Tag Archives: car deals

The Plan For Surviving The Great Recession

We are all hopeful that a depression has been avoided. Of course, the serious economists are still watchful of the possibility that the government cannot hold on and keep us away from still slipping into a modern version of the 1930’s style depression. If you are someone who likes to plan for the future, you shouldn’t be sounding the all clear to your friends and family either.

We continue to watch company earnings, unemployment, home sales and a variety of other factors in determining if we can truly “turn the corner.”

The truth has not changed. You must have a plan for surviving the “Great Recession.” This plan should include a reality view of the world YOU live in today.

You should have or work to build an emergency savings fund that includes 15 to 18 months of expenses in money market savings or certificates of deposit (or best in both). Now is NOT the time to pull back from a 401k unless you are carrying extra credit card debt and cannot afford to pay that debt off and push ahead in your 401k.

You must work to eliminate credit card debt and see these guys for who they are: The devil. That’s right – I said it. They are the devil. Your enemy. You should always treat them as such. Too many millions of Americans are still chasing their credit score when CASH IS KING.

Once you have secured your debt (eliminated or highly reduced it) and you have the proper emergency savings fund, work to steadily invest in mutual funds and diversify. We like no-load mutual funds. Look for low fees.

See your home for what it is: your home. Many millions of Americans refuse to see their home for what it is in terms of your wealth or poverty – your BIGGEST LIABILITY. Work to pay even small amounts extra in principle if you can because it will save you more than you realize in the life of the loan. In fact, if you steady-up on paying principle in addition to your monthly house “note,” you could knock YEARS and many, many thousands off of your debt. Homes are to live in. They are not speculative investment.

Invest in yourself. This means personal education. You can do it at the local community college or on-line. You can do some formal learning or training or teach yourself about saving and investing and work to generate passive income streams in addition to your “day jobs” to fund savings and investing.

People often only think to save when trouble comes. Steady and automatic savings will add up faster than you think.

You can do this. Develop wealth as a hobby. Be serious about it. Look to purchase things that begin to generate money on their own. This can be savings or mutual funds. It can – eventually be more.

Sign up for our FREE E-SAVER now at our main blog (www.stickyasset.com/blog). Good luck!

Loyd Ford

What Car Dealers Don’t Want You To Know

Everyone knows that car dealers have been having a more difficult sales environment. Americans are holding off on purchases of cars, trucks and vans for famlies in early 2009, but the current downturn will turn. When your personal economy does “turn” and you are ready to purchase a new or used vehicle, you should plan your purchase well in advance of your arrival to sign on the dotted line.

We offer a lot of money saving strategies in “The Sticky Asset: How To Survive Any Financial Crisis,” but we offer this one to you in today’s blog because sooner or later you will make this purchase. Saving thousands when you do will make your life richer.

Our first recommendation is that you do your research in advance on the type of car, truck or van you want before ever going to a dealership. Excellent resources are the Kelley Blue Book and Consumer Reports. You want to use these two resources as research because they can tell you about:

1. Quality
2. Pricing

Our second peice of advice: Don’t go to any dealership.

Research how many dealers there are within 100 miles of your home. To to their websites and find the internet sales manager. Use at least six (6) dealers. After doing your research on what the actual cost is for the dealers in the exact “add ons” or features you want in your vehicle, e-mail these internet sales managers individually. Tell them the exact vehicle you are looking for with the exact features you want on the car, truck or van. Tell them that you are looking for the best price and that you are consulting with multiple dealers. Tell them this next thing is critical. You are only interested in the “out-the-door” price. That is after taxes, after everything. If you’ve done your research, you know what the dealers are being charged for each “feature” and the overall cost of the vehicle. Make sure you put a date in your e-mail such as “I will be purchasing this vehicle from a dealer in the next three weeks or on February 27, 2009.” I will only be visiting the dealer with the lowest price to purchase the vehicle on that day.

If you will take some notice here: We are moving the emotion from the consumer to the auto dealer. Get them emotional about the sale – they will make you a much better deal.

You will likely get a response from each dealer. When you do, tell them they are the actual highest bid. This will intensify the pressure. Repeat to them that you are looking to purchase the vehicle, but now change your date. Give them a date closer to today (such as “Friday, January 20, 2009) and tell them a specific time (like “between 5 p.m and 8 p.m.”)!

Frankly, some dealers will be offended. That’s okay. Don’t budge. Don’t visit a dealer. Tell them that you are close to making your purchase. Don’t buy into the bull that might come your way about their expense to get a car with the features you want. You should not care what it cost them to get the correct car to sell to you. Please. They are in the business of getting the cars to sell. You are the consumer – and you have almost all the power. You just have to eliminate emotion and keep your bottom-line attitude to get the car you want at the very best price. This can save you THOUSANDS.

Once you have identified the lowest bidder it is time to visit the dealer. Tell your sales person that you want them to write up the deal exactly the way it is described. In other words – no changes or add-ons in price. Then, go to the dealership on a pre-determined appointment. Check every feature and the final after-tax price. Be prepared to walk if it isn’t exactly what you agreed upon.

No, you will not want additional add-ons (you know about these, right?).

If you have already read “The Sticky Asset: How To Avoid Any Financial Crisis,” then you also know about the real danger at auto dealerships (hint: it’s not the sale person). If you know that, you will avoid the real trouble that happens after most people think the “deal” has been made and the “trouble” is behind them.

Do your research. Believe in yourself. Negotiate without emotion. You’ll be the winner.

Good luck!