What's the Real Cost of Your First Car?

Seventeen-year-old Lanna bought a car for $1,800. Lanna was thrilled and felt that she got a great deal on the monthly payment. But six months later, her "really cool car" sits in the driveway most of the time because she can't afford to drive it. Figure out the REAL cost of car ownership, starting with this list.

1. Gas. Lanna needs about $25 every week for the gasoline to drive her car to work and school. You can't control gasoline prices, but compact cars are more fuel-efficient than trucks and vans.

2. Oil. Changing your oil every three months takes only about 30-45 minutes and $20-$30 (a lot less to do it yourself), but the consequences of neglecting it can be serious.

3. Maintenance. It cost Lanna $225 to replace her muffler. If you're buying a used car with higher mileage, think about frequently used and exposed parts: exhaust system, windshield wipers, brakes, tires, lights, and so on. Repairs can be costly, so be prepared by saving for them.

4. Insurance. Most states and most lenders require auto insurance and Lanna's cost $120 a month. Many insurers charge teenagers double or triple premiums because new drivers are a higher risk. Ask about discounts for such things as earning good grades in school.


 
 

Different Engines, Higher Mileage: Gas-Electric Hybrids and Diesel Engines Go the Distance

The best reason for you to consider either a hybrid or a diesel vehicle are those numbers on the fuel pump at the filling station. It can boost your mileage by 30% or more over comparable gas-only vehicles--with some models hitting 50 miles per gallon (mpg).

To be sure, both diesels and gas-electric hybrids have some drawbacks you should consider before making any decision to buy one. Hybrids cost more than their gas-only equivalents (for example, about $3,000 more for a $23,000 Honda Civic Hybrid than a comparably-equipped regular Civic EX). This can be partly offset by the tax deduction you can take when you buy any of the hybrid cars. Check out www.fueleconomy.gov to see how much your tax credit will be. And it remains to be seen if postwarranty maintenance costs for the hybrid systems could be higher than for regular cars.

Some diesels, on the other hand, cost less than their gas counterparts--about $1,250 less for the diesel New Beetle. The disadvantage is in finding fuel; it isn't available at every filling station.

Hybrid cars get more than 50 mpg by using both a gasoline engine and an electric motor powered by batteries. The gas engine recharges the batteries as well as powering the car. Unlike previous cars with electric engines, you never have to plug them in.

Diesel engines get as much as 40% better mileage because they compress air and fuel in the cylinder under high pressure, ignite without a spark, and get more energy from the fuel.

When you're ready to buy a new vehicle--conventional or hybrid--see CCSD for a loan.


  

Sign up for a magazine offer without reading the fine print, and you may learn later that you've subscribed to a scam.

Scams and misleading offers typically come from magazine sales representatives at an unscrupulous sales company rather than the publisher who produces the magazine. In some cases, door-to-door salespeople even may commit fraud by keeping the money themselves.

Types of scams

People who subscribe to fraudulent or misleading offers may say they never received their magazines; were deliberately misled about the cost of the magazines or the length of the subscriptions; or were not told that the subscriptions would be renewed automatically unless they called to cancel within a set time period.

Complaints about scams or misleading offers may be based on magazine sales that were made online, by sales representatives going door-to-door, by telemarketers, or by offers extended to customers while they are paying for goods at a retail or discount store.

If you believe that misrepresentation was used to persuade you to purchase a magazine, report it to your state's consumer protection agency. If you paid with a credit card, you also may be able to dispute the charges.

Protect yourself

Many consumer complaints about magazine subscription offers could be avoided if consumers read the fine print or asked more questions.

Before accepting any subscription offer, make sure you understand:

• The total cost,
• The length of the subscription,
• How you will be billed,
• Your right of cancellation, and
• Whether automatic renewals are part of the deal.

Even when third-party subscription offers are genuine, they can be expensive, often costing two to three times more than subscriptions purchased directly from a publisher.
Consumers can save even more money by reading magazines for free at a local public library.

Another option is visiting the magazine's Web site to read the free online content. If reading more persuades you to buy a subscription, at least you'll know what you're getting.


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