Super-Easy DIY Car Maintenance
The title says it all. Some car maintenance jobs are very easy. If you do them yourself, you can save hundreds of dollars. I'm not a handy person at all. I have never operated a drill (don't laugh). If I'm able to do some simple maintenance for my car, I'm sure you can too.
Windshield Wiper Blades. These are the easiest. Press a clip, slide off, and slide on the replacement. Time: 5 minutes. Cost: about $10 each.
Battery. The dealership does a vehicle inspection for me whenever they do an oil change. They told me my battery's cranking power was low and they would charge me $150 to replace it. I went to Wal-Mart. They install the battery for free if you buy it there. I waited nearly two hours and it still wasn't my turn yet. I got fed up and just bought the battery.
Tax Credit for Buying a Hybrid or Diesel Car
Reader Nate asked in a comment to my previous post Refundable Tax Credit and Non-Refundable Tax Credit about the tax credit for buying a VW Jetta TDI. I thought I'd put it in a separate post in case others are also interested.
The government gives tax credits for buying a "green" car. If you are not buying a "green" car, you don't get a tax credit, but you still get a tax deduction for the sales tax. See previous post Tax Deductions: Above-the-Line, Standard, Itemized, and Miscellaneous for the difference between a tax credit and a tax deduction.
The tax credit is called Alternative Motor Vehicle Credit. It's been available for a few years now. There are four categories of vehicles under the program. For the average consumers, the two most relevant categories are basically hybrid and clean diesel cars. These cars must be purchased new. Leasing does not get you the credit.
What Is AAA, Really?
My AAA membership is up for renewal. I'm talking about the organization that provides emergency roadside service: towing, jumpstarting, and lockout. It used to be American Automobile Association. Now it's just AAA.
I have been a AAA member for a few years but I still don't understand what AAA really is. I mean, is it a for-profit company? If so, who owns it? AAA books travel. Who earns the commission? AAA sells auto insurance. Who's providing the insurance? Does AAA have its own insurance subsidiary or is it just an agent for other insurance companies? If I don't use AAA travel agents or buy insurance from AAA, am I benefiting from the profits in those areas?
Wikipedia says AAA is a non-profit owned by regional motor clubs. Individuals like myself are members of a regional club, for example AAA Northern New England. It's still not clear to me whether the regional clubs are for-profit or non-profit. I don't have auto or homeowners insurance through AAA. Therefore I don't know who's behind the insurance. If anyone knows for sure, please help.
Buying a Car Extended Warranty
A family member asked me to help him buy an extended warranty for his car. I got the enviable job because the extended warranty costs a lot of money (over $1,000) and I have the reputation in the family for getting good value for money.
Is an extended warranty on a car "worth it"? The standard advice you hear about extended warranties is that they are not worth it. I disagree. I must say it depends. It depends on what price you pay and what you get for that price. The coverage is worth something. If you pay a low enough price for the right coverage, you can make the extended warranty "worth it."
Let me begin with what NOT to do when you buy an extended warranty.
Save Money On Auto and Homeowners Insurance with Premium Comparison Surveys
[Updated on July 7, 2009: Added links for Maryland and New Jersey.]
I spent more than 15 minutes and I saved more than 15% on my auto and homeowners insurance. For the same coverage, I saved 25% on my auto insurance and I saved 38% on my homeowners insurance.
A typical "how to save money on insurance" article will tell you to drop collision and comprehensive coverage on older cars, get your good driver, good student, and alumni association discounts, increase your deductibles, insure your car and home with the same company for the multi-policy discount, etc. etc.
I'm not going to repeat those. I assume you already know what coverage you want and what deductibles you are comfortable with, and you already pursued all the discounts. If not, you can search for those articles on the Internet. There are a ton of them.
Small Cars in Ireland
I rented an Economy car when I was in Ireland. They gave me a Kia Rio sedan. It's actually a bit larger than many other cars I saw on the roads. By my casual observation, the most popular cars in Ireland are (in no particular order) Opel Corsa, Peugeot 207, and Nissan Micra. According to Wikipedia, they all belong to a category called "supermini," basically subcompact here in the U.S. The comparable cars in the U.S. would be a Honda Fit or a Toyota Yaris. After coming back to the U.S. and driving my much larger Honda Accord, I don't know why cars in the U.S. have to be that big. Those smaller cars do the job just fine.
Rental Car Insurance Options
By the time you read this, I'll be on vacation in Ireland. I will rent a car and drive around the country. Naturally I don't want to expose myself to losses resulting from a car accident while I drive a rental car in Ireland. I did some research in rental car insurance. I'm sharing this here with you.
1. Liability vs. Theft, Collision and Damages. On any auto insurance policy in the U.S., the coverage for liability and the coverage for the car are separate. If you have an older car, you may not have coverage for the car itself, but you should have coverage for liability, i.e. damage you cause to others. This liability coverage may or may not follow you worldwide. You have to call your auto insurance company to find out. If you are covered, there is usually no deductible on liability coverage. Theft is covered under comprehensive while damage caused by a collision is covered under collision. There are separate deductibles for comprehensive and collision coverage. Your collision and comprehensive coverage from your auto policy also may not follow you worldwide. I called my insurance company. They told me I will be covered for liability worldwide but I won't have collision or comprehensive coverage outside of U.S. and Canada.
2. Primary Rental Car Insurance. Your own auto insurance usually covers you when you rent a car, at least in the U.S. If you don't want to use your own auto insurance (and subject yourself to premium increases in case you file a claim), you can buy primary rental car insurance. I found two places that sell primary rental car insurance:
Tax Breaks In Stimulus Bill for Buying a Home Or a New Car
[Update on Feb. 18, 2009: American Recovery and Reinvestment Act of 2009 was signed into law on Feb. 17, 2009. This post is updated with the latest info from what's in the law. Please also read the follow-up post for other tax provisions in this law.]
1. $8,000 tax credit for buying a home. The new stimulus law will give up to $8,000 tax credit to first-time homebuyers. Unlike the previous $7,500 tax credit for first-time homebuyers, which has to be paid back in 15 years, this is a true tax credit as long as you hold the home for 3 years. The credit is still limited to people with an AGI under $75k (single) or $150k (married filing jointly). This tax credit is refundable, which means it's not limited to your federal income tax liability. The qualifying purchase dates are between Jan. 1, 2009 and Nov. 30, 2009. So it's not retroactive for purchases in 2008.
Invisible Hand Kills Hybrid Car Sales
I read in the news that sales of hybrid vehicles dropped 43% in December 2008 compared to a year ago. While sales of other cars also dropped, hybrid car sales dropped a lot more. The obvious reason is lower gas prices. When people were buying Toyota Prius above MSRP with a long waiting list, they said they were doing it for the environment, which is partly true. The payback time from fuel savings was already pretty long back then. Now that the payback period is even longer, apparently the environment is no longer a priority for a lot of people.
You've got to give it to Adam Smith. The invisible hand regulates people's concern for carbon footprint or dependence on foreign oil. When they have money, they care about the environment. When they don't have money, many people no longer need a good citizenship status symbol. It makes sense to me.
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