Save Money On Big Purchases

Mary Hunt
Debt-Proof Living

Big-ticket purchases can strain your budget for years. Here's how to save hundreds to thousands of dollars on appliances, electronics and more...

Anticipate big purchases. Many people avoid thinking about when they might need to make a big purchase. Then once the time comes, they make a hasty decision. Instead, plan ahead.

Reputable dealers will gladly tell you how long a big-ticket item is likely to last. Examples: Dishwasher, 10 years... top-load washer, 10 years... front-load washer, 14 years... refrigerator, 12 to 15 years... mattress, eight to 10 years... laptop computer, three years (if you use the computer every day).

As soon as you buy a big-ticket item, earmark a portion of your monthly savings for its replacement, based on how long you expect it to last. When an item is approaching the end of its useful life, keep an eye out for sales on new models.

Smart: Add years to the life of big-ticket items with regular maintenance. Service the lawn mower each year -- change the oil and sharpen the blade. Run a gallon of vinegar through the washing machine every few months to remove mineral buildup from hard water. Flip mattresses regularly to even out the wear patterns. Use credit only if you expect the item to last more than three years. Also, make sure that you can pay it off in less than three years -- you don't want to run the risk of problems before you finish paying for the item.

Items that you shouldn't buy with credit: Laptop computers, baby cribs, MP-3 players, video game systems. After three years, these items are likely to be worth less than the amount you still owe on them. You never want to get trapped into making monthly payments on an expensive product that you rarely use.

Match quality to need. Buy only big-ticket items that you truly need, and avoid paying for features that you'll never use.

Example: A few years ago, I needed a new vacuum cleaner. I saw an ad for a high-end model ($500) that had received a top-quality rating. It turned out to be the vacuum that rated best in picking up animal hairs and dander from deep-pile carpeting. Since I have neither pets nor thick carpets, I opted for another model with good ratings that cost half as much, and it does everything that I need it to do.

Negotiate for discounts. Stores need to turn over their inventory regularly. Hand the salesperson your phone number or business card and say, "If you need to meet a sales quota in the next month or two and you can help me get a better discount on this stereo system or tell me when it will be on sale, give me a call." Also ask for free shipping and/or free assembly.

Once you've agreed on a price, request a further discount -- for instance, 10% -- for paying in cash. You're more likely to get this discount from local retailers, who want to avoid the fees they have to pay when you use your credit card, than from national chains, which have bigger sales volume. While you will miss out on credit card company protections, these are typically very limited and a discount for paying cash is hard to beat.

Look for a "price guarantee" policy that promises to match any competitor's price on the same item for at least 30 days following the purchase. Keep an eye out for sales during this period. Most national retail chains have price-match guarantees.

Avoid extended warranties. Service contracts are tempting because big-ticket items can be expensive to repair or replace. But these agreements cover the middle years of a products life -- after the initial warranty but before "old age" sets in -- when it is unlikely to experience problems. It rarely pays to purchase extended warranties for long-lasting appliances, such as dishwashers, washers and dryers.

Only take the extended warranty on items that are known to have high failure rates in the first few years, such as treadmills and laptop computers. The warranty should last at least as long as you plan to use the item -- in some cases, this might require you to renew the warranty. The cost of the warranty should not exceed 20% of the purchase price.

Helpful: If you make a purchase with an American Express card, one year is added for free to any manufacturer's warranty that covers less than five years.

Comparison shop on-line. Here are my favorite resources...

www.consumerreports.org., which provides product ratings (a one-year subscription is $26).

www.epinions.com. Customer reviews of products.

http://froogle.google.com, a product search engine. Type in the specific item, and get a listing of all prices for the item on the Internet, including prices from on-line auctions.

www.salescircular.com. Lets you look for the best price in your state at Best Buy, Circuit City, CompUSA, Kmart, Office Depot, OfficeMax, RadioShack, Sears, Staples, Target and Wal-Mart, as well as local-area retailers.

www.gotapex.com. Super deals on computer equipment.

About The Author

Mary Hunt is the editor of Debt-Proof Living, Box 2135, Paramount, California 90723. 12 issues. $24/yr. She is author of a dozen books on saving money, including Everyday Cheapskate's Greatest Tips: 500 Simple Strategies for Smart Living (Running Press) and, most recently, Live Your Life for Half the Price -- Without Sacrificing the Life You Love (DPL).

How To Never Make Another Car Payment Again

By Tony Puckerin


Car prices today compete with small houses and well-equipped
mobile homes. As these price increases become more accepted by
consumers, so too are the longer terms that are necessary to fit
them into cost of living budgets. At one point, the magic payment
amount for the retail automobile market was $200 per month. But
that payment would only satisfy a loan of approximately $8000-
10000 depending on interest rates.

The average car payment today is closer to $400 per month and
that's with financial institutions stretching the terms to 72-84
and 120 months. Something has gone terribly wrong in the psyche of
consumers to even imagine that an automobile will not become
obsolete before it is all paid up, 6, 7 or 10 years down the road.

All they really need to do is take a look at a vehicle sold in
1995, 1997 or 1999, to get a live preview of what their new car
will look like and potentially what it will be worth.
Interestingly, research indicates that most Americans get bored
with a car after driving it for 24-36 months. Why then
would the typical financing term be 72-120 months?

At the point of purchase, most consumers tend to forget that car
payments never include the cost of insurance, required maintenance
and gas. When these items are added to a car payment, it can
easily exceed what some people are paying in mortgages.

It's analogous to the Middle Eastern people like Iranians whose
culture practices beating themselves on the back with chains and
whips. Every month, millions of Americans face the self-inflicted
pain of making another car payment. Like the Iranians, they
believe that if they can do it, it must be good and it will
somehow make them better people in the hereafter.

A self-made millionaire, Dr. Cooper, an advocate for reversing
unnecessary consumer debt has come up with a simple plan to change
how we think of automobile ownership. His plan uses the same
philosophy that our grand fathers grew up with, i.e. never buy
anything that you cannot afford to pay for out of your own pocket.
Unfortunately, if we lived by those rules we would need traffic
lights and zebra crossings on our major highways because they
would be packed with pedestrians.


Well let's share Dr. Cooper's plan. He calls it the "Vehicle
Saving Fund". This is a basic commercial bank savings
account that can be started at any local bank. To make it more
meaningful to you, lets call it the "Freedom From Car
Payment Fund." Anyone can start such a fund; it does not
matter if they are currently financing a vehicle.

The idea is that if you intend to be a productive member of
society and enjoy the benefits of your labor you will need to have
personal transportation. This is not optional for most people who
do not live in a big city where public transportation is
available. The fund should be considered absolutely necessary,
much like the rent or mortgage, it's a living expense.

Here is how it works; if you are currently driving a financed
vehicle, resolve to pay it off in its normal term. It's hard to
keep making payment on a vehicle you do not like but that's where
the discipline becomes important. Also, resolve to put aside a
small amount every month to your "Freedom From Car
Payment" account. Initially, it is totally understandable
that it may be a little difficult but the amount is not important,
it's the habit and the psychology of doing it that makes all the
difference. You can start with as little as $5-$10-$25 just be
committed to doing it every month until it becomes a habit.

You will also have to make a decision to continue driving the
vehicle you are currently paying, this plan does not work if you
decide that you need a new vehicle before paying off the one you
are driving. The closer you are to your end of term, the better
position you will be in to get what you want. But there is no
rush, when you pay it off you should then begin to put the amount
of your previous payment into your vehicle fund. Now with the
equity in your current vehicle and your savings you can begin
shopping.

Considering the prices of automobiles today, there is a high
probability that because of your vehicle depreciation and the
small savings, you might not have enough money to buy a new
vehicle. If you do not have enough to purchase what you want,
there are always other options; the first is to buy what you can
afford. The alternative (worst-case scenario) is facing the dealer
with no savings and having negative equity in the vehicle you are
currently driving.

Strange concept, I know, but when its all said and done,
transportation is transportation, it gets you from point A to
point B. The only difference is what you are willing to pay to get
there. For many, because of the values they hold "whatever
it takes" is an appropriate answer but the mind set has to
now change to discipline and the desire to stop making lifetime
payments.

If you don't have a car right now and are enjoying the bliss of
not having a financial obligation to an automobile, you can begin
your savings immediately so that when the time comes you will have
a sizable chunk to begin your search for your new car. You are in
a very good position if you are not in the market presently
looking for a vehicle.

You have the time to save and plan for your next automobile. Begin
the "Freedom From Car Payments Fund" today and in a
couple of years you will really be much better off. Contrary to
what dealers try to make you believe, car ownership does require
long term planning in order to break the cycle of swapping
payments every 3-4 years. It is a long term serious investment.

It's that simple. Easy, no but simple, and it can be done. It
requires discipline and patience two characteristics that are not
easily harnessed in by the now generation. The obvious benefit is
no car payment but you will also save on insurance and have much
more disposable income for other necessities. With determination,
a little vision and planning anyone can drive exactly what they
want; without the burden of a monthly payment. Could that be you?




About the author:
Tony Puckerin is an Automobile Broker in Southern Florida who represents clients
at local automobile dealerships. His service has recently expanded to Internet
and cover the United States and a few select international clients. For more information go to http://www.automobilenetmarketing.com

How To Get A Passport

Thanks to our friends at the federal government, what would have been a simple 1-2 hour trip for border state residents into neighboring countries of Canada and Mexico will now be more labor intensive because of the new passport requirements. I love going to Whistler, B.C. for vacation, but I haven't the foggiest notion where to get a passport, like most individuals who have not traveled out of the country.

The passport rule kicks in next Tuesday for air travel to and from Canada, Mexico, Central and South America and Bermuda. Here's what you need to know and where you need to go in order to get your own passport.

Before you can get a passport, you need a passport photo. You can get a passport photo taken anywhere as long as the pictures meet the exact federal criteria. You need 2 identical shots. And it has to be recent. No older than six months.

"Passport photos have to be 2x2 inches square," says Bruce Cozens of Ballard Camera in Seattle, Washington. "And then from the bottom of the chin to the top of the hair needs to be one and one-eight or one and one-quarter inches. They need to have a plain white background and need to be a full front view."

Passport photo prices are all over the place from less than $6 to as much as $15.

Thanks to digital equipment, most places will let you check then shot before they print. If you don't like the first shot, you can get a re-do.

As for the passport application, you can get one at any authorized passport agency. There are hundreds across the state. You can pick one up at your City Hall or a post offices, or download one from the Internet.

But first timers must apply in person with a valid divers license or I.D., and your original birth certificate or naturalization documents.

And here are the fees: $67 for adults, $52 for children 15 years or younger. Check or money order only. No cash, credit or debit cards. There's also an additional $30 dollar fee for the passport agency.

And if you're getting a passport for a baby, both parents must file the application in person. If only one parent is present, they'll need notarized consent from the other parent or documentation proving sole custody.

Standard processing time is six to eight weeks, but you can expedite it for an additional fee of $60, plus shipping costs. I also found that in some some passport agencies will accept credit cards for the federal processing fee. And some agencies will take cash for their fees- just not the fees go to the state department.

For further information, you can visit the State Department's website.

Free 411 Calls

Tired of paying $1.50 or $2 for every directory assistance phone call? Then don't. There truly is such a thing as free directory assistance, though it may cost you a little in time and patience. Jot this down:

1-800-FREE411.

A Boston-based company called Jingle Networks offers this free alternative to expensive 411 calls via your cell phone or land line. How and why do they do what they do for free? Just as radio and TV shows are supported by advertising, the directory assistance service is sponsored by companies advertising with the service. So, yes, that means you may hear a short, audio ad when requesting a phone number, but not every time.

Cingular's Name Will Soon Be Gone

AT&T Inc.'s planned rebranding of Cingular Wireless cell phone service under the AT&T name, not AT&T Wireless, is slated to start next week with a multimedia ad campaign announcing what's expected to be a multi-month transition. It was just six yesrs ago when the name Cingular was created out of the merger of Bell South and AT&T Wireless.

The awareness campaign, which starts two weeks after AT&T gained full ownership of the nation's largest wireless carrier through the purchase of BellSouth Corp., also will include inserts with monthly bills and promotional materials at Cingular stores advising customers of the coming change. By midyear, it's likely that the Cingular name and symbol will be disappearing from ads, promotional materials, trucks, bills, stores and buildings. The only remnant to survive will be the color and "jack" logo.





Sprint Nextel Cell Phones and Calling Plans
Sprint PCS Cell Phones and Calling Plans
T-Mobile Cell Phones and Calling Plans
Verizon Wireless Cell Phones and Calling Plans
Alltel Cell Phones and Calling Plans

Dewalt Recalls Cut-Out Tools

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of Product: DEWALT Model DW660 Cut-Out Tools

Units: About 81,000

Manufacturer: DEWALT Industrial Tool Co., of Towson, Md.

Hazard: The cord wire in these units could be damaged internally, posing a shock hazard to consumers.

Incidents/Injuries: DEWALT has not received any reports of incidents or injuries related to this issue.

Description: These DEWALT cut-out tools are yellow and black, and have model number DW660 written on their nameplate, which is located on the body of the unit. The recalled tools were manufactured between January 2006 and September 2006, and have date codes ranging from 200601 to 200639. The date code also is located on the tool's nameplate. Units with a "V" stamped on the nameplate are not included in this recall.

Sold at: Major home center and hardware stores nationwide from January 2006 through November 2006 for between $70 and $130, depending on the kit.

Manufactured in: Mexico

Remedy: Consumers should stop using the cut-out tool immediately and contact DEWALT for the location of the nearest service center to receive a free inspection and repair, if necessary.

Customer Contact: For additional information, consumers can contact DEWALT toll-free at (888) 263-9051 between 8 a.m. and 5 p.m. ET Monday through Friday, or visit the DEWALT Web site at www.DEWALT.com

To see this recall on CPSC's web site, including a picture of the recalled product, please go to: http://www.cpsc.gov/cpscpub/prerel/prhtml07/07067.html.

Child Seat Problems?

Most of the infant car seats tested by Consumer Reports "failed disastrously" in crashes at speeds as low as 35 mph, the magazine reported Thursday.

The seats came off their bases or twisted in place, the report said. In one case, a test dummy was hurled 30 feet.

Of the 12 car seats tested, Consumer Reports said it could recommend only two, and it urged a federal recall of the poorest performing seat, the Evenflo Discovery.

Evenflo issued a statement disputing the tests' validity, saying, "The magazine's test conditions and protocols appear to conflict with the collective experience of car seat manufacturers, NHTSA (the National Highway Traffic Safety Administration) and the scientific community."

To be sold in the United States, an infant seat must perform adequately in a 30 mph frontal crash, and Consumer Reports found that all but the Discovery did so. But it noted that NHTSA crash tests most cars at higher speeds - 35 mph for frontal crashes and 38 mph for side crashes - so the magazine tested the seats at those speeds.

Nine seats failed some or all of the higher-speed tests, Consumer Reports said, while meeting the federal 30 mph standard. Another seat was judged unacceptable because it did not fit well in several cars, the magazine said.

Messages seeking comment were left with the Juvenile Products Manufacturers Association, a trade group.

The magazine tested the type of seat that faces the rear and snaps in and out of a base. It used test dummies weighing 22 or 30 pounds, depending on the seat manufacturers' claims.

In the 35 mph test, seats separated from their bases, rotated too far or would have inflicted grave injuries, Consumer Reports said. At 38 mph, four seats flew out of their bases, it said.

The only seats that passed all the tests were the Baby Trend Flex-Loc and the Graco SnugRide with EPS - expanded polystyrene foam - both selling for about $90. Consumer Reports urged parents shopping for seats to buy one of those two, but it also noted that "any child car seat is better than no seat at all."

It also said some seats performed better when attached by vehicle safety belts than when attached with the LATCH system. The system, which stands for Lower Anchors and Tethers for Children, includes belts that hook the base of a car seat to metal anchors in the vehicle.

Pressure Washer and Compressor Recall

The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of Product: DeVilbiss Air Power Company Pressure Washers and Air Compressors with pneumatic tires and plastic hubs.

Units: About 620,000 pressure washers and 72,000 air compressors

Manufacturer: DeVilbiss Air Power Company, of Jackson, Tenn.

Hazard: The pressure washers and air compressors have pneumatic tires with plastic hubs that can burst, posing a laceration or fracture hazard to consumers.

Incidents/Injuries: DeVilbiss has received 26 reports of injuries including fractures, lacerations and bruises.

Description: The recalled pressure washers and air compressors were sold under the following brands and model numbers:

Brand Model Numbers Manufacture Dates
Pressure washers Delta DTH2450, DTH2450-1, D2750H, D2400H-2, D2400H-3, D2700K-1, DTT2450 1/27/04 through 8/3/05 Excell XR2750-1, XR2600, XR2600-1, XR2600-2, XR2500-1 1/26/04 through 11/2/05 Porter-Cable PCV2250-2, PC2525SP-1, PCE1700-3, PCH2401-1, PCK3030SP-1, PCV2500, PCH2800C, PCE1700-2, PCH2425-2 6/4/04 through 10/24/05 Pressure-Wave PWH2500, PWH2500K 1/6/05 through 10/31/05 Water Driver WHAB2627-1 6/11/04-7/19/05 Air Compressors Porter-Cable CFFR350B-1, C3151-1, C3551-1, PTA51 Service Kit December 16, 2004 to May 5, 2006

On the pressure washers, the brand, model number and manufacturing date are located on the name plate on the rear of the engine base and on the air compressors they are located on the front of the motor housing. Only pressure washers and compressors with pneumatic tires with plastic tire hubs are affected; pressure washers and compressors with solid tires or metal tire hubs are not affected.

Sold at: The recalled pressure washers were sold at home center and hardware stores nationwide from January 2004 through November 2005 for between $300 and $1,400. The recalled air compressors were sold at home center and hardware stores nationwide between December 2004 and October 2006 for between $300 and $500.

Manufactured in: United States

Remedy: Consumers should stop using these products immediately and contact DeVilbiss to obtain the location of the nearest service center to receive a free replacement of the tires.

Customer Contact: For additional information, contact DeVilbiss toll-free at (866) 323-9867 between 8 a.m. and 5p.m. ET Monday through Friday or visit the firm's website at www.devap.com

To see this recall on CPSC's web site, including pictures of the recalled products, please go to: http://www.cpsc.gov/cpscpub/prerel/prhtml07/07060.html.