CARS & GAS
A good time for popular brands
June 8, 2009 >> The bankruptcy of
both Chrysler and General Motors has created a new
environment for car buyers—one in which you may be
tempted to consider one of those off-brand cars that
express your individuality, especially when they’re
offered at what seem like bargain prices. But be careful.
Despite the bailout and some signs of recent progress,
car companies, including some foreign makers, are facing
serious trouble, with sales declines not seen since
the early 1970s. This may force several car makers—not
just Chrysler and GM—to pull in their horns and concentrate
on their best-selling models. You might want to do
the same. The off-brand car you buy today may not be
made tomorrow, leaving you with a potential parts and
service problem, not to mention a seriously deflated
resale value.
Self-defense: Regardless of which car company you choose, consider buying a mainstream model: Honda Accord, Ford Focus, Toyota Camry, Chevy Impala, and so on. Check www.MyProductAdviser.com or www.kbb.com/kbb/QuickDealerPriceQuote/SelectVehicle.aspx to find a model that meets your needs. One other thing: Manufacturers are desperate to sell cars. Some are offering monthly payments for new cars for less than you’d have to pay for a late-model used car.
Find a cheap gas station – now
June 8, 2009>> The price at the pump is likely to rise this summer, for several reasons. Refineries are busy switching from winter gas to summer reformulated gas (RFG). While they’re changing over, their gas production goes down. Couple that with the fact that people drive more in summer, and you have a recipe for higher prices.
There’s more. As the price of gas fell from $4 a gallon to $2 and change, oil companies pulled back from plans to expand drilling and refining operations. Less future production creates a pressure for higher prices.
On top of that, states are desperate for more revenue. So—you guessed it—some state assemblies are considering raising taxes at the pump. They include California, Illinois, Iowa, Massachusetts, Ohio, and Oregon. At the moment. But as the recession wears on, it may become one of those ideas whose time has arrived. Joining the party, a federal commission is expected to ask Congress to raise the federal gas tax from 18 cents a gallon to 28. They’re ganging up on us!Self-defense: There are easy ways to cut the amount of gas you use. A big one: Use cruise control as much as practical—frequent braking and accelerating wastes fuel. Make sure your air filter is clean and your tires properly inflated (to avoid soft-tire drag). Find the stations in your neighborhood that sell for less—and then lower their price even more if you pay in cash. And forget about buying a car with low gas mileage just because prices may be down at the moment. Do these things, and you can save hundreds of dollars a year. For more tips, go to: www.wikihow.com/Save-Money-on-Gas or www.BillShrink.com and click on “Gas.”
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