Consumer

Don’t Let Dealerships Mislead You About Cash for Clunkers

by Flexo on August 20, 2009

It’s debatable whether the Cash for Clunkers program, formally known as the “Car Allowance Rebate System” or the apt but unoriginal acronym “CARS,” will eventually be seen as successful either in terms of the economy or the environment, but it certainly has dealerships fired up.

While the dealers appreciate the customers — without Cash for Clunkers, customers would still be waiting in the wings — they are now concerned about not receiving the $3,500 or $4,500 rebate payments for the government. And it’s no wonder.

Only 225 of the 635 National Highway Traffic Safety Administration employees are currently processing 412,000 dealership claims for the credit.
The funding for the program may run out sooner than Labor Day. Update: I was right, the government announced Cash for Clunkers will end on Monday, August 24.
Up to 80% of some dealers’ applications are being rejected by the NHTSA due to incomplete paperwork.

CARS has become a massive marketing campaign, getting hundreds of thousands of customers through dealership doors. I’ve seen flatbed trucks transporting crushed clunkers on their way to clunker purgatory. The program is evidently popular, but there seems to be confusion between customers, dealerships, and the government. And as far as marketing campaigns go, it beats Ford’s “Why Ford? Why Now? Why Not?” campaign that seems to be an admission that no one can think of a reason to buy a Ford vehicle.

If you expect to use the Cash for Clunkers credit to your advantage, know your rights. Dealers are not allowed to ask customers to place a down payment as security against the credit. They are also not allowed to require customers to settle with the dealer if the government fails to approve the CARS application. You can find all the rules at the CARS FAQ, but here are some of the relevant items.

Question: A dealer has demanded that I sign an agreement that requires me to pay the dealer the amount of the CARS program credit if the dealer’s CARS program credit application is rejected. Am I required to agree to this?

Answer: NO. To participate in the CARS program, you do not have to sign an agreement to pay back the dealer the CARS credit amount if the deal is rejected.

Question: The dealer says that I should take my trade-in car home after I sign the purchase agreement for a new car under the CARS program, and that I can pick up my new car after the dealer is paid by the government. Can I do this?

Answer: NO. The dealer must take title to and possession of your trade-in vehicle in order to submit a credit for reimbursement under the CARS program. You may not keep possession of your old car.

Question: A dealer has demanded that I sign an agreement that requires me to pay the dealer if the credit application is rejected because I submit incorrect information regarding my name, residence address, driver’s license number, or the title to my trade-in car. Am I required to agree to this?

Answer: NO. However, be aware that to participate in the CARS program you must certify under penalty of law that all information you provide is true. If your CARS program credit is denied because of a false statement made by you, the dealer may take action to recover the money or vehicle regardless of whether you sign such an agreement.

Question: A dealer has demanded that I leave a signed check or credit card authorization in the amount of the CARS program credit that he will return to me if the credit application is approved, but keep if the credit application is rejected. Is the dealer allowed to do this?

Answer: NO. The dealer must reduce the price of the new vehicle by the credit amount. If a dealer has a check or credit card authorization given by you at the time of the sale, the dealer has not actually reduced the price as required by the CARS program. Take your trade-in to another dealer if a dealer makes this demand.

Question: A dealer has included in the purchase agreement a requirement that I return the new car or pay the dealer the amount of the CARS program credit if the CARS program credit application is rejected. Do I have to sign this in order to participate in the CARS Program?

Answer: NO. You are not required to sign an agreement like this to participate in the CARS Program. However, you may agree to such a term, but your choice to agree is between you and the dealer.

If you believe a dealer is acting outside accordance with the law, you can report them to the NHTSA by calling 1-866-CAR-7891.

Clunker traffic jam angers dealers, Rick Newman, US News & World Report, August 19, 2009.

{ 4 comments }

22 comments

How to Save Money at Baseball Games

by Flexo on August 19, 2009

I am not a very good baseball fan. I grew up with the Mets as the team of choice in my family although none of us were much into sports. This loyalty was solidified with the team’s World Series win in 1986 when I was ten years old, the prime age for baseball fandom. Now with a girlfriend who has lived her entire life practically next door to the Mets, I have returned to my old ways.

While remaining mostly cool, detached, and apathetic to baseball in general, I have to admit the sport is fun to watch. And that works for me because I don’t care about the losses; thus, I don’t get frustrated in what would normally, for a fan, be a very frustrating year.

The enjoyment of baseball relies on putting aside the fact that the sport — and perhaps all sports, or all forms of entertainment — is just a commercial. The baseball game is one long commercial for a variety of products and services. Every single aspect of the game is sponsored by a company that offers something for fans to buy. The true goal of these events which draw tens of thousands of spectators in person and millions via radio and television is not to entertain or enlighten. The true goal is to get you to part with your money.

And they do a very good job of this.

Last night, I attended a Mets game for the first time this year. The organization originally sold our seats to someone for $175 each. They came with wonderful, but expensive amenities, like access to a dining area. But we managed to save some money in some areas while missing others. Here are some things we did and some we could have done to save money at this Major League Baseball game, besides staying home and watching the game on television or listening on the radio.

Buy tickets secondhand. While our seats had a “face value” of $175, we waited until the last twenty-four hours to buy them through a second-hand ticket broker, StubHub. We saved almost $100 a ticket, paying what is much closer to what I believe to be a fair price for the experience. Our seats were excellent, a few rows behind the third base dugout. Fans are desperate to unload tickets they can’t use, so wait until the twenty-four hours leading up to the game and you’ll find better deals. These were likely someone’s season tickets, so they may not have paid full price either, but I do feel we got a good deal relative to what other seats cost.

Buy the cheapest seats. Every stadium has an option for the nosebleeds. With most games, you can buy the cheapest tickets but still find a way to see the game from a better location. There is usually an opportunity to move around, so don’t be afraid to perform a “manual upgrade” if you’re not infringing on anyone else’s enjoyment of the game and if you remain polite.

Take public transportation. We may be spoiled in New York. Public transportation to Mets and Yankees games is convenient. Parking at the stadium is an expensive hassle. I remember one time a few years ago it took two and a half hours just to get out of the Yankee Stadium parking garage onto the streets in the Bronx. Now I take the Long Island Rail Road to Mets games, and my girlfriend lives just blocks from a train station.

Bring your own drinks. For most fans, alcohol is part of the experience of being at a ball game. Alcohol must also be a way to cope with bad seats; in the past, I’ve noticed the worse our seats, the rowdier and drunker the surrounding fans. Anyhow, cut back the alcohol at the game and bring your own soda or water. Depending on the stadium, the security might let you bring in outside drinks or food.

Eat before and/or after the game. I tend to go into games hungry. This is a very bad idea for me, as I’m tempted to order and eat the junk food served at the stadium’s concession. Or even worse, if my seats include complimentary admission to one of the dining clubs, I might order food there. Either way, this food is very expensive. Consider a frugal tailgate at home before the game or in the parking lot and refrain from eating ballpark food.

Skip the souvenirs. Major League Baseball knows that the business of souvenirs is huge. Companies like New Era and Majestic Athletic pay significant licensing fees to the MLB in order to sell the “official” versions of sports merchandise, so they charge more for these “authentic” souvenirs. This is completely unnecessary for experiencing baseball.

Close your ears and eyes. Throughout the game, you are bombarded with marketing. There’s little you can do about this other than try to ignore it. Citi’s sponsorship of the Mets gave them naming rights on the stadium and all the ATMs are owned by Citibank. Pepsi has a significant presence at the stadium; its branding through signage is even larger than Citi’s and you won’t be able to find any Coca-Cola products at the game. Advertisers believe that the target audience for baseball is middle-aged men with greying hair; thus, Just For Men, a hair dyeing product, is featured prominently in the stadium and on broadcasts.

Anything that is featured, like the out-of-town scoreboard, the starting line-up, the call to the bullpen, or the play of the game, is attached to a sponsor. There is no way to escape this deluge of commercialism and fans have just grown to accept it. Even though you realize it exists, the association between baseball and these companies sticks consciously and subconsciously. I can guarantee that every one of these companies that sponsor a small piece of baseball has a counterpart that is just as effective or pleasant, but is less expensive because it doesn’t pay for massive sponsorship deals.

How do you save money at baseball games?

Photo: Flexo

{ 22 comments }

13 comments

My Grandmothers and the Cost of a Funeral

by Flexo on August 13, 2009

Ninety-three years is a long time to live. My paternal grandmother was that age when she passed away this past Saturday. I attended her funeral, a graveside service, earlier this week. She lived in Florida, but she was flown up to Long Island to be buried with her husband, who died in 1968.

A couple of weeks ago, my maternal grandmother entered hospice care, with the doctors offering a prognosis of days or weeks, maybe months, due to Parkinson’s disease and, I believe, complications after hip surgery. She lives in California and is in her mid-eighties, and since receiving the news I’ve been mentally and logistically planning to travel out to the west coast at any time with one day’s notice.

I was then surprised when I heard from my father this past weekend that his mother had also entered hospice care. While my mother’s mother continues to have bad days and somewhat better days but is surviving, my father’s mother passed away after one day. My family in Florida held a ceremony for her on Monday, and more family in New York was on hand on Tuesday for the burial. This quick pace is not uncommon; Jewish funerals typically occur quickly, without a wake or viewing.

Occasions like these often bring together distant relatives who have been out of contact, and this Tuesday was no different. It was great to see relatives and friends of the family I had not seen in decades and meet other friends and relatives.

I wasn’t involved in the financial aspects of this event, but it was apparent that a funeral can be a very expensive event. Despite the morbidity of the though, a funeral should be financially planned. In our case, the plot was purchased a long time ago, when prices were surely much lower than they are now. In my grandmother’s case, I would imagine the transportation from Florida to New York was the most expensive part of the day.

How much does a funeral cost?

The National Funeral Directors Association conducts a survey every year or so to gather information about the cost of funerals across the country. As you would imagine, the costs increase every year. The 2006 survey produced these averages for itemized funeral services:

Item	Price
Non-declinable basic services fee	$1,595
Removal/transfer of remains to funeral home	$233
Embalming	$550
Other preparation of the body	$203
Use of facilities/staff for viewing	$406
Use of facilities/staff for funeral ceremony	$463
Use of a hearse	$251
Use of a service car/van	$120
Basic memorial printed package	$119
Subtotal without Casket:	$3,940
Metal Casket	$2,255
Subtotal with Casket:	$6,195
Vault	$1,128
Total Cost	$7,323

The cemetery where my grandmother is now buried also has a yearly fee for keeping the plot tidy but has an alternative option for “perpetual care.” Perpetual care is a one-time fee, currently $2,000 at this particular cemetery, that covers trimming the hedges and other landscaping.

The Federal Trade Commission requires funeral directors to provide itemized prices for all services related to the funeral, so make sure you ask as many questions as possible.

Planning for a funeral

In 1968, when my paternal grandfather died, the average total funeral cost was $708; in 2006, the average total cost was $6,195.

One of the best ways you can help those you leave behind afford this expense, if you can manage to help, is to set aside money to care for the events surrounding your own death. In the real world, there are many things that can get in the way of this planning such as the cost of health care. Even though there are often financial obstacles as you age, any consideration will help your family.

The first thing you could do, if and when you have settled down to live in a certain area, is purchase a plot in a cemetery that fits your family’s tradition or religion. Buying the plot in advance will save money down the road as the cost of plots and practically everything else associated with a funeral increases at a rate higher than inflation.

If it is not offensive to you, or your religion, cremation is a less expensive option. Consider cremation if this is aligned with your personal values.

Don’t forget to comparison shop. If you want until it’s too late, there may be pressure to make decisions quickly. This increases the chances of spending money unnecessarily.

For those looking to cut costs on a funeral, Christopher Solomon has suggestions for planning a funeral for $800 or less.

Coming to terms with mortality

I never said William Shatner is a great singer. His first album, The Transformed Man, established his status in music history as not a great singer. But paired with Ben Folds for the more recent Has Been, he came up with the poignant “You’ll Have Time,” which reminds us all that we are going to die at some point. “Live life like you’re gonna die, because you’re going to…”

There’s never been a better reason to stop procrastinating.

{ 13 comments }

15 comments

Average Billing: Is it For You?

by Smithee on August 11, 2009

My electricity provider (which is Green Mountain Energy, because I’m an aspiring hippie), offers me the ability to make the same payment each month, based on the previous six months’ usage.

Here in Dallas, people require air conditioning for roughly nine months a year, so our average monthly billing is about $300. I won’t say that’s not a lot of money, but in previous years in leakier houses, we’d sometimes see bills over $550.

For me, it’s unlikely that I’d pay close enough attention to our bills to figure out what the average amount is and then set our budget accordingly. So we’ve had instances where the joint “bills account” had overdraft problems, which is just about the dumbest way to waste money.

I’d prefer it if we could get even more of our predictable monthly expenses billed on an average basis: groceries, haircuts, gasoline, lunch, you name it. For me, one of the keys to financial stability is not having to think about how much to spend.

Do you enjoy average billing for any of your utilities? Would you ever go back?

{ 15 comments }

17 comments

Cash for Clunkers: The Revenge

by Smithee on August 7, 2009

The “Cash for Clunkers” program that we told you about on June 19 has received a shot in the arm in almost-last-minute actions by the House and Senate. They approved an additional $2 billion to continue the unexpectedly popular rebate program through Labor Day.

Opponents of the program feel like:

Richard Shelby, the top Republican on the Senate Banking Committee, said the program “has squeezed months of normal activity” into a short period of time.

But NPR’s Planet Money pointed us to at least one couple who wouldn’t have bought a new car if it weren’t for the program.

And though rebates are reportedly difficult to process, dealers and automakers love the program:

“There is no question that ‘cash for clunkers’ has succeeded,” said Dave McCurdy, chief executive of the Alliance of Automobile Manufacturers, the chief trade group for General Motors Co, Chrysler LLC, Ford Motor Co, Toyota Motor Corp and other big carmakers.

Have you participated? If so, were you going to buy a new car, anyway?

“Cash for clunkers” gets a $2 billion boost, John Crawley, Reuters, August 7, 2009

{ 17 comments }

4 comments

Take Back the Beep Campaign

by Smithee on July 31, 2009

If you were to start adding a comment to this blog post, but we first made you wait fifteen seconds after pressing the “comment” button to make you hear some extraneous instructions, you’d be terribly frustrated. Now imagine if every Web site had the same problem, and imagine further that you were being charged for every second of time you spend online.

That’s basically the problem (well, one of the problems) with America’s big mobile phone companies. Anytime you want to leave a message for, say, a Verizon customer, you hear this:

At the tone, please record your message. When you have finished recording, you may hang up, or press 1 for more options. To leave a callback number, press 5.

We’ve heard these messages so much that we could all do bang-on impressions of them. For the most part, I usually just roll my eyes and my sense of the phone company’s collective intelligence goes down one more notch.

But David Pogue, technology columnist for the New York Times, sees a more serious problem: mobile phone carriers are using this extra-fifteen-seconds-per-call in a disgusting attempt to get more money from each of us. These seconds count towards our airtime usage. If you’re paying as you go, you see the problem right away. And even if you have a monthly plan, just four messages a month means a minute that you shouldn’t be using up.

But Mr. Pogue has an idea for fixing this (not to mention shocking data on how big the problem is). He’s started the “Take Back the Beep” campaign, wherein you and I send e-mails to the four biggest mobile phone companies, politely demanding that they quit this at-least annoying and at-worst money-grabbing activity. From the article:

cell executives admitted to me, point-blank, that the voicemail instructions exist primarily to make you use up airtime, thereby maximizing ARPU (Average Revenue per User)

If Verizon’s 70 million customers leave or check messages twice a weekday, Verizon rakes in about $620 million a year.

I’m heartened by stories that start out as a single complaint on Twitter, and end up getting a huge corporation’s attention, who is then obligated to rectify the matter. This should be even bigger than that. I took the time to send my complaint to AT&T. Won’t you?

Maybe if this is successful, we can then get mobile phone operators to admit that what we’re doing is just making phone calls, like we always used to do, and therefore, if you are the recipient of the call, you shouldn’t pay for it.

Take Back the Beep Campaign, David Pogue, The New York Times, July 30, 2009

{ 4 comments }

6 comments

Cash For Clunkers Suspended

by Flexo on July 30, 2009

Editor’s Note: This program is back on again and should be available through Labor Day, 2009

All good things must come to an end, and in some cases, prematurely. The “Cash for Clunkers” Program, or more formally, the Car Allowance Rebate System, has allocated almost all of its budget to rebates after only four days. The law called for the program to last until November 1 or until the funds are depleted, which ever condition occurs sooner, but I do not think there were many people who expected the funds to run out this quickly.

Consider yourself lucky if you were able to qualify for the program before it was suspended.

Car dealerships apparently saw active business this past weekend, and if all the funds were used up then the program was somewhat successful. While on the surface, Cash for Clunkers appeared to be a program designed to help consumers or to help the environment, but the real goal was to help dealers sell cars. It resulted in some short-term success despite setbacks due to the EPA’s recalculation of mpg, but we will have to wait for the car companies to report their finances to judge the success.

It’s also a possibility that Cash for Clunkers will come back. If the Congress decides the program is worth spending more money, we could see another Cash for Clunkers. And if we do, it might even improved to apply to more cars.

Update: While the Transportation Department called dealerships to tell them to stop accepting applications for Cash for Clunkers, the White House informed the public overnight that the program would continue. The House and Senate are now racing to re-authorize the program for another $2 billion.

{ 6 comments }

4 comments

EPA Disqualifies Shoppers From Cash for Clunkers Program

by Flexo on July 29, 2009