529 college savings account. Depending on which plan you choose, you may be able to open such an account with as little as $25. For a primer on college savings plans and to compare plans, go to Savingforcollege.com
.
