Despite the rain from Hurricane Hanna, I went to a Honda dealer and bought a Honda Fit — for most of the 4 hours that I was there, I was the only customer in sight. Here are some of my experiences and thoughts about the car buying experience.

Test drives in extreme weather

Earlier in the week I test drove the Fit at another dealer in 90F weather. It was hot, which is the perfect time to test the A/C. On the day of purchase, I test drove in the rain, a great chance to test the wipers. The car handled well, and I felt confident driving home.

Being much lower to the ground, I hear a lot more road noise than when I was in a Ford Escape. I kept expecting water to seep in through the floor, but of course the water never did.

Paper and a calculator

Admittedly, I am very comfortable with numbers, and much more so than the average person in the population. This is an advantage whenever numbers are being thrown around — I can approximate tax and discounts quickly.

While sitting down with the salesman, I kept my own running tally of numbers. When we agreed on a number, the salesman took it to his manager. He came back with a big smile to tell me his manager approved it. But, all of a sudden my numbers did not match his with a difference of almost $200. When I said this, he did not believe me. I walked him through my numbers, and there were only three relevant numbers: O.T.D. price - trade in value - negotiated discount. (O.T.D. = out the door) He was confused and re-did the math himself. More confused, he went back to the manager and agreed to my numbers because he had made a mistake with the first O.T.D. number.

At one point, the amount of tax did not seem right. It was about 2.5% of the price, but the tax rate on a new car is 3.2%. I brought this to the guy’s attention, and he became very confused because he simply reads numbers off the computer.

Notice a theme? Lots of confusion over numbers. I felt better knowing exactly what numbers were on the table, and I kept a very neat list on my pad of paper.

Ask a lot of questions

When I get going, I can ask a ton of questions. At the dealer, I read every document I signed, and when I did not understand a term, I asked for the definition. Surprisingly (or maybe it should not have surprised me), the salesman could not answer many of my questions. At one point, another salesman brought over a brochure to answer my questions, but the brochure just raised new questions, which the salesman had trouble answering. In the finance office, the guy could not answer some of my questions about the language of the contracts.

I had a small balance to pay (less than $2,500), and I wanted to pay with a credit card. Before signing papers, I wanted a guarantee that I could pay the entire balance by credit card with no fee or penalty. Since the salesman got frustrated and did not want me to write this condition into the contract, I pulled out a piece of paper and wrote a statement that I could pay the balance with a credit card with no penalty. He took me to his manager, who had to approve the statement. The manager then explained the policy: the maximum credit card charge allowed is $2,500. The salesman acted offended that I did not trust him, and I said, “It is business” (and I thought about telling him that he should have just told me the policy, but telling him that would not have accomplished anything, so I kept quiet). His manager agreed with me and signed my statement.

A new car warranty

Before going to the dealer, I had not done done any research on a new car warranty. Since the finance people guaranteed I could cancel with no penalty, I went ahead and got it. Of course when I got home though, I did some research and decided against a dealer warranty. Consumer Reports says not to get a dealer warranty and has analysis backing this up: how many people lost money (the vast majority), how much was lost on average ($100-300), and how many people came out ahead by buying the warranty (not many).

The tire/rim warranty could make sense for a person who gets a lot of flats. When I first learned to drive, I had a ton of flats because I kept hitting curbs on right turns. It would have been a good deal for me to get this plan. But now I don’t hit corners so much.

To cancel the warranty, I had to drive back to the dealer and wait 15 minutes to sign some paperwork.

This is a cool way to (effectively) earn more: Negotiate to work fewer hours and keep the same pay.

Emma did just this when, once again, she did not get a significant raise at her annual review. Emma works in a small office with a total of four employees. Her boss (the owner) said that though she deserved a raise and could make more money elsewhere, he just did not have the money to pay her more.

Emma was disappointed (again), but a few months later she thought to ask for shorter hours. Now she works 9:30 to 4 instead of 9 to 5. This leaves more time for enjoying life and time for part-time work.

This reminds me of advice I got when applying for jobs – negotiate the total compensation package, not the salary. benefits, and perks could make a so-so job Salary is not the bottom line of a job, things like extensive vacation, a flexible work schedule much more appealing. If the salary cannot budge (think small businesses and non-profits), think about what is more flexible.

Time for a new car?

Your current car is dead or nearly dead.

Your current car is “more car than you need.”

I am moving to a congested area. When we visited with my SUV, I dreaded parking in narrow spaces. Also, I do not need to haul much, and I hardly use the capacity of an SUV.

You’ve been a one car family, and with a job change or a move, you need two cars.

New baby? or all the kids have left home?

Selecting a car

Strictly by the numbers, used is the way to go. I have had one new car and one family hand-me-down. I am buying my next car new. Not all decisions are based solely on the numbers.

Minimum Requirements List. What do you absolutely need? What would be nice to have? If you are buying the car with a partner, what is on his/her list?

My list: small and easy to park, has an MP3 connection, 4 doors, decent gas mileage

Safety. Will children be riding in the car? Check government crash tests.

Compare costs. Figure out what you can afford and what you can expect to pay or negotiate. This information is available at a number of websites, such as Consumer Reports and KBB.

Gas. Before trading in your car to get a Prius or another car with better gas mileage, figure out if it will really save you money and consider that everyone else is thinking the same thing.

Insurance premiums. That red convertible is going to cost more to insure than a Toyota Corolla.

Financing

Lease or Buy. To buy a car, you can pay the total amount in cash, or make a down payment and take out a car loan with a fixed amount each month for up to 5 years. To lease a car, you may or may not need a down payment and have a monthly payment typically lower than the payment on a car loan. The catch is that the leased car must be returned after a set time, typically 3 years. To keep the car, a balloon payment is due, which could be half the price of the car. Strictly by the numbers, it is better to buy.

For a small minority, it makes sense to lease. If you know you will only be in the country for a few years and want a new car, it might make sense to lease. Going back in time three years, for some people it would have made more sense to lease rather than buy a large SUV. Car dealerships are writing down huge losses of SUVs coming off leases because they are being sold at much lower prices than was anticipated.

Down payment. When buying a car, you can get the best financing deals by making a large down payment. This could be pain in cash or by trading in your old vehicle.

Loans. To help you buy a car, a dealership will be ready to offer you a loan. Since some dealers offer loans at high interest rates, research current rates before you go (www.bankrate.com lists current interest rates). Banks and credit unions also offer car loans, for which you can be pre-approved before even picking out the exact car you want.

At the dealership

Shop around — pit dealerships against each other. This is easier with the internet because many dealers will give quotes through email.

Be prepared to walk away. This is not possible if you need the car yesterday, but if your current car runs fine, you can take your time negotiating.

If you are a woman, bring a man along. Sexist? Yes. Does it kill the feminist in me to say that? Yes. You do not need a husband or boyfriend (or even a father, though that is who I am taking) — any man will do.

My Car Shopping Experience

I am looking for a Honda Fit — it has four doors and is 1.5 feet shorter than most sedans (= easy to park). Most of the ‘08 models are sold, and dealers that have some in stock are charging over MSRP. Since there is little room to negotiate on these few remaining ‘08 models, I am waiting until the ‘09 models come out because I expect to get a better deal on an ‘09.

The vehicle I want to trade in (a low mileage 2006 Hybrid Ford Escape) is worth more than the vehicle I want to buy (2008/9 Honda Fit Sport). This is a funny situation because I expect the dealer to cut me a check. When shopping for an ‘08 model, a salesman offered me $500 in cash for the trade. But going by KBB, I could get $2,000 back (before state taxes).

As a graduation present to myself, I bought a 17″ MacBook Pro on the condition that I get a 25% discount (thank you to my friend who works at Apple!) and that I sell the 2 computers I already own — a 3-year-old iBook and a 2-year-old PC.

I decided to sell the computers (and an old iPod I thought I had lost but then found) on Craigslist. Craigslist is a website that hosts free classified ads.

A bragging aside: My brother used to frequent the same coffee shop as Craig himself. Apparently Craig is a friendly guy who likes coffee.

My favorite Craigslist joke: Everyone thinks Craigslist is the “list of a guy named Craig,” but in fact Craig’s full name is “Craig Slist.”

My successful sales:

• 2004 iBook - $450 (listed at $500)
• 2nd generation iPod with case (but no usb cable) - $50

Still trying to sell:

• HP Pavilion, 19″ LCD monitor, and a Hauppauge video thing (it lets you connect cable TV and record TV shows on the hard drive)
  • first listed at $600 OBO (OBO means “or best offer”)
  • lowered to $500 OBO
  • I might lower it again.

Tips for using Craigslist:

List ahead of time. Even if you are not moving for a few weeks, go ahead and list items. Buyers are frequently willing to wait if you need to keep a couch or bed for another week or two.

Don’t be intimidated. Twice, buyers have contacted me and said my price is ridiculously too high and out of line with what the item is selling for on eBay, at which point they offered less than half the asking price. In each case, I checked the going prices, and mine were reasonable. I respond politely by saying “Thank you for your interest, but I do not accept your offer.”

Watch out for scams and be careful. If anyone wants to wire you money, don’t accept it. I only accept payment in cash; twenties are preferable over hundreds. If I am home alone, I bring the item onto my porch and do not let the buyer into my home. By far, most of the people you meet will be nice and friendly, but there is no reason to risk it.

Be ready to negotiate. Plan what your absolute bottom limit is, and be flexible if you need the item to move quickly. If you are buying, always offer less than the listed price. As a rule of thumb, offer 10-20% less, but possibly more depending on the item. It annoys me when people say “Your price seems kinda high — what is the lowest you will accept?” Just make an offer.

Move on quickly. If someone says they will come at a certain time but does not show up, re-post or contact the next person who responds. When giving away a nearly-perfect spa (the motor needed a $100 repair, but an otherwise-equivalent new spa cost over $5,000), three successive people did not show up when they said they would. The fourth time was a charm.

If you are selling multiple items, open a Craigslist account. Each posting must be verified through your email account (Craigslist sends you an email, you click the link and verify the post). By opening an account, this step can be skipped.

Watch out for changing legislation. From a WSJ article Online Sellers Face New IRS Rules by Martin VAUGHAN

If you regularly sell items on online auction sites, you may find yourself on the Internal Revenue Service’s radar. Recent legislation aims to help the IRS collect more taxes from online enterprises, many of which either don’t know about their tax obligations or are ignoring them, according to the agency.

What is your favorite tip on buying or selling on Craigslist? What is the best deal you have found?

Any suggestions for me on selling the desktop?

This summer, a friend of mine, who I will call Jenny, needed to make some extra money to cover her tuition in the fall. Inspired by a class she took on goal setting, Jenny set the specific goal of how much she wanted to earn in the summer. Her job offer though, was less than she had hoped for and would not be enough to cover her upcoming education expenses.

Jenny called her supervisor and said that she had hoped to earn $2,000 more over the summer. Her supervisor responded positively and later came back offering even more than Jenny had asked for.

When you are considering short-term employment, figure out how much you need to make, but do not necessarily rule out positions that pay less. It may be possible to negotiate a higher salary, especially if the extra money is for educational expenses.

Where I worked the past few summers, there is a “summer wage cap” determining the maximum amount a person can be paid during July and August. Last summer I was making less than this cap, so I asked for and received the difference ($2,800) with no hassle.

If there is a maximum amount you can possibly be paid, ask for the maximum.

I told several colleagues about this, and, as far as I know, everyone who asked for the full summer wages got the increased wages approved immediately.