Forbes - Jacqueline Mitchell
The summer travel season officially kicked off on the May long weekend. Not long after, gas topped $4 a gallon in some U.S. cities and $1.30/litre in Canada, but many travelers have not canceled their road trips.
In a poll conducted in April by the Travel Industry Association (TIA) and Ypartnership, 59% of motorists who are planning a trip by car, truck or SUV this summer responded that "they will not change their travel plans, even with additional increases in the price of gas." But they won't wind up spending the entire vacation budget on fuel if they follow a few simple tips.
In Depth: How To Save On Gas This Summer
The Simple Things
Saving on gas involves, in some cases, the normal car-care tasks, such as keeping your tires properly inflated and staying on top of routine maintenance, such as replacing clogged air filters. Both will save on gas by as much as 10% at home and on the road, according to the Car Care Council, an organization that promotes the benefits of regular maintenance.
Perhaps one of the most overlooked means for conserving gas is to watch your speed while driving. Fuel efficiency diminishes rapidly above 100 km/h. Drivers can assume that each 8 km/h they drive above 100 km/h is akin to paying an additional 20 cents per gallon of gas(20 cents per every 3 litres), according to the U.S. Department of Energy.
"People really need to think about vehicle speed and fuel efficiency," says Ron Cogan, editor and publisher of Green Car Journal at http://www.greencar.com/, which tracks automotive environmental technology and trends. "You are trading cash for time. You may get there quicker, but it will cost you in gas."
An even better alternative is to park the car and walk or ride a bike when you have the opportunity, says Erin Huffstetler, a writer for the Frugal Living channel on About.com, where she provides money-saving tips. "You can see a city in a different and much more intimate way. It's an easy and fun way to enjoy your vacation," she says.
Planning Ahead
Other gas-saving strategies require some advance planning and organization, but are just as simple. Using an in-car navigational system or the Internet to map out routes, identifying cost-saving local transportation options and making smart lodging choices closer to attractions can all help keep your gas consumption from getting out of control.
Of course, the easiest way to save gas on summer vacation is to pick a destination closer to home. Forty-one percent of the respondents in the TIA-Ypartnership survey said they would make changes to their travel plans if gas prices continued to rise; they said they'd drive a shorter distance, spend less on souvenirs, meals and entertainment or shorten the trip altogether.
Part of that planning even extends to how you pack. Ed Hewitt, features editor at IndependentTraveler.com, says that motorists can benefit by "dropping the weight." Piling scuba toys, beach gear and an extra month's worth of clothing on roof-top luggage racks and then cramming other non-essentials in the trunk makes the vehicle work harder, gobbling up fuel at a rate of 1% to 2% for each additional 45 kilograms.
If none of these sound like good options, the car you choose to take your trip in could be. If you own a gas-guzzling SUV, you may substantially reduce the cost of travel by renting a more fuel-efficient car for the trip instead. A lot depends on the distance of the trip and what car-rental options are available, so you have to do a lot of homework.
But it may pay off. If you drive a car like a Chevrolet Trailblazer, which gets an Environmental Protection Agency estimated combined average of 14.7 L/100km, and you are planning to travel more than 1,600 km, say round trip, do the math.
"If the goal is to save money, then some number crunching is required," says Cogan. "You really have to plan ahead to save money and gas."
In Depth: How To Save On Gas This Summer
Sunday, July 6, 2008
Saturday, July 5, 2008
6 things you should never say to a car salesman
By Peter Valdes-Dapena, CNNMoney.com staff writer
In a car-buying transaction, even the nicest, most honest car salesman has interests that are very different from yours.
He's paid to sell you what his dealership has at as large a profit as possible. The better he does that, the more he, and the dealereship, make.
You, on the other hand, want the best car you can get at the best price you can get.
Welcome to capitalism. At some point, you have to negotiate those conflicting interests. As in all negotiations, there are certain things you definitely shouldn't let slip.
Working with Phil Reed, consumer advice editor at Edmunds.com, we boiled down the six things you least want to say when you're shopping for a car.
1. I love, love, love this car
Even if a car has your heartstrings in a white-knuckled stranglehold, never let on. Stay calm and pretend you're looking over a microwave oven.
By admitting that you're smitten, you've given a salesman - and the sales manager and everyone else in the process - the combination to your personal safe.
The salesman will, of course, sympathize and want to help you out. But he'll tell you the sales manager, you see, well... That's a really hot car and we had someone in here just the other day and... He just won't take less than...
They know you're not about to walk away. Bottom line: Cars you're not in love with are usually a lot cheaper.
2. I need to get a car by tomorrow
If there's anything worse than being in love, it's being in desperate need. Letting on that you need a set of wheels immediately is, basically, telling the salesman "I won't be thinking too much about any of this."
He knows you won't be looking too closely at the particulars of the deal and you aren't likely to drive across town to try to get a better price.
It also means you're more likely to accept whatever he shows you from the dealership's inventory even if it doesn't exactly suit you. In other words, you may be presenting yourself as an opportunity to unload a bit of slow-moving inventory.
Even if you really do need a car quickly, act like you have a month to decide. But you would consider buying today if you found a car that really pleases you at a price you like.
3. I need a monthly payment of...
It's understandable that many car shoppers are "payment shoppers." Most of us have no idea how much car we can afford except by looking at how much it would cost us each month.
But saying "I want a payment of less than $350 a month" is like going into a box store and asking for a two-inch box. You'll notice that some dimensions are missing. You could end up with a box that's 12 feet long.
Almost any given monthly payment is possible provided the loan is long enough and the downpayment is big enough. Over the course of, say, seven years, $350 a month can add up to a lot more than $350 a month for three or four years.
To understand how much car you can really afford, you need more than a monthly payment figure. Know what monthly payment you want, for how long and how much you want to pay up front. You also need a fairly good idea of what your trade-in is worth.
To keep it really simple, just figure out what price you can afford for the car -based on your monthly budget and trade-in value - and negotiate that one big number. Talk about downpayment and monthly payment and negotiate the value of your trade-in after that.
4. My trade-in's outside
A salesperson will usually want to know, early on, if you have a vehicle to trade in. If you tell him that you do and that it's parked, conveniently, right outside, he'll ask you for the keys.
That way the used car manager can assess its value while you're negotiating. It'll save time.
Well, he has a point there. But consider the downsides. You've just handed the salesperson your car keys and he's given them off to someone else.
Guess what's going to happen if you reach an impasse in the negotiations and decide it's time to leave. You'll have to ask for you car keys back. And, odds are good, they will have been misplaced.
You'll be negotiating a while longer.
5. I don't know anything about leasing
Even if you're never going to lease a car, you need to know about leasing, if only to know exactly why you're never going to lease a car.
That's because there's a good chance someone will try to sell you on the idea. And they might be right. It could be a good choice for you. But it probably isn't.
First of all, leasing makes sense only for people who know - really know - they will not be keeping a car for more than a few years.
Beyond that, you need to understand the terminology and costs of leasing beyond the monthly payments, the number salesperson will focus on. You need to know how many miles are included in the lease and if there's additional money you need to pay up front or at the close of the lease.
6. My credit's a little spotty
Many people underestimate their own credit rating - and they're the people who are big moneymakers for car dealers. Part of the interest you pay is shared with the dealership, so they might be pleased to confirm your belief that you don't qualify for a low interest rate.
To make sure you're getting the best financing deal, secure your own financing before you start shopping. Having another loan in place - one you can use if you don't like what the dealership is offering - gives you negotiating power. It also lets you know exactly what you qualify for.
In most cases, a dealership's finance office - working with a manufacturer-affiliated auto financing company - should be able to get you a more-than-competitive rate.
In a car-buying transaction, even the nicest, most honest car salesman has interests that are very different from yours.
He's paid to sell you what his dealership has at as large a profit as possible. The better he does that, the more he, and the dealereship, make.
You, on the other hand, want the best car you can get at the best price you can get.
Welcome to capitalism. At some point, you have to negotiate those conflicting interests. As in all negotiations, there are certain things you definitely shouldn't let slip.
Working with Phil Reed, consumer advice editor at Edmunds.com, we boiled down the six things you least want to say when you're shopping for a car.
1. I love, love, love this car
Even if a car has your heartstrings in a white-knuckled stranglehold, never let on. Stay calm and pretend you're looking over a microwave oven.
By admitting that you're smitten, you've given a salesman - and the sales manager and everyone else in the process - the combination to your personal safe.
The salesman will, of course, sympathize and want to help you out. But he'll tell you the sales manager, you see, well... That's a really hot car and we had someone in here just the other day and... He just won't take less than...
They know you're not about to walk away. Bottom line: Cars you're not in love with are usually a lot cheaper.
2. I need to get a car by tomorrow
If there's anything worse than being in love, it's being in desperate need. Letting on that you need a set of wheels immediately is, basically, telling the salesman "I won't be thinking too much about any of this."
He knows you won't be looking too closely at the particulars of the deal and you aren't likely to drive across town to try to get a better price.
It also means you're more likely to accept whatever he shows you from the dealership's inventory even if it doesn't exactly suit you. In other words, you may be presenting yourself as an opportunity to unload a bit of slow-moving inventory.
Even if you really do need a car quickly, act like you have a month to decide. But you would consider buying today if you found a car that really pleases you at a price you like.
3. I need a monthly payment of...
It's understandable that many car shoppers are "payment shoppers." Most of us have no idea how much car we can afford except by looking at how much it would cost us each month.
But saying "I want a payment of less than $350 a month" is like going into a box store and asking for a two-inch box. You'll notice that some dimensions are missing. You could end up with a box that's 12 feet long.
Almost any given monthly payment is possible provided the loan is long enough and the downpayment is big enough. Over the course of, say, seven years, $350 a month can add up to a lot more than $350 a month for three or four years.
To understand how much car you can really afford, you need more than a monthly payment figure. Know what monthly payment you want, for how long and how much you want to pay up front. You also need a fairly good idea of what your trade-in is worth.
To keep it really simple, just figure out what price you can afford for the car -based on your monthly budget and trade-in value - and negotiate that one big number. Talk about downpayment and monthly payment and negotiate the value of your trade-in after that.
4. My trade-in's outside
A salesperson will usually want to know, early on, if you have a vehicle to trade in. If you tell him that you do and that it's parked, conveniently, right outside, he'll ask you for the keys.
That way the used car manager can assess its value while you're negotiating. It'll save time.
Well, he has a point there. But consider the downsides. You've just handed the salesperson your car keys and he's given them off to someone else.
Guess what's going to happen if you reach an impasse in the negotiations and decide it's time to leave. You'll have to ask for you car keys back. And, odds are good, they will have been misplaced.
You'll be negotiating a while longer.
5. I don't know anything about leasing
Even if you're never going to lease a car, you need to know about leasing, if only to know exactly why you're never going to lease a car.
That's because there's a good chance someone will try to sell you on the idea. And they might be right. It could be a good choice for you. But it probably isn't.
First of all, leasing makes sense only for people who know - really know - they will not be keeping a car for more than a few years.
Beyond that, you need to understand the terminology and costs of leasing beyond the monthly payments, the number salesperson will focus on. You need to know how many miles are included in the lease and if there's additional money you need to pay up front or at the close of the lease.
6. My credit's a little spotty
Many people underestimate their own credit rating - and they're the people who are big moneymakers for car dealers. Part of the interest you pay is shared with the dealership, so they might be pleased to confirm your belief that you don't qualify for a low interest rate.
To make sure you're getting the best financing deal, secure your own financing before you start shopping. Having another loan in place - one you can use if you don't like what the dealership is offering - gives you negotiating power. It also lets you know exactly what you qualify for.
In most cases, a dealership's finance office - working with a manufacturer-affiliated auto financing company - should be able to get you a more-than-competitive rate.
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